Yavlinsky: Separating Power from Property
Opposition veteran Grigory Yavlinsky takes another look at the 1990s in Russia, and what we have come to understand about the roles of the economic elites.
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An exclusive story of a Swedish judge, married to a lawyer representing the Russian government, who has intervened to block the sale of a property.
CBC's The Current Interviews Robert Amsterdam (Transcript)
Canadian radio host Anna Maria Tremonte interviews Robert Amsterdam on the outcome of the Russian elections, ongoing work in Thailand, and his experience fighting a political case against Hugo Chavez in Venezuela.
RA’s Daily Russia News Blast – May 23, 2012
TODAY: ‘Energy tsar’ Sechin regains to directorship of Rosneft; Putin draws ex-ministers into presidential circle; bill on greater fines for protestors tentatively approed; Moscow city authorities start turf war with protestors; Poland cautions Russia on NATO’s European defense plans; population growth
It has been reported that Prime Minister Medvedev has signed a decree to appoint Igor Sechin, who was left out of yesterday’s cabinet, as chairman of the Rosneft Board of Directors, a position he formerly occupied. The decision has confirmed that arch Putin ally Sechin will play a powerful role in the new administration, says Reuters. Bloomberg offers an analysis of his return, if indeed, he ever really went away. President Putin has appointed seven former cabinet ministers to posts in the Russian presidential administration, indicating, as Brian Whitmore points out here, ‘[t]he ruling elite remains intact and real power — as it has always been with the exception of Medvedev’s presidency — will be concentrated in the Kremlin.’ Why are women underrepresented among Russia’s political elite? Read More
Putin’s Cabinet of Cronies
Vladimir Putin has announced his new Cabinet, stuffed with long-term loyalists. Igor Shuvalov is second-in-command. Arkady Dvorkovich is the new deputy prime minister, replacing Igor Sechin. Vladislav Surkov, Dmitry Kozak, Dmitry Rogozin and Alexander Khloponin all keep their existing positions as deputies. Here’s a selection of what various sources are saying about the Cabinet of cronies:
IGOR SHUVALOV: ‘While Shuvalov’s emergence as sole first deputy prime minister was taken as a clear signal that Putin is calling the shots, others speculated that his old adversary Igor Sechin would continue to wield influence from behind the scenes.‘ Shuvalov, who has been in government since 1997, is ‘widely recognized as a “Putin man.”’
KOLOKOLTSEV & OPPOSITION: ‘Critics said the new government showed that Putin – faced with the biggest street protests since the fall of the Soviet Union — was carrying on with the same approach as before. He had made no concessions to the opposition, they added, unveiling a cabinet made up of trusted loyalists and stooges.‘ The New York Times says that Putin’s promotion of Moscow’s police chief to the post of interior minister ‘endors[es] his work in keeping protests in check, and signal[s] to the opposition that he will brook no dissent in his six-year term. “He’s known as the man who kept order during the protests, and that is what’s important for the Kremlin,” Andrei Soldatov, an author and expert on Russia’s security forces, said of Kolokoltsev.‘
Russia to Outgrow EU Economies
Mark Adomanis at Forbes calls out the Economist for repeatedly making news out of Poland’s economic performance, and pulls up some figures indicating that in fact it is Russia that looks to be the star performer this year. Even by its own estimates, the country is on track to outgrow every European economy in 2012. Poland currently outperforms Russia in terms of inflation, Adomanis says, but the EU’s economic failure has shattered ‘the aura of competence’ around European institutions, and may make potential member countries think twice. How ironic, he says.
If, a decade ago, I stood up and said “ten years from now Russia will not only be significantly less democratic than it is today, it will also be growing faster than every single country in the European Union” I’d have been dragged off to a mad-house. Putin’s cruel autocracy would have run out of steam by then, people would say, and the countries of “new Europe” would be confidently marching into the economic future. Oops.
Energy Blast – May 22, 2012
Russian licencing agency Rosnedra cancelled its decision to grant a licence for the Trebs and Titov oil fields to a consortium of Bashneft and Lukoil, blaming the pair’s insufficient refining capacity. TNK-BP is postponing a decision on dividend payout, supposedly as a result of a ‘broadening rift’ with BP shareholders. China’s crude oil imports from Iran increased by 50% in April over March figures, thanks to a resolution of pricing disputes, despite ongoing pressure exerted by Western sanctions against Iranian oil, which at present show no signs of letting up. Bangladesh has discovered oil in two old gas fields, with estimated reserves worth $5.5 billion. Baghdad has criticised and threatened to veto plans for an oil pipeline with Turkey.
Today in Russian Business – May 22, 2012
Russia’s unemployment rates, at 5.8% for April, are at their lowest since 2008. Foreign investors have welcomed news of Vladimir Putin’s new cabinet as evidence of economic stability, but noted Vladimir Putin’s dominance. ‘We never expected a particularly reformist government, and nor do we have one.’ Bidzina Ivanishvili’s sale of his four development properties leaves the Gutseriyev-Shishkhanov family in a position to take hold of Moscow’s luxury hotel market. Retail group Auchan is establishing a joint bank with Dutch Credit Europe Group to ‘strengthen their position in the market’. Russian-Israeli commercial property developer AFI Development has reported first quarter net profit losses of $10 million, year-on-year.
RA’s Daily Russia News Blast – May 22, 2012
TODAY: Putin announces new Cabinet of loyalists; Medvedev to join United Russia; Yabloko leader detained at Duma picket; Nashi to form political party; Russia slams Chicago/Montreal Occupy arrests; ministry spokesman slams outside interference into Magnitsky case.
President Vladimir Putin announced his new Cabinet yesterday, replacing three-quarters of the previous ministers, offering ‘no concessions to opposition demonstrators,’ giving ‘purged ministers’ new positions, and putting his long-term ally Igor Shuvalov as his second-in-command. Igor Sechin, who was Putin’s energy ‘tsar’ in the previous government, has not been given a position, but will retain his energy role outside of the government. RFE/RL has compiled a Who’s Who of key new ministers. The new education minister has already suggested that Russia cut the number of university students receiving money from the state budget. Prime Minister Dmitry Medvedev has submitted a request to join the United Russia party.
Energy Blast – May 21, 2012
Saudi Arabia has overtaken Russia as the world’s largest oil producer for the first time in six years, thanks to boosting its own production to a 31-year high. Despite insistence that it has been keeping up a post-Soviet production high, Forbes shows evidence to suggest that Russian output has dropped since the end of last year. Turkmenistan is due to sign a long-awaited agreement this week under which it will supply natural gas to Pakistan and India via the U.S.-backed TAPI pipeline which runs through Afghanistan. Surgutneftegas is increasing last year’s dividends to record levels of 2.15 rubles per preferred share. Iran’s Economy Minister predicts that international oil prices will riseunder sanctions against his country, estimating highs of $160 per barrel if the European Union goes ahead with its planned July embargo. Royal Dutch Shell is anticipating a doubling of the price of U.S. shale gas by 2015 as demand increases. The Turkish Energy Minister backs Nabucco’s proposal to downsize the project. China National Offshore Oil Corp has debuted China’s first homemade deepwater drilling rig. Chinese solar panel manufacturers are making plans to source components from Taiwan in order to get around the U.S.’s 31% anti-dumping tariffs.
Today in Russian Business – May 21, 2012
46-year-old furniture magnate, Mikhail Kravchenko, head of one of Europe’s largest furniture holdings, has been shot dead by unknown attackers. The Moscow Times profiles Alisher Usmanov, forecasting a lucrative year for the ‘politically-connected’ ‘visionary’. Chinese infrastructure investors are putting money into the ‘empty’ Russian market. Sberbank says it sees certainty over a privatization sale after the new government has been confirmed and the market stabilises. The MICEX is likely to take its biggest weekly share price drop this year this week, on the threat of Greece leaving the European Union.
RA’s Daily Russia News Blast – May 21, 2012
TODAY: Medvedev and Obama have informal meeting on G8 sidelines as Medvedev organises his cabinet; Putin’s new government dominated by those loyal to his project; Kremlin compiles dossier of its Public Chamber members’ fidelity; police arrest dozens at Moscow camps; NATO says missile defence shield up and running; blue lights of privilege on cars to be halved.
Prime Minister Dmitry Medvedev and U.S. President Barack Obama met on the sidelines of the G8 summit at Camp David, insisting that the ‘reset’ of relations between their countries is still on. Medvedev’s attempts to form a Cabinet are being hampered by candidates’ unwillingness to work in the government, in some cases in relation to the balance of power. It is thought that Arkady Dvorkovich and Igor Shuvalov will both join his team. Putin’s new government is to be ‘dominated by loyalists’, says Reuters. President Vladimir Putin has nominated an anti-protest tank factory employee as his new Urals envoy, demonstrating his eagerness ‘to make political decisions single-handedly regardless of appointees’ qualifications’. The Kremlin has reportedly compiled a dossier on the 126 members of its Public Chamber to evaluate their loyalty and willingness to follow orders. Deputy Foreign Minister Sergei Ryabkov alleges that military action against Iran is still being considered in some Western countries, although he did not name names.
Energy Blast – May 18, 2012
In a somewhat embarrassing admission, Ukrainian Prime Minister Mykola Azarov has apparently acknowledged that his much vaunted Kharkiv natural gas deal with Russia in 2010 brought the country little in the way of actual benefits. Following a decision by authorities to restrict crude oil transportation by rail, Russia is apparently facing domestic fuel shortages. State oil pipeline operator Transneft has something to celebrate, profit-wise, thank to its trade with China. Reuters reports that Uzbekistan hopes to start pumping natural gas to China this year through a pipeline crossing three Central Asia states. Gazprom has apparently agreed to slash gas prices for supplies to Bulgaria by 11.1%. Russia is, this report says, hoping to take a step back from the fierce ongoing debate between the EU and international airlines over carbon-dioxide emissions.
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