Daily Archives: November 16, 2007

November 16, 2007 — Contents

FRIDAY NOVEMBER 16 CONTENTS

(1) The Kremlin Shuts Down Novaya Gazeta in Samara

(2) Annals of Russian Internet: Crime, and Plenty of it

(3) Russia the “Energy Superpower” has no Gasoline

(4) Got Babies? Get the Heck out of Russia!

(5) Once Again, Russia is #1 — Once Again, in a Bad Way

NOTE: The details of Putin’s plan to remain in power may have been revealed. We discuss them on Publius Pundit.

NOTE: We have more commentary on the shuttering of Novaya Gazeta‘s Samara office, which we report as the lead item today, over at Publius Pundit, linking the event to the Kremlin’s desparation as Russia’s economic picture grows ever more gloomy. Check it out, and feel free to leave your comments there about how the West can best assist NG is fighting for its life, and what its loss would mean to Russia.

NOTE: Here’s a YouTube on hate crimes in Russia which, for some odd reason, the publisher will not allow to be embedded on other sites.

Novaya Gazeta Shuts Down in Samara

The Washington Post reports:

The newspaper Novaya Gazeta, one of the last outposts of critical journalism in Russia, suspended publication of its regional edition in the southern city of Samara on Monday after prosecutors opened a criminal case against its editor, alleging that his publication used unlicensed software. The case is part of a larger assault on independent news media, advocacy organizations and political activists, according to government critics. But it is one that is specifically tailored to deflect foreign criticism. In multiple police raids against such groups, authorities are ostensibly targeting the alleged use of counterfeit software. Western governments and companies have long urged action against the widespread piracy in Russia. “Our law enforcement finally realized that computers are very important tools for their opponents, and they have decided to take away these tools by doing something close to the West’s agenda,” said Vladimir Pribylovsky, head of the Panorama research institute in Moscow. “I suppose you could say it’s very clever.”

In the past 10 months, police in at least five Russian cities have raided the offices of media outlets, political parties and private advocacy groups and seized computers allegedly containing illegal software, paralyzing the work of the organizations. Often, authorities demand that employees submit to questioning and order them not to leave town until legal action is completed. According to some estimates, the piracy rate for all kinds of intellectual property in Russia is as high as 80 percent. The International Intellectual Property Alliance, a U.S. coalition of rights holders, estimates that its members suffered piracy losses of $2 billion in Russia in 2006, according to a letter the coalition recently sent to the Office of the U.S. Trade Representative. The organization said that progress in enforcing intellectual property rights in Russia has been “insufficient.”

Most of the Russian groups targeted by the authorities deny buying counterfeit software or say they used it only unwittingly. They charge that with authorities doing little to challenge the rampant piracy in Russia, including illicit production of disks in defense facilities and other agencies, the raids on their own offices amount to selective enforcement of the law. “This is not a campaign against piracy, it’s a campaign against dissent,” said Vitaly Yaroshevsky, a deputy editor of Novaya Gazeta in Moscow, who is in charge of the newspaper’s regional editions. “The authorities want to destroy an opposition newspaper. It doesn’t matter if we send more computers to Samara. It doesn’t matter if we show we bought computers legally. It will change nothing.” The paper says it believes its software is legal. Russian officials declined to comment on the piracy cases Tuesday, but police and prosecutors had previously told Russian news media that the raids are simply part of a broader crackdown on illegal software and other forms of piracy.

Police have raided businesses that play no political role, but without the sustained effort directed toward groups that are critical of the Kremlin. “It’s cynical, but it’s also very difficult for us to say anything,” said one Western observer, who spoke on condition of anonymity because he was not authorized to comment publicly on the subject. Most of those accused of using unlicensed software appear to have some connection, sometimes quite tentative, to the opposition coalition called Other Russia, which is led by Garry Kasparov, the chess grandmaster and fierce critic of President Vladimir Putin.

Police in Samara, for instance, first raided Golos, a private group that monitors elections, in May, just before Kasparov’s organization held what it called the March of Dissent to coincide with a Russian-European Union summit in the city. Ludmila Kuzmina, the head of Golos, said police showed up in her office 90 minutes after she made a statement on the Echo Moskvy radio station saying that she supported the march. Police seized the group’s computers and opened an investigation into the alleged use of unlicensed software. Kuzmina had to sign documents agreeing not to leave the city until the investigation, which is still continuing, is completed. “The quality of our work is suffering,” Kuzmina said. “I am under pressure all the time. They call me for interrogations. All I do is deal with the police.”

Also in May, police in the city of Tula seized a computer at the offices of one of Kasparov’s coalition partners at the time, former prime minister Mikhail Kasyanov. Private groups and a Novaya Gazeta office in the central Russian city of Nizhny Novgorod were also raided and accused of using illegal software before a March of Dissent in that city in August. Advocacy groups have been accused of the offense in the cities of Volgograd and Syktyvkar, according to Pavel Chikov, head of Agora, a coalition of Russian private groups. “They have suddenly decided it’s a great tactic,” Chikov said. “They can stop all the activities of a group at a key moment, before a march or during the election period.” Last month, police in Samara raided another news media organization, the Internet outlet 63.ru, which had a reputation for reporting that was critical of the government. Five desktop and two notebook computers were taken for “expert evaluation,” 63.ru said.

The offices of the Samara Novaya Gazeta, a weekly, were first raided by Interior Ministry investigators before Kasparov’s rally in May. Police seized financial documents, as well as computers. The paper was one of the few media outlets that had planned to cover the march, according to its editor in chief in Samara, Sergey Kurt-Adzhiyev. Moreover, the editor said, his daughter, Anastasia, 21, was one of the local organizers of the march. The paper had continued to publish since May but Kurt-Adzhiyev said that in the past two months, investigators also began pressuring its distributors and advertisers. Last Thursday, police seized the last of the newspaper’s computers in Samara. “They visited all organizations and companies with which I work and told them to terminate all cooperation,” said Kurt-Adzhiyev, 50, who is now barred from leaving Samara. “They told them if they didn’t agree, they would have problems. I even lost my own personal computer. It became impossible for us to go on.” Kurt-Adzhiyev said the paper would now attempt to sell its Moscow edition in Samara, but he said he worried that local newsstands would be reluctant to carry it.

Meanwhile, according to Tatyana Lokshina, head of Demos, a Moscow-based human rights group, activist groups across the country are hastily checking the legality of their software. “Most people are trying to put things in order,” she said.

Annals of the Russian Internet: Crime, and Plenty of it

The Guardian reports:

The Russian Business Network – which some blame for 60% of all internet crime – appears to have gone to ground. But, asks Peter Warren, has it really disappeared?

A curious game of cat and mouse is being played out on the internet, as high-tech hunters close in on a group of cybercriminals known as the Russian Business Network, or RBN. The chase started a week ago when the RBN – a Russian ISP alleged to be behind much of today’s web crime – slipped its internet moorings in the Baltic coastal city of St Petersburg and made for servers in China. But the RBN’s attempts nine days ago to hide there behind a hastily formed Italian front company failed. Only a day after setting up in its new home, the sites run by the RBN – which specialises in identity theft, denial of service, phishing, computer extortion and child pornography – vanished from the web. Since then sightings have been few. But does that mean the RBN has gone? And does it matter?

Mighty Russia ("Energy Superpower") Rations Gasoline

$2.95

As the Moscow Times reports, that’s the current price for a gallon of gasoline in Russia today. This price, the same in Russia as in the United States, is viewed as being a horror show even in the United States, a country that has an average wage many times higher than Russia’s. And as is always the case in Russia, that bad news isn’t the worst of it. The MT reports that Russia is actually rationing gasoline and facing massive shortages because of it’s frenzied need to sell oil it produces abroad so it can use the money to restart the cold war and its arms race, and because of a classic neo-Soviet inability to efficiently produce gasoline at refineries. Russia is one of the world’s largest oil producers, yet it is closing down filling stations because they can’t operate profitably!

And so it goes in Russia.

The country’s transportation fuels market is facing its biggest crisis in almost 20 years as severe shortages force some retailers to close their filling stations. As global oil prices beat records, Russian firms are rushing to export both crude oil and refined products. That, combined with outages at refineries in central Russia, has caused a spike in wholesale gasoline and diesel prices. The shortages have forced wholesalers to ration supplies to retailers, who in turn are unable to pass on higher costs after pledging to the Kremlin to keep pump prices stable ahead of the Dec. 2 State Duma elections. “My vacation has gone to hell. I had to race back home after my staff told me that they had nothing to sell,” said Alexander, a wholesaler who declined to give his surname.

Retail prices for A-92 gasoline in the Moscow area average around 19.2 rubles (78 cents) per liter, while wholesale prices at the main regional fuel depot work out at 16.5 rubles. That works out at a profit margin of around 16 percent, below the 20 percent many retailers need to cover their costs. Profit margins on diesel are even lower, at around 7 percent, traders reckon. LUKoil and TNK-BP have partly stopped business at their retail networks in the southern regions, while Rosneft’s Siberian retail network has been working intermittently, traders said. Petrol stations that yield little profit are also being shut down. “Temporarily shutting down filling stations that sell little can be a way to reduce operating costs, instead focusing on sales on busy highways,” a source at LUKoil said.

Moscow city government held a meeting with oil companies and independent traders in the region last week to address the problem, a retailer said. Russian drivers get easily angered about petrol prices as they ponder why they are on par with the United States, the world’s largest oil importer, while Russia is the second-largest oil exporter after Saudi Arabia. Although prices for motorists have been capped, they also suffer as access to petrol becomes harder. Traders say TNK-BP’s shortage has forced it to limit its supply of “summer” diesel fuel and popular A-92 gasoline to drivers, particularly at petrol stations in Rostov-on-Don. “Some were giving no more than 60 to 100 liters of diesel and 20 liters of A-92 [per vehicle],” a local trader said.

Life is worse for the independent petrol station operators, some of whom are wrapping rubber hoses around their pumps to signal that they are out of fuel. In Saratov, one trader said he was unable to fill his car for 300 kilometers because of a lack of open petrol stations selling good quality fuel. “On the motorway, people are not able to get A-92 fuel, only low-grade A-80,” he said. Despite the troubles, many independent petrol stations are soldiering on. “Closing down a petrol station is not respected and can be embarrassing in front of our competitors, plus you can lose customers for the future,” one filling station owner said. Low-octane A-80 gasoline, used by Russian car models, has meanwhile disappeared from many stations. Some fly-by-night operators are slipping in octane-boosting additives illegally and profiting by selling the fuel more expensively as A-92. “Who wants to work for nothing?” said one Moscow trader, who requested anonymity

Got Babies? Get Out of Russia, Quick

Got a belly full of babies? Better not try to birth ‘em in the neo-USSR. The Telegraph reports:

Doctors in Russia urged a woman pregnant with quintuplets to have selective terminations, it has emerged. The woman has since given birth to the first set of quintuplets to be born in Britain for 10 years. She had had a drug-based fertility treatment which makes multiple births more likely, but refused to have abortions on religious grounds. The mother, a 29-year-old music teacher who does not wish to be named, gave birth to five girls 14 weeks prematurely at the John Radcliffe Hospital in Oxford on Saturday. They were born by caesarean section and their weights range from 1lb 13oz to 2lb 2oz. The babies are said to be doing well and are being cared for in intensive care units at the John Radcliffe and at Queen Charlotte’s Hospital in west London. The woman and her husband had travelled to Oxford after doctors in Russia advised her to have a selective reduction, in which some of the foetuses are aborted to give the remaining ones a better chance of survival. The treatment was paid for by wellwishers in Russia. It is thought around eight in 10 babies born so early survive. Mr Lawrence Impey, an obstetrician who led her care, said: “I’m very pleased to be able to help this delightful family. “Mother is recovering well and the babies are doing well.” The babies will be cared for in Britain until they are strong enough to go home. Their mother received intensive treatment in recent weeks to prevent her from delivering even earlier.

Once Again Russia is #1 — Once Again, in a Bad Way

Robert Amsterdam points to an article in Kommersant which reports that Russia is now the #1 smoking nation on the planet. Way to go, Russia! Another category (like fraud, violence, pollution) where you lead the world! There’s no stopping Russia under KGB rule! What wise folks those Russians are!

Russia is the country, where the habit of smoking is most popular. Some 65 percent of men and 30 percent of women smoke here. Of them, 80 percent and 50 percent respectively started smoking before getting 18 years old, signaled statistics of Rospotrebnadzor timed to the World No Tobacco Day.

Over 3 million teens, 2.5 million boys and 0.5 million girls, smoke in Russia. The trend is that smoking is becoming more popular with youth, and regular smokers are younger now. In the age group of 20 years old to 29 years old, the share of smoking women is 10 fold above the share registered for the women older than 60 years.

According to Rospotrebnadzor, exactly tobacco is the cause of mortality from lung cancer (90 percent of all cases), bronchitis and emphysema (75 percent), heart disease (25 percent). Some 25 percent of regular smokers die prematurely.

In the world, around 5 million annually die from smoking tobacco.

At the same time, the prices for tobacco are the lowest in Russia today. “The wide price range and reduction in cigarette price vs. other consumer goods ensure economic accessibility of cigarettes for all groups of the population,” representatives of Rospotrebnadzor said.