<p>Russia 101230</p><p>Basic Political Developments  Jan 1–10: New Year and Orthodox Christmas holidays  Dec 31: State Duma closes autumn session  Moscow regrets that Pyongyang developing uranium program – diplomat o RUSSIA EXPECTS NORTH KOREA TO RETURN TO NONPROLIFERATION REGIME - RUSSIAN FOREIGN MINISTRY o MOSCOW CALLS ON TWO KOREAS TO STOP ANY MILITARY ACTIVITY AND TO LAUNCH DIALOGUE - RUSSIAN FOREIGN MINISTRY o RUSSIA INSISTS ON URGENT CONVENTION OF SIX-PARTY TALKS, IT COULD TAKE PLACE NEXT YEAR - FOREIGN MINISTRY  Gryzlov to sign agt on coop between Duma and Cuba’s NA  Tbilisi Condemns Russian Military Drills in Akhalgori o Georgian Foreign Ministry expresses protest due to military exercises held by Russian occupation troops in South Ossetia  Georgia cannot enter NATO without settling relations with Russia - Nino Burjanadze, former speaker of the Georgian parliament and leader of the opposition party Democratic Movement - United Georgia, said Georgia has a chance of restoring its relations with Abkhazia and South Ossetia with Russia's help.  Belarus eyes cheaper Russian gas in 2 months-Ifax o Belarus and Russia may discuss the gas price for 2011 in 1.5-2 months  Kyrgyz PM believes Kyrgyz-Russian joint company must supply fuel to American airbase o Almazbek Atambayev: Question about American airbase withdrawal from Kyrgyzstan was not raised at the meeting with Russian PM  Kuril issue should not hamper Moscow-Tokyo ties - Russian diplomat o Four Russian ministers to visit Kurils - Sakhalin Region Governor Alexander Khoroshavin stated that the Russian ministers for defense, transport, regional development and education, and science would visit the disputed islands, Japan's Daily Yomiuri newspaper reported Wednesday.  Polish air force commander forced landing in fog – expert  U.S. concerns over Khodorkovsky verdict no obstacle to cooperation with Russia o Khodorkovsky, Lebedev misled auditors - court verdict o Court finds Khodorkovsky, Lebedev guilty of fraud o Judge keeps Khodorkovsky waiting for sentence o Khodorkosvky, Lebedev: verdict to be continued o Russia's ex-oil tycoon Khodorkovsky says 'doesn't care' o Court to resume reading of Yukos case verdict on December 30  Russia to pay over 700 million euros for first Mistral helicopter carrier - source o Russia choosing docks for Mistral  Russia sends humanitarian aid to flood-hit Colombia  Serbia/Russia: Dacic to visit antiterrorist unit - The celebration will be attended by First Deputy Prime Minister and Minister of the Interior Ivica Dacic and Russian Ambassador to Serbia Alexander Konuzin…Konuzin will hand over Lukoil’s donation of 10 tonnes of diesel fuel.  Estonian, Russian Regional Governments Embrace Cooperation - A 2010 transborder cooperation program between Estonian and Russian municipalities has proved so successful that it is no longer only attracting border towns, but also those from deeper within the country.  Tver region authorities to help families of plane crash victims  Medvedev inks bill keeping low insur premiums for some small cos  Medvedev to combat foreign drug dealers  Horseback drug traffickers to stand trial in South Siberia  New Moscow mufti appointed - The chairman of Russia's Central Spiritual Muslim Board, Talgat Tajuddin, has issued a decree appointing his first deputy and Chuvashia Mufti Albir Krganov as head of the Muslim Spiritual Board for Moscow and the center of Russia. Krganov, who represents Russia's Muslims at the Russian Public Chamber, will continue performing the duties of Chuvashia's mufti.  Police kill militant, defuse bombs in Dagestan  Ethnographist gunned down in Kabardino-Balkaria  Soyuz to be launched from Kourou - The first launch of a Russian Soyuz carrier rocket from Kourou, in French Guiana, is to be implemented by August 2011. This is per a statement by the head of the group Arianespace, Jean-Yves Le Gall.  Official reminds Russian air passengers about right to moral compensation o Moscow airports function as usual, no delays o Russian Ministry Says 21,205 People Remain Without Electricity o Some 20,000 people remain without power supplies in Moscow Reg  Nationalists on Red Square at New Year - A rallying call on the LiveJournal page of Vladimir Tor, a leading light in the Movement Against Illegal Immigration (DPNI) exhorts ethnic Russians to turn out in force on Red Square, as many Caucasians, says Tor, will be there with obscene slogans.  Russian Press - Behind the Headlines, December 29  Gazeta.ru: Freedom under the Christmas tree - Belarusian authorities have released all the Russians remaining under arrest in Minsk’s detention centers after being arrested following an opposition protest on the night of the December 19 presidential elections. They were all supposed to celebrate the New Year’s Eve in jail, as they were due to be released in January, 2011.  Vedomosti: A reset in Europe - While continuing the reset process with the United States, which in 2010 led to the ratification of two long-awaited documents by the US Congress – the 123 Agreement for Peaceful Nuclear Cooperation and the Strategic Arms Reduction Treaty (START-3) – Russia has also achieved success in Europe.  Rossiskaya Gazeta: The team of the year National Economic Trends  Russia May Sell 300 Billion Rubles of OFZ Bonds in First Quarter  Russian banks' correspondent accounts up to 973.8 bln rbls, deposit accounts up to 314.8 bln rbls-cbank  Russia's central bank operations with banking sector in surplus of 150.9 bln rbls  Moscow draws from the federal budget credit of up to 15 billion rubles.  Russia to strive toward free-floating rouble – premier  Russia may use non-tariff measures to protect car industry after joining WTO - Putin  Finance minister estimates 2011 budget deficit, inflation </p><p>Business, Energy or Environmental regulations or discussions  Russian coal output in January to November up by 6pct YoY  Alrosa’s rough diamond production for 2011: 34,438,000 carats  UPDATE 1-Berkeley, Severstal fail to agree bid terms  Magnit retailer, MAN sign truck deal  Inter RAO Woos E.ON, RWE, Enel, Close to Bulgarian Deal  VTB hikes up stake in TransCreditBank  Rusnano places three bond issues  War and Peace - and war: Norilsk Nickel-RUSAL epic continues</p><p>Activity in the Oil and Gas sector (including regulatory)  Hungary, Russia Divided on Surgutneftegas Mol Stake, Index Says  PGO to check Transneft's use of funds during pipeline construction  Matra Petroleum plc Announces Sokolovskoe Production Licence Award  QPI set to sign deal for LNG project in Russia  2011 Auction Price For Kovykta's Rights Set As TNK-BP Explores Deal With ONGC</p><p>Gazprom  Gazprom: gas prices in Russia may grow by 15%, it is unpleasant, but inevitable  Gazprom sees gas price for Europe rising in 1Q 2011  No reduced gas for Belarus  Shell, Gazprom May Expand Sakhalin LNG by 2015, Governor Says  Gazprom looks east to Japan's market</p><p>------</p><p>Full Text Articles</p><p>Basic Political Developments Jan 1–10: New Year and Orthodox Christmas holidays http://www.prime-tass.com/news/calendar/_Russian_calendar_Key_events_for_Dec_30/- 103/%7B1F05F0DB-8396-4D30-B8E1-BCD83FD79290%7D.uif</p><p>Dec 31: State Duma closes autumn session http://www.prime-tass.com/news/calendar/_Russian_calendar_Key_events_for_Dec_30/- 103/%7B1F05F0DB-8396-4D30-B8E1-BCD83FD79290%7D.uif</p><p>December 30, 2010 11:41</p><p>Moscow regrets that Pyongyang developing uranium program – diplomat http://www.interfax.com/newsinf.asp?id=213137 MOSCOW. Dec 30 (Interfax) - Moscow regrets that Pyongyang is continuing to develop its uranium nuclear program, Russian Deputy Foreign Minister Alexei Borodavkin said. "By our estimates, unfortunately, this program runs counter to the statements adopted at the six-party talks in September 2005 and UN Security Council resolutions," Borodavkin said at a press conference in Moscow. He acknowledged, however, that North Korea is certainly entitled to develop its civilian nuclear program. va dp 12/30 11:32 RUSSIA EXPECTS NORTH KOREA TO RETURN TO NONPROLIFERATION REGIME - RUSSIAN FOREIGN MINISTRY http://www.interfax.com/newsinf.asp?id=213137</p><p>11:51 MOSCOW CALLS ON TWO KOREAS TO STOP ANY MILITARY ACTIVITY AND TO LAUNCH DIALOGUE - RUSSIAN FOREIGN MINISTRY http://www.interfax.com/news.asp</p><p>11:51 RUSSIA INSISTS ON URGENT CONVENTION OF SIX-PARTY TALKS, IT COULD TAKE PLACE NEXT YEAR - FOREIGN MINISTRY http://www.interfax.com/news.asp</p><p>Gryzlov to sign agt on coop between Duma and Cuba’s NA http://www.itar-tass.com/eng/level2.html?NewsID=15828243&PageNum=0 30.12.2010, 10.32 HAVANA, December 30 (Itar-Tass) -- Head of the lower chamber of the Russian parliament Boris Gryzlov will sign an agreement on cooperation between the State Duma and the National Assembly (NA) of Cuba. Gryzlov arrived in Havana for an official visit to hold talks with representatives of the Cuban leadership. The visit of the State Duma chairman will be a logical conclusion of the year of the 50th anniversary of the restoration of diplomatic, ambassador of the Russian Federation to Cuba Mikhail Kamynin told Russian journalists. Besides, according to him, the planned signing of an agreement on cooperation between the State Duma and the National Assembly will be an important moment in the development of inter-parliamentary interaction between Russia and Cuba. According to Kamynin, in the outgoing year, a great amount of events held in Cuba were devoted to Russia. They once again confirmed the great potential of friendship and solidarity existing in relations between the two countries. Besides, as Kamynin said, they showed that interaction between Moscow and Havana today is of ever growing strategic character and is directed at the future. “Ties between the legislative bodies of our countries are of great importance and harmoniously supplement the active level of contacts in other fields,” the diplomat stressed. </p><p>Tbilisi Condemns Russian Military Drills in Akhalgori http://www.civil.ge/eng/article.php?id=23002</p><p>Civil Georgia, Tbilisi / 30 Dec.'10 / 12:09 The Georgian Foreign Ministry said on December 29, that Russian military exercises in Akhalgori district at the administrative border of breakaway South Ossetia were yet another provocation. It said that on December 26 a military convoy of 40 Russian armored vehicles was deployed in Akhalgori – the main town of the district, which before the August 2008 war was under the Georgian authorities’ control. The next day, it said, eight armored vehicles were deployed at the village of Akhmaji in the vicinity of the Georgian police post. After holding military exercises behind smoke screen, they returned to Akhalgori where they are still stationed, the Georgian Foreign Ministry said. It expressed “strong protest” over these actions and said it was “an obvious violation of the universally recognized norms and principles of international law and the 12 August 2008 ceasefire agreement.” Georgia also called on the international community “to make Russia give up its provocations aimed at destabilizing the situation in Georgia, undertake a commitment on the non-use of force against Georgia and ensure full de-occupation of the territory of Georgia in the shortest possible terms.”</p><p>Georgian Foreign Ministry expresses protest due to military exercises held by Russian occupation troops in South Ossetia http://en.trend.az/news/politics/1805516.html</p><p>30.12.2010 10:13</p><p>Georgia, Tbilisi, Dec.30 / Trend, N.Kirtskhalia / Georgian Foreign Ministry expressed protest in connection with the military exercises held by the Russian occupation troops in the Akhalgori district (South Ossetia). "On 26 December 2010, a military column of 40 armoured vehicles of the Russian occupation troops entered Akhalgori from Tskhinvali," Georgian Foreign Ministry stated. "On 27 December, 8 armoured vehicles were deployed at the village of Akhmaji, in the vicinity of the Georgian police station. They held military exercises behind the so-called smoke screen, after which they returned to Akhalgori where they are still based," Georgian Foreign Ministry's statement says. The statement says that since Russia's aggression that took place in August 2008 and the resulting occupation of the Georgian territories, Russia has been grossly violating the major norms and principles of international law as well as the undertaken bilateral and multilateral international commitments including all paragraphs of the 12 August 2008 Ceasefire Agreement. "Georgian Foreign Ministry expresses its strong protest over Russia's aforesaid actions representing an obvious violation of the universally recognized norms and principles of international law and the 12 August 2008 Ceasefire Agreement and calls on the international community to make Russia give up its provocations aimed at destabilizing the situation in Georgia, undertake a commitment on the non-use of force against Georgia and ensure full de-occupation of the territory of Georgia in the shortest possible terms," the statement says.</p><p>Georgia cannot enter NATO without settling relations with Russia Today at 08:54 | Interfax-Ukraine Nino Burjanadze, former speaker of the Georgian parliament and leader of the opposition party Democratic Movement - United Georgia, said Georgia has a chance of restoring its relations with Abkhazia and South Ossetia with Russia's help. </p><p>"We can restore our relations with Abkhazia and South Ossetia with Russia's help. However, no dialogue with Russia will take place at the official level if Georgia is led by Mikheil Saakashvili," Burjanadze told reporters on Wednesday.</p><p>Burjanadze also said Georgia "received a subtle warning at the latest NATO summit in Lisbon that it cannot hope to enter NATO as long as conflicts continue on its territory and its borders remain undetermined."</p><p>"We can't enter NATO until we resolve our relations with Russia, and it's a reality that many people in Georgia don't want to see and admit," Burjanadze said. </p><p>Read more: http://www.kyivpost.com/news/russia/detail/93850/#ixzz19a8eukSu Belarus eyes cheaper Russian gas in 2 months-Ifax http://www.reuters.com/article/idUSLDE6BT09Y20101230</p><p>3:34am EST MOSCOW, Dec 30 (Reuters) - Belarus hopes to reach an agreement with Russia for a lower gas price in 1.5-2 months, Belarus first deputy prime minister Vladimir Semashko was quoted as saying by Interfax news agency on Thursday. This almost guarantees that Russia and Belarus will avoid a New Year standoff that in the past led to Russian energy supplies cuts to Europe. (Reporting by Vladimir Soldatkin; editing by Alfred Kueppers) </p><p>Belarus and Russia may discuss the gas price for 2011 in 1.5-2 months http://rian.ru/economy/20101230/315350485.html</p><p>GOOGLE TRANSLATION 30/12/2010 12:00 MINSK, December 30 - RIA Novosti. In Belarus and Russia to resolve the issue of gas price in 2011 in 1.5-2 months, said First Vice Premier of Belarus Vladimir Semashko reporters in Minsk on Thursday. "We have to address this issue there is no hurry. We can do that at least another six to eight weeks. The first payment for Russian gas supplied in January, comes in the twentieth of February," - said Semashko. "We are already on 1 January, the first of the three states (the Customs Union - ed.) Reach of equal price. Appropriate treatment to Russia, made at different levels," - he added. As reported on Wednesday an official representative of Gazprom spokesman Sergei Kupriyanov, the agreements to lower gas prices for Belarus in 2011 is now gone, the reality of a single economic space (SES) will be included in contracts for 2012-2013. The contract between Gazprom and Beltransgaz for 2007-2011 states that in 2008-2010 for Belarus are reduction factors to the price of gas, and since 2011 Belarus is expected to reach a price level that ensures equal yield with deliveries to Europe . As noted by the deputy chairman of Gazprom, Valery Golubev, in 2011 the reduction factor is equal to unity, and the price of gas for Belarus will be 230 dollars per thousand cubic meters. In 2010, the average price of Russian gas for Belarus is 187 dollars. Belarusian Vice-Premier Andrei Kobyakov this week said that Minsk and Moscow are "difficult" negotiations on gas prices in 2011. He did not specify the position of the Belarusian side, recalling only that Russia committed itself to enter the equal profitability of domestic and external prices for natural gas by 2015. This is stipulated in the agreement on the rules of access to natural monopolies, signed in the framework of the CES. In this case, the trajectory of transition to equal income rates in 2012-2014 may be different, noted Kobyakov. General Director of Beltransgaz Vladimir Mayorov informed that Belarus and Russia plan to sign an additional agreement to the basic contract for the supply of gas in 2011. Kyrgyz PM believes Kyrgyz-Russian joint company must supply fuel to American airbase http://eng.24.kg/community/2010/12/30/15644.html</p><p>30/12-2010 10:38, Bishkek – 24.kg news agency , by Daniyar KARIMOV Almazbek Atambayev, Kyrgyz Prime-Minister, believes that Kyrgyz-Russian joint company must supply fuel to American airbase. “There is agreement that state company is to supply 50 percent of fuel to airbase,” he said. “This is huge achievement, as money will go to budget.” “We will deal with Mina Company, which still supply kerosene to Manas airbase,” underlined Almazbek Atambayev. “We know Bakieyv’s family is behind it. Corruption schemes must be broken. We will press for transparent schemes of fuel supplies to the interests of Kyrgyzstan.” “I think it will be right if Russia party is joined to airbase fuel supply, as Gazprom is the main supplier of kerosene. It will be logical to open joint company on the basis of fuel- supply complex Manas,” Almazbek Atambayev said. URL: http://eng.24.kg/community/2010/12/30/15644.html</p><p>Almazbek Atambayev: Question about American airbase withdrawal from Kyrgyzstan was not raised at the meeting with Russian PM 30/12-2010 09:51, Bishkek – 24.kg news agency , by Daniyar KARIMOV “Question about American airbase withdrawal from Kyrgyzstan was not raised at the meeting with Russian PM,” Almazbek Atambayev, Kyrgyz Prime-Minister, said at today’s press-conference. “During year 2010 I met with Vladimir Putin 7 times and discussed different question,” he said. “During the last meeting we discussed how to help Kyrgyzstan. We agreed all these questions to be solved within one and half months, hold session of intergovernmental commission and form road map, the map of actions, required for fulfillment of all good intentions.” According to Almazbek Atambayev, new Kyrgyz Cabinet of Ministers is supported in Russia due to political will of Vladimir Putin and good will of Russia government. URL: http://eng.24.kg/politic/2010/12/30/15642.html</p><p>12:00 Kuril issue should not hamper Moscow-Tokyo ties - Russian diplomat http://www.interfax.com/news.asp</p><p>Four Russian ministers to visit Kurils http://world.globaltimes.cn/europe/2010-12/607154.html Source: Global Times [08:43 December 30 2010] By Li Ying Four members of the Russian Cabinet are planning to visit the South Kuril Islands early next year to investigate ways to develop the region, per a request by Russian President Dmitry Medvedev. Sakhalin Region Governor Alexander Khoroshavin stated that the Russian ministers for defense, transport, regional development and education, and science would visit the disputed islands, Japan's Daily Yomiuri newspaper reported Wednesday. After Medvedev's visit to the Kurils in November, "the situation changed quickly," Khoroshavin said, as quoted by the Daily Yomiuri. Wan Chengcai, the director of Russian foreign policy studies at the State Council Development Research Center, told the Global Times that a joint project between Russia and Japan would serve both of their interests, economically. "Russia needs leading technology from Japan to enhance its gas and oil development infrastructure, and Japan needs the energy," Wan said. According to a report carried by Xinhua News Agency, gas production in Sakhalin, Russia's "Far East," will reach 25.3 billion cubic meters in 2011, and oil production will amount to 14.9 million tons. Tokyo's obstinacy may have a boomerang effect because the longer the dispute, the fewer chances it will have to get what it wants, the Voice of Russia said Tuesday after Japan rejected a proposal by Medvedev to create a joint economic zone on the Kurils with Russia. "Tokyo knows that its chances of getting the northern territories back are just reducing as the dispute drags on," Wan added. "However, it helps the Japanese government ease tensions among Japanese citizens."</p><p>Polish air force commander forced landing in fog – expert http://english.ruvr.ru/2010/12/30/38274958.html</p><p>Dec 30, 2010 09:43 Moscow Time A decision to land Polish president’s Tu-154 plane in fog was made not by the pilot but by the late Polish Air Force Commander Andrzej Blasik, a former military pilot Robert Latkowski told the TVN 24 TV channel. He said the crew had to land under commander’s pressure. The investigation proved there were not only pilots in the cockpit. Polish president’s plane crashed near Smolensk on April 2010, killing the president and 95 top officials. Russia and Poland are investigating. U.S. concerns over Khodorkovsky verdict no obstacle to cooperation with Russia http://en.rian.ru/world/20101230/161990457.html Concerns expressed by the U.S. administration over the guilty verdict to Russian ex-oil tycoon Mikhail Khodorkovsky will not prevent the two countries from strengthening their cooperation, U.S. Acting Department Spokesman Mark Toner said. A Moscow court announced on Monday a guilty verdict to Khodorkovsky, once Russia's richest man and seen as a political threat to Prime Minister Vladimir Putin, and his business partner Platon Lebedev. The two men, who have already spent seven years in jail for fraud and tax evasion from their 2005 trial, face up to seven more years in prison as the court found them guilty of embezzlement and money laundering in the second case initiated in 2007. The term of the new sentence is expected in a few days' time, when Judge Viktor Danilkin finishes reading the full 250-page verdict. After the court announced its guilty verdict, the Obama administration issued a statement saying it was "deeply concerned" over the ruling, which "undermines Russia's reputation as a country committed to deepening the rule of law." Russia reiterated by saying that comments from the West were an "unacceptable attempt to exert pressure on the court." "This second trial and the guilty verdict for Mikhail Khodorkovsky and Platon Lebedev obviously raises questions in our mind about what we'd say – what we call the apparent selective application of the law to these individuals," Toner told a press briefing in Washington when asked to comment on the issue. "We are also troubled by the allegations of serious due process violations and what appears an abusive use of the legal system." "Fundamentally," he said, the United States had "concerns about human rights in Russia," and was going to "continue to raise those concerns openly with the Russian Government." At the same time, differences between the countries on some issues do not prevent them from developing cooperation in other spheres. "We've got a very frank and candid relationship with Russia. We have areas on which we disagree, and there are also areas where we can work constructively together," he said adding that the new arms reduction treaty between Russia and the United States was a "great example of that." "So I don't believe – no, I don't believe it [the Khodorkovsky issue] is going to be detrimental," he said. The United States Senate last week ratified the new arms cuts treaty with Russia, with a vote of 71 for and 26 against. The agreement, which is seen as a major foreign policy victory for both U.S. President Barack Obama and his Russian counterpart Dmitry Medvedev, will come into force after ratification by both houses of the Russian parliament. The new treaty, to replace the START 1 agreement that expired in December 2009, was signed by the two presidents in April in Prague. It trims the Russian and U.S. nuclear arsenals to a maximum of 1,550 nuclear warheads, down from the current ceiling of 2,200. A top Russian senator said earlier this week that Russia's upper house of parliament, the Federation Council, may ratify the new deal on January 26. WASHINGTON, December 30 (RIA Novosti)</p><p>12/30 11:07 Khodorkovsky, Lebedev misled auditors - court verdict http://www.interfax.com/news.asp</p><p>Court finds Khodorkovsky, Lebedev guilty of fraud http://www.focus-fen.net/index.php?id=n238247</p><p>30 December 2010 | 10:29 | FOCUS News Agency Home / World Moscow. Moscow court ruled that Russia's ex oil-tycoon Mikhail Khodorkovsky and his associate Platon Lebedev have received positive reports from auditors through frauds, Interfax reports. “The court judged that Khodorkovsky and Lebedev, together with other people in an organised group, have received positive reports from audit companies,” judge Viktor Danilkin said. At the moment the court presents the materials and evidence on the trial.</p><p>Judge keeps Khodorkovsky waiting for sentence Today at 10:26 | Associated Press The judge in the case against jailed Russian oil tycoon Mikhail Khodorkovsky finished his third day of reading the verdict Wednesday without announcing the new sentence. </p><p>The judge said Monday that Khodorkovsky had been found guilty and since then has been speed-reading the verdict, a summation of the trial that runs to hundreds of pages.</p><p>The sentence is to be announced last, which Khodorkovsky's lawyers expect to occur by the end of the week, before the start of Russia's 10-day New Year's holiday.</p><p>Khodorkovsky, 47, is in the final year of an eight-year sentence after being convicted of tax evasion, and the new conviction on charges of embezzlement and money laundering could keep him behind bars for several more years.</p><p>The legal attack on Khodorkovsky and the state takeover of his Yukos oil company have been seen as punishment for challenging the power of Vladimir Putin early in his presidency, including by funding opposition parties in parliament and publicly questioning appearances of Kremlin corruption.</p><p>Putin, now prime minister and still Russia's most powerful leader, clearly has not forgiven the former oligarch. He recently called Khodorkovsky a thief and said he should sit in jail.</p><p>Prosecutors accused Khodorkovsky and his business partner Platon Lebedev of stealing nearly $30 billion worth of oil from Yukos' production units and selling the oil abroad at market prices. The defense called the accusations ridiculous, arguing that prosecutors do not understand the oil business, including the payment of transit fees and export duties.</p><p>One of the defense lawyers, Yelena Liptser, said Wednesday that much of the judge's verdict was copied from the indictment and the prosecutors' final arguments.</p><p>"That is why we continue to hear totally absurd remarks and, frankly speaking, we are surprised that he hasn't deleted the most improbable stuff from the verdict," she told reporters. "We are discussing how we are going to appeal against the verdict and, naturally, waiting for the sentence that he is going to pass on our defendants."</p><p>Wednesday's session included at least one glitch. While reading the verdict in an impossibly fast monotone, Judge Viktor Danilkin suddenly stopped and said he had read one page by mistake, but he did not explain which one or why. The judge's reading also put one of the prosecutors to sleep for several minutes.</p><p>Khodorkovsky and Lebedev, who attend the court sessions locked in a glass cage that their lawyers call the "aquarium," occasionally exchanged glances with family members sitting in the front rows.</p><p>"They understand everything, that in this kind of system there is no hope for them, so they have decided to uphold their honor until the end," said Khodorkovsky's mother, Marina.</p><p>Police blocked off the street in front of the courthouse to prevent demonstrators from gathering outside. About a block away, a man stood with a poster of Khodorkovsky and handed out leaflets to interested passers-by, but when two women approached him at the same time he urged them to move on quickly. Pickets by a single person are permitted, but he feared that any kind of gathering would give the police officers standing nearby a pretext to detain him. The guilty verdict was widely condemned in the West as being driven by politics rather than the rule of law. The criticism, however, only angered Russia's government, which pointedly told the U.S. and Europe to mind their own business. </p><p>Read more: http://www.kyivpost.com/news/russia/detail/93854/#ixzz19a8vwebV</p><p>Khodorkosvky, Lebedev: verdict to be continued http://english.ruvr.ru/2010/12/30/38286855.html</p><p>Dec 30, 2010 11:05 Moscow Time A Moscow court continues to hand down its guilty verdict to Russia’s ex oil-tycoon Mikhail Khodorkovsky and his associate Platon Lebedev on Thursday. Only half of the document has been read out by this time. The businessmen are accused of embezzling and laundering some 500 mln rubles and 7.5 bn dollars in 2006 through Khodorkovsky’s Yukos oil corporation. Earlier, the judge Viktor Danilkin called Yukos a criminal holding and found testimony by the head of Sberbank German Gref and Russia’s Minister of Industry Viktor Hristenko to substantiate the tycoons’ guilt. Prosecution demands 14 years in jail . If the court fails proclaims its verdict this year it will be rescheduled for 2011.</p><p>Russia's ex-oil tycoon Khodorkovsky says 'doesn't care' http://en.rian.ru/russia/20101230/161993113.html Day four of the verdict, and jailed oil tycoon Mikhail Khodorkovsky says he "doesn't care" when his sentence will be delivered. "In my situation, I don't really care," Khodorkovsky, once Russia's richest man turned martyr to the cause of freedom, said when prompted by a court bailiff escorting him into the courtroom after expressing hopes out loud that Khordorkovsky's sentence would be delivered by December 31 so that he could enjoy New Year's celebrations. In his final address in November, Khodorkovsky said it was "all the Russian people" who were "standing trial." Judge Viktor Danilkin found Khodorkovsky, 47, and his business partner Platon Lebedev, 54, guilty of stealing from their former oil firm Yukos and laundering the proceeds in a second trial on Monday. The two men have already spent seven years in jail for fraud and tax evasion from their 2005 trial. The term of the new sentence is expected later today or early tomorrow, when Danilkin finishes reading the full 250-page verdict in the most significant trial since the collapse of the Soviet Union. The charges are widely viewed as trumped up and ordered by Prime Minister Vladimir Putin to punish Khodorkovsky for funding the liberal opposition in the early 2000s, when Russia's man of action was president. MOSCOW, December 30 (RIA Novosti)</p><p>Court to resume reading of Yukos case verdict on December 30 http://www.itar-tass.com/eng/level2.html?NewsID=15827754&PageNum=0 30.12.2010, 02.15 MOSCOW, December 30 (Itar-Tass) - Moscow’s Khamovniki Court on Wednesday adjourned the reading of the verdict in the case against former YUKOS CEO Mikhail Khodorkovsky and his business partner Platon Lebedev, who were found guilty of thefts of oil and laundering of sale proceeds. The court is due to resume the verdict announcing on Thursday, December 30. "The session is over for today; we'll resume at 10 o'clock in the morning," judge Viktor Danilkin said. Wednesday was the third day of the reading of the verdict. The judge has been analyzing the prosecutors' evidence to motivate his conclusion on the defendants' guilt. He will also give his evaluation to the evidence presented by the defense. As the reading of the verdict began on Monday, the judge said Khodorkovsky and Lebedev were guilty of stealing 218 million tons of oil from producing companies and laundering the sale proceeds worth 487 million roubles and 7.5 billion dollars. At the same time, the court dropped certain criminal charged against the defendants due to the statute of limitation. Lebedev’s lawyer Konstantin Rivkin referred particularly to the episode concerning the theft of Eastern Oil Company (VNK) shares. On Monday, Danilkin read the introductory and descriptive parts of the verdict, detailing the crimes of which the defendants had been accused of, and began to analyze the evidence. "Khodorkovsky and Lebedev's guilt is proven by the evidence the court examined during the inquest," Danilkin announced. According to the verdict, Khodorkovsky and Lebedev acted within an organized group, being it leaders. The group was noted for consolidated, precise, and well-organized actions. The court regards the dividends paid to the shareholders as remuneration to group members of abetting crimes. The verdict underlined that after the opening of the first criminal case and the arrest of Khodokovsky and Lebedev, the members of the criminal group continued complex financial operations to mislead the investigators and keep the bulk of the money. To lend a legal appearance to their activity, Yukos asked PricewaterhouseCoopers, a prestigious company, to conduct an audit. According to the verdict, Yukos supplied to it unauthentic documents in order to conceal violations and irregularities. Vindicating his statements, the judge cited an oil-stealing scheme retrieved from a hard disk of a computer in one of Yukos' offices in the countryside. The sale of oil was effected through commissioners, with Khodorkovsky and Lebedev controlling the movement of crude. This enabled them to quickly adjust it depending on the circumstances. Using numerous dummy firms and bank loans, the money derived from sales of oil assumed "a legal appearance." The defendants placed the stolen money on the accounts of firms that did not seem to be belonging to Yukos, according to the judge. "The court arrives at the conclusion that Khodorkovsky and Lebedev managed company assets as if they belonged to them, without taking into account the opinion of other shareholders," Danilkin underlined. Earlier, he analyzed the protocols of general meetings of sharehildsers, contracts of sale/purchase of oil, the verdict for Khodorkovsky and Lebedev passed by Moscow's Meshchansky court in 2005 and the verdicts for other Yukos employees. Danilkin dwelt on the testimony of witnesses, including Savings Bank chairman German Gref and Minister of Industry and Trade Viktor Khristenko, saying that it proved the defendant's guilt. The judge was skeptical about Khodorkovsky and Lebedev's claims of innocence. Soon after learning that the court was passing a guilty verdict, the lawyers of Khodorkovsky and Lebedev said they would appeal. The prosecutors refused to comment on the substantive provisions of the verdict, which set the jail terms. In May 2005, Moscow's Meshchansky Court found Khodorkovsky and Lebedev guilty under several articles of the Russian Criminal Code, including fraud and tax evasion and sentenced them to nine years in prison. Later the Moscow City Court commuted the term to eight years. Since the prison term begins from the time a person has been put in custody, Lebedev’s term under the verdict of the first criminal case will end in July 2011, and Khodorkovsky’s in October 2011. The court was examining the second case for more than 18 months. </p><p>Russia to pay over 700 million euros for first Mistral helicopter carrier - source http://en.rian.ru/mlitary_news/20101230/161991515.html 08:21 30/12/2010 Russia will pay France approximately 720 million euros for its first Mistral-class helicopter carrier for its Navy, a source close to the negotiations process told RIA Novosti on Thursday. At the initial stage, two Mistral-class helicopter carriers will be built jointly by France and Russia at the STX shipyard in Saint-Nazaire, France. Another two will be constructed later at the Admiralty Shipyards in St. Petersburg. "The cost of the first ship will be 720 million euros, the second will cost 650 million euros," the source said. Russian President Dmitry Medvedev told his French counterpart Nicolas Sarkozy last week over the phone that France had won the tender to build amphibious assault ships for Russia. The winner is a consortium comprised of French DCNS and Russia's United Shipbuilding Corporation (USC), the Kremlin press service said. The first Mistral-class ship is expected to be built within 36 months after Russia makes an advance payment scheduled for January 2011. Russia had previously held talks with France on the purchase of Mistral-class warships on a 2+2 scheme whereby Russia would buy one or two French-built Mistrals and build another two under license at home. A Mistral-class ship is capable of transporting and deploying 16 helicopters, four landing vessels, up to 70 armored vehicles including 13 battle tanks, and 450 personnel. MOSCOW, December 30 (RIA Novosti) Russia choosing docks for Mistral http://english.ruvr.ru/2010/12/30/38289133.html Dec 30, 2010 11:13 Moscow Time Russia is choosing docks to construct Mistral-class helicopter carriers. France wants 700 mln euros to build the first ship and 650 mln for the second, as it will construction joined by Russia. The parties signed an agreement to construct two Mistral-class carriers in France’s Saint -Hazaire and two in Russia, under license. </p><p>Russia sends humanitarian aid to flood-hit Colombia http://en.rian.ru/world/20101230/161991235.html A Russian emergencies ministry plane has delivered 26 tons of humanitarian aid to Columbia to help the country tackle the consequences of heavy rains that killed and injured hundreds, local RCN Radio reported. The Il-76 plane carrying 50 tents, 2,000 blankets, two portable electrical power plants, five pumps and more than 500 kilograms (1,100 pounds) of medicines landed in Colombia on Wednesday, the Russian ambassador, Vladimir Trukhanovsky, said in an interview with the radio station. The humanitarian aid sent to the Latin American country is a "sign of the Russian people's readiness to extend a helping hand to Colombia in this difficult period," he said A total of 301 people have been killed and 292 have been injured as a result of massive landslides caused by downpours, and 62 people remain unaccounted for. The disaster destroyed more than 5,000 houses were damaged other 324,000. A total of 1.32 million hectares of agricultural land have been flooded. The damage from the flooding, the worst to hit Colombia in 40 years, is estimated at $518 million. The country's government has already spent $5.3 million to eliminate the consequences of the disaster. MEXICO CITY, December 30 (RIA Novosti)</p><p>Dacic to visit antiterrorist unit http://www.emg.rs/en/news/serbia/143205.html 30. December 2010. | 08:47 Source: Emg.rs Members of the Antiterrorism Unit (PTJ) will mark the end of this year at 11.00 on 30 December in the unit’s base, Barajevski put bb, Lipovica. Members of the Antiterrorism Unit (PTJ) will mark the end of this year at 11.00 on 30 December in the unit’s base, Barajevski put bb, Lipovica. </p><p>The celebration will be attended by First Deputy Prime Minister and Minister of the Interior Ivica Dacic and Russian Ambassador to Serbia Alexander Konuzin. </p><p>Konuzin will hand over Lukoil’s donation of 10 tonnes of diesel fuel.</p><p>Estonian, Russian Regional Governments Embrace Cooperation http://news.err.ee/politics/94bc45e1-e7d3-4614-bfd0-2e6de534175d Published: 10:50 A 2010 transborder cooperation program between Estonian and Russian municipalities has proved so successful that it is no longer only attracting border towns, but also those from deeper within the country. "It seems that cooperation between Estonian and Russian municipalities is a good strategy. And thanks to that, both societal and business initiatives will benefit," said Aleksandr Volkov, chief of the Strugi Krasnyie region in Russia. On the southeastern Estonian border, regional leaders believe developing relations with the Russian side in the Pihkva region can help save communities on the countryside and slow mass migration to urban areas, reported ETV. Regional cooperation has grown significantly since the initiation of an Estonian-Latvian-Russian transborder investment program, which is helping municipalities pool millions of euros. "Communities that are still here can work together, and transborder cooperation is very exciting because it involves different cultures. They can offer us something, and vice versa," said Kaido Kõiv, the municipality elder of Valgjärve.</p><p>Tver region authorities to help families of plane crash victims http://www.itar-tass.com/eng/level2.html?NewsID=15827880&PageNum=0 30.12.2010, 04.04 TVER, December 30 (Itar-Tass) - The administration of Russia's Tver region said it would provide comprehensive support to the families of the Tver pilots killed in the An- 22 plane crash in the Tula region on Teusday evening. "Each family is entitled to financial assistance. The regional welfare department is working on a range of measures to support the fatalities' families, at the instruction of regional governor Dmitry Zelenin. They might be offered "professional certificates" for possible retraining, as well as monthly payments," an official at the Tver region administration told Itar-Tass. The An-22 carrying the main and reserve crews of 12 people flew from Voronezh to Tver at 20:50, Moscow time, on Tuesday. It disappeared from radar screens at 21:23, Moscow time. The crash site was found near the village of Krasny Oktyabr. One of the flight data recorders has already been found, the Investigation Committee (SK) told Tass. It was handed over to members of the state commission. Military investigators are continuing the probe into the criminal case over the An-22 crash. "The investigators are continuing the inspection of the crash scene of the An-22 belonging to military transport aviation. The fragments of bodies found at the scene were prepared for transportation for a forensic examination. "All the flight and technical documents are being retrieved," the SK said. The investigators are questioning senior military officers and technical personnel over flight organization issues. The eyewitnesses of the crash have been identified and questioned. The list of fatalities was used to ascertain the relatives for subsequent work with them as representatives of the injured parties. A large group of investigators was set up to probe the criminal case. It includes experts of four military investigation departments from the Tula, Tver, Ivanovo and Voronezh garrisons, aside from representatives of criminal investigation offices within the SK's central department of military investigation bodies for the Moscow Military District. According to the SK, the size of the crater at the crash scene measured 20 meters in diameter and was 5 meters deep. Plane fragments are scattered within 700 meters from the crash site. Heavy equipment is on the way to scene of the accident in order to help extract from earth larger fragments. On Wednesday, First Deputy Defense Minister Vladimir Popovkin said all the pilots aboard the crashed Antei had died. "The plane entered the earth almost vertically. Nobody had any chances to survive," Popovkin told Tass by telephone. The Tver region officials and legislators have conveyed their condolences to the victims' families. The victims are Major Andrei Belov, Major Sergei Soldatov, Captain Sergei Smorchkov, Captain Roman Silenok, Captain Igor Slinkov, Captain Dmitry Kharitonov, Captain Sergei Nevidimov, Captain Dmitry Domashin, Captain Yuri Karpukhin, Captain Marat Baitulov, Captain Yevgney Ivanov and Captain Boris Kondratyuk. The fatalities were aged 26 to 44. Ten of them are survived by their children aged 1 to 15.</p><p>Medvedev inks bill keeping low insur premiums for some small cos http://www.prime- tass.com/news/_Medvedev_inks_bill_keeping_low_insur_premiums_for_some_small_co s/0/%7B9AC56540-A9A7-4E03-B91D-088254EFE37E%7D.uif MOSCOW, Dec 30 (PRIME-TASS) -- Russian President Dmitry Medvedev has signed into law a bill seeking to keep the rate of insurance premiums for small businesses operating in the production sector and social services unchanged for a period of two years, the Kremlin’s press service reported late Wednesday. In his state of the nation address on November 30, Medvedev called to keep the rate for such companies at 26%. The Russian government plans to increase premium rates for other businesses to 34% in 2011 from the current 26%.</p><p>Medvedev to combat foreign drug dealers http://english.ruvr.ru/2010/12/30/38274603.html</p><p>Dec 30, 2010 09:30 Moscow Time Russia’s President Dmitry Medvedev has signed a decree allowing to deport foreigners or people with no citizenship involved in drug dealing. A provision in this respect will enter Russia’s Offences Code . The measure had to be taken, as recently foreigners have been actively involved in drug trafficking to Russia.</p><p>Horseback drug traffickers to stand trial in South Siberia http://en.rian.ru/crime/20101230/161992486.html</p><p>10:16 30/12/2010 BARNAUL, December 29 (RIA Novosti) - A district court in South Siberia will hear a criminal case against a group of Russian and Kyrgyz nationals who attempted to smuggle raw opium across the Russian border by horse. A resident of South Siberia's Altai Territory was caught in early 2010 while transporting about 15 kg of raw opium across the Russian-Kyrgyz border on the back of his horse. Police later detained two Kyrgyz nationals and one local resident apparently related to the border incident. One of the detainees, whose identity was not disclosed, was on Interpol's wanted list for drug trafficking in Kyrgyzstan. The man was carrying three Kyrgyz passports with varying information and was apparently planning to receive Russian citizenship to oversee his business in Russia.</p><p>30 December 2010, 11:11</p><p>New Moscow mufti appointed http://www.interfax-religion.com/?act=news&div=8069 Moscow, December 30, Interfax - The chairman of Russia's Central Spiritual Muslim Board, Talgat Tajuddin, has issued a decree appointing his first deputy and Chuvashia Mufti Albir Krganov as head of the Muslim Spiritual Board for Moscow and the center of Russia.</p><p>Krganov, who represents Russia's Muslims at the Russian Public Chamber, will continue performing the duties of Chuvashia's mufti.</p><p>He was ordered to call a session to register the charter of the regional Muslim spiritual board.</p><p>Moscow's new mufti is married and has three children.</p><p>Krganov oversaw the construction of more than 40 new mosques in Chuvashia, which also has a madrasah and well-established contacts between the local authorities and representatives of traditional faiths.</p><p>Krganov told the Interfax-Religion on Thursday that at the new post he would take measures to promote dialogue between the authorities and representatives of traditional faiths, build a new mosque and a residence of the Russian Central Muslim Spiritual Board in Moscow, improve work with young Muslims, as well as "use my authority to maintain and strengthen peace and stability in the region." </p><p>Police kill militant, defuse bombs in Dagestan http://en.rian.ru/russia/20101230/161992562.html Police have defused three bombs after killing a militant in Russia's North Caucasus republic of Dagestan, a spokesman said on Thursday. R. Aliyev was killed after police blocked a group of militants in a house in the Dagestani capital of Makhachkala earlier on Thursday, the spokesman said. It is not clear how many militants were holed up in the house. Police then defused three improvised explosive devices equivalent to 15 kilograms of TNT that they found in the house. MOSCOW, December 30 (RIA Novosti)</p><p>Ethnographist gunned down in Kabardino-Balkaria http://www.itar-tass.com/eng/level2.html?NewsID=15827745&PageNum=0 30.12.2010, 01.48 NALCHIK, December 30 (Itar-Tass) - A well-known ethnographer was shot to death in the village of Shalushka, Chegem district, Kabardino-Balkaria, on Wednesday, the regional department of the Investigation Committee (SK) told Itar-Tass. "Two unidentified men called AslanTsipinov, 51, to come out of his house, and opened fire at him with a 9-mm pistol. The scientist died on the spot," the SK said. Criminal proceedings were opened over "murder," and "illegal turnover of weapons." </p><p>Soyuz to be launched from Kourou http://english.ruvr.ru/2010/12/30/38270049.html</p><p>Dec 30, 2010 09:08 Moscow Time The first launch of a Russian Soyuz carrier rocket from Kourou, in French Guiana, is to be implemented by August 2011. This is per a statement by the head of the group Arianespace, Jean-Yves Le Gall. The certification of the launch complex for Russian rockets is to be completed during April, at that point the first launch preparations will begin. In 2011, at least two launches of the Soyuz musty be completed from Kourou. In the future there will be from 2 to 4 launches a year.</p><p>Official reminds Russian air passengers about right to moral compensation http://www.itar-tass.com/eng/level2.html?NewsID=15827882&PageNum=0 30.12.2010, 00.43 MOSCOW, December 30 (Itar-Tass) - Passengers of the flights that have been stuck at Moscow's Domodedovo and Sheremetyevo airports since last Sunday and who have arrived at their destinations should remember that they have the right to demanding the compensation for moral damage, Gennady Onishchenko, the chief of the consumer rights watchdog agency Rospotrebnadzor said Wednesday. "By the New Year, all our passengers will get to the festive dinner tables after suffering losses in business, the losses of nerve cells, poor mood, and dwindling faith in the merits of our civil aviation," Onishchenko said. "Yet it's important to build appropriate legal relations among all the people involved in the process of rendering services," he said in an interview with the Rossiya 24 channel. It is important for the airlines in this situation to realize that responsibility is inevitable and that it can be financial as much as criminal, Onishchenko said. "The passengers were treated in this situation like a biological mass of some kind," he said. "No one organized delivery of food or freshwater to them, as required by the federal rules for delays of commercial flights and no one offered hotels to them." As for the tourists, Onishchenko believes they will not be able to file claims against the airlines "because a tourist doesn't buy an air ticket." "As a tourist, he or she buys tourist products including sightseeing tours and airfares rather than just air tickets." "The tourists can file lawsuits against tour operators who in their turn must compensate for the bulk of the damage and feel the real economic pains of the situation," Onishchenko said. "Tour operators should take their customers' side," he said adding however that "the best of what they'll offer right now will be sympathy." Earlier in the day, the speaker of the upper house of Russian parliament, Sergei Mironov, described the chaos at Domodedovo and Sheremetyevo and the situation with the thousands of passengers stranded there as an instance of piggishness. "What was happening at the Domodedovo and Sheremetyevo airports over the past three days was an instance of piggish treatment /of passengers -- Itar-Tass/," Mironov told the Rossiya'24 news channel. According to him, the main problem was the absence of any information for the passengers. The airlines simply seemed to have forgotten that passengers form the main source of their revenues. "People were driven into despair because there were neither meals nor places where to take rest, and what's most abhorring, no one cared to offer explanations or to give information," Mironov said. He rebuked the airlines for "never forgetting to include additional fees or surcharges /into the airfares -- Itar-Tass/ but as soon as the situation concerns responsibility before people or elementary human involvement and politeness, they turn into blind walls." "They've learned how to grab money along market principles, but unfortunately they haven't learned how to be responsible to and to respect their customers," Mironov said. "It's important to see now if operation licenses should be revoked from some companies and if they deserve the status of passenger carriers," he said. "As for now, the situation will dispel and the passengers will fly away, and is there any guarantee against some other natural calamity that may bring about the same kind of treatment of the people?" </p><p>Moscow airports function as usual, no delays http://english.ruvr.ru/2010/12/30/38274862.html</p><p>Dec 30, 2010 09:41 Moscow Time All of the Moscow airports are functioning as usual on Thursday. There no more delayed Aeroflot flights at Sheremetyevo after a nearly four-day havoc wreaked by bad weather. Sheremetyevo’s official spokeswoman Anna Zakharenkova blamed flight disruptions on lack of de-icing fluid. More than a hundred flights were delayed at Sheremetyevo since Sunday. Domodedovo, Russia’s largest airport, suspended more than 200 flights in the past few days after icy rain snapped power supply lines, causing blackouts. Russian Ministry Says 21,205 People Remain Without Electricity http://www.businessweek.com/news/2010-12-30/russian-ministry-says-21-205-people- remain-without-electricity.html December 30, 2010, 2:18 AM EST By Paul Abelsky Dec. 30 (Bloomberg) -- Residents in the Moscow region continued to face power outages after disruptions caused by freezing rain on Dec. 26, leaving 21,205 people in 140 towns without electricity as of 6 p.m. yesterday, the Russian Emergency Ministry said on its website. OAO MRSK Holding, which manages Russia’s interregional power distributors, aims to restore power by 6 p.m. tomorrow, Chief Executive Officer Nikolai Shvets told Prime Minister Vladimir Putin at a government meeting yesterday. To contact the editor responsible for this story: Paul Abelsky at [email protected]</p><p>Some 20,000 people remain without power supplies in Moscow Reg http://www.itar-tass.com/eng/level2.html?NewsID=15828180&PageNum=0 30.12.2010, 10.05 MOSCOW, December 30 (Itar-Tass) -- Emergency teams have been restoring electric power supplies for the fifth day in the Moscow Region. The electric power supplies were disrupted by the freezing rain overnight to Sunday. “Some 140 settlements with 21,205 residents remain without electric power supplies in the Moscow Region, the Ministry of Emergency Situations reported on Wednesday evening. Their number is much lower than 400,000 residents, who remained without heating and electric power supplies on the first day of an emergency situation, but their number is too high, since people left without electric power supplies had to spend four days in frozen flats, some local executives failed to provide water and food supplies and heated premises. Meanwhile, power utilities and authorities gave optimistic forecasts all these days, but they were proved untrue again and again. They promised to restore electric power supplies on Tuesday, Wednesday and finally on Thursday, but in the last case with a remark, “If the weather does not cause more difficulties.” The weather caused new difficulties, as the cyclone went from the Black Sea in the Moscow Region. “High winds and snowfalls hamper power utility workers to remove trees and branches and repair the electric power lines,” the press service of the Moscow United Electric Power Grid Company reported. A total of 233 electric power transformer substations were reconnected by 6 p.m. Moscow time on Wednesday, but 3,171 substations remain disconnected. At a government presidium meeting on Wednesday Russian Prime Minister Vladimir Putin banned ministers and governors to go on vacations, because they should restore electric power supplies in several regions. The premier demanded to present daily reports to him on the cleanup of the aftermath of the emergency situation. “The situation is difficult, but not disastrous, our task is to prevent the situation from growing into a catastrophe,” Putin pointed out. This task can be accomplished, “if all work jointly,” he remarked. Governor of the Moscow Region Boris Gromov, who participated in the meeting, pledged that electric power supplies will be restored by 6 p.m. Moscow time on December 30 in the region. Meanwhile, the chief executive of the Interregional Distribution Power Grid Company, which incorporates the Moscow United Power Grid Company, Nikolai Shvets, reported to the prime minister that electric power supplies will be restored completely by 6 p.m. Moscow time on December 31. “We are planning to restore electric power supplies by the New Year eve, but if we fail to do it, we will spend the New Year night repairing the electric power supplies,” Shvets pledged. </p><p>Nationalists on Red Square at New Year http://themoscownews.com/local/20101230/188316823.html by Tom Washington at 30/12/2010 10:52 A call has gone out to nationalists to gather on Red Square on New Year’s Eve, after an official announcement that the square will be open for business. Plain clothes policemen will also be patrolling, after talks with skinhead groups and promises of good behaviour. A rallying call on the LiveJournal page of Vladimir Tor, a leading light in the Movement Against Illegal Immigration (DPNI) exhorts ethnic Russians to turn out in force on Red Square, as many Caucasians, says Tor, will be there with obscene slogans. Open for business “Earlier reports in the press, that on the night of Dec.31 through to Jan.1 the main square of the country will be closed to citizens, do not correspond to reality,” Police chief Viktor Biryukov told RIA Novosti. All will be calm Biryukov quashed reports from sources in the security forces, saying that this New Year would see unprecedented levels of policing. “Nothing out of the ordinary will happen, no nationalist crime, no outbreaks of an extremist nature,” police general Vycheslav Kozlov told gzt.ru He said that the only planned gathering was a meeting on Triumfalnaya Ploshchad in front of the Peking hotel at 6.00 pm. Nonetheless, the sources said that there will be some special measures in place, including plain clothes policemen on Red Square on New Year’s Eve. Officers from different departments will be on duty, gzt.ru reported. Police and nationalists find common language Tor told gzt.ru that the DPNI organised a meeting with Kozlov, on the movement’s initiative, which lasted about 40 minutes. Representatives of the nationalists said they were worried that New Year would be marred by ethnic clashes and said that they condemn calls to burn the Koran, as they make the situation difficult to control. Kozlov assured them that the police could suppress any disturbances.</p><p>Russian Press - Behind the Headlines, December 29 http://en.rian.ru/papers/20101230/161991917.html</p><p>09:09 30/12/2010 © RIA Novosti. Rybchinskiy POLITICS Nezavisimaya Gazeta is summarizing the results of the Year 2010 in Russia. Main political, economic, social and cultural events of the year. (Nezavisimaya Gazeta) Why have only Mikhail Khodorkovsky and Platon Lebedev been brought to trial over oil- related “crimes,” while many other businessman commit similar offences and remain at large? (Novaya Gazeta) Russia President Dmitry Medvedev put the fight against corruption high on his agenda. But investigation into the resonant case involving German auto giant Daimler AG is still not concluded. Russia is on a list of 22 countries in which bribes were allegedly paid by the company in return for securing lucrative contracts for officials for the purchase of Daimler vehicles. (Vedomosti) BUSINESS Deals worth $15 million have been concluded on Russia’s consumer market in 2010. PepsiCo, which is planning to buy a 66 percent stake in Russia’s beverage company Wimm-Bill-Dann for $3.8 billion, is set to break the record among non-oil and gas companies. (Vedomosti) While Russian energy giant Gazprom has been selling core assets and lowering expected extraction figures for the next year, another company, Novatek, has emerged as a new player on Russia’s gas market. (Vedomosti) A blast at a BP’s rigging platform in the Gulf of Mexico did not sink the company. BP is gradually recovering from the crisis. (Vedomosti) Almost all large Russian providers of Internet and satellite TV services have been put on sale. Possible purchasers make generous proposals. (Vedomosti)</p><p>SOCIETY The Russian authorities have moved to reorganize the work of Moscow airports following a transportation collapse that hit the Russian capital earlier this week. More than 20,000 passengers were stranded at Moscow airports as freezing rain led to major power outages. (Rossiiskaya Gazeta, Izvestia) Russian President Dmitry Medvedev has signed a bill toughening regulations for the civilian use of arms following an increase in killings and thefts in Russia. (Rossiiskaya Gazeta) Tens of thousands of Moscow region residents are likely to celebrate New Year’s Eve in darkness and without hot water. Power outages caused by an ice storm that hit the entire territory of Central Russia over the weekend have still not been eliminated in many towns and villages across the region. (Izvestia) The departing year, shadowed by December’s nationalist riots in Moscow, has shown that interethnic tensions remain in place in Russia. (Izvestia)</p><p>Gazeta.ru: Freedom under the Christmas tree http://rt.com/politics/press/gazeta-ru/minsk-release-arrested-russians/en/ Published: 30 December, 2010, 09:23 Edited: 30 December, 2010, 09:23 Ekaterina Savina, Maria Zheleznova Minsk decided not to aggravate relations with Moscow and release from jail everyone, who was arrested on the night after the presidential election, early – before the New Year’s Day and expiration of their sentence. The Consular Office has already purchased them a train ticket to Moscow and they will return home on December 30. Refusal to release the Russians would have sparked some serious tensions in the relations between the two states, say experts. Belarusian authorities have released all the Russians remaining under arrest in Minsk’s detention centers after being arrested following an opposition protest on the night of the December 19 presidential elections. They were all supposed to celebrate the New Year’s Eve in jail, as they were due to be released in January, 2011. “All Russian citizens, arrested on December 19 in Minsk, have been released regardless of the term of their sentence,” representatives of the Belarusian Interior Ministry’s Citizenship and Migration Department told Interfax-West on Wednesday. As was explained by the Department, “For now, the deportation procedures will not be applied to the Russian citizens in question. We will work with each person individually." By the evening of December 29, nine Russian citizens remained under arrest in the Belarusian detention centers – they all were sentenced to 15 days of administrative arrest by the Minsk’s courts. Earlier today, two Russians were released after serving their 10- day sentence. One of the activists of Solidarity’s Moscow Division, Anastasia Rybachenko, who had been sentenced to 15 days in jail, told Gazeta.Ru that instead of serving the remaining five days she will be forced to pay a fine – the size of which Rybachenko does not know. She did not go to court, where her sentence was supposed to be changed. “At that time, I was in the detention center of the Minsk District Office of the Ministry of Interior,” said Rybachenko. “When the people, who served their 10-day term, were being released, I, just like they, was told to hand in my sheets. Then they announced that we were being released without any explanations.” At the detention center, she was met by representatives of Russia’s Consular Office. “They bought me a train ticket to Moscow. I’m leaving tonight,” said Rybachenko. She has not yet met other Russians who had been released. While serving time at the detention center, the young woman had caught a cold and even went on a hunger strike to protest the poor incarceration conditions, but after being moved to a different cell and meeting with a representative of the Russian Consular Office, she started eating. Information about the release is being confirmed by the Russian Ministry of Interior. The Ministry’s official statement reads that “as a result of the efforts made, we were able to ensure an early release for the nine Russian citizens who were held under administrative arrest in Minsk’s detention facilities on charges of taking part in an illegal mass protest on December 19.” The diplomats are referring to the continuous official appeals made by the Ministry of Interior to their Belarusian colleagues, first, with a request to allow staff members of the Russian Consular Office in Belarus to have access to the arrested individuals, and then – asking for an early release to be granted to the Russians, as well as a phone call, made by Russia’s Deputy Foreign Affairs Minister, Grigory Karasin, to the Belarusian ambassador in Russia. This did not prevent the Belarusian court from refusing on Monday to free all the Russians, who filed a request for an early release. Today, more than 400 people remain under arrest in the Belarusian detention centers since the presidential elections, including five former presidential candidates and two dozen well-known members of the opposition. Twenty-six Belarusians were accused in organizing mass disturbances, the maximum sentence for which is 15 years. This was a political decision, says Belarusian political analyst Yury Shevtsov: an early release of Russians means that the Belarusian authorities decided not to intensify the conflict with the Kremlin – the two countries’ relations have just normalized prior to the elections, after President Aleksandr Lukashenko and Dmitry Medvedev’s meeting at the CIS Summit in Moscow. “Russians were, apparently, tested by being accused (in organizing disturbances), and there was no evidence against them,” says the analyst. “If they had not been released, there would have been some nervousness about the fact that such heavy charges could have been brought against the Russians, which could have, in turn, resulted in a political conflict between Belarus and Russia, because the individuals accused in organizing disturbances could have been regarded as a weapon in the hands of the people, protected by the government, who have made an attempt to organize a coup in Belarus. This would have been a very dangerous situation in the bilateral relations.” But now, says the expert, following the detainees’ release, there is no longer a reason to advance the conflict. © Autonomous Nonprofit Organization “TV-Novosti”, 2005 - 2010. All rights reserved. </p><p>Vedomosti: A reset in Europe http://rt.com/politics/press/vedomosti/reset-europe/en/ Published: 30 December, 2010, 05:14 Edited: 30 December, 2010, 05:17 Polina Khimshiashvili While continuing the reset process with the United States, which in 2010 led to the ratification of two long-awaited documents by the US Congress – the 123 Agreement for Peaceful Nuclear Cooperation and the Strategic Arms Reduction Treaty (START-3) – Russia has also achieved success in Europe. </p><p>The year had passed in anticipation of the November NATO summit in Lisbon, in time for which the Alliance was formulating a new strategic concept, and Russia, which was invited to hold the Council of Russia-NATO meeting at the level of heads of state – was preparing its view on the missile defense project. As a result, Russia was removed from the list of threats to NATO and was offered to participate in the creation of the global Ballistic Missile Defense (BMD) system. President Dmitry Medvedev responded with a proposal to develop a joint sectoral missile defense system. The Wall Street Journal cites NATO diplomats as saying that Russia’s proposal did not arouse much excitement. But, Russia did allow NATO to transport cargo through its territory into Afghanistan. </p><p>A shift has been noted in the northern direction. In March, for the first time in 10 years, a Swedish prime minister visited Moscow. The government of Fredrik Reinfeldt, who is a sharp critic of the human rights situation in Russia, had in 2009 approved the Nord Stream pipeline construction through the Baltic Sea, and in the spring, was already talking about increasing mutual investments. In the summer, the 40-year-old dispute with Norway over the continental shelf in the Barents Sea, which was divided in “the good neighborly spirit” – across the median line, was resolved, while the heads of state had, as they traditionally do, talked about the inadmissibility of a military presence on the Arctic shelf. </p><p>In December, a rare guest arrived in Moscow – Latvian President Valdis Zatlers. Prior to that, he attended the May 9 Victory Day Parade on Red Square, but this was the first time in five years that the Latvian leader made an official visit to Russia. No ground-breaking documents were signed, but the tone of the relations became warmer. </p><p>The Victory Day Parade was attended by Bronislaw Komorowski, the newly elected president of Poland, relations with which have this year been developing in accordance with the saying: “If it wasn’t for bad luck, there wouldn’t be luck at all”. The crash of Tu- 154 with the late President Lech Kaczynski on board, which happened near Smolensk and was followed by a joint investigation of the catastrophe, the early election victory of Komorowski, a pragmatist, and Russia’s proposal to transfer the Katyn archives and State Duma’s acknowledgement of Stalin’s responsibility for the shootings of Polish officers, made the Russian president’s December visit to Poland – which was the first in the last eight years – a success. Despite the fact that the parties stated that disagreements, including historic, remain, Poland is ready to become Russia’s supporter in Europe and promote a joint agenda in the EU. On December 28, Warsaw asked the EU to abolish the visa requirements for Kaliningrad residents visiting Poland. </p><p>Easing visa requirements was a traditional topic of discussion at two Russia-EU summits, and despite the fact that Russia had proposed a concrete plan of action, no decisions on this matter were made. But the EU had agreed to Russia’s accession to the WTO, which should make the signing of a new basic agreement easier. Institutional reforms in the European Union have not yet led to the emergence of a single policy, thus Russia is developing relations, including the priority Partnership for Modernization program, in a bilateral mode. The economy continues to be the driving force of relations between Russia and Great Britain, though the new Foreign Secretary, William Hague’s, fall visit to Russia had underscored the disagreements on the issues of human rights and the “Litvinenko case”. © Autonomous Nonprofit Organization “TV-Novosti”, 2005 - 2010. All rights reserved. </p><p>Rossiskaya Gazeta: The team of the year http://rt.com/politics/press/rossijskaya-gazeta/team-year-putin-medvedev/en/</p><p>Published: 30 December, 2010, 07:35 Vladimir Kuzmin, Kira Latukhina In late December, the head of government usually heads to the Government House on Krasnopresnenskaya Embankment in order to summarize the year-end results. While keeping true to tradition, yesterday President Dmitry Medvedev arrived to meet with his ministers. </p><p>“I, of course, came to wish you a happy New Year. This is always a pleasant thing. We need to, sometimes, say nice things to each other as well,” he addressed the ministers. While underscoring the government’s role in such a country as Russia, President Medvedev had firstly noted that this is the type of body which needs to work non-stop. Some day, the Cabinet of Ministers could, perhaps, start working on only the strategic tasks. But for now, for various reasons, it also has to address issues that, technically, need to be the responsibility of the regional leadership. </p><p>Therefore, the government’s contributions to this year’s events are significant. For the Russian economy, this year has been generally favorable. Even despite the isolated nuances, noted the president, all in all this was a year of economic recovery. “The fact that this year went according to this scenario is a direct achievement of the government, which was engaged in effective management of the economy,” the president said, pointing out the successes of the Cabinet of Ministers. “With this output trend, it was important not to lose control of the situation.” </p><p>And that did not happen. The number of the country’s unemployed was reduced by two million people. And, we managed to reach acceptable GDP indicators. </p><p>The summer’s drought did not allow us to reach higher results. It had provoked the high rise in inflation but, generally, said Medvedev, it did not reach double digits.</p><p>The banking system was fully stabilized, and refinancing rates are the lowest they have been in the entire modern history of Russia. For most people these are, seemingly, insignificant indicators. But, the president stressed that the things that people are generally concerned with – namely, social programs – largely depend on the financial sector. And we managed to retain its full volume. </p><p>“We are not ashamed to look people in the eyes, because those social obligations, which I had made as president, which were made by the government – have been met,” said Dmitry Medvedev. </p><p>However, many problems remain. “It is necessary to address various issues, starting with the industrial market stabilization, development of agricultural projects and ending with macroeconomic variables,” the head of state told the ministers. </p><p>The president is also concerned with the country’s investment climate, which he had already addressed a day earlier at a meeting on economic issues, as well as yesterday during a meeting at Sberbank. “There are very few positive changes here,” Medvedev said yesterday. </p><p>“We need to finally do away with crisis developments in the economy, and develop the non-financial sector. Modernization of the economy remains an extremely important area of focus,” stressed the president. “We cannot continue developing within the paradigm of natural resource development – even considering the fact that oil and gas make up a significant portion of our budget revenues.” </p><p>In the end, Dmitry Medvedev had once again stressed that he considers this to have been a good year for Russia’s socio-economic life, but hopes that next year will be even more successful. The auditorium was filled with ministerial applause, and Prime Minster Vladimir Putin stepped forth with a response. </p><p>“On behalf of the members of the government, I would like to thank you for the positive assessment of our work. Indeed, we have things to be proud of,” the premier said, agreeing with the presidential assessments, and cited the falling unemployment level and reduction of the number of people living below poverty levels. </p><p>Meanwhile, the head of the Cabinet of Ministers acknowledged that, in regard to certain issues, the government could work faster and, at times, even more efficiently. “We all understand this, and we would like to thank you and the presidential administration for the fact that we have worked closely together,” Putin said, addressing the president. And this united team – in which there, of course, were different approaches to the same problems – has always made correct decisions in times of disagreement. </p><p>“I would like to emphasize that without the direct support of the president, this kind of work would have been impossible,” said Vladimir Putin. </p><p>The prime minister had highlighted several other important achievements made this year. Team achievements: such as the significant progress toward the WTO. And the president’s personal achievements: the completion of work on the Strategic Arms Reduction Treaty with the US and creation of the independent Investigation Committee of Russia. </p><p>“And, of course, we will have a careful approach to the implementation of the presidential Address,” promised Putin, and noted that he has prepared a relevant decree for the realization of all theses and ideas in the Address. </p><p>“Let me, on behalf of the government, wish you a happy New Year and wish you all the best in the upcoming year,” the prime minister said, turning to the president with a final statement. </p><p>The auditorium once again filled with ministerial applause. </p><p>“And now, we party,” joked Dmitry Medvedev, evoking laughter among the members of the Cabinet of Ministers, and exited the auditorium together with the prime minister. </p><p>A while later, Vladimir Putin came to the press center to speak with the journalists in an informal atmosphere over a glass of champagne. “Is there a chance we can celebrate the holidays without there being any energy problems?” he was asked immediately. “There is a chance,” answered Putin, “but whether or not it will be used – I can’t say”. According to the prime minister, all the necessary agreements and contracts have been signed with the partners. With Ukraine, for example, all options for future work have been discussed, including the Gazprom-Naftogaz merger. Continuing on the subject of the economy, the head of government answered a question about a free-floating ruble. “The economy needs to be ready for this…If we take the height of the crisis as an example, if a free-floating ruble rate was in effect then…citizens would have woken up with zero-balance accounts,” explained the premier. But when the economy is more stable, “this is the preferred option”, concluded Putin. </p><p>The prime minister did not exclude the possibility of Russia’s joining the WTO in 2011, but added that the auto industry will not be left without protection: the RF could apply non-tariff measures – for example, a technical regulation – in case of unfair competition. </p><p>Corruption was also discussed. To the question of how to ensure that officials manage resources more carefully and funds are not wasted, in particular during construction of roads and the ESPO pipeline, the answer was simple: electronic bids need to be introduced. The process needs to also be verified, after all, a place for corruption has always existed in construction. Meanwhile, “nothing can be done indiscriminately”: there is the presumption of innocence. </p><p>From the economy, the discussion was gradually shifted toward politics. </p><p>“Could the country see a destabilization of the situation or new fans’ demonstrations?” Putin was asked. </p><p>“I hope that does not happen,” he said. “Football fans are not the opposition, and they are diverse. They are young people, but not without a head on their shoulders, and I hope they can see when others are trying to take advantage of them.” </p><p>Things did not go without a question regarding the presidential election. Putin answered as he did before: a decision will be coordinated. “For now, it’s too early to talk about this. A soon as we start, everyone stops working,” he smiled. Meanwhile, he did not exclude the possibility of topping the United Russia list during the State Duma campaign. Moreover, the prime minister made it clear that it is unlikely that the composition of the Cabinet of Ministers will change prior to the election. </p><p>As for Belarus, Putin did not follow the country’s elections, but believes that the people’s opinion needs to be respected. However, the prime minister did not provide an assessment of what accompanied them. </p><p>The head of government praised Dmitry Medvedev’s success in the foreign policy arena, in particular, referring to the START-3. Though Putin, himself, believes that Russia’s trust in the American partners “is gradually becoming stronger, and stronger, and stronger – it has not yet completely solidified”. </p><p>Journalists also asked the head of government what he meant when, during a call-in show, he said he was not ashamed. “Not ashamed for the things that are included in the sphere of direct obligations of the chairman of government,” he explained.</p><p>National Economic Trends</p><p>Russia May Sell 300 Billion Rubles of OFZ Bonds in First Quarter http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aYiLzYXdJeR4 By Torrey Clark Dec. 30 (Bloomberg) -- Russia plans to offer 300 billion rubles ($9.9 billion) of OFZ bonds at auctions in the first quarter, the Finance Ministry said. The first sale next year is planned on Jan. 19, for 30 billion rubles of notes due in March 2014, according to a preliminary auction schedule posted today on the ministry’s website. To contact the editor responsible for this story: Torrey Clark at [email protected] Last Updated: December 30, 2010 02:22 EST</p><p>Russian banks' correspondent accounts up to 973.8 bln rbls, deposit accounts up to 314.8 bln rbls-cbank http://en.rian.ru/business/20101230/161992209.html Russian banks' balances on correspondent accounts with the central bank grew to 973.8 billion rubles at the start of the business day on Thursday from 861.7 billion rubles on Wednesday, while deposit accounts went up to 314.8 billion rubles from 228.5 billion rubles. Credit institutions' balances on correspondent accounts in the Moscow region edged up to 638.7 billion rubles from 552.1 billion rubles, the central bank said. The balances of commercial banks on correspondent accounts with the central bank are intended for current transactions in the economy and are used as freely available deposits at the central bank. Their sufficient level allows commercial banks to carry out transactions within an acceptable timeframe and with acceptable risks. The central bank takes the funds of credit institutions on deposit to regulate banking liquidity. MOSCOW, December 30 (RIA Novosti)</p><p>Russia's central bank operations with banking sector in surplus of 150.9 bln rbls http://en.rian.ru/business/20101230/161992413.html</p><p>10:06 30/12/2010 The Russian central bank's operations with the banking sector to provide and absorb liquidity with deadlines on December 30 at the beginning of the trading day on Thursday were in surplus, amounting to 150.9 billion rubles, the central bank said. On Wednesday, the balance was also positive and amounted to 78 billion rubles. The balance of operations is calculated as the difference between the obligations of the central bank to the banking sector and the requirements of the central bank to the banking sector with deadlines falling on the day. A negative sign of the balance of operations describes the absorption of funds by the central bank, a positive sign the provision of liquidity to the banking sector. MOSCOW, December 30 (RIA Novosti)</p><p>Moscow draws from the federal budget credit of up to 15 billion rubles. http://www.rbc.ru/rbcfreenews/20101230094451.shtml</p><p>RBC 30.12.2010, Moscow 9:44:51 Mayor Sergei Sobyanin signed a decree on attracting Moscow loan from the federal budget in the amount of 15 billion rubles., have informed RBC in the government of the capital. Earlier, a draft resolution prepared by the Department of finance capital. In the current year is expected to attract a loan for up to three years at a rate of one-fourth of the CBR refinancing rate. Funds will be used to partially cover the budget deficit for 2010 in Moscow. Recall, the budget of Moscow for 2010. installed in the volume: Revenues - 1 trillion 137.1 million rubles., expenses – 1 trillion 120 billion 245.2 million rub. Budget deficit – 120.1 million rub.</p><p>Russia to strive toward free-floating rouble – premier http://www.itar-tass.com/eng/level2.html?NewsID=15827883&PageNum=0 30.12.2010, 00.24 MOSCOW, December 30 (Itar-Tass) - Russia will be making efforts to make its currency free-floating, Prime Minister Vladimir Putin told reporters on Wednesday. "The transfer to a free-floating rouble is a welcome future prospect, toward which we should be slowly moving. We've discussed it with the Central Bank," Putin said. In his opinion, "the economy should be ready for rouble free-float. If we had had it during the crisis, citizens would have woken up with their bank accounts reduced to nought. Indeed, we've suffered losses, but it's the price we've paid for social stability," the premier underlined. </p><p>Russia may use non-tariff measures to protect car industry after joining WTO - Putin http://en.rian.ru/business/20101230/161993083.html The Russian government may use non-tariff measures to protect the domestic car-making industry after joining the World Trade Organization, Prime Minister Vladimir Putin said late on Wednesday. Currently, Russia levies import duties on foreign cars but will have to scrap this measure after joining the world trade club. "If we see that the car industry operates in inequitable competitive conditions, we will find non-tariff instruments to protect it, for example, technical regulations," Putin said. He claimed there were problems with competition in the truck sector, as the U.S., China and Europe had a higher level of tariff protection. "However, it is possible to find protection instruments and there is such an intention," he said. Asked whether Russia could be expected to join the WTO next year, Putin said that "there are questions, but we could expect it." Putin said the creation of the Customs Union between Russia, Belarus and Kazakhstan had not postponed Russia's entry into the WTO and, on the contrary, had accelerated it. The Customs Union and the common economic space between the three ex-Soviet republics complied with WTO rules, he said. Russia, the only major economy outside the global trade club, has been negotiating entry to the WTO for 17 years. Russian and foreign officials have recently said that Moscow can become a member next year. MOSCOW, December 30 (RIA Novosti)</p><p>Finance minister estimates 2011 budget deficit, inflation http://www.rbcnews.com/free/20101230091520.shtml RBC, 30.12.2010, Moscow 09:15:20.Russia's federal budget deficit is expected to reach 3 percent of GDP in 2011, Deputy Prime Minister and Finance Minister Alexei Kudrin announced on Wednesday in an interview for the Rossiya 24 TV channel. The minister believes that GDP growth is expected to amount to about 4 percent next year and reach the pre-crisis level by the end of 2011. According to the minister, inflation is likely to amount to 7 percent. "Inflation will go down and will be lower than in 2010. Our estimate is 7 percent," he stated. Meanwhile, the federal budget for 2011-2013 provides for a budget deficit of 3.6 percent of GDP in 2011. </p><p>Business, Energy or Environmental regulations or discussions</p><p>Russian coal output in January to November up by 6pct YoY http://www.steelguru.com/raw_material_news/Russian_coal_output_in_January_to_Nov ember_up_by_6pct_YoY/183454.html</p><p>Wednesday, 29 Dec 2010 According to the data issued by Russia Ministry of Economic Development, in the first 11 months of this year Russia registered a 6.3%YoY growth in its coal output to 287 million tonnes including 61 million tonnes of coking coal up by 10.8%YoY. The growth of coal output during this period was due to increased demand in the domestic and external markets and due to the improvement of external economic conditions.</p><p>According to preliminary data, in January to November 2010, Russia total shipments of coal to the domestic market amounted to 177.8 million tonnes up by 8.2%YoY including 35.1 million tonnes of coal for coking needs up by 3.3%YoY. In January to October 2010, Russia exported 95 million tonnes of coal up by 10.3%YoY while the increase rate of coal exports amounted to 5.5% for non-CIS countries and to 71.7% for CIS countries which was due to the increase of coal exports to Ukraine.</p><p>The share of exports in the overall amount of coal output in January to October 2010 increased to 36.7%YoY from 35.7% in the same period last year. Meanwhile, in the first 10 months of this year, Russia imports of coal decreased by 22.1%YoY to 14.6 million tonnes.</p><p>In November, coal prices in Russia increased by 0.6%MoM. The most significant increase in coal prices in Russia occurred in January to May 2010, which comparing to December last year amounted to an increase of 16.4% for coal in general and a 37.3% rise for coking coal.</p><p>(Sourced from SteelOrbis) Visit www.steelorbis.com for more</p><p>Alrosa’s rough diamond production for 2011: 34,438,000 carats http://diamondworld.net/contentview.aspx?item=5601</p><p>Also wins bids for three alluvial diamond deposits Diamond major Alrosa has outlined a production target of 34,438,000 carats of rough diamonds for the year 2011. The decisions were made at the company’s regular Supervisory Board meeting in Moscow on December 28, 2010. In the meeting, targets for diamond sales were set as -USD 3,526.00 million (for the ALROSA Group), USD 2,470.00 million (for ALROSA Co. Ltd.), and USD 160 million (for polished diamonds sales). Also, net profit projected is worth RUB 10,542.3 million. Alrosa also recently won bids to develop three alluvial diamond deposits in Yakutia, which are - Gusiny Ruchei (stream), the Ebelyakh River and the Dalnyaya Pipe. The tender for the bid was held in Moscow. ALROSA's winning bids paid out about $20 million for the projects. Also, included in the targets for 2011, is a focus to reduce the aggregate debt to a level below USD 3 billion and converting almost 90 percent of the obligations into long-term loans. </p><p>UPDATE 1-Berkeley, Severstal fail to agree bid terms http://in.reuters.com/article/idINLDE6BT05R20101230</p><p>1:09pm IST * Exclusivity period granted to Severstal has expired * Companies fail to agree terms on a bid by Severstal * Berkeley gets alternative proposal from Severstal * Severstal retains right to subscribe for Berkeley shares (Adds details) LONDON, Dec 30 (Reuters) - Berkeley Resources Ltd (BKY.L: Quote, Profile, Research) (BKY.AX: Quote, Profile, Research) said an exclusivity period granted to Severstal (CHMF.MM: Quote, Profile, Research) had expired and that the two companies had failed to agree terms on a bid by the Russian steelmaker. Berkeley also said it had received an alternative proposal from Severstal and that it would continue discussions with Severstal regarding this proposal. Severstal, the largest steelmaker in Russia, approached Berkeley in October about a possible takeover of the uranium exploration company worth about A$304 million. [ID:nLDE69S0YD] Severstal was considering a cash bid at A$2.00 per share, Berkeley said in a statement on Oct. 29. A successful takeover would give Severstal its first uranium asset in Spain, enabling it to benefit from an expected rise in European demand for nuclear power. On Thursday, Berkeley said Severstal retains the right to subscribe for shares until Jan. 14, but only if the steelmaker announces a bid intention before that date. Berkeley added that Managing Director John Stalker has resigned due to personal reasons and that Financial Director Henry Horne has been appointed acting MD. (Reporting by Julie Crust; editing by Matt Scuffham) </p><p>Magnit retailer, MAN sign truck deal http://english.ruvr.ru/2010/12/30/38275908.html</p><p>Dec 30, 2010 10:04 Moscow Time The Magnit food retailer, Russia’s largest, has signed a contract with Germany’s MAN for the supply of more than 1,500 MAN trucks. The delivery of the first batch of 620 trucks worth a total of 60 million euro will begin in February and the rest will be supplied till the end of next year. Apart from food stores and shopping malls, Magnit owns a network of logistic centers in central Russia, the Volga region and the Urals.</p><p>Inter RAO Woos E.ON, RWE, Enel, Close to Bulgarian Deal http://www.novinite.com/view_news.php?id=123657 Energy | December 30, 2010, Thursday Russia's state power trader Inter RAO is in talks with E.ON AG, RWE AG and Enel SpA on possible asset swaps or acquisitions in Europe as the company seeks to expand abroad, a company official said. "Inter RAO is close to a agreement to buy for cash the Maritsa power plant in Bulgaria from Enel, Italy's largest utility, and may announce the outcome at the end of January," Ilnar Mirsiyapov, head of the company's strategy and investment department and management board member, said at a briefing in Moscow, as cited by Bloomberg agency. Inter RAO is also seeking to swap its blocking stake in OAO OGK-5 for European assets, he said. Meanwhile an Enel spokesman said the utility is interested in selling its stake in exchange for cash and not for assets. Should the Russian company acquire Enel's assets in Bulgaria, it will become of the biggest energy companies in the country, accounting for about 12% of its electricity output. Experts say Inter RAO's planned Bulgarian purchases fit in well with the strategy of the Russian company, which already owns GRES, the largest power station of Moldova, which exports electricity to Romania and Bulgaria. Inter RAO also plans to be part of the consortium, which will construct the 4.8 GW Akkuyu nuclear plant. Turkey's first nuclear power plant is scheduled to be put into operations in 2011, with completion expected in 2018. Enel Chief Executive Fulvio Conti said at the end of November that the company has "at least two" bidders for the Bulgarian coal power plant, known as Maritsa 3. Russia's Inter RAO has been tipped as the most likely buyer of a majority stake in Bulgaria's Maritsa East 3 coal-fired power plant, controlled by Italy's Enel SpA. In late July, Austria's utility EVN, which already owns EVN Bulgaria, an electricity distribution company in south and southeast Bulgaria, confirmed it is holding talks for the acquisition of a majority stake in the Maritsa East 3 coal-fired power plant. British utility International Power, US power producer AES Corp. and CEZ AS are also said to have shown interest in acquiring Enel majority stake in Maritsa East 3. A year ago Enel increased the capacity of Maritsa East Three plant to 908 megawatts, up from 840 MW, and also put new desulphurisation installations on the plant's four units. Experts comment that the potential buyer is probably eying a 100% stake in the plant, in which the state owns a 27% stake. The rumors were fanned by a statement of Energy and Economy Minister Traicho Traikov, who recently announced that the state can land EUR 200 M from the sale of its stake in the plant. The plant is located in the Maritsa East lignite coal mining complex in southern Bulgaria, which generates 30% of the country's electricity. Enel also owns seven wind parks of 3 megawatts near the Black Sea coast.</p><p>VTB hikes up stake in TransCreditBank http://www.rbcnews.com/free/20101230103109.shtml RBC, 30.12.2010, Moscow 10:31:09.VTB has further increased its stake in the share capital of TransCreditBank - from 27.8314 to 41.7424 percent. Considering this, the number of ordinary shares of TransCreditBank owned by VTB went up from 27.8326 to 41.7442 percent, the lending institution announced in official documents today. Earlier, VTB hiked up its stake in TransCreditBank from 9.8 to 27.8 percent with the view to buy a controlling stake in TransCreditBank and consolidate it in its accounting statement by the end of 2010. At the same time, however, TransCreditBank is expected to maintain its status as an independent legal entity. </p><p>Rusnano places three bond issues http://www.rbcnews.com/free/20101230110624.shtml RBC, 30.12.2010, Moscow 11:06:24.Russian Corporation of Nanotechnologies (Rusnano) has placed series 01-03 bonds worth a total of RUB 33bn (approx. USD 1.09bn) in just one day, the corporation announced in a statement today. According to the company, it placed 8m bonds of series 01, 10m bonds of series 02, and 15m bonds series 03 by public subscription. The nominal value of bonds amounted to RUB 1,000 (approx. USD 33.04). Rusnano also announced that Vnesheconombank purchased 71.9 percent of series 01 bonds, 73 percent of series 02 bonds and 73 percent of series 03 bonds. All bonds were placed on Micex on December 29, and Gazprombank acted as the underwriter for the issue. The coupon rate was set at 8.9 percent per annum. War and Peace - and war: Norilsk Nickel-RUSAL epic continues http://www.mineweb.com/mineweb/view/mineweb/en/page504? oid=117633&sn=Detail&pid=102055 Norilsk offers to buy up to 6.2% of shares at 6% premium to market. RUSAL denounces Norilsk buyback as "gross corporate blackmail" and refuses to sell its 6.5% stake. Author: Polina Devitt and Aleksandras Budrys Posted: Thursday , 30 Dec 2010 MOSCOW (REUTERS) - Norilsk Nickel launched a $4.5 billion share buyback on Wednesday, as tycoon Vladimir Potanin sought to further marginalise rival Oleg Deripaska in a bitter boardroom battle. The world's largest nickel and palladium miner said it would buy up to 6.2 percent of its shares at $252 each, or $25.20 per ADS, after Deripaska rejected Norilsk's offer to buy his 25 percent stake for $14 billion. The offer is priced at a 6 percent premium to market levels. Deripaska's Hong Kong-listed aluminium firm RUSAL, denounced the buyback as "gross corporate blackmail". Yet analysts suspect he may be holding out for a better deal which they view as likely next year. "They must find a way out," said Deutsche Bank analyst Olga Okuneva. "We think that in the first half of 2011 (Norilsk) will succeed in acquiring the RUSAL shares." A source close to Norilsk shareholders told Reuters the company was willing to raise its offer for RUSAL's 25 percent stake to $14 billion from $12 billion, but Deripaska wanted $16 billion. Analysts estimate Deripaska paid $14 billion in 2008 in a purchase that included $7.2 billion cash and a 14 percent stake in RUSAL, the world's No.1 aluminium producer.</p><p>VALUE-DESTRUCTIVE FEUD Comments by key players suggesting Norilsk might buy out Deripaska have led RUSAL shares to rally this month. A deal could wipe out RUSAL's net debt of $11.8 billion little more than a year after a life-saving restructuring deal. Potanin, who owns 25 percent of Norilsk through his Interros investment vehicle, has gradually gained the upper hand in a proxy battle with Deripaska, securing effective control over the company's board via a disputed shareholder vote in May. RUSAL failed to dismiss Norilsk's board at an extraordinary general meeting in October, and last week called for another EGM following a sale of Norilsk shares held via subsidiaries to trading house Trafigura. The EGM will be held on March 11. RUSAL has just three of the 13 seats on Norilsk's board, limiting its ability to influence strategy. At least four board members have ties to Potanin and Interros, while chairman Vasily Titov has worked for the tycoon. The buyback is likely to strengthen Potanin's influence as Norilsk would hold the shares in treasury and management could vote them. Analysts believe Trafigura will side with Interros after it acquired 8 percent of Norilsk Nickel for an undisclosed sum. Norilsk's shares rose in Moscow by 3.5 percent on news of the buyback. Its American Depositary Shares traded 0.8 percent higher in London at $23.80. RUSAL's shares eased 0.2 percent in Hong Kong to HK$12.06, having risen more than 20 percent this month on speculation of a buyout deal. The shares have spent most of this year languishing below their January IPO price of HK$10.80.</p><p>ON THE BACK FOOT In addition to opposing the buyback at a board meeting on Tuesday, RUSAL voted against Norilsk's 2011 budget, long-term strategy and the disposal of utility OGK-3 in an all-share deal. "Nobody is going to permit (Interros and management) to take control of the company this way. Not us, nor other shareholders," Deripaska told a news briefing on Wednesday. Norilsk announced the deal to sell its majority stake in loss-making OGK-3 to InterRAO for InterRAO shares valued at $2.3 billion, though Deripaska's EuroSibEnergo offered $2.1 billion in cash. Norilsk probably doesn't need that cash: as of June 30 the Arctic miner had just $1.5 billion in long-term debt. It is also highly profitable, with the first-half margin on its earnings before interest, taxation, depreciation and amortisation (EBITDA) at 49 percent, while operating cashflow rose by 162 percent to $2.4 billion. That means financing the buyback should be no problem and, having blocked Deripaska's call for hefty dividend payments, Potanin can afford to bide his time in the buyout talks. (Writing by Alfred Kueppers, Editing by Douglas Busvine and David Hulmes)</p><p>Activity in the Oil and Gas sector (including regulatory)</p><p>Hungary, Russia Divided on Surgutneftegas Mol Stake, Index Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aDrpOcfyDCuY By Edith Balazs Dec. 29 (Bloomberg) -- Russia and Hungary remain far apart over the future of OAO Surgutneftegaz’s 21.2 percent stake in Hungarian refiner Mol Nyrt., the online news portal Index reported, citing Development Minister Tamas Fellegi. The Hungarian government insists that Mol should be mostly under national control, the news portal added, citing an interview with Fellegi. The next round of negotiations between the two parties will take place in late January, Index said. To contact the reporter on this story: Edith Balazs in Budapest at [email protected] To contact the editor responsible for this story: James Gomez at [email protected] Last Updated: December 29, 2010 07:53 EST PGO to check Transneft's use of funds during pipeline construction http://www.itar-tass.com/eng/level2.html?NewsID=15827879&PageNum=0 30.12.2010, 04.56 MOSCOW, December 30 (Itar-Tass) - Russian Prime Minister Vladimir Putin said the Prosecutor General's Office (PGO) must check the Transneft company following the information alleging a misuse of funds during the construction of the East Siberia - Pacific Ocean pipeline. Answering the request to comment on the documents by Transneft minority shareholder Alexei Navalny, who alleged thefts of money during the implementation of the VSTO project, Putin said "minority shareholders are interested in getting higher dividends." "Everything must be checked, but you don't want to accuse anyone indiscriminately. Let prosecutors run a check. We have enough inspecting bodies, so let them check and see. "Prosecutors will also check road construction. Construction is a corruption thing," he added underlining that road construction would be checked as well. "After we've taken a look, we'll be able to draw conclusions as to who should be held responsible and punished. Nobody should be missed, things must be carried through, to as far as guilty verdicts in courts. But nobody should be accused indiscriminately," the prime minister said. Putin believes that the law on state procurements needs to be improved. "Much has to be amended. And we're working toward perfecting the legislation," he said underlining that the procurements law still remains an anti-corruption instrument. The prime minister promised that the government would continue to perfect anti- corruption mechanisms. As for various media reports on corruption during the VSTO construction or road construction, one has to monitor carefully. Prices differ in various parts of the country, he noted, adding that some stretches of the VSTO pipeline run through the areas which devoid of any infrastructure, and lacking an electricity grid or road network. 30.12.2010</p><p>Matra Petroleum plc Announces Sokolovskoe Production Licence Award http://www.oilandgaseurasia.com/news/p/0/news/10218 A Production Licence for the Sokolovskoe Field has been awarded to Arkhangelovskoe, (a 100% owned subsidiary of Matra Petroleum plc), Matra Petroleum reported in a news release. The initial term of the Licence is 20 years. (Until 31st December 2030.)</p><p>Matra’s Managing Director, Peter Hind said, “This is a major step for Matra and will allow us to renew our efforts to build a bigger business in the region. The Production Licence confirms Matra’s right to develop and produce oil from the Sokolovskoe Field for the next 20 years and is extendable thereafter. This will allow us to push ahead with the full development of the Sokolovskoe Field and to establish significant production and cash flow. Our operations to restore production from wells 12 & 13 are proceeding and we will report progress in due course.”</p><p>The Arkhangelovskoe exploration licence covers an area of 171.6 sq km and is 20-30kms to the North of the city of Orenburg, Russia. The licence is within the oil rich Volga- Urals basin and lies adjacent to existing oil fields and close to the super-giant Orenburg gas field.</p><p>In this area, oil is found in reservoirs of Devonian age, at depths between 3,500 and 4,000m. For historical reasons Orenburg is relatively underdeveloped and explored by comparison with neighbouring oblasts but recent exploration success rates have been high. TNK-BP, the largest operator in Orenburg, is very active in the Northern area of Orenburg. There are few international companies active in the oblast.</p><p>Matra’s first well on the Arkhangelovskoe Licence, “A12”, was drilled in 2007 and discovered the Sokolovskoe oilfield (Figure 2). The well produced high quality oil from a Devonian carbonate reservoir (Aphonenski). This was appraised by well “A13”, which completed operations in summer of 2010.</p><p>Copyright 2010, Matra Petroleum plc. All rights reserved.</p><p>QPI set to sign deal for LNG project in Russia </p><p>Thursday, 30 December 2010 03:07 http://www.thepeninsulaqatar.com/qatar/137383-qpi-set-to-sign-deal-for-lng-project-in- russia.html BY RAYNALD C RIVERA DOHA: Qatar will be a major investor in a multi-billion dollar LNG project in Russia, said Russian Ambassador Vladimir Titorenko yesterday. The agreement which is being finalised is between Qatar Petroleum International (QPI) and two leading Russian energy companies Novatek and Gazprom which will be an LNG project in Yamal Peninsula. It will also see participation of two energy companies from Europe. “The idea is to build two or three units for LNG production with the volume of 15 million tonnes per year. A special fleet of ships will also be built to transport LNG even during harsh winters when temperatures drop below zero,” explained Ambassador Totorenko, adding the LNG will then be exported to Asia, North America as well as UK and Scandinavian countries. “The agreement is already being finalised and will be signed soon. The entire project including the fleet of ships will cost from $16b to $18b. As Qatar will be a major partner, it will have around 25 percent share in the project which will run for three to four years,” said the Ambassador. A $1bn gas condensate project in Yamal peninsula and a project on geologial exploration of gas resources in Siberia are other likely projects in the field of energy which will see involvement of Qatar that the Ambassador mentioned. In addition, investment ventures, and export of copper, fibre optics, wheat, chicken and reindeer meat, and defence weapons are some other areas. The Ambassador hailed the first Qatari-Russian business forum this year, which resulted in a number of future ventures on investment and export of copper, fibre optics, wheat, chickean and reindeer meat, among others. “This has been the most fruitful year in the 21-year diplomatic relations between Russia and Qatar from the point of view of exchange visits as well as the substance of our cooperation,” he said, adding Qatar has become one of the three major partners of the Russian Federation in the Arab world He cited the visits to Russia this year by the Emir H H Sheikh Hamad bin Khalifa Al Thani, the Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al Thani and Deputy Prime Minister Abdullah bin Hamad Al Attiyah as key to the progress in the relations between the two countries. Russian officials including the Russian Minister of Energy, Vice Prime Minister, Russian President’s representative to the Middle East, other ministers and high ranking officials also visited Qatar. The ambassador revealed the Russian President will be visiting Qatar twice this year, one on bilateral basis and the other one for the Summit in November and the Russian Prime Minister’s visit has already been confirmed. the peninsula</p><p>2011 Auction Price For Kovykta's Rights Set As TNK-BP Explores Deal With ONGC http://www.oilandgasinsight.com/file/94975/2011-auction-price-for-kovyktas-rights-set- as-tnk-bp-explores-deal-with-ongc.html</p><p>December 2010 | Industry News BMI View: Next year's auction of Rusia's assets will likely result in a victory for a state- favoured domestic player, while TNK-BP's proposed asset swap with ONGC will further both companies' aims. The licence holder of Russia's Kovykta gas field will be put up for sale in a 2011 auction having been declared insolvent in October 2010. The imminent asset sell-off comes as the licence holder's former majority owner, TNK-BP , explores an asset swap with India's state-run Oil and Natural Gas Corporation (ONGC). Kovykta's licence holder, Rusia Petroleum , will be put up for auction at a starting price of RUR15.1bn (US$495mn), the company said on December 24 2010. The starting bid price represents an 80% reduction in the company's value since 2008. The assets, which include Kovykta's field development rights, will be sold on February 15 2011. Do Not Pass Go The Kovykta field has estimated reserves of 2trn cubic metres (tcm), under Russia's C1+C2 classification, making it one of the world's largest untapped conventional gas fields. British major BP , through its TNK-BP joint venture, acquired a stake in Kovykta in the 1990s, hoping to sell the gas to the lucrative Asia-Pacific market. However, those ambitions were dashed ... </p><p>Gazprom</p><p>— 30.12.2010 09:52 — Gazprom: gas prices in Russia may grow by 15%, it is unpleasant, but inevitable http://www.gazeta.ru/news/lenta/2010/12/30/n_1641206.shtml</p><p>Gas prices in Russia will inevitably rise, prices could rise by 15%, said in a live radio station Ekho Moskvy spokesman chairman of Gazprom spokesman Sergei Kupriyanov. "When the price goes up, it's unpleasant, but inevitable. We go into more complex fields, the heavier areas of gas production and the price will rise. This is an objective, or gas will be expensive, or it will not be enough "- he explained. "In the domestic market price for the individual consumer will depend on the area, the price zone. Range - up to $ 100 per thousand cubic meters. Tariffs for industrial enterprises to grow by 15%, "- said Kupriyanov. Ekho Moskvy </p><p>Gazprom sees gas price for Europe rising in 1Q 2011 http://in.reuters.com/article/idINIndia-53838520101229</p><p>3:48am IST MOSCOW (Reuters) - Average price for Russia's gas shipped to Europe will rise to $327 per 1,000 cubic meters in the first quarter of 2011, an official with the gas monopoly Gazprom told Reuters on Wednesday. "In the first quarter the price will total $327 per 1,000 cubic meters," Gazprom's spokesman Sergei Kupriyanov said. Europe paid on average $308 per 1,000 cubic meters of Russian gas in 2010. (Reporting by Vladimir Soldatkin; Writing by Lidia Kelly; Editing by Phil Berlowitz) No reduced gas for Belarus http://english.ruvr.ru/2010/12/30/38270299.html</p><p>Dec 30, 2010 09:01 Moscow Time Arrangements to reduce gas prices for Belarus in 2011 are now gone, said an official representative of Gazprom Sergei Kupriyanov. At the same time he stressed that the existence of a contract can not prevent problems with deliveries via Belarus in the new year. He also added that the new contracts will take into account the creation of a single economic space. "We are talking about 2012 and 2013" Kupriyanov said. Previously it had been reported that in 2011 the price of Russian gas for Belarus would be 230 dollars per thousand cubic meters. In 2010 it was 187 dollars.</p><p>Shell, Gazprom May Expand Sakhalin LNG by 2015, Governor Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aEokKhKrU9vM By Ilya Arkhipov and Stephen Bierman Dec. 29 (Bloomberg) -- OAO Gazprom, Russia’s gas export monopoly, and Royal Dutch Shell Plc may build a third train to produce liquefied natural gas at their $22 billion Sakhalin-2 venture by 2015, the regional governor said. The two companies may alternatively build a new LNG plant, Alexander Khoroshavin, the governor of the Sakhalin region, told Russian Prime Minister Vladimir Putin in a meeting today, according to Khoroshavin’s press service. A third train at the Sakhalin-2 project may boost capacity by 5 million metric tons, he said. Gazprom spokesman Sergei Kupriyanov said he had no information about such talks to increase Sakhalin capacity. Shell spokesman Maxim Shoob declined to comment. The two companies will discuss assets swaps next year, possibly giving Shell a stake in Gazprom’s nearby Sakhalin-3 project, Khoroshavin said. Gazprom said Nov. 30 that it had agreed with Shell to expand work in Russia. Sakhalin-3 project is currently in the exploration phase. Gazprom agreed to take control of the Sakhalin-2 venture, which includes Japan’s Mitsubishi Corp. and Mitsui & Co., in 2006. The LNG plant, which begun last year, has a capacity of 9.6 million tons a year. LNG is gas cooled to a liquid for transportation by ship. To contact the reporter on this story: Stephen Bierman in Moscow [email protected]. To contact the editor responsible for this story: Will Kennedy at [email protected]. Last Updated: December 29, 2010 12:18 EST Gazprom looks east to Japan's market http://www.upi.com/Science_News/Resource-Wars/2010/12/29/Gazprom-looks-east-to- Japans-market/UPI-29051293630198/</p><p>Published: Dec. 29, 2010 at 8:43 AM MOSCOW, Dec. 29 (UPI) -- Russian gas monopoly Gazprom is eager to expand its infrastructure in Asia to help secure energy resources for Japan, the company said. Alexander Ananenkov, deputy chairman of Gazprom's management committee, welcomed a Japanese delegation led by members of the natural resources sector to Moscow to discuss bilateral ties. "Special emphasis was placed on interaction in the context of the Eastern Gas Program implementation as well as on creation of gas chemical industries, gas liquefaction and compression facilities in Eastern Russia near Vladivostok for further export to Asia- Pacific markets by sea," the Russian company said in a statement. Both sides during a July meeting discussed investing in facilities to expand the production of liquefied natural gas and compressed natural gas for Asian markets. Japan is the fourth-largest consumer of energy resources in the world and the leader in consumption of LNG, relying on the liquefied resource for 100 percent of its imported gas. Alexei Miller, the chief executive at Gazprom, said during a holiday message that his "company is gradually moving eastward."</p>