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Drinks Minimum price of 89 roubles set for half a litre of vodka
Gas OPEC gets a
War on illegal alcohol
Russian head
Over the next two years, the secretary-general can mean a lot
Russia’s recently formed Federal world’s gas arbiter will speak for Russia,” says Konstantin Si-
Service for Regulating the Russian. Leonid Bokhanovsky, monov, director-general of the
Alcohol Market has drafted an vice-president of Stroygaztrans, National Energy Security Fund,
order setting a minimum retail a Gazprom subsidiary, will be “but only [if] the GECF emerges
price for vodka. It is proposed secretary-general of the Gas as an influential arbiter for
that from January 1, 2010, the Exporting Countries Forum world gas players.” So far the
lower limit will be set at 89 (GECF) from January 1. countries do not speak with one
roubles (£1.82) for half a litre. voice, competing with one an-
YURY SOLOZOBOV
other on the world market. Pre-
TATYANA SHADRINA
RUSSIA NOW dictions that the GECF would
ROSSIYSKAYA GAZETA hike prices are for now ground-
Almost a year ago in Moscow less. Gas contracts are usually
From next year any vodka energy ministers from Algeria, long term and gas prices are
which costs less than this may Bolivia, Venezuela, Egypt, Iran, pegged to oil prices. All this sug-
be illegal. This applies to all Qatar, Libya, Nigeria, Russia, gests that the GECF will not
vodka which is put on sale, re- Trinidad and Tobago, and have as much clout as Opec.
gardless of whether it is pro- Equatorial Guinea signed an Bokhanovsky has to create an
duced in Russia or in another agreement to create the GECF. authoritative organisation from
country. No minimum retail The new group, a “gas Opec”, scratch. At present, the forum
price for vodka is currently set could bring together the coun- holds only occasional meetings,
in Russia. tries that own 73pc of the although the gas men’s prob-
Vadim Drobiz, director of the SERGEY SEMYONOV_KOMMERSANT world’s gas reserves and control lems are snowballing – growing
Centre for Federal and Region- Alchoholism remains a major problem among all segments of Russia's population 42pc of gas production. The ap- production of liquefi ed natural
al Alcohol Markets Research, pointment of the Russian nom- gas has created an oversupply
noted the need for a decision on legally. Then the picture rogate vodka can be bought for lected could also increase. Al- inee was unsurprising since and pushed prices down; Eu-
the minimum retail price for changed. A further 200 million just 25 roubles.A bottle straight though the sums here are con- Russia accounts for half of the rope wants to replace current
vodka. By the end of 2007 the litres of “grey” vodka began to off the licensed production line siderable, at 30bn roubles per cartel’s gas production. long-term contracts with a
percentage relationship be- be produced, while the quantity has a price of 63 to 65 roubles. year, they could be even more. Nevertheless, Russia is thought short-term market, which calls
tween legal and illegal vodka in produced in licensed factories Then the wholesale trade adds Up to now not everyone has to have made some concessions. into question the existence of
Russia was 70:30. Then produc- fell by 250 million litres. Cur- a mark-up of about 15pc, and been honest in calculating du- For example, Russia agreed that long-term investment projects
tion of “grey market” vodka rently, 265 factories have a li- the retail trade about 30pc. ties from the sale of vodka. As the prestigious headquarters of and will delay the introduction
started to be on the upswing. cence to produce vodka, but That’s how a bottle ends up with for the price, the expert believes the new organisation for GECF of new capacity; and clear rules
Two years ago 1,300 million li- some are not operating. an average cost of about 110 that the introduction of the new will be in Doha, Qatar, not St Pe- of the game must be established
tres of vodka were produced le- Illegal vodka now costs from 35 roubles. limit will not affect the price of tersburg. to prevent confl icts such as that
gally, and 600 million litres il- to 70 roubles per bottle, but sur- The amount of excise duty col- legal vodka.
-
“The appointment of a Russian with Ukraine.
-
The new year with a new union Duma passes bill Independent
Russia this will mean an addi-
allowing house arrest thinking
tional $400bn. However, ex-
perts doubt that the introduc- Police will be able to place sus- People under house arrest would Russian billionaire Alexander
tion of a unifi ed customs tariff pects under house arrest rather not be able to leave their homes Lebedev, who made headlines
will affect the lives of ordinary than in a detention center under at certain hours, leave their earlier this year with his pur-
citizens. “Currently, we are a bill that cleared the State hometown, attend or participate chase of the London Evening
hearing differing estimates, but Duma in a third and fi nal read- in mass public events, or change Standard, is currently in talks
one thing is clear: the creation ing last week. The bill, which residence, workplace or school to acquire another two British
of the customs union is benefi - aims to reduce notorious over- without special permission from newspapers: the Independent
cial to Russia not so much as an crowding in the prison system, an oversight body. They would and the Independent on Sun-
economic, but as a political would allow suspects implicat- also be required to check in reg- day, reported The Moscow
RUSLAN KRIVOBOK_RIA NOVOSTI project...” said Aleksey Vlasov, ed in minor offences to be placed ularly with the authorities.Ear- Times.
Russia wants to enter the WTO in the format of a customs union general director of the Informa- under house arrest for two to lier this year, the authorities In an exclusive interview earli-
tion and Analytical Centre at four months. Courts would also started testing electronic brace- er this year, the part-Aeroflot
The presidents of Russia, Bela- these states, from January 1, Moscow State University. “Po- be allowed to order defendants lets to control the movements of owner explained his purchase
rus and Kazakhstan, at a recent 2010, were signed in Minsk on litically, this is a powerful move. to serve time at home as part of convicts on probation. of the Standard as a desire to
meeting near Almaty, agreed to November 27. Russia has become the centre of their sentences under the bill. The bill now must be approved save a small newspaper.
create a single economic space It is estimated that, after the es- the integration process in the The new probation period could by the Federation Council be- Lebedev’s press service refused
by January 1, 2012. All docu- tablishment of the customs post-Soviet space and managed be tacked onto prison sentences fore going to President Dmitry to comment on the new infor-
ments on the creation of the union, combined GDP will in- to fully utilise the customs and amount to six months to two Medvedev to be signed into law. mation.
customs union comprising crease by 15pc; specifi cally for union as a PR-project.” Gazeta years. The Moscow Times Russia Now
positive advances that have been made with a platform for the best speakers – the elite of the to recovery, this year has proved extremely
Global Russia
regard to technology, innovation and future metals industry from around the world. Metals turbulent for capital markets. With banks now
leadership. The programme includes “Russia Summit 2010 is of particular significance: CIS looking to optimise their processes for debt
business
and CIS – an update” on February 16. This metal companies have survived a major global restructuring, managing distressed assets and
annual review once again invites top-level downturn, and the various players will hope to debt collection, this conference will provide
speakers from the region to discuss the key take stock of the current situation and come for- an opportunity to exchange experiences and
calendar
issues of the industry, including the continued ward with proposals for a more well-structured share ideas. Topics for debate include the
growth of exports, exploration activities and and sustainable business model. capacity and development of capital markets,
future partnerships.
www.adamsmithconferences.com
regulation, and the restructuring of distressed
International Petroleum week www.ipweek.co.uk debts in the banking and retail sectors.
February 15-17, London Distressed Debts Restructuring in Banks www.marcusevans.com
This event brings together oil and gas The 15th Annual CIS Metals Summit in Russia and CIS
experts to discuss the impact of the financial February 17-19, Marriott Grand Hotel, February 18-19, Moscow
downturn on the industry, the challenges of Moscow Although the latest surveys suggest that the
Find more in the Global Calendar
economics and the environment, and the Over the past 15 years, the summit has provided economies of Russia and the CIS are on the way at www.rbth.ru
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