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http://eng.globalaffairs.ru Russia in Global Affairs on-line magazine
Opinion
RUSSIA INDIA REPORT
BOOKMARKS
www.pircenter.org The Centre for Policy Studies in Russia
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
www.ln.mid.ru/brp_4.nsf/english Ministry of Foreign Affairs documents
THE ECONOMIC TIMES WEDNESDAY_JULY 08_2009
www.levada.ru/eng Levada analytical centre website
new negotiations with big foreign com-
Letters to the Editor
NO APOLOGY OWED
panies are needed. Before the agreement
was signed on June 27, Putin met with
Shell’s executives at his Novoe Ogarevo
The import export growing friendly bonds be- residence to propose cooperation on two
business tween Russia and India. Just new projects, Sakhalin III and Sakhalin
It was a great experience to a couple of weeks ago, the re-
ALBINA KOVALYOVA
IV. Shell was previously involved in the
read insightful articles and nowned Carnatic vocalist, RUSSIA PROFILE.ORG Sakhalin II project, and showed its dedi-
stories on the BRIC countries Smt. Gayathri Girish had cation by continuing to participate in the
in Russia India Report. The been to Russia to perform at In late June, Russia has struck deals with project despite losing half of its stake.
bilateral trade relation be- a Carnatic concert on the oc- two major foreign companies to develop Putin recognised the company’s profes-
tween India and Russia has casion of Year of India in Rus- the oil industry in the country. An agree- sionalism and long involvement in Rus-
been historic. Many people sia-2009. She is my favourite ment with Royal Dutch Shell, signed on sia. He persuaded Shell’s executives that
today have wished to restart vocalist and she has men- June 27, will let the company develop pro- the projects would benefi t from the com-
trade with Russia. I would be tioned about this in her blog duction and transportation of liquefi ed pany’s expertise.
grateful if RIR explores the as well. I will be obliged if you natural gas (LNG). Earlier last week, the Although Shell is familiar with the nu-
regulatory aspect of export could, through your article, independent Russian oil producer No- ances and difficulties of working in Rus-
import trade and Policy of publish her interview narrat- vatek and French Total agreed to embark sia, the company’s Chief Executive Jeroen
Russia for incentive available ing her experience. I am not on a joint-development project in north- van der Veer accepted the offer. He said
for making Russian subsidi- sure if this has been covered western Siberia. With the price of oil half that Shell was ready to work quickly and
ary as well as funding option by you, but would love if this what it was last year, Russia seems to need would be able to start in the foreseeable
to Indian companies from is covered by your esteemed the foreign investment, expertise and future.“The conditions ar e currently ideal
Russian banks, fi nancial in- paper. equipment to develop the energy indus- for this, from the economic point of view,
stitutions,V C funds as well as PRIYA RAM try’s infrastructure. But will Russia over- since the prices in the construction sector
other entities looking for fi - come the fear of foreign companies want- are considerably low,” he explained.
nance and other alliance. I Music in the heart ing to exploit its resources? It is clear that both sides need each other.
guess stories on the above I truly appreciate the quality The picture of Russia today is very differ- Russia relies on foreign companies’ know-
subject will truly enlighten churned out by the Russia ent from what it was just over a year ago. how and tools just as these companies are
me. And I hope RIR continues India Report (Reference : Eco- The price of oil then was over $100 a bar- in need of the wealth of opportunities the
to play an integral role to- nomic Times , Mumbai Edi- rel, and the Russian government could af- country’s natural resources offer. One as-
wards strengthening Indo- tion dated 10th June 2009). ford to exercise a near-monopoly over the pect of the project is the development of
Russia ties. However, I feel that readers country’s oil industry. Foreign companies a shipping system that will allow trans-
SANJAY KHANDELWAL will be interested to get a de- such as Royal Dutch Shell and TNK-BP, porting LNG—something that is much
tailed insight into the life of the Moscow based co-venture owned by needed if Russia wants to develop its oil
A 'golden' opportunity the great Yuri Bashmet (lead- British BP and a consortium of Russian and gas sector. The two proposals to Shell
I truly appreciate the quality ing Russian conductor and vi- oligarchs, did work in Russia, but encoun- and Total last week show a positive step
of content published in Rus- olist ) who was born in 1953 in tered many difficulties. in the direction of better relations be-
sia India report. RIR, from Rostov-on-Don in Russia. In 2006, the Russian government forced tween Russia and foreign businesses. Ac-
time to time has provided me Novaya Rossiya State Sym- Royal Dutch Shell to renegotiate its con- cording to the Kommersant daily’s corre-
with very useful inputs. I be- phony Orchestra was founded tract, which resulted in lowering the com- spondent Andrei Kolesnikov, “the prime
long to the gems and jewel- in 1990 and in 2002 Yuri Bash- pany’s stake in the Sakhalin II project minister demonstrated that a foreign
lery industry and handle the met was appointed as Direc- from 55 percent to 27.5 percent. Unsur- company can be successful in Russia.”
Russian region. I will be glad tor of the orchestra, thereby prisingly, the state-owned Gazprom took This thawing of relations between Russia
if you could throw some light opening a new chapter in its control of Shell’s lost shares. This incident and Western companies may bring in
on this industry. Kindly let history. I had the opportunity was a big loss for the British-Dutch com- more foreign investors, and thus further
me know the possibility of to see and meet him while he pany and many saw the action as unfair.
DRAWING BY DMITRY DIVIN develop the country’s economy and infra-
the same. performed live on stage at Chirvani Abdoullaev, the senior oil and structure.
RAHUL JAUHARI NCPA Theatres here in Mum- gas analyst at Alpha Bank, believes that sian partners fi led a lawsuit against him. doullaev believes that Russia’s dream for Russian authorities may also be realising
bai in December 2008 soon such ownership restrictions for foreign These incidents had led to a widespread fantastically high oil prices has been that their fears about letting external com-
Musically inclined after 26/11 attacks. I would be companies are a big mistake. “They are belief that they were motivated by the in- shattered, and now the country is de- panies in are unfounded. Tax regulations
I was happy to read all kinds thrilled to read about him. bureaucratic attempts to gain control of tention to seize control of the 50 percent pendent on foreign investment. “In the in Russia make work very difficult for for-
of articles related to the NILESH RAJE the fi nancial sources, but they do not have share of the company belonging to BP. new situation, it has become clear that eign businesses, and provide a strong
any positive consequences for the coun- It is obvious that the government wants our industry is just not capable of invest- means of control.“The r esources are on our
try,” he said. to keep its greatest asset in its own hands, ing in large projects. We will not manage side of the territory and no one will be able
TNK-BP’s CEO Robert Dudley also ex- but the problem is that Russia is no long- without foreign investors and companies to take that away. The control is always
perienced various problems. He was de- er in the position to do so. The fi nancial who can take on the big risks,” Abdoul- available,” Abdullayev said.
The polls
-
nied a working visa, and his company’s crisis has had an impact on Russian in- layev said.
Moscow offices were raided several times vestors, who no longer have the resources The Russian Prime Minister Vladimir Albina Kovalyova is a Russia Profi le com-
by the security services. Finally, his Rus- to develop the country’s oil sector. Ab- Putin shows signs of understanding that mentator
Quarter of Russian families in debt, poll says
A SURVEY CONDUCTED EARLIER THIS MONTH BY THE AUTHORITATIVE
ALL-RUSSIA PUBLIC OPINION RESEARCH CENTRE (VCIOM) HAS FOUND
THAT 26 PC OF RUSSIAN FAMILIES HAVE OUTSTANDING DEBT.
THE SCO’S EMERGING ROLE
WHAT WAS THE PURPOSE OF OBTAINING A LOAN? ( % OF THOSE WHO HAVE
OUTSTANDING CREDITS)
MEENA SINGH ROY
tlements and introducing a common cur- ence and technology, and the revival of also welcomed Iranian President Mah-
INTERNATIONAL AFFAIRS EXPERT rency within the SCO framework. Both the global economy.” India welcomes en- moud Ahmadinejad amid massive pro-
Russia and China favour cautious global hanced co-operation in energy, food se- tests in Iran over allegedly rigged elec-
The Shanghai Co-operation Organisa- currency reform, while preserving the curity and infrastructure development. tions. Ahmadinejad articulated his anti-
tion (SCO) held its ninth summit on value of the dollar. Though India may not be able to achieve US stance by stating that “America is con-
June15-16 in Yekaterinburg. SCO leaders There were signifi cant meetings on the much while China is in the SCO driving sumed by economic and political crisis,
signed the Yekaterinburg Declaration, a sidelines. Prime Minister Manmohan seat, it will have to utilise its engagement and there is no hope for an immediate res-
Joint Communiqué and the SCO Coun- Singh met President Asif Ali Zardari for to further economic ties with member olution to these issues.”
ter-Terrorism Convention. The plenipo- the fi rst time after the 26/11 Mumbai ter- countries and remain part of the Eur- Did the ninth SCO summit set a new geo-
tentiaries of member states also signed ror attacks. Also important was the meet- asian energy game. political role for the organisation? The
agreements on international information ing of Russian and Pakistani leaders. This summit can be seen as a further sign event indicated new regional trends, pro-
security, training of counter-terrorism of- Dmitry Medvedev and Asif Ali Zardari of China’s increasing infl uence in Central jecting the role it sees for itself in Eurasia
SOURCE: WWW.WCIOM.RU fi cers and fi nancial co-operation. opened a new chapter in bilateral co-op- Asia and Russia’s assertive role. China and Southern Asia, and China’s increas-
Leaders discussed ways to mitigate the eration, calling for better economic rela- put forward economic proposals and ex- ing infl uence. From India’s point of view,
The most popular item to buy ments consume half or more impact of the fi nancial crisis, expand eco- tions and tackling terrorism and extrem- tended a $10 bn loan for joint projects the prime minister’s participation indi-
on credit in Russia is a car, ac- of their families’ income, but nomic co-operation, counter-terrorism, ism. This indicates Russia’s likely new for- within the SCO framework and will send cates the growing importance of Russia
counting for 22 pc of all cred- 24 pc use 10-20 pc of the fam- drug trafficking and organised crime. For eign policy course in South Asia. trade delegations to member countries to in its foreign policy and concerns about
it taken out in the country ily income for loan payment. the fi rst time, observer countries partici- What does it mean for India to be in the enhance investment. In an effort to ce- instability in the Af-Pak region.
followed by everyday ex- 18 pc spend still less of their pated in a restricted meeting with the SCO? It has observer status and was rep- ment existing ties with Pakistan, Presi- The SCO has emerged as an important
penses (21pc). 18 pc of credit family's income on loan SCO Heads of State Council. resented by ministers at past summits. dent Hu Jintao committed an additional factor in Eurasian security architecture,
goes on home electronics, 14 maintenance. Afghanistan was on the agenda. There is However, this year, prime minister Man- $8.82 mn aid to help with relocation of expanding to include South and West
pc on home improvement, 12 Just over half of Russians need to increase interaction with SCO ob- mohan Singh was there – a recognition of civilians displaced by ongoing military Asian countries. It would therefore be ap-
pc on real estate, 10 pc on fur- with outstanding loans (52 server states, Afghanistan and regional the importance India gives to its long- operations in Swat. This was a clear dem- propriate to rename it the ‘Asian Co-op-
niture, 5 pc education and pc) said that the economic and international organisations. The UN’s term strategic partner, Russia. India also onstration of economic muscle and in- eration Organisation’, if it wishes to be a
medical treatment and 4 pc crisis has made repayment on role was acknowledged. Creation of an an- has deep strategic and economic interests creasing infl uence in the SCO, not only signifi cant Asian multilateral body and
on computer equipment. their credit harder. 41 pc said ti-narcotic and fi nancial security belt by in Central Asia. However, the driving forc- challenging Western infl uence but also play a greater role in the region.
-
Most Russians (61 pc) con- the crisis did not affect their member states, in close interaction with es are mainly emerging security challeng- Russia’s role. Chinese economic help to
sider themselves creditwor- ability to pay. international organisations, was noted. es in Afghanistan and Pakistan, and the SCO countries and Pakistan should be
thy, although only 20 oc said The poll was conducted on On the global fi nancial crisis, SCO mem- need to monitor an organisation where seen in the context of its policy of ex- Read the full article on
that it would be easy for them June 6 and 7 in 140 towns ber states acknowledged the need for China has increasing influence. panding infl uence to access the region’s www.rbth.ru
to make loan payments. 21 pc throughout Russia and was adopting effective measures for boosting Speaking at the summit, Manmohan energy resources and create favourable
of debtors said that loan pay- answered by 1,600 people. regional trade and investment. SCO coun- Singh said India has “opened opportuni- conditions to achieve strategic goals. Dr Meena Singh Roy is a researcher at the
tries agreed to the Russian proposal for ties to intensify interaction with the out- Russia challenged the domination of the Institute for Defence Studies and Analy-
using national currencies in mutual set- side world in trade and investment, sci- US dollar as a global reserve currency. It ses, New Delhi.
Most important inventions of the XX century and what
to expect from the XXI century - Russian Version
VCIOM RECENTLY PUBLISHED DATA ON WHAT INVENTIONS, MADE
IN THE 20TH CENTURY, RUSSIAN PEOPLE CONSIDERED TO BE MOST
IMPORTANT, AND WHAT DISCOVERIES OUR FELLOW NATIONALS WERE
WAITING FOR IN THE 21ST CENTURY.
AFRICAN DIAMONDS RULE
WHAT ARE THE MOST WANTED INVENTIONS OF THE 21ST CENTURY?
AZHDAR KURTOV
Since 2002, Russians have been exploit- for diamonds is restored on the world tion’s industrial reserves of diamonds
STRATEGIC CULTURE FOUNDATION ing diamond deposits in Angola’s North market. The world leader in the diamond were worth $109.3 bn in monetary terms.
Lunda province. The ALROSA company industry, De Beers, has taken the same He estimated that these probable reserves
At the end of June, Dmitry Medvedev paid and the Portuguese company Escom Min- step in Namibia and Botswana. would be developed within 25–40 years.
a visit to Africa. The president visited cap- ing Inc have created a joint venture to de- In recent years the Angolans have been The diamond business in Russia has a few
itals of four countries – Egypt, Nigeria, velop the Camatchia and Camagico de- carrying out intensive exploration for problems. First, the fact that the deposits
Namibia and Angola. When asked what posits. They have been joined by the An- diamonds. In 2008 alone about 20 new in Yakutiya that have been open since the
was Russia’s interest here, he replied, golan companies Endiama, Hipergesta joint companies were set up in the coun- 1960s are becoming exhausted and there
“There is great interest in Africa right and Angodiam, which own 55 pc of the try, investing more than $100 mn in ex- is a need to move to more expensive un-
now, with China doing a lot and the USA project. In 2007, 204,000 carats of dia- ploration. Russia’s ALROSA is not lag- derground mining. Second, the new sales
and the European Union actively at work. monds were extracted at the mine, and ging behind: it has helped joint explora- system is not quite finalised. Until the
We have a lot of tried and tested friends, it’s planned to extract 180,000 carats of tion in Angola’s Cacolo deposit. middle of the current decade ALROSA
close friends that we’ve really helped… diamonds per month by the middle of The Angolan state-owned company En- was obliged to sell practically all its out-
(for example, the Angolan president José 2010. diama has announced its plans to in- put with the help of De Beers. Only an an-
SOURCE: WWW.WCIOM.RU
Eduardo dos Santos studied at the Baku Russian business is also taking part in an- crease diamond production by 10 pc in ti-monopoly ruling by the European
Oil Institute and was even married a So- other Angolan diamond project – devel- 2009, to 10 mn carats. More than 100 Commission forced the companies to
The most important discov- As for most wanted inven- viet citizen, while President Hosni Mu- opment of the Catoca kimberlite pipe. promising sites have already been regis- abandon this practice from 2009. As a re-
ery of the previous century, tions of the 21st century, barak of Egypt, a former air force pilot, This deposit is estimated to hold 189 mn tered to be handed over as concessions to sult, the level of direct supplies to De
according to nearly one-fi fth Russians expect develop- trained at the Frunze Academy - RIR) … carats, worth about $11 bn in all. The min- private companies. Beers fell from USD 840 million in dia-
(19 pc) of the respondents, is ment of alternative fuels (34 and are now ready to develop relations ing company Catoca Ltd, made up of the Russia is one of the world’s top three dia- mond sales in 2005 to $400 mn in 2008.
space exploration. The sec- pc) and bioartifi cial organs with us, based not on charity but on mu- ALROSA company, Angola’s Endiama, mond producers and comes fi rst in terms From 2009 Russia will undertake inde-
ond place goes to computer (33 pc). Every fifth (21 pc) tually benefi cial principles…” Brazil’s Odebrecht Mining Services Inc of the physical volume of diamond ex- pendent sales of raw material. That’s
(14 pc). Similar fi gure of 8 pc forecasts development of a The presidents of Russia and Angola and the Israeli Daumonty Finance, was ports. The country is also the leader in where the African projects could become
is for mobile phone, Internet cure-all, 16 pc wait for arti- among other things discussed the issue of set up to mine and market diamonds from terms of physical quantity mined. How- very helpful.
-
and television. 7 pc think that fi cial intelligence; 14 pc are cooperation in the fi eld of diamonds. An- the Catoca pipe. ever, according to De Beers, in monetary
achievements in medicine sure they will be travel to gola is about the best prospective partner However, in connection with the fall in terms, Russia still comes second to Bot-
are the most important in- space; 13 pc - that fl ying cars for Russia in mining and processing dia- demand for diamonds on the world mar- swana, since the majority of the dia- Read the full article on
ventions of the 20th century. will appear; 11 pc surpris- monds. This country ranks third in Africa ket because of the crisis, ALROSA an- monds mined in Russia come into the “in- www.rbth.ru
6 pc vote for communication ingly predict transportation after South Africa and Botswana in this nounced a halt to exploration on the Ca- dustrial” category, that is they are used to
and telephony. Discovery of means, moving faster than sector of the economy. Some 9.7 mn car- toca until the end of 2009. ALROSA make diamond tools. Azhdar Kurtov is Senior scientific re-
electricity and nanotechnol- light. Among other inven- ats of diamonds worth approximately spokesman Andrey Polyakov said that In spring 2008 Sergey Vybornov, presi- searcher, Russian Strategic Research In-
ogies got 4 pc; building auto- tions - reading other peo- $1.3 bn are mined in Angola per year. work would be resumed when demand dent of ALROSA, said that his corpora- stitute (Moscow)
mobile (train, helicopter, air- ple’s thoughts and telepor-
plane), organ transplanta- tation. 6 pc believe perpetu-
tion and radio – 3 pc. As many al motion machine would be
as 36 pc of respondents were invented and the secret of
ADDITIONAL READING ON
FYODOR LUKYANOV/Moscow shows who’s boss with WTO U-turn VLADIMIR YURTAYEV/Ahmadinejad’s election win
undecided. immortality revealed. WWW.RBTH.RU
SERGEI BALASHOV/Propping up the military ANDERS ASLUND/Gazprom's new weakness offers opportunity
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