The inevitable has been produced: American O'Brien Appointed for Rosneft Sellout

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This in the name of Putin's WTO fixation.

Now that the US has seen its goal achieved (O'Brien) and turned the page, threatening that the ones who don't comply with the American "democratic" "strategy" will be considered enemies and will be treated as such:

Russian parliamentarian blasts U.S. national security strategy

http://en.rian.ru/world/20060322/44654927.html

Putin has found no other retort but to threaten with the atomic bomb:

Nuclear deterrent key to Russia's security - Putin

http://en.rian.ru/russia/20060330/45001213.html

However, it's hard, if not impossible for a single man like O'Brien, with the FSB guard in his ribs, to overthrow a regime, less a country.

But it's hard, if not impossible also, to see Russia in the WTO ever.

On the other hand, if Russia can survive without the WTO membership, same as it did by now, the US simply misses the fossil fuel needed in order to administer its half of Europe. The Iranian gas is simply vital for the US.

The spirits are tense and the bargaining game has reached the flammable end of its long thread.

We'll see what will come out of it: Peace or War?

I assume that Russia will be allowed to join the WTO, although Bush SR will postpone this decision for as long as possible, the US will seize half of the Iranian fossil fuel and in the meantime it will use all its leverage that it has at its disposal in the economic organization that it has created (the WTO) and where Russia will remain forever a guest, in order to undermine the Russian economy.

Believing that you enter somebody's home and you succeed to play other than by his rules looks like an utopy from the start, but then Putin must know something than we don't...

~Vera


Former Morgan Stanley VP in Russia becomes Rosneft CFO

13:10

30/ 03/ 2006

MOSCOW, March 30 (RIA Novosti) - State-owned company Rosneft said Thursday that a former vice president at Morgan Stanley in Russia had become its chief financial officer in the run-up to the company's much anticipated initial public offering.

Peter O'Brien, 36, will supervise strategic investment projects, external financing, business planning and monitoring for Russia's no.2 crude producer and will head a new group of the Rosneft president's financial advisors.

With the oil company set to launch Russia's biggest IPO to date later this year, O'Brien is expected to join the board April 3 and to become first deputy chairman of the company's investment committee.

O'Brien has worked in the sphere of finance for 11 years. In the past six years he worked with Morgan Stanley and was involved in investment and banking services to oil and natural gas companies in the former Soviet Union and Europe.

O'Brien acted as consultant in the implementation of Novatek and Statoil IPO programs, the Russian government's purchase of a 10.73% stake in Gazprom and TNK-BP formation.

"O'Brien's experience in the implementation of complicated projects and good knowledge of financial markets will be very useful to the company at the current stage of its development," Rosneft said in a news release.

http://en.rian.ru/business/20060330/44982684.html

Israel Fairly Partitioned

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After the evasive victory of Kadima in the Israeli elections, the fact that it’s not clear yet in detail which alliances it will scrabble, becomes less important.

The important thing is that the political forces look balanced.

The important thing is that the position in the Israeli parliament of US-backed Likud, which was the traditional dominant party on the Israeli political stage, fell off, while cooperative Sharon’s newly formed party Kadima and the leftist Labor Party (Avoda) have won the first two places.

On the third place comes the rightist Shas meant to shadow a bit Putin’s success and to balance the US-Russia leverage.

Shas plans to demand the Interior, Housing and Communications portfolios, during coalition negotiations with Prime Minister-designate Ehud Olmert.

See link:

http://www.ynetnews.com/articles/0,7340,L-3233842,00.html

The forth place was won by Beiteinu, a strange right-wing apparition which, although relies on Likud’s conservative ideology, is first of all a party of Russians.

The rise of Beiteinu, however, could be seen as a ciphered message sent by Putin to the Israelis, giving them to understand in percents, not in words, that he is not Israel’s enemy, nor that he intends to cripple too much of the Israeli land for the sake of the Palestinians, but that his role in the region is a positive and pacifist one.

It’s most likely that the nationalist –territorial demands of Beiteinu will sound good in the Israeli ears and hence could turn out as a good mark for Putin.

See link:

http://en.wikipedia.org/wiki/Yisrael_Beiteinu

Let’s not forget that this satisfying Israeli picture has in the background the almost triumphal Palestinian Hamas, another big plus for Putin.

Putin has made indeed a nice figure in the Middle East.

Nobody could expect more than that.

Till further notice, just
Congratulations!

~Vera

RIA Novosti says:

Elections in Israel create local sensations
16:44

29/ 03/ 2006

BEIRUT/TEL AVIV, (RIA Novosti's Marianna Belenkaya, Artur Gabdrakhmanov) -- The March 28 elections to the Israeli Knesset (parliament) created a local sensation, but will not influence the future of the region.

Just as polls predicted and all parties to the Middle East peace process expected, the election victory went to Israel's governing party, Kadima, led by Ehud Olmert.

For the first time in Israel's history, its voters were not torn between the right- and the left-wing parties, the "hawks" and the "doves".

The Israeli political scene is such a mishmash right now, that it is difficult to draw a line between the two sides.

This mean many voters were left feeling indecisive. In general, Israelis have grown weary of politics, which is why only 63.2% of the country's eligible voters came to polling stations and quite a few voted for the third option.

The defeat of Likud, which had led either the ruling coalition or the opposition, came as a surprise, even more so because it actually came in fifth, after the biggest ultra-religious party Shas and Avigdor Lieberman's party Yisrael Beiteinu (Our Home Israel).

All the recent polls predicted that the Russian-speaking politician would surge ahead in the election race. The majority of the Russian-speaking population voted for him.

Another sensation was created by the pensioners' party, Gil, which was predicted to get no more than two seats, but it instead received seven mandates.

Now it will be able to exert substantial influence on the creation of a government coalition and the adoption of decisions on crucial matters.

This is not the first time in the nation's history that parties with fewer seats in the Knesset decided the voting results, because none of the main political forces could secure enough seats in the parliament to ensure the adoption of requisite resolutions.

This time, Olmert's Kadima received 28 of the 120 seats, and 20 seats went to the Labor Party (Avoda), led by Amir Peretz.

Even if they join forces, the two parties will be unable to work without assistance, as at least 61 mandates are necessary to form a ruling coalition.

However, Kadima and Avoda will find enough allies in the Knesset to form a coalition and will even have the possibility for maneuver among parties.

There are several options for a coalition, but the choice is to be made during inter-party talks.
Israeli sociologists predict that the distribution of ministerial seats may take long, and that the multiparty government may crumble even over minor differences.

Israel has had one government crisis after another in the past decade. The March 28 elections were the fourth early elections held in the past seven years.

Internal instability in Israel is affecting the Middle East peace process, as attempts to accelerate the road map could provoke a government crisis.

Olmert won only a minor advantage over his rivals, which will restrict his maneuvering abilities and force him to listen to the opposition and future coalition partners.

However, he is resolved to implement his plan of marking Israel's borders by 2010, which promises new debates over the Middle East settlement in Israel and abroad.

The future Israeli prime minister has already called on Mahmoud Abbas, the head of the Palestinian National Authority (PNA), to resume talks. Abbas also expressed his readiness to talk with Israel before the election results were made public.

But the talks' future looks vague because the Palestinians cannot be satisfied with Olmert's plan of marking the borders of Israel (and consequently, the future Palestinian state), which he announced before the elections. Abbas will not accept this and the Palestinian parliament and government led by the radical Islamic movement Hamas will not ratify it.

At the same time, the future premier hinted that if his plan were not supported by the Palestinians, a decision would be made unilaterally. However, this is quite impossible without the support of the international community.

It is not surprising therefore that Avigdor Lieberman told RIA Novosti: "The Quartet is the main asset with whom to discuss the marking of permanent borders, and next come our more influential neighbors Egypt and Jordan."

The leader of Our Home Israel said practical plans could be discussed only after solving the problem with certain intermediaries and neighbors.

Olmert knows this very well and is ready to make the issue of permanent borders a subject of broad internal dialogue and consultations with foreign partners in the peace process.
This promises a long and difficult negotiating process, which will have to cross many obstacles on both sides of the conflict, from terrorist attacks and military operations to government crises.

But then, this is how it has always been, and the Israeli elections have not changed anything in that sense.

They only marked the beginning of another attempt to settle the regional conflict.

http://en.rian.ru/analysis/20060329/44951851.html

Oil Prince Bogdanchikov Ready to Seize Khodorkovsky's Yukos

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With Belarus in disarray, but with a fairly good turnout for Putin at the Israeli elections, aimed at strengthening his position in the Middle East, where Russia was pretty absent during Gorbachev's "golden"years,

closing the ranks at Yukos was Putin's sign launched at the nick of time, signaling that he doesn't yet intend to move the capital of Russia at Teheran or Tel Aviv.

See articles below.

~Vera

Tuesday, March 28, 2006. Issue 3380. Page 5.

Yukos Bankruptcy Case to Kick Off

By Catherine Belton Staff Writer

Dmitry Beliakov / Bloomberg

The Moscow Arbitration Court is due to begin hearing a bankruptcy suit brought by a bank syndicate against Yukos.

The Moscow Arbitration Court on Tuesday is due to start hearing a petition to bankrupt the nation's one-time biggest oil major, Yukos, potentially bringing the state -- and major creditor Rosneft -- another step closer to swallowing up the rest of the company.

Yukos said Monday that it planned to contest the petition, which was brought on March 10 by a syndicate of foreign banks led by Societe Generale over $482 million outstanding on a $1 billion loan.

Days after the banks filed the suit, Yukos said state-owned Rosneft had bought the debt from the banks under a December 2005 agreement.

The debt sale has further highlighted the role foreign banks have played in the dismantling of the oil major, which has been smashed by a slew of government back tax claims and the takeover of its main production unit, Yuganskneftegaz, by Rosneft in December 2004.

Analysts say Rosneft could now use the fact that the banks filed the suit to shield itself from potential claims it was behind the legal proceedings. Putin said in 2004 that Yukos should not be bankrupted, a statement that encouraged some investors to hold onto the stock even as Yugansk was being taken over by the state.

The filing came as Yukos said it was on the verge of selling its Lithuanian refinery, Mazeikiu Nafta, a sale that could have brought more than $1 billion tumbling into Yukos' foreign bank accounts, allowing it to pay off the banks' claims.

It is unclear whether the transfer of debt to Rosneft could invalidate the suit, which was brought by the banks even though they no longer held any Yukos debt.

According to a copy of some of the debt transfer agreements obtained by The Moscow Times, Societe Generale said it was resigning as lead agent for the loan in a letter signed March 14, four days after it filed the bankruptcy petition.

Yukos could have other defense mechanisms up its sleeve. It could try to demonstrate that other debts outweigh claims made by the state and Rosneft.

Deutsche UFG, citing company data, said the oil major owed $3.5 billion to Yukos Capital and $2.57 billion to Energotrade, a trader that sells Yukos crude. Together these debts could make up nearly 50 percent of Yukos' total liabilities.

The government says Yukos still owes a total of $10 billion in back taxes, but Russian courts have confirmed only $3.72 billion of that, Yukos spokeswoman Claire Davidson said Monday.
Rosneft is owed a total of $2.7 billion, including $2.2 billion Rosneft claims was misappropriated from Yugansk via transfer pricing schemes before the state took it over and the $482 million outstanding on the banks' loan.

Davidson declined to comment on the reported debts to Yukos Capital and Energotrade.
"Yukos will have to prove that Yukos Capital and Energotrade are not affiliated with Yukos," said Pavel Kushnir, an energy analyst at Deutsche UFG. When the debts first appeared on the company's accounts some two years ago, shortly after the legal campaign against the oil major started, the head of Yukos' investor relations refused to confirm whether Yukos Capital was affiliated with Yukos, Kushnir recalled.

Under Russian bankruptcy procedures, an external supervisor is appointed by the court to decide whether Yukos can be turned around and brought back to financial health or whether its assets must be sold off.

Despite what has long been looking like an inevitable takeover of Yukos by the state, insiders said the situation still looked too unpredictable to say whether the company would be totally liquidated.

If an asset sale is ordered, the court then appoints an external manager, said Dmitry Gololobov, a former lead Yukos lawyer. "It's not clear what's going to happen to the company. If an external manager is appointed, then there could be a sale of some assets to pay off debts, with the rest of the company remaining intact, or the company's liquidation could be launched."

Many observers said what happens to the company was almost beside the point because Rosneft appeared already to be running the company in Moscow.

Yukos' Moscow-based managers led by Anatoly Nazarov have launched a mutiny against more senior managers in London including CEO Steven Theede.

Last week, Nazarov told Interfax that bankruptcy proceedings were the only way out for the company and pledged allegiance to Rosneft, saying it was Yukos' most important partner.

http://www.themoscowtimes.com/stories/2006/03/28/041.html

March 28, 2006, 11:28AM

Moscow Court Orders Supervision for Yukos

By ALEX NICHOLSON Associated Press Writer © 2006 The Associated Press

MOSCOW — A Moscow court ordered bankruptcy supervisors to take responsibility for oversight of Yukos on Tuesday as the company that was once Russia's largest oil producer appeared increasingly likely to be declared insolvent.

Judge Pavel Markov of the Moscow Arbitration Court ordered the oversight and set a June 27 date for the next session to consider whether to make a formal ruling that the company is bankrupt.

A consortium of Western banks sought to have Yukos declared bankrupt after it defaulted on nearly half of a $1 billion syndicated loan arranged three years ago by Societe Generale SA with Deutsche Bank AG, Citigroup Inc. and HSBC PLC.

The two court-ordered supervisors will essentially monitor all the company's operations until the next session to ensure that no major transactions take place that could be used reduce the company's already depleted value.

After the session, Yukos lawyer Drew Holiner said the judge's order was a foregone conclusion. He also said the company had ample funds to pay some of its debts, but that previous court-ordered freezes had tied up assets that could have been sold to raise the cash.

"Even if Yukos wanted to sell its assets and pay the debt, it can't, due to the claims of the bailiffs," Holiner said.

Markov earlier accepted a motion by state-controlled oil company OAO Rosneft, which had claimed it had acquired the rights to Yukos' $482 million debt from the banks. Yukos lawyers had challenged the Rosneft motion and said they needed more time to analyze the debt arrangement between the banks and the company. They said they had received a copy of the arrangement only on the eve of the proceedings.

The bankruptcy hearings are likely to be the closing chapters on Yukos, which was built up by billionaire Mikhail Khodorkovsky to become Russia's biggest oil producer before his arrest and conviction and the company's dismantlement.

Analysts say that Rosneft, which took over Yukos' biggest oil fields after a state-ordered auction in December 2004, is poised to snap up the remainder of Yukos' assets as collateral to pay off the outstanding debt.

Khodorkovsky is serving an eight-year sentence for fraud and tax evasion in a Siberian prison camp. Observers say the criminal case against him, and the related back tax case against the company, were punishment for his political ambitions and a step to reassert state influence over Russia's strategically important oil sector.

The creditor banks filed suit earlier this month to have Yukos declared bankrupt because the company defaulted on the loan. The validity of the filing was unclear, however, after Yukos issued a statement earlier this month saying that the Western banks had agreed to sell the debt back in December to Rosneft.

Rosneft is itself seeking billions of dollars from Yukos, alleging the company stripped profits and evaded taxes at the former Yukos production unit Yuganskneftegaz, which Rosneft acquired after the 2004 auction that was held against the company's $28 billion in back tax debts.
Yukos has said it still has to pay $6.3 billion of that tax bill and is disputing a new $3.5 billion bill for 2004.

According to company data, Yukos owes nearly $6 billion to two companies that may be affiliated with it, the bank said _ Yukos Capital and Yukos Trade _ and may try to prove that these claims take priority over those of the foreign banks, tax authorities and Rosneft.

http://www.chron.com/disp/story.mpl/ap/business/3753522.html

Yanukovich set to give a boost to Turin-Lyon-Kiev rail link?

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Quite ahead of the Ukrainian parliamentarian elections set to take place tomorrow, 26 March 2006, Euronews announced that the families of the victims who perished in the 1999 Mont Blanc tunnel blaze have agreed to a compensation deal with the French and Italian operators of the tunnel.

Related link:

Thursday, December 01, 2005

Italy protest disrupts rail work - Who’s behind the protests?
http://putinfreakshow.blogspot.com/2005/12/italy-protest-disrupts-rail-work-whos.html

With no parliamentarian majority and with Ukraine set to join NATO in 2008 and the EU in 2015, one of Yanukovich's main attributions will probably be to give a boost to the high-speed rail link skeduled to link Spain (Barcelona), Italy (Turin) and France (Lyon) from Kiev and therefore from Russia.

~Vera

See articles below:

Last updated: 26-Mar-06 00:40 GMT

Settlement agreed over tunnel blaze

NICHOLAS CHRISTIAN

FAMILIES of the victims who perished in the ferocious Mont Blanc tunnel inferno have agreed to an £18m compensation deal with the French and Italian operators of the tunnel.

Thirty-nine people were killed in the 1999 blaze after a Volvo truck caught fire inside the tunnel beneath Europe's highest peak. The fire burned for two days as firefighters tried to reach those trapped inside.

British-born lorry driver Martin Cairns, who was based in Rotterdam, was among those who died in the blaze.

The families of those who died signed an agreement with the insurers of the tunnel and the driver whose truck started the fire at a meeting in the Alpine town of Les Houches.

An association of the families said the sum would be shared between 238 claimants.

"The goodwill of the operators and the insurers brought an amicable agreement to proceedings that could have lasted a long time," said Andre Denis, president of the association.

The agreement on compensation comes after a four and a half year investigation into the cause of the blaze.

This article:

http://news.scotsman.com/international.cfm?id=470102006

Last updated: 26-Mar-06 00:40 GMT

http://news.scotsman.com/international.cfm?id=470102006

RUTELLI: TAV A NECESSARY WORK. WE'LL REACH AGREEMENT
(AGI) - Turin, Mar. 25 - "We consider the high-speed railway link, the so-called TAV, a key public work to boost development while protecting the environment" said the leader of the Daisy Alliance, Francesco Rutelli, speaking at a political rally in Turin's Porta Nuova railway station, that marked the last stage of his election campaign tour throughout Italy. "The TAV is a necessary public work. The centre-left government will do what the centre-right didn't do, that is reaching an agreement with local people". (AGI) . 251545 MAR 06

http://www.agi.it/english/news.pl?doc=200603251545-1110-RT1-CRO-0-NF11&page=0&id=agionline-eng.oggitalia

MONT BLANC: RECORD COMPENSATION FOR VICTIMS, 27 MILLION
(AGI) - Aosta, Mar. 24 - The families of the 39 victims of the Mont Blanc fire would receive a record compensation of 27 million euro seven years after the incident, lawyer Matteo Rossi reported to Radio 24 today. Lawyer Rossi is the lawyer of the families of the victims, 16 of them were Italians the other were from 9 nationalities. Last year the Italian company that manages the Mont Blanc tunnel already paid in 13 million and 500 euro. the agreement on the compensation was signed before the end of the trial that must find the responsible of the accident. The lawyer said that this was a record compensation that was greater than whatever compensation could be assigned by whatever court in one of the nine countries from where the 39 victims came. . 241716 MAR 06

http://www.agi.it/english/news.pl?doc=200603241716-1168-RT1-CRO-0-NF11&page=0&id=agionline-eng.oggitalia

BERLUSCONI: TAV CRUCIAL FOR OUR FUTURE
(AGI) - Turin, March 3 - "The TAV high speed rail is crucial for our future, just as the Frejus tunnel is, otherwise we'll be isolated in Europe" said PM Berlusconi in Turin, where he will start Forza Italia's electoral campaign at the mazdapalace tomorrow. "Besides, it will lead to the creation of large logistic platforms in Piedmont, Lombardy and Veneto, employing thousands of people. When the tunnels linking Italy to Europe were opened, 10 mln tonnes of goods were transported, now that figure tops 160 mln, we need new ways to convey goods. That's why we need the TAV. Today, 70 pct of goods is transported by lorries, which means more pollution and less security on our roads. The ideal would be 70 pct of goods transported by rail and 30 pct by road haulage". (AGI) - 031952 MAR 06

COPYRIGHTS 2002-2006 AGI S.p.A.
http://www.agi.it/english/news.pl?doc=200603031952-1245-RT1-CRO-0-NF82&page=0&id=agionline-eng.italyonline

HIGH SPEED TRAIN: NEW CENTRE IN SUSA, VIRANO PRESIDENT
(AGI) - Turin, Italy, Mar. 14 - The centre for the building of Turin-Lyon railway line will be in Susa. The centre president, Mario Virano said that the choice of Susa was done because "we want to be attentive to our territory and create the most favourable conditions to dialog with the local people and the communities" of the Susa valley. Virano who is former CEO of Stiraf, the motorway company of Frejus, is Anas board member too. He explained that the centre must reconcile the general interest of Italy, which cannot renounce to the European link of corridor number five, with the legitimate expectations of the people of the valley. The centre will use transparency as a work method. All its acts will be published on its website. The centre took office on March 1 in the Chigi palace (prime minister's office) in Rome. - 141529 MAR 06

http://www.agi.it/english/news.pl?doc=200603141529-1179-RT1-CRO-0-NF30&page=0&id=agionline-eng.bnessitaly

EUROSTAR ITALIA HIGH-SPEED RAIL NETWORK, ITALY

The Italian government is committed to spending €28.8 billion to construct a network of high-speed lines that could reach 1,000km (625 miles) by 2008.

The introduction of the latest generation of high-speed trains, the ETR500, heralded a complete re-branding of the country's high-speed network in an effort to reflect its integration into the wider European rail system. With the introduction of the 60 new trains, the routes on which they operated were relaunched as 'Eurostar Italia'.

THE PROJECT

A major feature of the scheme is to upgrade the existing high-speed Rome-Florence line, known as the Direttissima. Major expansion will also be undertaken on the Milano-Napoli, Torino-Milano-Venezia and Genova-Po Valley via Terzo Valico routes.

The 252km (157-mile) Roma-Firenze line was the first dedicated high-speed line in Europe when it opened in 1978 and requires heavy upgrading to raise speeds to 300km/h (186mph). When complete it will link with the Firenze-Bologna line by means of a new tunnel and subterranean station under Firenze.

Work was completed in 1999 on 25km (16 miles) of new construction to improve the 204km (127-mile) Napoli-Roma route, which needs new connections at Forsinono and Cassino. There are some problems on the approach to Naples because of archaeological finds.

High-speed trains were diverted away from the classic Roma-Napoli route from December 2005 with the opening of an all-new high-speed line. The line reduced journey times between the Italian capital and Napoli to around one hour and is the first to be energised at the European standard 25kV AC for high-speed lines.

Although the alignment for the new 79km (49-mile) Firenze-Bologna line was agreed in 1995, it is taking over a decade to complete. All but 5km (3 miles) is in tunnel through the Apennine mountains. Journey times will be cut by half.

The 182km (113-mile) Bologna-Milano route is one of the most congested in Europe. €6.1 billion of investment will increase route capacity by 88% and reduce end-to-end journey times to one hour.

Reconstructing the 127km (79-mile) Torino-Milano line to virtually double capacity has hit controversy because of the route chosen. New works begin at Certosa, 9km (6 miles) from the centre of Milano, and run to Settiimo Torinese. Connections with existing lines were provided to reduce journey times in time for the 2006 Winter Olympics, with phase one of the line running from Torino-Novara and the Novara-Milano section to open later.

The final choice of route from Milano to Venezia (212km / 132 miles) is still under discussion. It will start at Melzo, 20km (12 miles) from Milano Centrale station, and join the FS system at Verona. The route to Venezia was approved in March 2000.

Finally, by 2010, a new line from Milan to Genova is planned, requiring a 1.6km (1-mile) tunnel through the mountains to link the Port of Genova to the existing rail system.

INFRASTRUCTURE

In a heavily populated country it is recognised that gaining approval to build new lines and integrate them with others requires 15 years of planning and negotiation. Heavy investment is required for civil works (viaducts and tunnels), track modifications, signalling, telecommunications and strengthened power supplies.

The nature of the landscape means they are expensive to build in both time and money. While the classic lines weave their way around or over hills and valleys, the new lines cut straight through, requiring massive engineering works, including many miles of tunnels and viaducts.

ROLLING STOCK

The first generation of new rolling stock was the tilting ETR450 Pendolino, built by Fiat Ferroviaria, followed by the ETR460 single voltage EMU, the tri-voltage ETR470 for Cisalpino services to Switzerland and Germany and the dual-voltage (3kV DC/25kV AC) ETR480. The latter was developed with the new high-speed lines in mind, although its tilting capacity is used to best advantage on classic lines with frequent curves, such as the Genova-Roma coastal main line.

The non-tilting ETR500 variant (1992) from Gruppo Ferroviario Breda in Pistoia, is designed for operation on the new high-speed lines. The first ETR450 entered service in May 1988 on routes radiating from Roma. The ETR500 is a 13-vehicle unit seating 590 passengers, capable of 300km/h (185mph). The 60-strong fleet entered squadron service during 2000.

The second batch of 30 ETR500s features dual-voltage power cars (3kV DC / 25kV AC) for operation on 25kV AC high-speed lines. In addition to this, 60 new E404.600 dual-voltage power cars are replacing 3kV DC-only E404.100 power cars on the original 30 trains. The latter will be cascaded to power 30 InterCity push-pull trains formed of Type Z1 locomotive-hauled stock for use on the classic network from 2006-07.

Alstom Ferroviaria’s next generation of Pendolino tilting train for international Cisalpino and Italian domestic services is more powerful and formed of seven, rather than nine, cars to work in multiple where necessary. Trenitalia’s units replace ageing ETR450 sets on routes such as Roma-Bari, Lecce and Reggio Calabria, while the Cisalpino replaces locomotive hauled trains between Italy and Switzerland and runs at up to 250km/h through the new Lotschberg base tunnel.

SIGNALLING / COMMUNICATIONS

The ETR500s are fitted with automatic train control and protection systems. However, the ETR460-480 trainsets run on conventional absolute block signalling, with in-cab warning system. It is planned that the Naples-Rome line will use signalling to the highest specification, Level 2 ERTMS.

The traincrew are in constant contact with control centre staff and there is two-way communication between driver, guard and other traincrew.

SIPAX (Systema Informativo Passaggeri), an integrated ticketing and reservation system, which includes associated operators, such as car hire, ferry, hotel and airline companies, has also been introduced.

THE FUTURE

The Italian high-speed network is relatively self-contained, so there is expected to be little expansion beyond the network currently under development.

Nevertheless, both the Italian and French governments are keen to integrate with the Trans-European Network System (TENS) which will take through trains to Lyon, Trieste, Lubljana, Budapest and Kiev, with a western extension linking Marseille and Barcelona.

One possibility is for a 312km-long HSL linking Torino and Lyon, requiring 120km of tunnels under the Savoy Alps, including a 54km base tunnel.

A further international extension currently being studied by Italian infrastructure manager RFI would link Torino with Martigny in Switzerland.

The 150km double track HSL would feature two 47.7km-long single track base tunnels at around 650m above sea level under the Gran San Bernardo pass. Connections to the existing network would be at Settimo Torinese on the Milano-Torino HSL, Aosta, Chambave, Verres, Ivrea and Martigny.

Work could take ten years, cost around €10 billion, and bring Torino within 50 minutes of Martigny, 2 hours 10 minutes of Basel or 3 hours 50 minutes of Paris or Frankfurt.

http://72.14.203.104/search?q=cache:wtiyNIJO17IJ:www.railway-technology.com/projects/italy/+speed+train+kiev&hl=en&gl=ro&ct=clnk&cd=1

=============

Bush approves repeal of Jackson-Vanik amendment for Ukraine

21:59 23/ 03/ 2006

WASHINGTON, March 23 (RIA Novosti, Arkady Orlov) - U.S. President George W. Bush signed a bill Thursday repealing the Jackson-Vanik amendment for Ukraine.

The bill, which was already approved by the U.S. Congress in a bid to normalize trade relations with Ukraine, repealed an amendment to the 1974 Trade Act that imposed sanctions on nations for failure to comply with freedom of emigration requirements.

The president said the U.S. supported Ukraine's intention to join the World Trade Organization and would help complete the remaining stages of the process as soon as possible.

Ukraine has signed protocols with all WTO members, including with the United States in March 2006, on access to its commodities and services markets. The EU declared Ukraine a market economy at the end of 2005, and the U.S. followed suit in February 2006.

The Jackson-Vanik amendment, which restricted trade with the former Soviet Union, has been lifted for many of its former targets, but remains in force for Russia.

http://en.rian.ru/world/20060323/44739928.html

Putin Plays with Fire: Rosneft offers CFO post to U.S. banker- paper

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O'BRIEN: ANOTHER EVANS?!

Let’s sellout Russia, in the name of the WTO vainly hopes.

If not president, Bush can do with vice-president at Rosneft...

Rosneft sellout timeline:

The approach to Mr O'Brien comes less than three months after Russian President Vladimir Putin offered the role of Rosneft chairman to Donald Evans, the former US commerce secretary, in an apparent effort to make Rosneft more investor-friendly.

It also follows the surprise resignation last month of Sergei Alexeev, Rosneft's chief financial officer, which had prompted concerns among analysts that the Rosneft IPO could be delayed.

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20060314&ID=5575575

NOW: Mar. 14, 2006

Peter O’Brian of the United States, who is the co-manager at investment and banking division of Morgan Stanley in Russia, will probably take over the 1st vice president’s office at Rosneft

AND THEN: December 13

(RIA Novosti) - Donald Evans, a former U.S. secretary of commerce and still long-time ally of President Bush, may become chairman of Russian state-owned oil major Rosneft, a leading business daily reported Tuesday.

Evans “refused”. I wonder if the joke works indefinitely.

While Kommersant claims that "the sources in the bank community say the appointment (of the American) has been actually decided", RIA Novosti seeks to soothe our worries, saying that "the floating of company's shares could be delayed or even never happen".

~Vera

See details in the articles below:

KOMMERSANT:

14.03.06

U.S. Banker to Become Vice President at Rosneft

Peter O’Brian of the United States, who is the co-manager at investment and banking division of Morgan Stanley in Russia, will probably take over the 1st vice president’s office at Rosneft vacated by Sergey Alekseev in early February.

In Rosneft, Peter O’Brian will be a member of financial and economic pool and supervise preparation of the company’s IPO.

As no employment relations have been yet executed, both Rosneft and Morgan Stanley declined to confirm the appointment. Mr O’Brian has denied to comment as well.

However, the sources in the bank community say the appointment has been actually decided.

After Alekseev’s resignation, Rosneft President Sergey Bogdanchikov personally requested Peter O’Brian to find an adequate substitute.

Several candidates were put forward but no agreement was reached. The next move was to offer the office to O’Brian himself, said a banker on condition of anonymity. Peter O’Brian is well-known in Rosneft.

Exactly Morgan Stanley evaluated Rosneft when the assets of the latter were contributed to Rosneftegaz past May.

Morgan Stanley was one of the four banks that granted $7.5-billion syndicated loan to Rosneftegaz past September. At present, Morgan Stanley is consulting Rosneft before the IPO.

http://www.kommersant.com/page.asp?idr=529&id=657116

OTHER QUOTES:

RIA NOVOSTI:

“According to Vedomosti, Peter O'Brien, who is currently a vice president of the Russian office of U.S. investment bank Morgan Stanley, has a long association with Rosneft and excellent experience in leading Russian companies to IPOs”.

Rosneft, Russia's second biggest crude producer, announced its plans to float shares on the domestic and international markets last year in a bid to pay part of its multi-billion debt. (see after acquiring Yuganskneftegaz, the former main production unit of embattled oil company Yukos)

However, Rosneft CFO Sergei Alexeyev left the company in early February and despite the Rosneft president's promises to take the IPO preparation under his personal control, according to the paper, experts started speculating that the floating of company's shares could be delayed or even never happen.

http://en.rian.ru/russia/20060314/44280004.html

FULL-LENGTH ARTICLES:

Rosneft offers CFO post to U.S. banker - paper

12:07

14/ 03/ 2006

MOSCOW, March 14 (RIA Novosti) -- Rosneft, Russia's state-owned oil company, has invited a U.S. investment banker working in Russia to become the company's chief financial officer in the run-up to its expected initial public offering, a respected Russian daily said Tuesday.

According to Vedomosti, Peter O'Brien, who is currently a vice president of the Russian office of U.S. investment bank Morgan Stanley, has a long association with Rosneft and excellent experience in leading Russian companies to IPOs.

An investment banker told the newspaper that O'Brien has been working closely with Rosneft for a long time and worked directly with its top management, which meant he knew the company situation well.

O'Brien joined Morgan Stanley from Russian investment bank Troika Dialog in 2000 and worked on some of the bank's biggest deals in Russia, including the LUKoil [RTS:LKHO] and Novatek [RTS:NVTK] IPOs.

Rosneft, Russia's second biggest crude producer, announced its plans to float shares on the domestic and international markets last year in a bid to pay part of its multi-billion debt. (see after acquiring Yuganskneftegaz, the former main production unit of embattled oil company Yukos)

Rosneft's state parent company, Rosneftegaz, borrowed $7.5 billion from a consortium of Western banks in 2005 as a bridging loan ahead of the IPO. According to market experts, the sale of up to 30% of company's shares could bring in about $20 bln.

However, Rosneft CFO Sergei Alexeyev left the company in early February and despite the Rosneft president's promises to take the IPO preparation under his personal control, according to the paper, experts started speculating that the floating of company's shares could be delayed or even never happen.

Minister of Economic Development and Trade German Gref said Tuesday that Rosenft shares would be floated no later than October.

According to the paper, the company's offer to O'Brien indicates that Rosneft, which is reportedly saddled with debts of $10.9 billion after buying the former main production unit of embattled Yukos, is serious about its original plans and intends to prepare the IPO in strict compliance with the approved schedule.

Vedomosti quoted several investment bankers as saying that O'Brien was the ideal candidature for Rosneft because he is an IPO expert, a good negotiator and is familiar with the company's finances.

Neither O'Brian nor Rosneft confirmed the offer, the newspaper said.

In another interview with Vedomosti, Energy Minister Viktor Khristenko said it was possible that Rosneft could merge with Siberian-based oil company Surgutneftegaz, citing the existing trend of consolidation among crude producers aimed at alleviating risks and improving competitiveness on global markets.

According to Khristenko, Rosneft in its current form is capable of pumping 100 million metric tons of crude oil by 2010, making consolidation a reasonable prospect at a future date. No indication of a possible timeline or the probability of the merger was given during the interview

http://en.rian.ru/russia/20060314/44280004.html

March 14, 2006 09:10 PM ET

Rosneft set to hire O'Brien to head IPO

Rosneft is preparing to recruit an American investment banker, Peter O'Brien of Morgan Stanley, as a senior executive to head the state-owned Russian oil giant's preparations for what could be the world's biggest initial public offering.

The approach to Mr O'Brien comes less than three months after Russian President Vladimir Putin offered the role of Rosneft chairman to Donald Evans, the former US commerce secretary, in an apparent effort to make Rosneft more investor-friendly.
Mr Evans declined, citing other commitments.

It also follows the surprise resignation last month of Sergei Alexeev, Rosneft's chief financial officer, which had prompted concerns among analysts that the Rosneft IPO could be delayed.

Mr O'Brien would become one of the few senior foreign executives at a Russian state-owned company.

The offering is planned in part to repay a $7.5bn bridging loan that was extended to Rosneftegaz, Rosneft's state parent company, used as a vehicle last year to increase the state's stake in Gazprom, the Russian natural gas monopoly, from 38 per cent to 51 per cent.

German Gref, Russia's economy minister, yesterday said the IPO would raise $15bn-$19bn and take place by October, but the company has indicated it hopes to raise up to $20bn.

At the top end of the range it would surpass the $18bn offering of NTT DoCoMo, the Japanese mobile phone operator, in 1998. The IPO is expected to value Rosneft at well over $50bn.

People close to Rosneft confirmed that Mr O'Brien, currently a vice president in Moscow of Morgan Stanley – long-time advisers to the oil group – was expected to join the company as vice president for strategy. Mr O'Brien did not return calls seeking comment.

Rosneft has a reputation as one of Russia's least transparent companies. It also has a controversial image after it bought the main operating unit of the Yukos oil company in a forced auction, following the legal assault on what was previously Russia's biggest oil group and its founder, Mikhail Khodorkovsky.

Its $9.35bn purchase of Yuganskneftegaz turned it into Russia's number three crude producer.

But plans to merge it with Gazprom to create a single state-controlled oil and gas champion were abandoned last year after Yukos threatened prolonged legal action against Rosneft over the Yuganskneftegaz purchase.

Industry sources said Mr O'Brien, a fluent Russian speaker, could be a significant asset to Rosneft as it attempted to woo foreign investors.

As well as several years' experience working with Rosneft, he also advised on share issues by Lukoil, the Russian oil company, and Novatek, the independent gas producer.

Copyright 2006 Financial Times

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20060314&ID=5575575


ANOTHER INTRUDER: CONOCOPHILLIPS

US oil and natural gas company ConocoPhillips may bring investment in Russia to $15 bln

15.03.2006, 08.31

WASHINGTON, March 15 (Itar-Tass) - The US oil and natural gas company ConocoPhillips may bring its investments in Russia up to 10-15 billion US dollars in the next five-10 years, the company’s Chief Executive Officer James J. Mulva told.

He said that ConocoPhillips currently owns some 17 percent in the capital of its Russian partner LUKOIL. The share may be increased to 20 percent before the end of the year.

According to the ConocoPhillips head, the Americans are also quite satisfied with their minority partner role in Russia.
Mulva said the company’s expectations in relations with LUKOIL and regarding favourable opportunities for operation in Russia have been fulfilled.

Moreover, all that Russian ministries and departments promised when ConocoPhillips was making investments has also been fulfilled in line with the company’s expectations, the official said.

ConocoPhillips is continuing to explore possibilities for making new steps, new investments in Russia, and not only in partnership with LUKOIL, but with Gazprom, Rosneft and other Russian companies, Mulva said.

http://www.itar-tass.com/eng/level2.html?NewsID=4587220&PageNum=0

See also:

Wednesday, December 14, 2005
Bush ally may take over Rosneft reins – paper. C’mon?!
http://putinfreakshow.blogspot.com/2005/12/bush-ally-may-take-over-rosneft-reins.html

Sunday, December 18, 2005
Putin again Playing Risky Poker: Bush friend Evans asked to run Rosneft
http://putinfreakshow.blogspot.com/2005/12/putin-again-playing-risky-poker-bush.html

-------------------------------------------

Putin takes whatever he can get: Algeria

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Putin pays 4 billions for Algerian oil and gas.

Algeria is a clear gift of France given to Russia.

However, although France is Russia’s isolated ideological and economic partner in Europe, it should be noted that on USSR times, when France was in the US’ pocket, Russia couldn’t dream of such schemes:

“In the context of the arms deal, the scheme is likely to be as follows: Algeria gives a Russian company access to an oil- and gas-rich region, with the proceeds split between the producer and the Algerian government who is bound to immediately transfer the revenues to the UAC as payments for the aircraft which Russians make totally on their own”.

-RIA Novosti

Feeling that Russia has practically no chance to be on top of the oil market, Putin dreams leading the gas one:

"Russia is gaining more and more weight in it. It is possible that natural gas exporters will soon turn into a kind of gas OPEC, which will be indisputably led by Russia". -RIA Novosti

~Vera

Gas OPEC and Russian-Algerian gas agreements

22:59

15/ 03/ 2006

MOSCOW. March 14 (Igor Tomberg for RIA Novosti) - The visit by Russian President Vladimir Putin to Algeria in the first half of March 2006 was brief but very productive.

The media front-paged Russia's readiness to write off Algerian debts in exchange for the purchase of arms. But the main success of the visit was achieved in energy cooperation.
First, the talks produced additional preferences - a monopoly right of Russian companies to oil production in the Sahara Desert. Algeria is Africa's third nation in oil reserves after Libya and Nigeria.

Specific agreements on energy cooperation will be reflected in the documents some time later. They include a memo of mutual understanding between LUKoil and the Algerian Sonatrak petrochemical company.

Gazprom will also sign a similar document with the latter.

The second, and most important point is that the results of the gas negotiations are very promising for Russia.

Gazprom CEO Alexey Miller said that his company (Gazprom) and Sonatrak would jointly produce gas and develop deposits in the north of Africa.

"We will help Algeria upgrade its production systems.

They will share with us their priceless experience in gas liquefaction.

In the 1960s Algeria became a pioneer in this field.

Now Moscow is going to produce liquefied gas as well", stressed Miller.

Algeria has already promised to take part in building infrastructure for the production of liquefied natural gas (LNG) in Russia, he added.

Importantly, Russia and Algeria are going to work together in the European market.
In theory, Algerians may receive a portion of Russian contracts for the supply of Europe with gas. But the sides prefer not to reveal the details of their agreements.

Algeria ranks seventh in the world in natural gas reserves and fourth in its exports - 60 billion cu m a year - after Russia, Canada, and Norway.

Algeria exports its natural gas via pipelines to Italy, Spain, Portugal, Tunisia, and Slovenia.

Its LNG goes to France, Spain, the U.S., Turkey, Belgium, Italy, Greece and South Korea.

The Russian President's visit has sealed last January's agreements, which give Gazprom access to deposits in Sahara.

The Russian monopoly will fulfill some of its commitments by delivering Algerian gas to Spain.
The results of the President's blitz-visit to Algeria should be viewed in the context of Moscow's strategic goal to turn Russia into a global energy leader.

The situation in the developing gas market is very important in this respect.

The formation of the market inevitably generates a package of new mutual dependencies and geopolitical groups, production and cooperation chains and price cartels, which may be regional or even global.

By entering world trade, natural gas is turning into a decisive factor of sustainable development.

An international forum of natural gas exporters, set up in 2001, is so far playing an advisory role, but it is becoming increasingly important in the world gas market.

Russia is gaining more and more weight in it. It is possible that natural gas exporters will soon turn into a kind of gas OPEC, which will be indisputably led by Russia.

Experts have come up with this idea when Russia started coordinating different aspects of its gas policy (pricing, above all) with Kazakhstan and Turkmenistan.

Gazprom is suspected of a striving to fulfill its external contractual commitments by using resources of neighbors.

This maneuver will enable Russia to become a gas integrator on the entire post-Soviet space.

Russia will set prices at the future integrated market, concludes the report compiled by joint efforts of Stanford and Huston Universities in 2005.

Its authors played several scenarios before arriving at this conclusion. It looks like these scenarios start materializing. In mid-November 2005, Kazakhstan and Russia signed an agreement on gas transit from Turkmenistan and Uzbekistan.

De facto Gazprom has taken control over the gas resources of these three republics.

Russia, Kazakhstan, Turkmenistan, Uzbekistan, and Iran have tremendous reserves of gas and are actively developing its production and transportation infrastructure. Their cooperation and common political interests are a prerequisite for the formation of a major regional gas alliance.

The absence of gas markets in India, Pakistan and China makes this idea even more appealing. Moreover, gas is expected to account for up to 70% of the increase in the demand for energy.

Growing tensions between Western gas consumers and Muslim gas producers in the Middle East will further encourage gas producers to set up the alliance.

Today, we are witnessing the exacerbation of the conflict between the West and Iran. Or take another scenario - a riot of ethnic North Africans in France. In these conditions both Iran and Algeria would like to strengthen their positions as energy suppliers.

The Russian-Algerian gas agreement is a major step for this North African country towards joining the future cartel of gas exporters.

Since Europe views it as Russia's major rival in its gas market, this step will make the future gas alliance supra-regional, and will consolidate the positions of all producers at the talks with consumers.

Russia's G8 Presidency makes it an obvious leader in this still informal international forum. Analysts will see the Algerian visit of President Putin and its oil and gas results in the context of a would be gas OPEC under Russia's strong influence.

(The author has a doctorate degree in economics, and is a leading expert at the Institute of Economics of the Russian Academy of Sciences.)


The true meaning of the Moscow-Algiers arms deal
22:57

13/ 03/ 2006

MOSCOW, March 13. (RIA Novosti defense commentator Viktor Litovkin). -- A landmark event in Russian aircraft-making - promotion of MiG CEO Alexei Fedorov to Director General of the United Aircraft Corporation (UAC), the new national champion, came shortly before a huge defense (mainly aviation) deal with Algeria.

The high-level Russian delegation in Algeria signed $7.5 billion's worth of arms trade contracts under which Russia will supply a fleet of multirole fighters -- 36 light MiG-29SMT Fulcrums and 28 heavy Su-30MKA Flankers -- and 16 Yak-130 Mitten combat trainers, all worth around $3.5 billion.

Additional programs include upgrade of 36 older Fulcrums, supplies of missiles and ground-based radars, and pilot and technician training. This series of contracts is going to be a tough test for the UAC, its new CEO and companies bound to become its units -- Sukhoi, MiG, and Irkut Corporation.

Interestingly, Fedorov, who had come to MiG from Irkut and, accordingly, at different times had pushed for Flankers (Irkut) and Fulcrums (MiG) in talks with the Algerians, this time was not restricted by in-house rivalry and got, in his new capacity, a brilliant chance to show his real management skills and national champion's efficiency as both Sukhois and MiGs are currently on the table.

There is little doubt that the Russians are ready for the Algerian deal technologically: both multirole fighters have been in operation for some time, for both there is backup production capacity: the Su-30s is produced by Irkut (Irkutsk) and KNAAPO (Komsomolsk-on-Amur), and the MiG-29SMTs by RSK MiG (Lukhovitsy, Moscow Region) and Sokol (Nizhny Novgorod).

The Mitten is still being tested, and commercial production will surely take additional time and effort, but this is highly unlikely to affect the four-year contract.

At first, questions arose on whether the Algerians were ready for the contract financially.
The deals were signed only after Russia agreed to write off $4 billion in Algeria's bilateral debt.

But if there was no money to pay the debt, the natural question arose, how Algiers was going to pay for the aircraft which, according to Sergei Chemezov, CEO of Russian state arms exporter Rosoboronexport, would be delivered only upon bank transfer?

Where there is a will there is a way, though.

Apparently unable to raise cash, Algeria offered a payment scheme which, though complicated, seems perfectly acceptable.

Vagit Alekperov, CEO of Russia's leading oil producer LUKoil, gas giant Gazprom chief Alexei Miller, and head of independent gas producer Itera Igor Makarov's role among Russian negotiators turned out to be much more important than it had seemed, as the North African nation pledged to give Russians shares in upstream as well as downstream operations with its oil and gas, including intercontinental energy deliveries.

In the context of the arms deal, the scheme is likely to be as follows: Algeria gives a Russian company access to an oil- and gas-rich region, with the proceeds split between the producer and the Algerian government who is bound to immediately transfer the revenues to the UAC as payments for the aircraft which Russians make totally on their own.

Of course the proposed scheme is far from straightforward, and is going to include many mediators like banks and other credit organizations, but it could also be seen as evidence to the solid financial condition the Russian corporation is in.

A company that can afford such a scheme demonstrates its ability to engage in long-term, rather than expediency-driven, relationship.

Even more importantly, though, involvement in such extensive and long-term contracts - which admittedly imply some one-off compromises - means stable additional profits in the future because the producer who reaches out in such a manner gains tremendous advantages in MRO and other after-sales programs for a fighter fleet that is going to last way beyond a decade.

The future profits that the UAC leaders were probably having in mind when supporting the debt write-off will enable the corporation to invest more in R&D to create more products and do more good to Algeria, Russia, and its aircraft industry.

-RIA Novosti

General Motors’ bankruptcy Turns Quite against Putin

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General Motors’ bankruptcy Turns Quite against Putin

Whether the tough situation at General Motors is a reality or a scenario is still a question to be asked:

"As the concern scales down production across the world, it has significant spare capacity, and this equipment can be moved to Russia, a GM former manager said."

But, all in all, the baby of General Motors’ bankruptcy show turned out to be a newborn INDEPENDENT plant in Russia:

"If GM builds its own plant in Russia, it will put an end to its cooperation with AvtoVAZ, Sakhnova said, suggesting that the U.S. producer might be considering the move because it was reluctant to share its technology; it has not passed its new models over to the joint venture."

http://en.rian.ru/analysis/20060316/44457965.html

The deal belongs to Putin’s endless row of compromises made in the hope of getting a WTO chair for Russia.

See also:

Saturday, February 18, 2006

Putin Finally Starts Showing His Teeth: GENERAL MOTORS TO BE OUSTED FROM RUSSIA!

http://putinfreakshow.blogspot.com/2006/02/putin-finally-starts-showing-his-teeth.html

In other words, Putin has no teeth.

~Vera

General Motors looks to Russia

General Motors, the world's largest vehicle manufacturer, whose net losses in 2005 amounted to $8.6 billion, is willing to invest in a plant in Russia.

Vladimir Blank, chairman of the St. Petersburg administration's committee for economic development, industrial policy and trade, announced yesterday that four large carmakers were in talks on building plants in the city. GM is one of these companies, according to several regional and federal officials.

In 2005, GM sold 76,578 cars in Russia, of which 51,806 were sold through the GM-AvtoVAZ joint venture.

To cover last year's huge losses and the restructuring of its loss-making business in North America, the company is now selling assets.

However, sources familiar with its business say that a GM plant in Russia is quite feasible.
As the concern scales down production across the world, it has significant spare capacity, and this equipment can be moved to Russia, a GM former manager said.

This could cut the project's costs by about $200 million, according to Yelena Sakhnova, analyst with Deutsche UFG.

"Chevrolet is a very successful car for Russia, and clearly many more can be sold here," said Alexander Agibalov, managing director of AG Capital. This will be all the more true if subsidies make Chevrolets even cheaper.

If GM builds its own plant in Russia, it will put an end to its cooperation with AvtoVAZ, Sakhnova said, suggesting that the U.S. producer might be considering the move because it was reluctant to share its technology; it has not passed its new models over to the joint venture.
Also, relations between GM and AvtoVAZ deteriorated after state-owned defense company Rosoboronexport became involved in the running of AvtoVAZ. In February, GM-AvtoVAZ froze operations when AvtoVAZ stopped supplying parts.

http://en.rian.ru/analysis/20060316/44457965.html

Lukashenko in free Fall

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The Iraqi turmoil turned out to be a good opportunity for Putin to diplomatically introduce the US to Iran:

Update 9: U.S., Iran Willing to Talk About Iraq

http://www.forbes.com/technology/feeds/ap/2006/03/16/ap2600480.html

In Israel, in the aftermath of the assault over Palestinians it seems that the things stand a bit better for Putin, Olmert being the favourite in the pre-electoral polls:

http://english.wafa.ps/body.asp?id=5653

In Belarus, Lukashenko is in free fall.
According to an article published by none other than RIA Novosti itself and entitled “Antiglobalist Alexander Lukashenko”:

http://en.rian.ru/analysis/20060315/44338269.html

,his days at the Belarusian helm are counted.

Despite the fact that possibly Lukashenko will win the so-called “elections”, Lukashenko will most likely be dismissed after a while, in the aftermath of an Ukrainian type scenario, which in Belarus might not be in orange and blue, but which is highly likely to take an aggressive turn, Putin seeking to fool the Russian people with Lukashenko’s "dictatorial" measures, with his alleged inability to lead an European country.

Putin will hence try to get away with it, hoping to be forgiven once again for the sellout (after Ukraine) of, practically, his own (Bela)Russian people.

Transdnestr will hopefully manage to isolate the Russian bases from the US’ disarming claims, Moldova and Romania suffering in consequence an American invasion. A possible Romanian scission between Romania and its Hungarian provinces is also waved in the media, scission backed by the master in scissions – the US, perhaps.

Using Milosevic’s name, Putin seems to have gained somehow in Serbia, but just a superficial media battle in exchange of Kosovo’s sellout and together with it in exchange of the sellout of the Caspian oil through the US-backed AMBO pipeline.

Putin has given his approval on the moves above, just in exchange of some more American guarantees on the Russian nuclearization of Iran, whose oil and gas reserves Putin will brotherly share with Bush.

In line, Syria might suffer "democratic" changes soon, materialised with the dismissal of Assad.

Syria and the Russian spatial industry are now the ones set to bear the consequences for the nuclear solution on Iran the US agreed with, after tough negotiations.

The current Iranian nuclear plan privileges Russia and its status was in limbo for at least a decade.

http://today.reuters.com/news/newsArticle.aspx?type=worldNews&storyID=2006-03-17T170142Z_01_L17699164_RTRUKOC_0_US-SYRIA-OPPOSITION.xml

See also:

Sunday, October 30, 2005
Putin moves both Earthly and Spatial Pieces: Iran, Syria and the ISS; US compromises

http://putinfreakshow.blogspot.com/2005/10/putin-moves-both-earthly-and-spatial.html

In Iraq I believe that the battle is not over yet, although Putin loses ground there gradually as well.

For instance, Google has found no documents for the key words
Kurna (Qurna) oil field + Lukoil.

Bush has therefore made no promises to Putin on the proverbial Iraqi oil field Kurna, which is Putin’s by right ever since Saddam’s era.

However, as tragic as it might sound for the Russian nation, now, after the American seizure of the Baltics, of Georgia and further of Ukraine, the sellout of Belarus, IF in exchange of Mexico, which is set to hold elections itself on 2-nd of July 2006, might be the land-military salvation for Putin (two candidates from the Belarussian opposition demanded that the commission be dismissed and new elections be scheduled for no later than July 16, calling on the people to protest in the streets of Minsk on March 19, election day).

http://en.rian.ru/world/20060317/44488908.html

So Putin plans to sell out Belarus only after he seizes Mexico.

(see maps below)















Ever since Putin allowed the Baltics to leave the Russian orbit and to join NATO, Putin has practically been off-guard, the US having 3 common borders with Russia (of which one quite a NATO border), from where the US is free to launch a military attack on Russia anytime, while, in its turn, Russia has no common land border with the US yet, from which it could retaliate with a classic military attack launched on the ground.

JUST AN INNOCENT OBSERVATION: With the sellout of Belarus, the US has succeeded to seize all territories on the Western Russian border, from Estonia to Georgia.

Under these circumstances, the "democratic" reorientation of Belarus should not come as a surprise to anyone.

The surprise would indeed come if Belarus would preserve its exclusive pro-Russian orientation, thing that in my opinion will not happen.

-------------------------------------------------------

The closest Russian ally in the US’ neighborhood remains Cuba, split from the US by the straits of the Atlantic Ocean.












Dreaming in trance of the WTO membership and of other G8 chairs, Putin negotiates its own nation, evaluating it exclusively in dollars, cubic meters of gas and barrels of oil, meanwhile doing nothing but to make room to the US in Europe, while he is set to take in exchange the Latin American wreck:

Russia, Ukraine may join WTO simultaneously

http://en.rian.ru/analysis/20060316/44407535.html

CONCLUSION:

Taking into account, however, that Putin is keen to boost Russia's presence in a Western Europe that Russia has never had in its track record, probably the sellout of the unproductive Russian satellites is not quite a bad deal, economically speaking, at least.

The problem is that Putin (and Bush alike (!)) go beyond any inborn bonds like the linguistic and cultural ties between certain nations such as Russia and both Ukraine and Belarus.

Here Bush's calculus looks a bit erroneous. Bush relies in exclusivity on the US' military force and on a few oligarchic exceptions, rather than on the nations that he aims to colonise, as a whole.

It is easier for me to imagine a military combat waged by the Latin American people (such as Mexico) against the North American aristocratic nation who enslaved it, than a military confrontation between Russia and two brother nations (such as Belarus and Ukraine).

~Vera

Russia content with security of its northwest borders - minister
19:17

17/ 03/ 2006

MOSCOW, March 17 (RIA Novosti) - The Russian defense minister said Friday that there were no plans to increase Russia's military strength on its Scandinavian borders, in contrast to the situation on its western borders.

"Russia has no intentions to increase its military presence in the northwest," Sergei Ivanov told his Finnish counterpart Seppo Kaariainen at a Moscow meeting.

Ivanov, who is also a deputy prime minister, said: "Russia is not the Soviet Union. Actually, I am not discounting the existence of a certain military threat for Russia, but this threat is not in the northwest."

In relation to our western borders, we have a different situation, since the NATO military alliance has advanced significantly over the last 15 years to reach the border of the Russian Federation," the minister said.

Ivanov said that Russia had reduced its army by one-third since the collapse of the Soviet Union and that the northwest Leningrad Military District headquartered in St. Petersburg, Russia's second largest city, had undergone major cuts.

http://en.rian.ru/russia/20060317/44485178.html

See also:

Sunday, January 29, 2006

Putin wins Finnish presidential election

http://putinfreakshow.blogspot.com/2006/01/putin-wins-finnish-presidential.html

Putin further sells out Romania to the US' liberal dogs

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Putin further sells out Romania to Bush, probably in exchange of Bush's forgetfulness concerning Putin's bases in Transdniester and of further American confirmations on allowing Putin to nuclearize Iran.

While its members are speaking of the party's renewal and of other day dream aberrations, in fact the Romanian Social Democratic Party (PSD) is bit by bit sunk by Putin into the US' liberal mud, whenever the unstable Russia-US leverage balance requires some adjustments.

Cornered by Yeltsin's mistakes and by the US' daily aggression, Putin always chooses to sacrifice Romania (the less valuable pawn in his scheme, and hence the most at hand to be put up for sale on the global negotiations table).

Speaking about its modernization and "Europenization", the Romanian opposition, personified by the Social Democratic Party, in fact does nothing but to lose ground continuously for one year and a half.

Under these circumstances, if Putin will allow Bush to install its military bases here, Romania could successfully join the US-backed liberal European club not later than the established term: 2007, for everybody's contentment, excepting the common people of this country who, aside of paying higher prices for the Russian energy, will have to pay in addition for the military equipment of their honour Western coloniser guests.

If I wouldn't live here and I wouldn't therefore be constrained to bear the vicissitudes of the US-backed jungle-type "liberal" model, I would simply wish to the Romanian people (in its most part perplexedly brainwashed by the "American dream" sustained by guns and tones of propagandistic celluloid),

The best of luck!

~Vera

Adrian Nastase Says He Resigns from Deputies Chamber and Social-Democratic Party’s

Leadership15 March 2006 08:25 FOCUS News Agency Bucharest.

Former Romanian Prime Minister Adrian Nastase announced he resigns from the position of Chairman of the Deputies Chamber in Romanian Parliament and from the position of Executive Chairperson of the Social-Democratic Party (SDP), Mediafax reports.

Nastase announced his decision after getting no confidence vote from the leaders of the regional party organizations of the SDP, as only 16 voted in his favor. 36 chairpersons of the regional SDP sections passed a no confidence vote against the ex PM.

The vote had been demanded by Nastase himself after the SDP chairman Mircea Geoanг and other party members demanded that Nastase’s resignation on grounds that the accusations of corruption against him were hampering the image of the party.

http://www.focus-fen.net/index.php?...wsid=84482&ch=0

Putin and Bush agree on Milosevic’s Disappearance

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At the first sight it seems that the announced disappearance from the public scene of the Serbian ex-president Slobodan Milosevic advantages Putin, giving grist at his mill to blame the UN Tribunal in Hague for “the crime” it has done when refusing to send Milosevic to Russia for treatment.

However, there is an important detail, which proves that the things are not quite as they seem: The US was constrained quite at this time by Milosevic’s request to subpoena former President Clinton (and other American officials such as Gen. Wesley Clark (the NATO commander during the Balkan wars) as witnesses.

Hence, subpoenaing American key politicians, Putin succeeded in manufacturing a viable leverage meant to put the screw on Bush and to make him accept a softer stance on the Serbs.

Meanwhile, Putin’s interest in giving a boost to the Serbs in the EU was stalled by Milosevic’s trial that was hanging on in incertitude for years.

Therefore, the disappearance of Milosevic, jeopardizing the credibility of the Hague tribunal and eventually providing a softer stance on the Serbians Mladic and Karadzic and at the same time sparing Clinton from an embarrassing apparition at the UN Tribunal, was practically needed by both the Russian and the American sides, in order to go on with their European partition plan.

The disappearance of Milosevic from the public scene suits both Bush and Putin, who seem to have agreed leaving behind the arguments (for now) and to go on with their deals, amongst which the partition of Europe has a crucial place.

The announcement of Milosevic's death, just like in Ceausescu's case, doesn’t necessarily require his physical murder (!), as long as his public disappearance is enough to suit both sides.

Milosevic was nothing but a relic of the past, a nub in both Bush’s and Putin’s way, who had to be removed, in order to calm and reconcile the spirits in the area (Serbs and Albans) and to provide a cleaner path for a new beginning in the approach of the Russian-American diplomatic relations.

The disappearance of Milosevic paves the way for the settlement of the Balkans status in general and of the conditional independence status of Kosovo in particular, which will create the needed precedent for the further settlement of other unresolved conflicts, such as the status of Abkhazia, South Ossetia and Transdniester, which, in its turn, demands its independence from Moldova.

See the articles related to this topic at the link below:

http://groups.yahoo.com/group/VladimirPutinRoundTable/message/360

Possibly both AMBO and Burgas-Alexandroupolis (the rival oil pipelines) will be functional in the end, giving to both Putin and Bush equal political leverage in Europe.

See map:

Putin Gifts Bush with Iran, Soyuzes and with a compromise on Nagorny-Karabakh, for a presumptive WTO Paper

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The first news that transpired from Lavrov’s US trip:

Putin Gifts Bush with Iran, Soyuz and with a compromise in Nagorny-Karabakh, for a presumptive WTO Paper

A close parallel can be drawn between the events that unfold in Iran, doubled by the ‘Soyuz’ deal long ago stipulated in the Iran Non-proliferation Act, and the US’ “WTO” promises for Russia.

… With the Jackson-Vanik amendment not yet abolished, even if Putin obtains the WTO membership in my lifetime, it could turn out doing more harm than good to Russia.

The sweet dream of paving the way for Gazprom and Lukoil to compete with Exxon and Chevron from equal positions could turn from a daring action into a nightmare (just like in China’s case which, for real or imaginary faults, is punished quite with WTO weapons, being systematically threatened with economic sanctions).

In addition to the above-mentioned issues, hopefully Transdniester will mirror ‘Kosovo’ and will end up benefiting from conditional independence, preserving the Russian armament on its territory, despite Yeltsin's previous signature.

~Vera

See the articles related to this topic, with the main quotes highlighted, at the link below:

http://groups.yahoo.com/group/VladimirPutinRoundTable/message/359

COLD WAR RESUMPTION: The Nuclear Repartition of the World Begins

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MAP: NUCLEAR REPARTITION OF THE WORLD















In the last few months we've assisted to the the first nuclear repartition of the World after the WWII, between the two World poles: US and Russia, repartition triggered by the bone of contention: Iran.

Putin insists keeping Iran on his side, at least military (nuclear), despite the concessions that he is willing to make on Iran's natural resources, which Putin agreed to share with the US.

Europe will be split in two and fueled by Russia (with Russian fuel) on one hand
and by the US (with Iranian fuel) on the other.

In the aftermath of Putin's visit to Hungary and the Czech Republic and of Bush's visit to India,

BY NOW:

Putin takes: Iran, Hungary, the Czech Republic, Bulgaria (indirectly - through Czech Republic)
Bush takes: India, Ukraine, the Baltics.

Romania is at crossroads (slightly incling towards the US) - being taken by Italy (which plays with both sides: the US and Russia) and by Canada (US' player).

Pakistan remains the US' ally in "the war on terror", meaning that it will continue to play the role of the US' launchpad in the Afghani war, but without being yet endowed with the nuclear bomb.

See map above.

~Vera