Russia 110908 Basic Political Developments

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National Economic Trends

  • TABLE-Russian gold/fx reserves rise to $543.4 bln

  • Russia's grain harvest to reach 125 million tonnes in 2020

  • Russia Will "Significantly Cut" 2012 Budget Deficit – Kudrin

    • Lower 2012 budget deficit projected

    • Russia's 2012 deficit seen below forecast

  • Budget surplus reported at RUB760bn in 8M11

  • Putin Sees Balanced Budget - "According to the data the Finance Ministry is putting out, we will most likely be able to bring the budget deficit down to zero this year," Putin said, noting that the 2011 budget deficit was planned last year at 3.6 percent of GDP.

  • Earn More, Pay More - Experts Say More Businesses May be Driven Underground If the Russian Government Goes Ahead with a Plan to Hike Payroll Taxes

  • Institutions and banks drag on Russian competitiveness while EMs thrive

Business, Energy or Environmental regulations or discussions

  • Rusnano fund to encourage high-tech IPOs

  • RusAl chairman wants to discuss price of Norilsk stake

    • Rusal's BoD allows Vekselberg to negotiate price for company's stake in Norilsk Nickel

  • Moscow Arbitration Court rejects Auchan's counter-claim to FAS; NEGATIVE for retailers

  • wins biggest Russian e-commerce investment

  • Gap Inc. Expands Presence in Russia With First Banana Republic Store

Activity in the Oil and Gas sector (including regulatory)

  • Russia's Bashneft Q2 net profit rises to $532 mln

    • Bashneft second quarter net profit jumps 44% to $532 mln

  • Rosneft Gets Right to Buy Black Sea, Barents Sea Explorers

    • Rosneft Acquired Chernomorneftegas and Sintezneftegaz

  • Lukoil companies to undergo unscheduled safety inspections

  • Lukoil Drills Dry Wells on Caspian Shelf

  • Russia Can Double Oil Reserves By Tapping Arctic Potential Lukoil Executive

  • New Law To Open Russian Shelf For Foreigners - The bill will allow foreign companies to engage in production on the Russian shelf. It has already been coordinated with other federal ministries and is currently on the table of the government, newspaper Vedomosti reports.


  • Gazprom commissions Far East gas pipeline

  • One in, one out: Total to quit Shtokman? - Unnamed industry sources told Itar-Tass on Wednesday that French major Total is looking to sell its stake in the giant Shtokman project. The deposit off Russia's north-west coast in the Barents Sea is thought to hold 3.8 tcm of gas and 53m tonnes of crude, but the challenge of extracting and transporting that energy was postponed last year in the face of a glut of gas arriving in Europe from the likes of Qatar.

  • Gazprom to invest 100 mln USD in oil, gas exploration in Kyrgyzstan

  • SES and Gazprom Form Satellite Partnership

  • Gazprom Neftekhim Salamat Begins New Stage in Refinery Upgrade

  • Russia's Dolginskoye Field Development To Begin Before 2020

  • Gazprom-KES Holding power assets merger is being discussed by the ministries


Full Text Articles

Basic Political Developments

September 08, 2011 12:19

Russian aircraft fleet requires upgrade – Medvedev
TUNOSHNA VILLAGE, Yaroslavl region. Sept 8 (Interfax) - The Russian government will have to make a difficult decision regarding measures to upgrade the country's aircraft fleet, President Dmitry Medvedev said.

A top priority of such steps should be passengers' lives, not the interests of Russia's aircraft industry, he said.

"Problems with the fleet exist. And the government will obviously have to make a very difficult decision. The integrity of a human life should outweigh any particular considerations, including support for domestic producers," Medvedev said at a session of the headquarters in charge of cleanup efforts after Wednesday's air crash near Yaroslavl.

"It is certainly necessary to think about our companies. But if they are unable to promote themselves, it is necessary to buy aircraft abroad," the president said.

"I will give an instruction to the government. It should be a large-scale program. A lot of money will be required," he said.


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Medvedev orders evaluation of pilot skills

President Dmitry Medvedev has ordered the Transport Ministry to carry out an assessment of civil aviation pilots following Wednesday’s plane crash in Yaroslavl. “We must evaluate the skills of crews at every airline,” Interfax quoted Medvedev as saying. He added that “plenty of odd things happen” and demanded that serious attention should be paid to the training of pilots. “Those who are not ready to work must be dismissed,” he said. Medvedev also noted that the air fleet of Russian airlines should be renewed. Difficult decisions should be made involving purchasing new planes from abroad, he said. On Thursday, the president arrived in Yaroslavl to participate in the Global Policy Forum and visited the scene of the crash.

Medvedev lays flowers at Yaroslavl crash site
12:29 08/09/2011
TUNOSHNA VILLAGE (Yaroslavl Region), September 8 (RIA Novosti)

Russian President Dmitry Medvedev on Thursday laid flowers at a site of a plane crash near Yaroslavl, killing 43 on board, including 36 ice hockey players.

Lokomotiv's chartered Yak-42 crashed just after takeoff on Wednesday as the team were heading to Minsk for their season opener against Dinamo Minsk. Forty-three people were killed including a slew of former NHL stars and future draft prospects. There were two survivors, Russian player Alexander Galimov and one of the eight crew members on board. Both are in critical condition. Galimov has burns to 90 percent of his body, a hospital official said.

Medvedev arrived to the site on Thursday morning and laid red roses on the bank of the Tunoshonka River, opposite the site, where the plane wreckage still lies in the water, and held a moment of silence with his head bowed.

The Russian leader was accompanied Yaroslav Region Governor Sergei Vakhrukov.

Medvedev to visit Yak-42 plane crash site, attend Yaroslavl Political Forum

MOSCOW, September 8 (Itar-Tass) —— President Dmitry Medvedev will travel to Yaroslavl on Thursday, September 8, to visit the site of Wednesday’s Yak-42 plane crash and then attend the World Political Forum in that city.

The plane that was carrying the top-rated Lokomotive ice hockey team in full force crashed seconds after the takeoff in Yaroslavl, killing 43 of 45 people aboard.

Presidential spokeswoman Natalia Timakova told Itar-Tass,”The head of state has decided to change the format of his participation in the Yaroslavl Political Forum… Before speaking at the forum the president plans to visit the crash site to pay tribute to those killed and then have a working meeting with the heads of agencies.”

Emergencies Minister Sergei Shoigu, Transport Minister Igor Levitin, Investigation Committee Chairman Alexander Bastrykin, presidential representative to the Central Federal District Oleg Govorun, and First Deputy Presidential Administration Chief of Staff Vladislav Surkov will attend the meeting.

Medvedev expressed condolences to the Lokomotiv team’s families and fans and ordered the government to make all the necessary arrangements and instructed the Investigation Committee to investigate the accident.

After the meeting, the president will attend the World Political Forum to be held in Yaroslavl for the third time. Politicians and experts are now discussing the topic “The Modern State in the Era of Social Diversity”. The head of state may make a speech and confer with some of the forum’s participants.

Turkish President Abdullah Gul will be the top guest of the forum. Medvedev is scheduled to have a separate meeting with him.

The Russian president will also meet with UNESCO Director-General Irina Bokova, who was elected to this post in October 2009 and who will be visiting Russia in this capacity for the second time.

“It is planned that Medvedev and Bokova will discuss a wide range of issues regarding cooperation between Russia and UNESCO in various areas. Special attention will be paid to the use of achievements in the fields of education, science and culture for ensuring sustainable development of mankind, as well as to the holding of the 36th session of the UNESCO World Heritage Committee in St. Petersburg in 29012,” the presidential press service said.

“Russia has been actively facilitating UNESCO programmes in the fields of education, science and information space”, regularly hosts conferences and congresses for the Organisation’s programmes, the Kremlin said.

On September 19-22, Astrakhan State University will host a joint meeting of Coordination Committee of UNESCO Chairs in Russia and UNESCO Associated School network activists from Russian regions.

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