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Showing posts with label Russia. Show all posts
Showing posts with label Russia. Show all posts

Thursday, January 5, 2012

Border Alert: Nuke war risk rising, Russia warns

Image from thefreeman.net 14.11, 16:27

In the spirit of transparency, President Dmitry Medvedev has reiterated Moscow’s need for written guarantees that the US missile defense shield in Europe would not be targeted at Russian territory.

Medvedev-Obama This handout image courtesy of the US Missile Defense Agency shows a Terminal High Altitude Area Defense (THAAD) being launched at the Pacific Missile Range Facility off the island of Kauai in Hawaii (AFP Photo / HO /US Missile Defense Agency) 25.10, 16:32

NATO officials say they are willing to “cooperate” with Russia in the US missile defense system, while balking on the possibility of building a single system.

Russia-NATO relations Medvedev warns of arms race by 2020 without agreement on missile defense (RIA Novosti / Mikhail Klementiev) 27.05, 17:20

In a press conference following the conclusion of the G-8 Summit in Deauville, France, President Dmitry Medvedev discussed Russia’s response to missile defense talks with the US.

Medvedev-Obama FRANCE, Deauville : Russian President Dmitry Medvedev (L) prepares to shake hands with his US counterpart Barack Obama during their bilateral meeting at the Villa Le Cercle in Deauville, western France, on May 26, 2011. (AFP Photo / Nicholas Kamm) 26.05, 15:52

President Dmitry Medvedev arrived in the affluent Normandy resort of Deauville, France for a two-day summit in which turmoil in the Arab world, as well as the controversial missile defense shield will rank high on the agenda.

Published: 17 November, 2011, 16:19

Russian Chief of Staff, General Nikolai Makarov addresses the Public Chamber, Thursday, Nov. 17, 2011.

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TAGS: Military, NATO, Nuclear, Putin, Russia, Politics, Europe, USA, Peter Oliver, Rory Suchet, Robert Bridge

The danger of local armed conflicts along Russia's borders exploding into full-scale nuclear war has grown following the collapse of the Soviet Union, Russia’s chief of staff said on Thursday.

­General Nikolai Makarov told the Russian Public Chamber there is a dangerous level of mistrust with former Soviet states that border the country.

"The possibility of local armed conflicts virtually along the entire perimeter of the border has grown dramatically," Makarov said. “I cannot rule out that, in certain circumstances, local and regional armed conflicts could grow into a large-scale war, possibly even with nuclear weapons.”

Makarov mentioned NATO’s steady encroachment toward Russia’s borders as one of the key reasons for the heightened level of mistrust in the region since the collapse of the Soviet Union in 1991.

"Almost all countries formerly belonging to the Warsaw Pact have become NATO members, and the Baltic States that were earlier a part of the USSR have also joined the alliance,” Russia’s top military official said.

Moscow has often criticized the western military bloc for going back on its word not to expand following the collapse of the USSR.

"At time of the withdrawal from Eastern Europe, the NATO Secretary General promised the USSR it could be confident that NATO would not expand beyond its current boundaries," Prime Minister Vladimir Putin said in a past comment. "So where is it now?” I asked them [the NATO officials]. They have nothing to say. They deceived us in the rudest way.”

Meanwhile, the comments by Chief of Staff Makarov did contain a silver lining in the nuclear cloud.

Speaking on the prospects of the New START treaty, signed by President Dmitry Medvedev and his US counterpart Barack Obama, Makarov was optimistic.

"The previous START treaty was flawed, but there were attempts to extend it,” he said. “The new START is the first treaty that satisfies us.”

On the US missile defense system planned for Eastern Europe, the Russian general said the new START gives Moscow the flexibility its new defense measures require.

“This treaty gives us the ability to secede in certain cases,” he said, specifically mentioning the “European missile defense problem” as a national security threat that could force Moscow to breach the treaty.

Robert Bridge, RT

Doku Umarov (AFP Photo) 17.11, 16:02

The US has offered a $5 million reward for the information leading to the location of Russia’s most wanted Chechen terrorist leader, Doku Umarov.


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Russia sends another aid convoy to Kosovo Serbs

Austrian NATO-led KFOR peacekeepers stand guard near the village of Jagnjenica on November 30, 2011. (AFP Photo / Sasa Djordjevic) 01.12, 17:48

Russian laws do not allow for the granting of citizenship to Kosovo Serbs, but Russia will find other ways to support the suppressed minority, the Foreign Ministry spokesman has said.

Kosovo Serbs carrying Serb National flag shout slogans during a protest against NATO's move to remove roadblocks in northern Kosovo, in the town of Gracanica on October 20, 2011 (AFP Photo / Armend Nimani) 15.11, 16:26

Russia’s State Duma has not yet received a petition from Kosovo Serbs requesting Russian citizenship. Deputies are cautious in their assessment of such an unprecedented situation and say, in any case, they are not authorized to settle such questions.

Kosovo Serbs sit at a barricade in the village of Zupce, early October 22, 2011 in the Serb-majority northern Kosovo. (AFP Photo/Alexa Stankovic) 14.11, 15:44

Around 21,000 Serbs from Kosovo have appealed to Russia’s lower house of parliament for help in obtaining Russian citizenship.

Published: 09 December, 2011, 18:03

RIA Novosti / Aleksey Kudenko RIA Novosti / Aleksey Kudenko

TAGS: Kosovo, Russia, Politics, Human rights, Immigration

The Russian Emergencies Ministry has said it is sending another aid convoy to Kosovo Serbs on President Medvedev’s orders.

A ministry spokesman said on Friday a truck convoy had left the Moscow Region that morning for Serbia carrying diesel generators, stoves, folding furniture, blankets and bed linen as well as foodstuffs. The total weight of the second batch of goods is 160 tons.

A first convoy was sent from Moscow Region to Serbia on December 7 and in November, Russia sent a cargo aircraft with 36 tons of aid.The local Red Cross took delivery of the aid and transported it into Kosovo where it was distributed amongst the population.

Russian President Dmitry Medvedev ordered the boost in support in November, after around 21,000 Serbs from Kosovo – residents of the region as well as refugees – appealed to the State Duma for help in obtaining Russian citizenship, citing concerns over personal safety. Russia considered the request but had to decline when it was found to breach Russia’s internal laws.

RIA Novosti / Valery Melnikov Today: 15:53

Russia’s Public Chamber has criticized calls for the results of elections to the State Duma to be cancelled, adding that they oppose all public discussion of the issue.

Parliamentary Elections 2011

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Wednesday, January 4, 2012

Investor’s dream: Russia axes profit tax to zero

The launch of new production line of Renault Sandero at Avtoframos factory. (RIA Novosti/Ruslan Krivobok) 17.11, 01:40

Meeting WTO standards may come as a heavy burden to some industries, but the Russian government is ready to help deal with it to provide a smooth transition.

Russia and WTO RIA Novosti / Grigory Sysoev 07.11, 18:26

Business phenomenon Oleg Tinkov shared with RT secrets of his success, explaining how enterprises outside of the energy sector can flourish in Russia.

RIA Novosti / Alexey Kudenko 18.10, 22:43

Moscow is reportedly planning to follow Paris and Rome's example and tax its tourists €1-3 per day.

//

Published: 17 November, 2011, 23:16

RIA Novosti/Igor Zarembo

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TAGS: Investment, Regional development, Russia and the global economy, Prime Time Russia, Modernization, Natalia Novikova, Anya Fedorova, Neil Harvey, Innovation

In a radical step to boost certain areas of its economy, Russia has abolished profit taxes for companies in the medical and education sectors.

The authorities believe the move will help attract more investment and inspire entrepreneurs to set up new private schools and hospitals. Such changes, it is hoped, will increase competitiveness, lower prices and generally improve the quality of services.

The law on zero taxes for these kinds of entrepreneurs was signed last year, but it was not until now that the government finally approved the list of services.Now the organizations providing the listed services will be exempt from the 20 per cent profit-tax.

Among the tax-free services are dietary science, exercise therapy, sports medicine, massage, general practice and family medicine, cosmetology, manual therapy, dentistry, facial surgery, medical tests, as well as organ and sperm transportation.

In the educational sector, the list includes major programs, from kindergartens all the way up to higher education.

The only condition is that the organizations are properly certified in their field.

Economy specialists say that while the measure could be highly effective in the short term, there is a need for something bigger in the long term.

“I think this is a good step,” Tatyana Komissarova, from the Higher Schools of Economics, told RT. “But the main burden on a company is not profit tax, but income tax. If we are talking about a company with many highly qualified employees, salary costs can amount to 50 per cent of total expenses. Can you imagine that? I wish they would eliminate income tax too.”

The British Embassy in Moscow (RIA Novosti/Ruslan Krivobok) 17.11, 22:52

An unprecedented number of British businessmen are enquiring about setting up business in Russia, says head of Russo-British Chamber of Commerce Chris Gilbert.


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Tuesday, January 3, 2012

Russia defeated in third straight Super Series clash

OHL team’s goalie Scott Wedgewood saved all of the 12 shots he faced before being replaced by JP Anderson. (Image from www.subwaysuperseries.com) 15.11, 13:26

The OHL All-Stars have won their second straight game against Russia’s junior hockey squad to help Canada level the score in the Super Series at 2-2.

image from http://en.lhjmq.qc.ca/ 10.11, 12:47

In a repeat of events two days ago, the Quebec Major Junior Hockey League All-Stars were unable to find the keys to success against Russia’s junior hockey team in game two of the Super Series in Canada.

Photo from fhr.ru 08.11, 18:08

Russia’s junior hockey team got off to a solid start in the six-match Super Series in Canada, collecting a 2-0 win against the Quebec Major Junior Hockey League All-Stars.

image from www.subwaysuperseries.com 19.11.2010, 15:00

Russia’s youth hockey team have collected a historic win in the Super Series against their Canadian contemporaries, sealing the deal with a 5-2 win over Western Hockey League all-stars squad.

Published: 17 November, 2011, 12:00

WHL All-Stars's forward, Jordan Weal (Image from subwaysuperseries.com) WHL All-Stars's forward, Jordan Weal (Image from subwaysuperseries.com)

TAGS: Hockey, Russia's hockey squad

Russia’s junior hockey squad have lost to the WHL All-Stars 5-3, allowing the Canadian Hockey League to take the lead in the Super Series.

­The Russians got a head start through Bogdan Potekhin in the middle of the first half, but found themselves a goal down in the second.

Pavel Medvedev leveled matters for Valery Bragin’s men at 2-2, but that was all the Western Hockey League squad allowed the visitors to do on the night.   

The game took place in Regina, Canada and it was local player Jordan Weal, who scored the winner for the Canadians late in the second period.

Two more goals from Max Reinhart and Brad Ross in the final 20 minutes sealed the deal for the WHL All-Stars, 5-3.

“It’s always good when you beat the Russians,” Jordan Weal, WHL All-Stars forward, told Ottawa Citizen newspaper. “We got on them early. We took a couple of penalties, but we recovered from that. We played a good 60 minutes and never let up. Hopefully we can keep it going.”

This third loss in a row sees Russia trail in the Super Series with 3-2 score line. Russia’s lads could still finish the event in tie though, if they wreak revenge on the WHL in Game 6 on Thursday.

CSKA, USSR and NHL legend, Vyacheslav Fetisov. (RIA Novosti / Mikhail Fomichev) 15.11, 21:31

Held in Moscow over the weekend, the Cup of Legends saw the brightest stars of Soviet hockey, representing CSKA, Dynamo, Spartak and VVS, back on the ice on the eve of a great jubilee.

Spartak Moscow's Mikhail Mamkin (L) goes against Vityaz Chekhov's Mikhail Anisin in the KHL (RIA Novosti / Anton Denisov) Today: 16:11

Despite having to get by without head coach Andrey Nazarov, Vityaz Chekhov, who are rock bottom in the KHL’s Western Conference, have claimed a 3-2 away victory against Spartak Moscow.


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Monday, January 2, 2012

Russia makes progress in anti-corruption struggle

Image from cpi.transparency.org 01.12, 21:55

For the first time since 2004, Russia has improved its position in Transparency International's annual corruption index.

Bribes in Russia 22.07, 19:11

Despite the authorities’ wide anti-corruption measures, the cost of a bribe in Russia has risen this year to 293,000 rubles ($10,000).

16.02, 17:21

Adding teeth to his anti-corruption campaign, President Dmitry Medvedev is looking to substantially increase the penalty for individuals found guilty of corruption.

10.11.2009, 18:29

The Coat of Arms of Moscow depicts St. George astride a horse slaying a dragon, which today could be interpreted as the monster of corruption breathing down Russia’s neck at every turn.

Published: 09 December, 2011, 22:33

Police arrest bribe-taker (RIA Novosti / Maksim Bogodvid)

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TAGS: Russia, Law, Prime Time Russia, Corruption, Darya Pushkova, Anya Fedorova, Neil Harvey

As the world celebrates International Anti-Corruption Day, Russian law enforcement officials report the results of their fight against bribery.

More than 1,000 corruption cases are opened in Russia every month, said Vladimir Markin, a spokesman for the Russian Investigative Committee.

“More than 10,000 corruption cases were launched in 2008, and over 11,000 cases were opened over the first nine months of 2011," Markin said.

In addition, investigators have handled more than 200 criminal cases into illegal company takeovers over the last two years.

But with International Anti-Corruption Day, come accusations that a former Russian anti-corruption officer extorted a $30,000 bribe. He allegedly demanded the sum from a businessman, threatening to initiate a criminal case on made-up charges.

This comes a week after Transparency International drew its annual Corruption Index, in which Russia has improved its position – for the first time since 2004.

The country scored 2.4 points, upgrading its position to 143rd place from 154th place in 2001 (among 183 countries).

The Corruption Index incorporates all the possible forms of corruption, including bribes to officials and illegal or improper use of budgetary funds. The rankings also evaluate the effectiveness of any anti-corruption measures taken by the government.

The fight against corruption has been a cornerstone of President Medvedev’s domestic policy. New laws have obliged officials to declare their incomes and assets, and has imposed tougher sanctions and penalties for bribe-takers and givers. The Russian Ministry of Justice encourages citizens to report bribe-takers to the authorities.

However, research published in July 2011 revealed that the average bribe in Russia has increased almost sevenfold – to a whopping $10,000.

Moscow rally (RIA Novosti / Ilya Pitalev) Today: 21:58

This week, in light of the results of Russia's parliamentary elections, Moscow’s expat community is actively discussing the big upcoming protest rally – and its possible outcomes.

"American girl in Italy" by Ruth Orkin Today: 22:44

As a retrospective of Ruth Orkin's works opens at the Lumiere Brothers House of Photography, RT talked to the exhibition’s curator about Orkin’s American life and Russian roots.


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Saturday, December 31, 2011

VTB: Russia gearing up for external pressure

VTB posts net profit of 72.6 billion roubles in 9M 2011 under IFRS 08.12, 13:37

VTB Group, Russia’s second largest banker, boosted its net profit 87% in the first nine months of 2011 year on year. Higher efficiency, as well as healthy lending growth helped the Group to offset global trends.

VTB posts 1H 2011 net profit of 53.6 billion roubles 01.09, 11:29

Russia’s second largest bank, VTB, has posted a 1H 2011 net profit of 53.6 billion roubles under IFRS.

Dmitry Medvedev, Alexander Lukashenko and Nursultan Nazarbayev meet in Kremlin (RIA Novosti / Dmitry Astakhov) 20.11, 04:55

As Russia, Belarus and Kazakhstan move a step closer to a Common Economic Space, a union bearing similarities with the EU, could they run into the same troubles? The man at the heart of the matter explained to RT how to avoid pitfalls.

Eurozone crisis

Published: 09 December, 2011, 14:03

Denis Sinyakov / Reuters

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TAGS: Russia and the global economy, Corporate news, Resources, Banking, Economy, Finance

While the EU struggles with the debt crisis which has almost spiralled out of control Russia is trying to distance itself by expanding export opportunities. Herbert Moos CFO of VTB says Russia will do well to learn from the EU experience.

RIA Novosti / Aleksey Nikolskyi Today: 13:29

Travelers flying from Russian airports may have to go 'cold turkey' as new regulations will force duty free shops to stop selling alcohol.

RIA Novosti / Alexey Kudenko Today: 17:03

New Central Bank requirements for a minimum of capital could put dozens smaller Russian banks out of business. They have less than a month left to bring their capital up to mandatory 180 million rubles by January 1, 2012


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Friday, December 30, 2011

US puts up $5 mln for info on Russia most wanted

01.05.2010, 16:22

Russian authorities are dismayed at the conspicuous absence of Doku Umarov, the architect of last month’s brutal attack on the Moscow Metro, on Washington’s annual list of terrorists.

image by yfrog-user varlamov 26.01, 02:03

Thirty-five people have been killed in an explosion at Moscow’s Domodedovo airport according to the airport spokesperson. Up to 180 are said to have been injured in what the Investigative Committee believes to be a terrorist attack.

Global terrorism Doku Umarov (AFP Photo / Ansar Aljihad) 24.06.2010, 02:39

The US has finally designated one of Russia's most wanted men, Doku Umarov, as a terrorist. He is the man who took responsibility for masterminding the deadly Moscow Metro bombings in March.

Published: 17 November, 2011, 16:02

Doku Umarov (AFP Photo) Doku Umarov (AFP Photo)

TAGS: Crime, Russia, Politics, Terrorism, Law, USA

The US has offered a $5 million reward for the information leading to the location of Russia’s most wanted Chechen terrorist leader, Doku Umarov.

“Proceeding from Russia’s Supreme Court ruling and under an appeal by the Russian Prosecutor General’s Office on the acknowledgement of the so-called Caucasus Emirate, led by Doku Umarov as a terrorist organization, the US Secretary of State put him on the list of the most dangerous terrorists and announced a $5 million reward for the information about his whereabouts,” Russian Deputy Prosecutor General Viktor Grin said on Thursday, as cited by Interfax agency.

The Chechen warlord claimed responsibility for a number of terrorist attacks on Russian soil, including the explosions at Moscow Domodedovo Airport and the Moscow Metro, as well as the Nevsky Express train attack.

Speaking at a Moscow conference on the suppression of extremism and terrorism, Grin noted that lately Russian courts have pronounced 27 organizations as extremist and 19 organizations as terrorist. He underlined that countering terrorism is a priority for Russian prosecutors.

In May this year, it was already reported that the US would pay a reward for information about Doku Umarov, who had been designated as a terrorist in America about a year before the announcement.

According to the US Department of State, Umarov “is the senior leader and operational commander of the North Caucasus-based Caucasus Emirate group, whose stated goal is to establish an Islamic emirate through violence in the North Caucasus, Southern Russia, and Volga regions of the Russian Federation, with Umarov as its Emir.”

Former Belarusian presidential candidate Andrey Sannikov Today: 12:58

A PACE rapporteur for Belarus has expressed concern over the fate of jailed ex-presidential candidate Andrey Sannikov, who has reportedly disappeared, and demanded that Minsk immediately clarify the situation.

Russian Chief of Staff, General Nikolai Makarov addresses the Public Chamber, Thursday, Nov. 17, 2011. Today: 16:19

The danger of local armed conflicts along Russia's borders exploding into full-scale nuclear war has grown following the collapse of the Soviet Union, Russia’s chief of staff said on Thursday.

Russia-NATO relations

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Thursday, December 29, 2011

‘Russia maintains dialogue both with Assad and Syrian opposition’

A Yemeni man shouts slogans as anti-regime protesters, inspired by the suspension of Syria from the Arab League, stage a massive rally in Sanaa on November 16, 2011 to urge the regional grouping to do the same with Yemen (AFP Photo / MOHAMMED HUWAIS) 16.11, 20:00

The foreign ministers of the Arab League, consisting of 22 members, have confirmed the suspension of Syria from the group, blaming it for the violent suppression of anti-government rallies.

Arab world protests AFP Photo / Shah Marai 15.11, 15:49

As violence continues unabated in this Arab Republic, members of the Syrian opposition are telling Russian diplomats they are against any foreign military intervention in the settlement of their country's conflict.

Syria unrest Leader of the exiled Syrian opposition grouping, the Syrian National Council, Burhan Ghalioun (R), attends a press conference in Moscow, on November 15, 2011 (AFP Photo / Natalia Kolesnikova) 15.11, 10:45

Syrian opposition leaders said that they want to prevent any military intervention in Syria and avoid a Libyan scenario. The statement comes during their visit to Moscow as pressure piles on the regime of Syrian President Bashar Assad.

Syria unrest Sheikh Hamad bin Jassem bin Jabr al-Thani (R) speaks to Arab League Secretary General Nabil al-Arabi during an emergency ministerial meeting at the Arab League's Cairo headquarters on the situation in Syria (AFP Photo / Khaled Desouk) 14.11, 23:44

Syria is becoming increasingly isolated with its neighbors turning their backs on it. Some believe that the Arab League and especially the Gulf states are doing the bidding of the West by putting more pressure on Damascus.

Syria unrest Damascus: Syrians hold up a large national flags as they rally to show their support for their President Bashar al-Assad in the capital in Damascus. (AFP Photo/Louai Beshara) 14.11, 17:02

The “illegitimate” decision to suspend Syria from the Arab League has received wide support from the EU and the US. Russia, however, has strongly opposed the measure, which is starting to look like another step on the road to a Libya-style scenario.

Arab world protests Syria unrest Syrians protest outside the Qatari Embassy in Damascus on November 12, 2011, hours after a statement, read by Qatari Prime Minister Hamad bin Jassem Al-Thani, said the Arab League had decided 13.11, 22:23

As massive pro-Assad demonstrations continue across Syria, Damascus has called for an emergency meeting of Arab League heads of state in an apparent attempt to avert its suspension from the regional bloc.

Syria unrest //

Published: 17 November, 2011, 07:09

Syrians wave national flags as they rally in central Damascus on November 16, 2011. (AFP Photo/Louai Beshara )

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TAGS: Conflict, Military, Russia, Politics, Kevin Owen, Opposition, Syria

Russian lawmaker and foreign policy architect Konstantin Kosachev thinks that Russia is “probably one of the very few, or maybe the only country, which maintains dialogue both with Assad and with the opposition.”

Kosachev told RT that the opposition has visited Russia recently.

“We had rather a good discussion in Moscow – nobody else does the same thing. People either support this or that part. We are impartial, we have dialogue with each side, and hopefully we will succeed in promoting further political process there.”

The head of the Foreign Affairs Committee in the State Duma believes that targeting Damascus is counterproductive to solving the crisis in Syria, while, he notes, the situation is getting more and more alarming.

“For me the fact that the violence is escalating is a reflection of the wrong approach taken by certain states, a unilateral approach, when they keep saying to the people of Syria that ‘You, people, are right, and the authorities are wrong’. This is a wrong approach, because that type of messages introduces an illusion that, the people of Syria can get freedom and democracy by using violence against the ruling authorities and not by negotiations.”

According to Kosachev, the message being sent to the Syrian authorities and the Syrian people by Russia is “much more appropriate.”

The sanctions by the Arab League and the West are based on the argument that Damascus is cracking down on peaceful demonstrators. But Damascus says it is fighting the Free Syrian Army, which is apparently well-armed and coordinated, and is staging a full-on assault on the regime. As for Russia’s view on the way the Free Syrian Army are conducting themselves, there are certain “questions” to them concerning this, as the Russian lawmaker points out.

“We do have questions because we can see they use heavy weapons, they are well equipped, so it is not just about throwing stones at policemen or bodyguards – this is about using heavy weapons and this is a real war. And for Russia the most important thing is to prevent further casualties and victims, and the only way to do that is to maintain the political process once again. I believe that Russia, the US and the EU, the Arab League and anybody else is to send the only message to all conflicting sides in the country – that is to try and speak to each other.”

Tehran : Iran's chief nuclear negotiator Saeed Jalili speaks during a press conference in Tehran. (AFP Photo/Atta Kenare) Today: 01:10

With the credibility of an IAEA report on Iran’s secretive nuclear activity being questioned, some experts say the Iranian people should ask their government why their country is still a member of the UN nuclear agency.

A nearly empty Zuccotti Park November 16, 2011 as some Occupy Wall Street protesters return to the park in New York after being evicted early November 15 (AFP Photo / Stan HONDA) Today: 10:37

Occupy Wall Street protesters in New York have returned to the epicenter of the movement, Zuccotti Park, but without their tents and sleeping bags. Massive rallies are expected to resume throughout the United States.

Occupy Wall Street

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Friday, November 4, 2011

Russia and WTO: closer than ever

Georgia okays proposals of Swiss mediators on Russia´s WTO accession 27.10, 20:05

Georgia has agreed to new proposals on Russia's WTO accession, paving the way for its larger neighbor to become a WTO member in the near future. Russia has yet to respond to the move.

Ben Aris, editor - in - chief of Business New Europe, says there are no obstacles remaining for Russia to join WTO 27.10, 20:12

As all eyes are on Russia to see how it responds to Georgia’s latest move regarding WTO accession, Business RT discusses the issue with Ben Aris, editor - in - chief of Business New Europe.

Yaroslav Lissovolik says export industries will benefit from WTO accession 27.10, 20:56

Yaroslav Lissovolik, chief economist at Deutsche Bank, discusses with Business RT the possible aftermath of WTO accession for Russian industries.

Published: 03 November, 2011, 19:30

Russia and Georgia agreed on the last issue blocking Russia´s membership in WTO Russia and Georgia agreed on the last issue blocking Russia´s membership in WTO

TAGS: Markets, Russia and the global economy, Big deal

Moscow has okayed a draft proposal to smooth out remaining issues with Georgia, which had blocked Russia’s accession to the WTO. The move should put an end to the 18-year saga of the country’s attempts to join the organization.

The final hurdle on Russia´s way to the WTO – the issue of monitoring trade on the country’s border with former Georgian regions Abkhazia and South Ossetia – has finally been cleared. The draft bilateral agreement "is based on a concept which we proposed, and corresponds to the framework of Russia's principal position," says Maxim Medvedkov, head of the Russian delegation at the WTO talks.

The document envisages electronic information sharing, as well as trade data auditing by an independent company, with Russia and Georgia submitting such data to an integrated WTO database.

International observers will be placed at both ends of three trade corridors, says Georgian Deputy Foreign Minister Sergei Kapanadze, who heads his country's delegation to the talks on Russia's accession.

"These trade corridors will stretch from the Psou River to the town of Zugdidi, from the Roki Tunnel to the town of Gori, and from the Verkhny Lars checkpoint to the Kazbegi checkpoint," the deputy minister specified.

Russia’s economy should benefit from WTO accession, believes Natalia Orlova, chief economist at Alfa-Bank, as “the WTO will provide for cheaper access to global technologies and high-tech equipment, which at the moment are subject to relatively high import duties. And Russia will also look more attractive for foreign investors”, adds Orlova, as “the management, costs and tariffs will become more transparent.”

WTO accession will also make Russia a bigger player internationally, the analyst concluded.

“WTO entry will potentially offer Russia the possibility of becoming an OECD member – a window of opportunity to become more important on the global political level.”

Chris Weafer, chief strategist at Troika Dialog, says the net economic effect of Russia’s membership in the WTO would be positive and should mean“a more serious approach to economic reform and industrial efficiency” , which will become evident only over time.

“As the benefits of those changes materialize, sustainable incremental economic growth may reach between 1% and 3% annually, according to the World Bank, while a gradual reduction in the risk premium will significantly cut the discount at which Russian equities have consistently traded against global market peers,” the expert said.

A formal meeting of a working group to approve all the documents on Russia’s accession, is scheduled for November 10 – 11. Should all go smoothly, the 153 members of the WTO will look at the papers on December 15-17. The documents will then go to Russia for ratification, and a month after that, Russia should finally join the WTO.

Gazprom sets ultimatum for Moldova gas pricing 03.11, 17:20

In the latest winter gas-price wrangle, Moldova is courting Gazprom for a discount on its gas supplies. A new deal for 2012-2016 must be signed before the year is out.


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