Robert Amsterdam

Energy Blast - July 11, 2011

2011-07-11T10:45:38Z

Last week's case of Gazprom merging its assets with those of Viktor Vekselberg to create an energy giant 'highlights how tough it will be to curb the appetite of the national champions created under Mr Putin for gobbling up yet more assets'. Anatoly Chubais has spoken out against the merger, saying that it 'will not bring advantages to either Russian energy or to Russian consumers'. RWE and Gazprom have been in talks over the weekend to discuss possible cooperation, and the German Economy Minister is encouraging Gazprom's investment, but the antitrust watchdog says it will 'closely' examine any deals. Ukrainian state-run Naftogaz will be able to resume natural gas shipments to Poland, after President Viktor Yanukovych signed a law allowing domestic exports. Total may replace Chevron, after the U.S. company pulled out of its role as Rosneft's partner in the Black Sea. Kazakhstan's Oil Ministry is to enact sanctions against Gelios for hiking gasoline prices. If the U.S. scraps ethanol subsidies and tariffs, Brazil's biofuel industry could become 'the world's alternative energy hub', says the FT. Reuters has a Q&A on Australia's plans for a carbon tax, which are unpopular in the LNG industry. China is eager to work with South Sudan, which it recognised on Saturday, on its oil industry. Russia is likely to become India's third main source of coal imports, after South Africa and Indonesia, says this piece. Bulgaria wants to introduce a clause in its new gas delivery contracts with Gazprom that would allow it to re-sell excess gas to other consumers; but apparently this proposition was made last year, and has still received no response; the country has just discovered a large gas deposit near Lovech that could provide 1 billion cubic meters per year.

Today in Russian Business - July 11, 2011

2011-07-11T10:37:37Z

According to its CEO, gold miner Polyus Gold is on track to complete its reverse takeover of UK-listed Kazakhgold, which will allow it to establish 'one of the biggest gold mining companies'. A new Troika Dialog fund will allow local investors to buy shares in global companies. Businessman Dmitry Kotlyarenko has been sentenced to three years in prison for a large-scale fraud that brought Moscow 'to the brink of default'. Officials are planning to make Moscow a more attractive tourist destination by spending $1.25 million on an advertising campaign that will target key industry events abroad and foreign mass media.

RA's Daily Russian News Blast - July 11, 2011

2011-07-11T10:18:30Z

TODAY: Kasparov calls for election boycott; Duma parties criticize United Russia's dominance; conductor blames shunning of All-Russia Front for non-renewal of his contract; over 100 people missing after cruise ship sinks in Tatarstan, 5 killed in plane crash; Putin = God's gift; mass brawl in Sverdlovsk; Georgian photographer confesses; Perm profile.

Spurred by the government's refusal to register Parnas, Garry Kasparov is calling for a boycott of Russia's electoral process ahead of September's 'farce'. The Communist, Liberal Democratic and A Just Russia parties have all complained that United Russia's majority in the the Duma session, whose Spring session has just ended, meant that their initiatives were subject to the 'heavy spirit of stagnation'. Sergei Mironov is anticipating that a continuation of this monopoly after September's Duma elections would lead to popular unrest: 'the situation will explode'. Could Russia's bikers end up constituting a grassroots political movement? Mikhail Arkadyev, the conductor of Vladivostok's Pacific Symphony Orchestra, believes that his 'refusal to have anything to do with the All-Russian People's Front' is the cause of his annual contract not being up for renewal next year.

]]> Hopes of finding survivors are slimming, after a cruise ship carrying 196 people sank in the Tatarstan region section of the Volga River during a storm yesterday. 103 people currently missing (119 according to Bloomberg), and 84 have been rescued. Reuters has footage, as does the BBC, which says that 'this is no longer a rescue operation'. It is thought that the cruise ship, built in 1955, was overloaded, carrying 196 people instead of the 120 maximum allowed by safety rules. Five people have been killed in a regional airliner crash in western Siberia. Vladimir Putin was sent to Russia by God, says Kremlin first deputy chief of staff Vladislav Surkov.

According to the Georgian Interior Ministry, European Pressphoto Agency photographer Zurab Kurtsikidze 'was the nexus of a Russian military intelligence spy ring'. His colleague, Irakli Gedenidze, the Georgian President's personal photographer, has confessed to passing information about the President's whereabouts to Kurtsikidze for 'unspecified remuneration'. The Investigative Committee / Prosecutor General's Office 'turf war' continues.

Authorities insist that a mass brawl in Sverdlovsk that broke out between locals and mostly Caucasus native visitors was not related to ethnic tensions. The Moscow Times profiles the city of Perm.

PHOTO: Debris from a tourist boat that sank on the Volga River, in central Russia on Sunday July 10, 2011. (AP Photo/Russian Ministry of Emergency Situations press service)

Energy Blast - July 8, 2011

2011-07-08T10:16:19Z

ExxonMobil's Yellowstone River oil leak continues to resist containment efforts due to fast-flowing, high water. It looks like Italy's ENI will pull out of Libya, leaving the Gaddafi government to negotiate over its assets with Russia and China. Gazprom plans to merge its power division with Renova assets owned by Viktor Vekselberg to create a new state-controlled entity, 'part reversing a recent privatisation of the industry' and raising the concerns of the Federal Anti-Monopoly Service: 'this is not desirable. Our position has always been circumspect -- this can lead to limited competition on the market, so we will therefore watch this deal very closely.' One analyst quoted in the FT said that the merger would allow the state to 'dominate the market'. Under the deal, Renova would get 25% plus one share in Gazprom Energoholding. Gazprom could be seeking an advance payment from China on future gas deliveries of as much as $40 billion. New tax discounts for smaller Russian oilfields could see extraction taxes cut by 50%. A Kommersant report indicates that Bulgaria wants to reduce its current intake of Russian gas by four times, supported by increased domestic production and diversified imports. China has awarded two of four shale gas block tenders to its own Sinopec. Could developments in the shale gas sector help reduce China's reliance on LNG and pipeline gas imports?

Today in Russian Business - July 8, 2011

2011-07-08T10:08:50Z

Will the court change its verdict on Alexei Kozlov, who has already served four years of his seven-year sentence for embezzlement? The medical insurance tax will be reduced by 4%, but the government nonetheless will stick to its $16.5 billion plan to buy medical equipment and raise doctors' salaries, says Vladimir Putin. The Moscow Times discusses a new UBS survey, which apparently reveals that wealth creation, not preservation, is a primary driver of Russian business, in contrast with mature capital markets in the U.S. and Europe 'where a majority of the very wealthy wanted their children to carry on the family firm.' Responding to the same survey, the WSJ notes its suggestion that wealthy business leaders are moving their capital out of Russia and into European real estate, viewing it as 'the safest asset'. A Russia-focused investment banker at Citigroup anticipates that Russian companies could raise over $40 billion in share sales by the end of 2013 - not quite a match for the surge of 2006/7, but an improvement in activity. As prices hit new highs, Russia is selling - not hoarding - its gold. According to a UniCredit report, VTB's takeover of Bank of Moscow puts it at risk of a default on two bonds. Defense Minister Anatoly Serdyukov wants all contracts on the 2012 state defense order to be signed by the end of the year 'for the first time in the entire history of state defense order'. A new bill will enable the Federal Tax Service to control transfer prices for goods and services traded between parent and affiliate companies, thereby closing a traditional tax loophole.

RA's Daily Russian News Blast - July 8, 2011

2011-07-08T09:58:55Z

TODAY: Russia slams EU Parliament 'interference' over elections; Nemtsov travel ban confirmed/lifted; Strasbourg concert for Khodorkovsky; FSB could be implicated in Magnitsky case; rights council wants economic crimes amnesty; new company to weed out Moscow extremist media; Lugovoi and UK visas are not connected, says Lavrov; progress on U.S. adoptions; Olympic torch in space; Happy Married Love Day.

Russia has slammed the European Parliament resolution calling on it to guarantee free elections as a 'crude' move that 'interfere[s] in internal legislation'. A travel ban on Boris Nemtsov, apparently put in place over the 2010 pamphlet 'Putin. Results. 10 Years' has been lifted by the authorities, almost in the same breath in which it was confirmed. The move may have been inspired by criticism from the E.U. Parliament. Nemtsov learned about the ban whilst attending a classical concert in Strasbourg this week, held to draw attention to the case of Mikhail Khodorkovsky and his former associate, Platon Lebedev. The New York Times described the audience as 'a who's who of the opposition to the Russian regime'. The Kremlin's human rights council says that FSB and Interior Ministry officials could end up being implicated in the death of Sergei Magnitsky; it is also calling for an amnesty for economic crimes that would apply to Khodorkovsky; it's unlikely to be granted, says United Russia member Olga Kryshtanovskaya, as it would 'bolster Medvedev at Prime Minister Vladimir Putin's expense'.

]]> A new state-owned company, created on the order of Moscow Mayor Sergei Sobyanin, will search out and delete print, audio and video materials that exhibit signs of extremism. Foreign Minister Sergei Lavrov insists that the British-Russia visa situation has nothing to do with the extradition call for Andrei Lugovoi, contrary to a British minister's statements earlier this week. Mandatory background checks will be imposed on potential adoptive U.S. parents of Russian children, with U.S. authorities to be made responsible, Lavrov says, although the agreement has not yet been signed.

Model Natalia Vodianova raised $3.3 million at a charity event for her Russia-focused childrens' charity, the Naked Heart Foundation. Russia today celebrates its Day of Married Love and Family Happiness 'amid a deepening demographic crisis and a record divorce rate'. Russia is planning to send the Olympic torch into space.

The Independent reviews a film documenting Time of Action, a 1978 artwork by the Moscow Conceptual School.

PHOTO: Head of the presidential human rights council Mikhail Fedotov (L) speaks with head of National Anticorruption committee Kirill Kabanov during a news conference, dedicated to the case of lawyer for the equity fund Hermitage Capital Sergei Magnitsky, in Moscow July 7, 2011. REUTERS/Denis Sinyakov

Energy Blast - July 7, 2011

2011-07-07T10:24:02Z

Russia and Norway have resolved their 44-year Arctic border dispute, opening up a 175,000-km-squared area thought to contain up to 6.8 billion tons of oil and gas. Artur Chilingarov, the Russian explorer who riled Canada and others by placing a flag on the Arctic sea floor in 2007, was awarded the title of 'Hero of the Russian Federation' in 2008, claims the Guardian in a report on political tensions in the region; and here's a breakdown of current territorial disputes. According to this report, Russia is planning to apply to the UN next year to increase its share of Arctic territory, and intends to spend millions seeking to prove that a particularly energy-rich underwater mountain range is part of its own landmass. It is also concerned that its economic interests are threatened by NATO's activities in the region. Mongolia has added confusion to the Tavan Tolgoi project, saying that its decision on the three shortlisted bidder was not yet final. A Hong Kong-based analyst talks to Bloomberg about China's surging demand for energy products, natural gas in particular, and defends the process of hydraulic fracturing against claims of environmental damage. The chairman of Rosneft says that the company's assets are a strategic holding for the state, and should not be sold: 'The government should be guided by a certain calculus, not an abstract notion that the public sector is bad and the private sector is good.' Desmond Tutu speaks up against boosting global nuclear power: 'Eliminating nuclear weapons is the democratic wish of the world's people.' On the one hand, Ukraine is taking steps to distance itself from Russia, inviting investors to consider building its first LNG plant. On the other, President Viktor Yanukovych is inching closer to the 'rather unpopular step' of tying up a joint venture between Naftogaz and Gazprom.

Today in Russian Business - July 7, 2011

2011-07-07T10:01:23Z

Russian grain exports passing through the Black Sea port of Novorossiysk will decline this year. The government has spent $4.3 million on its 2011 harvests, battling 2.2 million hectares worth of locusts. Seeds and sprouts from Egypt are currently banned from Russia following last month's E. coli outbreak. The news that the Duma is cracking down on alcohol sales, with the possibility that beer will no longer be sold at night-time kiosks as of 2013, is affecting industry stock prices: Carlsberg shares have already taken a hit. Ballistic missile designers and the Defense Ministry are clashing over contracts and delays; the President has called for a probe into claims that the procurement plan for 2011 had been mishandled. Russia is creating tensions with the U.S. in the realm of space exploration, by attempting to triple the cost of using Soyuz crew capsules as transport to the International Space Station.

RA's Daily Russian News Blast - July 7, 2011

2011-07-07T09:54:52Z

TODAY: Medvedev's corruption legislation hasn't affected his own bills; Kremlin releases terror names; rights council releases Magnitsky officials' names; Nagorno-Karabakh. New restrictions for FSB officials; abortion statistics; second Tupolev makes emergency landing this week; Blueberry Hill, the remix.

President Dmitry Medvedev 'didn't know' that dozens of his own bills had gone unchecked by his 2009 anti-corruption legislation. 'A check by Transparency International indicated that at least 17 provisions of the new police law were open for abuse.' The Kremlin has declassified its terror list of 2,000 names in a bid for 'more transparency'. The Kremlin's human rights council has gone public with the names of officials implicated in the case of Sergei Magnitsky. 'The Kremlin council's report stresses that the investigators who carried out the inquiry against Magnitsky should not have been involved in the case because they were the same people Magnitsky had accused of fraud.' The Washington Post looks at the history of Nagorno-Karabakh.

]]> Under new rules, FSB officials will be fired for owning real estate abroad, holding dual citizenship, or joining a political party, with 'specific restrictions' to be written into individual contracts. 'The current state of Russia's presidency is a good example of how the country's institutions have rotted. It is clear that the current president does not hold the power that is provided to him by the Constitution,' writes Konstantin Sonin. A report on recent measures to require abortion ads to carry health warnings notes this surprising statistic: 'In 2007 there were 1.5 million abortions, nearly as many as the number of life births that year (!) according to the Duma's web site.'

A Tupolev Tu-154 is the second plane of its kind to make an emergency landing this week following engine failure. Three forest fires have been extinguished, but six continue to rage in the Far East. Moscow's DJ Smash has made a dance remix that samples Vladimir Putin's rendition of Blueberry Hill (the track is here). The DJ, whose real name is Andrei Shirman, insists that the mix is not political.

PHOTO: A firefighter waters a peat bog to prevent an outbreak of fire in the Moscow region, some 100 km (62 miles) east of the capital Moscow July 6, 2011. REUTERS/Nikolay Korchekov

Inside the Homophobic Mind of a Nashi Organizer

2011-07-06T16:12:39Z

Not to spoil the recent attempts by the Nashi to re-brand itself as a an independent youth movement at this year's infamous Seliger camp, but it sometimes seems like very few Western audiences are exposed to the actual rhetoric and conversations shared among Nashi members. One Nashi spokeswoman, Kristina Potupchik (Кристина Потупчик), recently published a rant exploring everything from the death of Osama Bin Laden to the curiously specific and virulent homophobia shared by not just a few other members of the nationalist group. Do these comments highlight some sort of developing ideology, are they just an aberration, or maybe only the immature ranting of someone seeking attention? More and more, we are seeing arguments that the movement doesn't even really matter any more (if that's the case, you'd think that Surkov would be smart enough to dedicate the budget to other, more successful propaganda activities...). Read below to see the kind of talent and hate speech Russia is spending its taxpayer money on.

(A hat tip to A Good Treaty for sharing this link on his Twitter stream. Watch a video of him and Sean Guillory on Al Jazeera's new crossover show, Stream.)

]]> In the last week of June an unbearable heat came to Moscow, and so did the news that, metaphorically speaking, Osama bin Laden paddled his canoe with two oars. That is, it turns out that the possessor of five wives and countless children had been enjoying himself with some young Arab courier, and was caught in the act by the American Navy SEALs precisely because of his homosexual weaknesses.

Of course, the fact that the editors' heads were overheated because of the unbearable weather conditions affected the distribution of this news. However, the news is interesting not only as a phenomenon of the unavoidable artificial mythologizing of the number one terrorist , but as a reflection of a broader trend that the dead are either good people, or they are gay.

Homosexuality, despite the veneer of tolerance and the thousands of gay pride parades, remains a bugbear for most of the modern world. What other media story could sting Al Qaeda in the same way? Well, except for the rumour that bin Laden was a communist, but only so as to miraculously survive the operation to eliminate him during the Cuban missile crisis. Calling a dead man gay is a sure-fire way to stir up scandal, so needed by the American military service, after they foolishly rejected the Walt Disney Corporation in the sale of the rights to souvenirs carrying the brand name of the US Seals who were directly involved in the liquidation of Osama.

However, apart from Osama, a dead gay can be good for media purposes, and over the last couple of years this has been used more than once. A false report/ canard about a certain wealthy anonymous benefactor that wanted to erect a monument to gays allegedly killed in the Ukrainian famine stirred up tensions in the strained Russo-Ukrainian relations. A month later, and discussion on social networking sites is on-going, initiated by somebody who decided to count how many gay Nazis there were in the leadership of the Third Reich. About the same time, users of Live Journal have been occupied by the discussion of a commemorative plaque to the gays and lesbians of Berlin hung opposite the monument to the dead of Fascist Germany (perhaps at the hands of these same gay-Nazis?) Even children's writer JK Rowling managed to cause an "Adult" scandal when she decided to boost the sales of the last part of "Harry Potter" with a scandalous statement regarding the pederasty of the main character, Dumbledore, who was also, tellingly, listed at that time among the deceased participants of the "Harry Potter". Even the now- obscure participant of one of the past Eurovision's, Alexander Rybak, has managed to grab a few tabloid headlines with comments on his homosexual orientations/ inclinations. Although, taking part in Eurovision, in the eyes of the majority of the enlightened readers of this text, is a similar death, so Rybak can easily join the ranks of dead gays.

So live, dear readers, so that even after death, no one has a chance to turn you gay. Otherwise, it would be like a well-known anecdote - if they catch a scoop, the siege will stay. I wish you all distinguished heterosexuality. Posthumously.

Medvedev Bemoans Persistent Rights Efforts

2011-07-06T10:29:24Z

President Dmitry Medvedev was presented with a new report by his rights council yesterday regarding the death of Sergei Magnitsky. The council insists that the lawyer died not due to a lack of medical care, as is now the official line, but from a brutal prison beating, and included in their report evidence of the lawyer's injuries, including broken knuckles and a black arm. Medvedev granted that Magnitsky's is a 'sad case', but expressed what sounds like frustration on being repeatedly pressed to recognize Russia's most infamous and egregious failings of its citizens. Quoted in the Washington Post:

'Sometimes I have a feeling that there are only two problems that must worry those who are dealing with human rights, prosecutors and, finally, the president -- these are the Magnitsky case and the Khodorkovsky case.'

]]>

Energy Blast - July 6, 2011

2011-07-06T10:07:44Z

'The IEA forecasts that Russia's oil and condensate production is set to peak at 10.57 million bpd next year and then start declining' - at least partly due to high taxes, which in Russia take 78% of oil profits and 56% of gas profits. Rosneft, Transneft, Surgutneftegaz and TGK-2 are all complaining to the government about a new bill containing measures that would grant minor shareholders more rights to company information ('All four companies are in conflicts with their minority shareholders', and Alexei Navalny is on the boards of Rosneft and Transneft). South Korea has criticized the bidding process for Mongolia's Tavan Tolgoi coal project, which favored three companies from China, Russia and the U.S., as 'unclear and unfair'. The FT says that Mongolia's choice should come as no surprise: '[s]andwiched between Russia and China, Mongolia has long sought to avoid alienating either of these great powers.' The World Trade Organization has ruled that China broke international law by curbing exports of raw materials; China insists that its policies are based on environmental and resource protection. Negotiations between Gazprom and E.ON on the commercial terms of their supply contracts are expected to continue until the end of the year, and could be transferred to an international arbitration court if they do not reach a conclusion. The German chair of the EU Committee on the Environment wants to restrict the expansion of shale gas exploration in Europe over concerns about damage caused by fracking; Poland, in its upcoming role as EU president, will obstruct any attempts to regulate shale gas development. China is holding its first licensing round for shale gas production.

Today in Russian Business - July 6, 2011

2011-07-06T10:02:19Z

Traffic along the Northern Sea Route, which runs alongside the Siberian cost, is increasing thanks to 'a political as well as a physical thaw'. The Education and Science Ministry has drawn up a list of projects to rival Europe's Large Hadron Collider, including construction of a thermonuclear research center and reactor. Diamond monopoly Alrosa raised $11 million through its first electronic auction. An investment analyst suggests that Bank of Moscow's financial problems are related to theft and neglect by the central bank, which 'is likely to have shut its eyes to [the state of affairs in the bank] because [Bank of Moscow] was connected with the United Russia party'. St. Petersburg company Infobox has launched a program aimed at helping small- and mid-sized businesses get online exposure. Germany's Continental will invest $320 million in a tire plant in Kaluga.

RA's Daily Russian News Blast - July 6, 2011

2011-07-06T09:51:04Z

TODAY: All-Russia People's Front hindering its own objective; Prokhorov wins the praise of his preferred presidential candidate; Matviyenko - no revolutionary plans; President's rights council presents Magnitsky report; Russia wants U.S. to address its alleged rights violations abroad; NATO won't assure Russia on missile defense; Moscow smog expected, 'laser hooliganism'.

Negative publicity generated by the All-Russia People's Front (apparently now even Muammar Gaddafi is a member, thanks to the rule that 'anyone can register under any name and any number of times') could hinder its original objective of helping United Russia win extra votes this year, says the Moscow Times. President Dmitry Medvedev is praising Mikhail Prokhorov's Right Cause party (which happens to support his re-election) for Russia's model of government in which 'everything is determined by the center; it's impossible for the country to progress that way.' Prokhorov also called Vladimir Putin's front 'laughable', and hinted that he would like to step into Putin's Prime Ministerial role. St. Petersburg Governor Valentina Matviyenko says she is 'not of a revolutionary nature' and is not planning to rock any boats in the Federation Council.

]]> Further information has emerged regarding claims that Sergei Magnitsky died after being beaten by security guards: a 40-page report was handed to President Dmitry Medvedev by his own rights council yesterday. 'The case is now taking a whole new direction, which is that Sergei Magnitsky was murdered,' says Hermitage Capital head William Browder. Medvedev's response was that Magnitsky's 'very sad' case was due to 'criminal actions', but referenced his medical care, not the conduct of prison guards. Russia wants the U.S. to pay 'adequate attention' to human rights violations alleged against U.S. soldiers in Iraq and Afghanistan. Rights activist Svetlana Gannushkina met with Dmitry Medvedev this week, speaking out against brutal tactics used in fighting North Caucasus militants.

NATO is refusing to budge on giving Russia explicit assurance about missile defense: 'I don't think we need new treaties. The very best reassurance that Russia could get would be to engage in practical co-operation, that is, to be part of the process.' Moscow is anticipating a repeat of last year's smog from peat bog fires filling the city, but rain is expected to hold off the inevitable until the end of the week. Russia's 'laser hooliganism', in which a laser beam is shone into the eyes of a pilot landing a plane, is on the rise.

PHOTO: Russian Prime Minister Vladimir Putin, left, visits the Nuclear Research Center in Dubna, 120 kilometers (75 miles) north of Moscow, Russia, Tuesday, July 5, 2011. (AP Photo/Misha Japaridze, Pool)

Corruption Touches Every Aspect of Life

2011-07-05T10:41:08Z

Two new BBC Radio 4 programs, hosted by Edward Stourton on the subject of corruption's wide social reach in Russia's regions, make for fascinating listening, thanks to their broad range of interviewees and case studies that will shock listeners fortunate enough to be accustomed to above-board dealings with government institutions. One of the programs focuses on Kazan, in Tatarstan, in which a local independent newspaper editor notes that corruption is rife in educational institutions, but also popular with traffic police, doctors, you name it:

'To place a child into a good kindergarten, you have to pay. To put him in a good school, you have to pay. Then, to make sure that the teachers take good care of him, you have to pay. When he finishes school, you have to place him in a good institution, you have to pay for that. If you don't want him to serve in the army, you have to pay a bribe.'

]]> Current levels of corruption are contrasted here with the 90s, when according to one source, 'everything was run by gangsters. Now, it's much tougher. Instead of dealing with gangsters, you have to deal with the state's institutions. The thing is, nowadays, the law doesn't work.'

A further report, in which Stourton talks to anti-corruption activists Ilya Yashin and Olga Romanova, looks at just how easy it is to 'get someone put away' - with a couple of million dollars to spare, the process is actually pretty straightforward, says Romanova.

The programs can be streamed here and here.