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Pedro Gonçalves

BBC News - Russia cuts Belarus gas supplies over debt - 0 views

  • Mr Medvedev said foreign payments could only be accepted in foreign currencies: "Gazprom cannot accept debt repayments in anything, be it pies, butter, cheese or other means of payment."
  • Belarus President Alexander Lukashenko said his country owed nothing to Gazprom, but would settle any disagreement. Mr Lukashenko says prices should have remained the same as part of the forthcoming customs union deal. Belarus wants to settle any outstanding debt at last year's lower prices.
  • Russia increased the price of gas supplied to Belarus from $150 per 1,000 cubic metres of gas last year, to $169.20 in the first quarter of 2010 and $184.80 in the second.
Pedro Gonçalves

Oil price leaps to year's high | Business | guardian.co.uk - 0 views

  • The price of oil burst through the $71 a barrel mark today amid revelations that proven reserves had fallen for the first time in 10 years and predictions that the price could eventually hit $250.
  • Kuwait's oil minister, Sheikh Ahmad al-Abdullah al-Sabah, put some of the rise down to signs of recovery in Asia but warned that overall demand was still weaker than last year. Opec would not raise supply at current oil prices but did not rule it out "if it reached $100", he said.
  • Alexei Miller, chairman of the Russian energy group Gazprom, raised the stakes further when he reiterated last year's estimates of $250 a barrel. "This forecast has not become reality yet, given that the [credit] crisis gained momentum and exerted a powerful impact on the global energy market. But does this mean that our forecast was unrealistic? Not at all."
Argos Media

Foreign Policy: Medvedev Makes His Move - 0 views

  • Stanislav Belkovsky, the Russian political analyst and insider, gave sensational interviews in November 2007 to Die Welt and The Guardian, stating that Putin was worth approximately $40 billion. He said Putin was the beneficial owner of 37 percent of Surgutneftegaz ($18 billion), 4.5 percent of Gazprom ($13 billion), and half of a Swiss-based oil-trading company Gunvor ($10 billion)
  • Stanislav Belkovsky, the Russian political analyst and insider, gave sensational interviews in November 2007 to Die Welt and The Guardian, stating that Putin was worth approximately $40 billion. He said Putin was the beneficial owner of 37 percent of Surgutneftegaz ($18 billion), 4.5 percent of Gazprom ($13 billion), and half of a Swiss-based oil-trading company Gunvor ($10 billion).* If true, this fortune would make Putin one of the richest people in Europe and probably the world. It would also make him one of the most corrupt.
  • The legislation prohibits conflicts of interest, requires government workers to report income and property, and mandates them to report on coworker noncompliance. It is tailor-made for a behind-the-scenes assault on Putin's power and legitimacy.
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  • So for Medvedev, the new anticorruption law, which he shepherded through the Duma in December 2008, presents a potential opportunity to intimidate Putin and his supporters.
  • Most of Putin's friends and allies throughout government and major corporations would no doubt find it challenging to provide full asset disclosure and transparency about conflicts of interest. With a new anticorruption law in his arsenal, Medvedev has a weapon of choice.
  • Interestingly, Putin may have sealed his own fate years ago by establishing a legal precedent for his own ouster. Shortly after Yeltsin transferred temporary presidential responsibilities to Putin on December 31, 1999, Putin issued Presidential Decree 1763, granting Yeltsin and his family lifelong immunity from criminal prosecution, administrative sanction, arrest, detention, and interrogation. If push comes to shove, it's not far-fetched to imagine Medvedev offering the very same arrangement to Putin.
  • If the two leaders cannot work out a quiet deal, then Medvedev might decide to use the new anticorruption law against a proxy. He would likely choose someone reasonably close to Putin with a similar KGB or law enforcement background: in Russian parlance, a silovik. The government would prosecute a current or former official for failure to disclose accurate income and asset statements, report subordinate noncompliance, or identify conflicts of interest. Once the government started such a prosecution for corruption, the message to Putin supporters would be clear: Watch out or you could be next.
  • Why would Medvedev turn on his political godfather? For political survival for the government, himself, and even Putin. Unless there is some fall guy for Russia's economic fiasco, the whole regime could topple. Counting on Russians' weariness with tumult and revolution, Medvedev may hope that dumping Putin will be enough to keep the system intact.
Pedro Gonçalves

Georgia: expect storms ahead | Simon Tisdall | Comment is free | guardian.co.uk - 0 views

  • For energy-poor western Europe, Georgia is a vital conduit for Caspian basin oil and gas exports that are not, for now at least, under Moscow's manipulative control. Vladimir Putin's Kremlin views Georgia very much as part of its backyard, a "near abroad" property (though the phrase is not much used these days) that should conform to Russian interests. Europe believes it belongs inside its post-Soviet, liberal pro-market "eastern neighbourhood".
  • The idea Georgia might one day join Nato – it already contributes through the Partnership for Peace scheme – and the EU is anathema to Russian nationalists. It is not coincidental that since 2008, when Putin sent his tanks deep into Georgian territory in support of independence for the breakaway satraps of South Ossetia and Abkhazia, Russia has effectively controlled about one-fifth of Georgia's total land mass.
  • The problem for both sides of this strategic equation is that Georgia's leaders – they might better be termed overlords – tend not to do what they are told, even by putative friends. Saakashvili's authoritarian, sometimes confrontational style, pockmarked by serial rights abuses including a recent prison torture scandal, has embarrassed his Brussels backers. The west wants a stable Georgian government, not one engaged in a personalised, potentially dangerous feud with the Putin regime.Yet the man behind the Georgian Dream opposition, billionaire Bidzina Ivanishvili, could also prove an awkward customer, should he be confirmed as prime minister. Ivanishvili made his money, lots and lots of it, during Russia's corrupt oligarch era. He still reportedly holds a chunk of Gazprom shares. Saakashvili predictably labelled him a Kremlin stooge, a charge he denies.
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  • "Greek scholar Ilia Roubanis has called Georgian politics 'pluralistic feudalism', a competition between a patriarchal leader who enjoys uncontested rule over the country and a leader of the opposition bidding to unseat him and acquire the same [...]
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    "For energy-poor western Europe, Georgia is a vital conduit for Caspian basin oil and gas exports that are not, for now at least, under Moscow's manipulative control. Vladimir Putin's Kremlin views Georgia very much as part of its backyard, a "near abroad" property (though the phrase is not much used these days) that should conform to Russian interests. Europe believes it belongs inside its post-Soviet, liberal pro-market "eastern neighbourhood"."
Pedro Gonçalves

Putin prepares the Russian empire to strike back | Simon Tisdall | Comment is free | Th... - 0 views

  • As president, potentially until 2024, Putin has one overriding objective: the creation of a third, post-tsarist, post-Soviet Russian empire.
  • Elements of Putin's strategy to make Russia great again are slowly coming into focus. Much of the plan is defined by Russia's opposition to the US, the traditional foe. Thus the Kremlin announced last week that it would renounce the strategic arms reduction treaty (known as New Start) agreed with Washington two years ago if the US did not abandon its European missile defence plans.
  • unveiling of a new Russian missile base in Kaliningrad on Nato's doorstep
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  • Putin is busy reviving the idea of a remodelled union embracing the former Soviet republics of central Asia, an arrangement that prospectively boosts Russian political and military influence. "Russia will begin this new iteration of a Russian empire by creating a union with former Soviet states based on Moscow's current associations, such as the customs union and the collective security treaty organisation. This will allow the 'EuU' [a Eurasia union] to strategically encompass both the economic and security spheres … Putin is creating a union in which Moscow would influence foreign policy and security but would not be responsible for most of the inner workings of each country," said Lauren Goodrich in a Stratfor paper.
  • Following last month's Gazprom deal with Belarus, industry analysts suggest up to 50% of Europe's natural gas could be controlled by Russia by 2030.
Argos Media

BBC NEWS | Americas | Chavez courts Russian influence - 0 views

  • Russian warships, led by the nuclear cruiser Peter the Great, are in the Caribbean Sea for the first time since the end of the Cold War to begin manoeuvres with the Venezuelan navy.
  • The exercises coincide with a visit to Caracas by the Russian president, Dmitry Medvedev, who is due in Venezuela on Wednesday, and are illustration of how close military ties between the two countries have grown in recent years.
  • While the Russian government has been playing down any political dimension to the training, the Venezuelan president, Hugo Chavez, has been doing just the opposite. In recent speeches, he has referred to Venezuela's "strategic partnership" with Russia and said the military ties were part of building a more "multi-polar world".
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  • But the Russian deputy foreign minister, Sergei Riabkov, said suggestions in the media that the naval exercises signal a return to Cold War politics in Latin America were misguided. "There is no geo-political connotation whatsoever," he told the BBC.
  • Between 2005 and 2007, Venezuela spent around $4bn (£2.6bn) on military equipment - most of it from Russia.
  • Ties between the two superpowers have become strained because of Washington's plan for a missile defence system in Poland and the Czech Republic - something Moscow is firmly opposed to. Indeed President Medvedev, has said he will deploy missiles in the Russian exclave of Kaliningrad, between Poland and Lithuania, if the US initiative goes ahead in its present form.
  • Mr Chavez recently took a delegation of Russian top brass to inaugurate a gas platform in the Gulf of Venezuela, co-owned by their respective state-run energy companies - PDVSA and Gazprom.
  • During the trip, the Russian government also signed joint agreements on issues as diverse as gold and bauxite mining, ceramics and fishing. It is a combination Russian technology and know-how coupled with Venezuela's resources and manpower.
Argos Media

Russia and EU begin summit amid mutual exasperation | World news | guardian.co.uk - 0 views

  • The summit comes at a time of growing frustration between Brussels and Moscow over a host of issues ranging from energy policy to the war in Georgia. The EU was irritated by Russia's gas war in January with Ukraine and Medvedev's failure to pull Russian troops out of the breakaway Georgian republics of South Ossetia and Abkhazia.
  • For its part, the Kremlin is annoyed by the EU's attempt earlier this month to improve ties with half a dozen post-Soviet countries. A summit of 33 countries in Prague brought the EU's 27 governments together for the first time with the leaders of Ukraine, Georgia, Moldova, Armenia, Azerbaijan and Belarus.
  • Russia believes the EU's "eastern partnership" initiative is a challenge to its own strategic and security interests in a region it regards as its backyard. Medvedev insists that Moscow enjoys what he calls "privileged interests" in states occupying the volatile buffer zone between the EU and the Russian Federation.
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  • Today Medvedev joked with a group of students that the remote summit venue, 3,800 miles from Moscow or 5,300 miles via the epic Trans-Siberian Express, had been chosen to remind the Europeans of Russia's vast size. Several EU delegates moaned when Russia held last year's summit with the EU in western Siberia, Medvedev said."They complained: 'Oh, it's a long way.' We said: 'If you don't like it you can fly somewhere else.' They thought for a bit and said: 'OK, we're ready,'" Medvedev said. He added: "They [the Europeans] should understand how big Russia is and should feel its greatness. On the other hand, we also want a partnership with the EU. It's important for us to get together."
  • "Russia and EU relations are in stalemate. There is a serious lack of mutual understanding, a lack of willingness to understand each other, and a lack of strategic common values," Fyodor Lukyanov, editor-in-chief of Russia in Global Affairs, told the Guardian.He went on: "Relations with Obama and the US are now better. At the same time relations with the EU are getting worse. Since the 1990s Russian-EU relations have been governed by the assumption that Russia would go the European way without applying for membership. This model is now exhausted. They need a new model."
  • According to Lukyanov, the Kremlin was furious after the EU pressured Belarus this month not to recognise South Ossetia and Abkhazia. "The message was: choose Russia or not Russia. It was absolutely unnecessary from the European side. Alexander Lukashenko [Belarus's president] wasn't going to recognise them anyway for his own reasons," Lukyanov said.
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