Latest on Kozlovsky

Oborona reports (LR staff translation):

On December 27, Oborona activists held a protest direct action against the illegal recruitment of Oleg Kozlovsky in front of the Ministery of Defense of the Russian Federation. The activists stretched a banner reading “FREE OLEG KOZLOVSKY” and lit flares. Then they chanted slogans in solidarity with Kozlovksy

Oborona also reports:

On December 26th, the leader of the Moscow branch of the Yabloko political party, Sergei Mitrokhin, sent Moscow Mayor of Moscow Yuri Luzhkov a letter calling for the rescission of the decision to induct Oleg Kozlovsky forcibly into the army.

According to Mr. Mitrokhin, the decision was illegal on several grounds:

• First, Kozlovsky has a disqualifying medical condition but the medical documentation thereof has been totally ignored, nor were any actual medical examinations conducted at the induction center.

• Second, Kozlowski has completed a course of study in the military faculty of Moscow State University, after which he should be automatically awarded the rank of lieutenant. For some reason this has not been done.

Yesterday, in telephone conversations with the head of a military unit 12691, which sent Kozlovsky to Ryazan, and with the head of the hospital, Sergei Mitrokhin demanded that Kozlovsky be sent immediately the hospital to undergo screening. The chief of the military unit said that Kozlowsky will be sent to the hospital only after the New Years holidays.

Today Sergei Mitrokhin sent a telegram to the military unit confirming his demand to immediately send Kozlowski to the hospital. In addition, inquiries were made to the Defence Minister, Military Commissioner of Moscow, and the head of the military faculty of Moscow State University.

Click “kozlovsky” at the bottom of this post to read background on this topic.

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Russia Provides Even More Weapons to Rogue Iran

Suppose America were to deliver missile systems to Chechnya, and when asked why by Russia George Bush answered: “Why did we do this? I can explain why. We did this so that Iran did not feel it had been driven into a corner. So that it didn’t feel that it was in some kind of hostile environment.” What would Russians think about that?

The Chicago Tribune reports:

Iranian officials said Wednesday that they have signed a contract to buy an advanced Russian anti-aircraft system, a move that could complicate any plans for an air attack by U.S. or Israeli warplanes.

The sale to Tehran of powerful new air-defense missile technology also would create new sources of friction between the Bush administration and the government of Russian President Vladimir Putin. U.S. officials harshly criticized Russia for an earlier missile sale to Iran completed in January. In Crawford, Texas, where President Bush began a post-Christmas holiday, Deputy White House Press Secretary Scott Stanzel expressed concern over the disclosure, which had not been confirmed by Moscow as of late Wednesday. “We have ongoing concerns about the prospective sale of such weapons to Iran and other countries of concern,” he said.

U.S. officials suspect Tehran of seeking to build nuclear bombs, although Iran has denied doing so. A U.S. intelligence report concluded last month that Iran suspended any nuclear weapons effort in 2003. The White House has consistently said it is committed to diplomacy to prevent Iran from acquiring nuclear weapons but always adds that no option is off the table, including military force. Administration officials are frustrated with the lack of progress in arranging a new round of UN sanctions against Iran, heightening international fears of a possible military showdown. By sharply upgrading its national air defense system, Iran is likely to only fuel such fears.

The new Russian technology is part of its S-300 anti-aircraft system, which consists of long-range weapons that have been compared to the U.S. Patriot missile in their sophistication and capability. The S-300 system would augment the TOR-M1 anti-aircraft missiles that Tehran received from Russia this year. While the TOR-M1 missiles are intended for lower-flying planes, unmanned vehicles and precision-guided weapons, the S-300 missiles are able to reach high-flying support squads and far-off, approaching attackers. Its range is about 90 miles, or an altitude of about 90,000 feet, weapons experts said. The contract was signed Tuesday in Tehran and announced Wednesday by Iranian Defense Minister Mustafa Mohammad Najjar, according to state-controlled media. “Russia will provide Iran with the S-300 missile system under a deal signed between the two countries,” said Najjar, according to state media. “The exact date of the delivery will be announced later.”

The S-300 was developed by the former Soviet Union to combat aircraft and cruise missiles, but later variations were designed to fight ballistic missiles. Until recently, Iran’s air defense system was based on 1970s technology and was concentrated on protecting its military bases and nuclear installations. Because the systems were in fixed locations, they were considered vulnerable, especially to possible U.S. or Israeli attack. However, Russia agreed in 2005 to sell Iran its modern, mobile TOR-M1 anti-aircraft systems, which are based on the platform of a battle tank launcher. Russia promised Iran 29 launchers, each with its own radar and eight guided missiles.

U.S. officials bitterly protested the sale. The Bush administration last year placed Russia’s state arms trader, Rosoboronexport, under State Department sanctions, along with the Russian fighter jet manufacturer Sukhoi. The move prevented U.S. companies from doing business with the Russian companies. Sanctions against Sukhoi, which also is selling aircraft to Venezuela, were rescinded months later after a meeting between Bush and Putin. Russia argued that engaging Iran offers a more promising chance for future stability than threatening the country. Putin dismissed questions about the TOR-M1 missile deal in Munich in February.

“Why did we do this? I can explain why,” Putin said at an international security policy conference. “We did this so that Iran did not feel it had been driven into a corner. So that it didn’t feel that it was in some kind of hostile environment.”

The earlier sale, estimated to be worth at least $700 million and as much as $1.5 billion, also was part of what Western officials have said is Russia’s drive to re-establish itself as a world arms supplier. However, the Russians had resisted Iran’s requests for access to the more advanced S-300 system, in part to avoid an increase in international tension. Some arms experts have speculated that Iran could have been making plans to acquire missiles elsewhere. Russia has agreed recently to sell some of the S-300 missiles to Belarus and Cyprus.

Thanks for reading La Russophobe !

Nemtsov Drops out of Presidential Race in Protest

The Washington Post reports that Boris Nemtsov has concluded there will not be a real election in March for the Russian presidency and therefore has dropped out of the race, urging the other candidates to do the same; it also reports that Putin will impose the same draconian restrictions on elections monitors that were present during the parliamentary vote:

For the second time this month, a leading Russian opposition figure has withdrawn from March’s presidential election complaining of a political landscape that has made open competition impossible.

“It’s clear that the presidential election, like the parliamentary elections, will be a farce, since candidates do not have equal opportunities to campaign,” Boris Nemtsov, a deputy prime minister in the 1990s and a leader of the Union of Right Forces party, said in a statement Wednesday. “Goebbels-like propaganda, force and bureaucratic pressures are being used against the opposition.”

Joseph Goebbels was Adolf Hitler’s propaganda chief.

Nemtsov’s withdrawal follows the decision of Garry Kasparov, the chess grandmaster and critic of President Vladimir Putin, not to seek registration as a candidate. Kasparov said the authorities had blocked his attempts to hold a nominating convention this month.

Neither Kasparov nor Nemtsov presented any real threat to the Kremlin’s anointed candidate, First Deputy Prime Minister Dmitry Medvedev, according to opinion polls. Medvedev is backed by Putin and the pro-Kremlin United Russia party, and he enters the race as the overwhelming favorite.

Medvedev has said he would like Putin to remain on as prime minister, a prospect that burnishes the untested candidate’s standing with the electorate and ensures that the current president will continue to wield considerable influence in Russia after he leaves the Kremlin.

Nemtsov called on the remaining two candidates who are independent of the Kremlin to also withdraw unless they receive pledges that they will have equal access to the news media and that state resources will not be used to damage their campaigns.

“I think that if authorities refuse to fulfill these absolutely justified demands, this will be serious grounds not to take part in the elections,” Nemtsov said, directing his plea to Gennady Zyuganov, head of the Communist Party, and Mikhail Kasyanov, a former prime minister under Putin who later broke with the Kremlin.

Nemtsov said the Kremlin should agree to meet four conditions: Medvedev must take part in televised debates; all candidates must have equal access to state-controlled TV channels; national TV channels must stop blacklisting certain members of the opposition; and the use of state resources to promote Medvedev and marginalize his opponents should be barred.

“Your participation in the elections add to their legitimacy,” Nemtsov said, addressing Zyuganov and Kasyanov. “I call on you to give up taking part in the election campaign.”

Kasyanov responded that he was not considering dropping out; Zyuganov told reporters he didn’t rule out quitting. “I have been nominated by my party, but if the government keeps using dirty tricks, my party will question my further participation,” he said.

“There is even greater administrative pressure in the course of the current election campaign than was the case during the parliamentary elections,” he said. That vote took place Dec. 2.

Zyuganov said he had spoken to Nemtsov by telephone Wednesday. The Communist leader said that Nemtsov had suggested demanding specific governmental measures to guarantee honest elections and that this was an “interesting” suggestion.

To get on the ballot, Kasyanov still faces the formidable task of gathering 2 million signatures by Jan. 16. Zyuganov, because he is backed by a party with seats in parliament, doesn’t have to meet that requirement.

Also running are Vladimir Zhirinovsky, an ultranationalist, and Andrei Bogdanov, head of the Democratic Party, a tiny group that ostensibly advocates such steps as Russia joining the European Union. Their candidacies are backed by the Kremlin, which political analysts say sees them siphoning votes from Medvedev’s opponents.

Russian officials also said Wednesday that they will not issue invitations to international election observers until the end of January and that approximately the same number of observers will be invited as took part in the parliamentary elections this month.

The region’s principal election monitoring group, the observation arm of the 56-nation Organization for Security and Cooperation in Europe, refused to observe the parliamentary elections, citing visa delays and obstruction by the Russian authorities.

Thanks for reading La Russophobe !

Exposing Russia’s Sham Economy

The Motley Fool reports:

Today, I stumbled across one such theme over in my old stomping grounds: Russia. You’ve all heard that the Russian market is hot, hot, hot, right? ExxonMobil (NYSE: XOM) is sucking out its oil and gas. Ford (NYSE: F) and GM (NYSE: GM) are building a new Detroit on the Neva.

As the world’s biggest oil producer, and the repository of its largest natural gas reserves, Russia is swimming in “petrorubles” — petroleum traded in the Russian ruble. According to state media outlet RIA Novosti (RIA), incomes are up, too, with the average worker’s “real wages” rising 15.1% in 2007.

Nice, huh? But according to another RIA report, inflation is eating up much, if not all, of that rising income. Non-foodstuffs suffered just 6.6% inflation in 2007, but the average price of services rose 13% in 2007, and food price inflation reached 16%. With much of the nation living in privatized apartments and paying state-subsidized rates for power and gas, that 16% number is the one to focus on. Once you take heat and shelter out of the picture, food looms large as the biggest remaining expense. What these numbers suggest to me is that in much of the country, “real” wages aren’t growing at all, because inflation is siphoning away much of the new income.

If this is true, what might it mean to investors? In the big picture, it means the Russian economy isn’t as strong as its current growth rates may suggest. But that doesn’t mean the country isn’t full of investing opportunities. In fact, in the first half of 2007, the net flow of foreign investments into Russia increased 150%, to more than $60 billion, compared to the first half of 2006.

Rising food prices are certainly an issue in the country and do present a threat to future growth. Yet, aside from inflationary pressures, the food retail industry has shown signs of significant growth because of the rising amounts of disposable income. According to a Russian Food and Non Food Retail Forecast report, retail food sales accounted for more than 46% of Russian retail sales in 2006.

Local producers such as juice-and-dairy manufacturer Wimm-Bill-Dann (NYSE: WBD) are one way to play the insatiable Russian appetite. And for more diversified investment vehicles that also have a hand in the Russian food markets check out McDonald’s (NYSE: MCD), Coca-Cola (NYSE: KO), and PepsiCo (NYSE: PEP), which have been investing in Russia for some time.

Russia may be known for its lucrative oil and gas sector. But as the country becomes more stable and its population increases its wealth, investors should turn to food retailers associated with the Russian economy, as it is the fastest-growing retail food sales market in the world.

Thanks for reading La Russophobe !

Exposing Russia’s Sham Economy

The Motley Fool reports:

Today, I stumbled across one such theme over in my old stomping grounds: Russia. You’ve all heard that the Russian market is hot, hot, hot, right? ExxonMobil (NYSE: XOM) is sucking out its oil and gas. Ford (NYSE: F) and GM (NYSE: GM) are building a new Detroit on the Neva.

As the world’s biggest oil producer, and the repository of its largest natural gas reserves, Russia is swimming in “petrorubles” — petroleum traded in the Russian ruble. According to state media outlet RIA Novosti (RIA), incomes are up, too, with the average worker’s “real wages” rising 15.1% in 2007.

Nice, huh? But according to another RIA report, inflation is eating up much, if not all, of that rising income. Non-foodstuffs suffered just 6.6% inflation in 2007, but the average price of services rose 13% in 2007, and food price inflation reached 16%. With much of the nation living in privatized apartments and paying state-subsidized rates for power and gas, that 16% number is the one to focus on. Once you take heat and shelter out of the picture, food looms large as the biggest remaining expense. What these numbers suggest to me is that in much of the country, “real” wages aren’t growing at all, because inflation is siphoning away much of the new income.

If this is true, what might it mean to investors? In the big picture, it means the Russian economy isn’t as strong as its current growth rates may suggest. But that doesn’t mean the country isn’t full of investing opportunities. In fact, in the first half of 2007, the net flow of foreign investments into Russia increased 150%, to more than $60 billion, compared to the first half of 2006.

Rising food prices are certainly an issue in the country and do present a threat to future growth. Yet, aside from inflationary pressures, the food retail industry has shown signs of significant growth because of the rising amounts of disposable income. According to a Russian Food and Non Food Retail Forecast report, retail food sales accounted for more than 46% of Russian retail sales in 2006.

Local producers such as juice-and-dairy manufacturer Wimm-Bill-Dann (NYSE: WBD) are one way to play the insatiable Russian appetite. And for more diversified investment vehicles that also have a hand in the Russian food markets check out McDonald’s (NYSE: MCD), Coca-Cola (NYSE: KO), and PepsiCo (NYSE: PEP), which have been investing in Russia for some time.

Russia may be known for its lucrative oil and gas sector. But as the country becomes more stable and its population increases its wealth, investors should turn to food retailers associated with the Russian economy, as it is the fastest-growing retail food sales market in the world.

Thanks for reading La Russophobe !

Exposing Russia’s Sham Economy

The Motley Fool reports:

Today, I stumbled across one such theme over in my old stomping grounds: Russia. You’ve all heard that the Russian market is hot, hot, hot, right? ExxonMobil (NYSE: XOM) is sucking out its oil and gas. Ford (NYSE: F) and GM (NYSE: GM) are building a new Detroit on the Neva.

As the world’s biggest oil producer, and the repository of its largest natural gas reserves, Russia is swimming in “petrorubles” — petroleum traded in the Russian ruble. According to state media outlet RIA Novosti (RIA), incomes are up, too, with the average worker’s “real wages” rising 15.1% in 2007.

Nice, huh? But according to another RIA report, inflation is eating up much, if not all, of that rising income. Non-foodstuffs suffered just 6.6% inflation in 2007, but the average price of services rose 13% in 2007, and food price inflation reached 16%. With much of the nation living in privatized apartments and paying state-subsidized rates for power and gas, that 16% number is the one to focus on. Once you take heat and shelter out of the picture, food looms large as the biggest remaining expense. What these numbers suggest to me is that in much of the country, “real” wages aren’t growing at all, because inflation is siphoning away much of the new income.

If this is true, what might it mean to investors? In the big picture, it means the Russian economy isn’t as strong as its current growth rates may suggest. But that doesn’t mean the country isn’t full of investing opportunities. In fact, in the first half of 2007, the net flow of foreign investments into Russia increased 150%, to more than $60 billion, compared to the first half of 2006.

Rising food prices are certainly an issue in the country and do present a threat to future growth. Yet, aside from inflationary pressures, the food retail industry has shown signs of significant growth because of the rising amounts of disposable income. According to a Russian Food and Non Food Retail Forecast report, retail food sales accounted for more than 46% of Russian retail sales in 2006.

Local producers such as juice-and-dairy manufacturer Wimm-Bill-Dann (NYSE: WBD) are one way to play the insatiable Russian appetite. And for more diversified investment vehicles that also have a hand in the Russian food markets check out McDonald’s (NYSE: MCD), Coca-Cola (NYSE: KO), and PepsiCo (NYSE: PEP), which have been investing in Russia for some time.

Russia may be known for its lucrative oil and gas sector. But as the country becomes more stable and its population increases its wealth, investors should turn to food retailers associated with the Russian economy, as it is the fastest-growing retail food sales market in the world.

Thanks for reading La Russophobe !

Exposing Russia’s Sham Economy

The Motley Fool reports:

Today, I stumbled across one such theme over in my old stomping grounds: Russia. You’ve all heard that the Russian market is hot, hot, hot, right? ExxonMobil (NYSE: XOM) is sucking out its oil and gas. Ford (NYSE: F) and GM (NYSE: GM) are building a new Detroit on the Neva.

As the world’s biggest oil producer, and the repository of its largest natural gas reserves, Russia is swimming in “petrorubles” — petroleum traded in the Russian ruble. According to state media outlet RIA Novosti (RIA), incomes are up, too, with the average worker’s “real wages” rising 15.1% in 2007.

Nice, huh? But according to another RIA report, inflation is eating up much, if not all, of that rising income. Non-foodstuffs suffered just 6.6% inflation in 2007, but the average price of services rose 13% in 2007, and food price inflation reached 16%. With much of the nation living in privatized apartments and paying state-subsidized rates for power and gas, that 16% number is the one to focus on. Once you take heat and shelter out of the picture, food looms large as the biggest remaining expense. What these numbers suggest to me is that in much of the country, “real” wages aren’t growing at all, because inflation is siphoning away much of the new income.

If this is true, what might it mean to investors? In the big picture, it means the Russian economy isn’t as strong as its current growth rates may suggest. But that doesn’t mean the country isn’t full of investing opportunities. In fact, in the first half of 2007, the net flow of foreign investments into Russia increased 150%, to more than $60 billion, compared to the first half of 2006.

Rising food prices are certainly an issue in the country and do present a threat to future growth. Yet, aside from inflationary pressures, the food retail industry has shown signs of significant growth because of the rising amounts of disposable income. According to a Russian Food and Non Food Retail Forecast report, retail food sales accounted for more than 46% of Russian retail sales in 2006.

Local producers such as juice-and-dairy manufacturer Wimm-Bill-Dann (NYSE: WBD) are one way to play the insatiable Russian appetite. And for more diversified investment vehicles that also have a hand in the Russian food markets check out McDonald’s (NYSE: MCD), Coca-Cola (NYSE: KO), and PepsiCo (NYSE: PEP), which have been investing in Russia for some time.

Russia may be known for its lucrative oil and gas sector. But as the country becomes more stable and its population increases its wealth, investors should turn to food retailers associated with the Russian economy, as it is the fastest-growing retail food sales market in the world.

Thanks for reading La Russophobe !

Exposing Russia’s Sham Economy

The Motley Fool reports:

Today, I stumbled across one such theme over in my old stomping grounds: Russia. You’ve all heard that the Russian market is hot, hot, hot, right? ExxonMobil (NYSE: XOM) is sucking out its oil and gas. Ford (NYSE: F) and GM (NYSE: GM) are building a new Detroit on the Neva.

As the world’s biggest oil producer, and the repository of its largest natural gas reserves, Russia is swimming in “petrorubles” — petroleum traded in the Russian ruble. According to state media outlet RIA Novosti (RIA), incomes are up, too, with the average worker’s “real wages” rising 15.1% in 2007.

Nice, huh? But according to another RIA report, inflation is eating up much, if not all, of that rising income. Non-foodstuffs suffered just 6.6% inflation in 2007, but the average price of services rose 13% in 2007, and food price inflation reached 16%. With much of the nation living in privatized apartments and paying state-subsidized rates for power and gas, that 16% number is the one to focus on. Once you take heat and shelter out of the picture, food looms large as the biggest remaining expense. What these numbers suggest to me is that in much of the country, “real” wages aren’t growing at all, because inflation is siphoning away much of the new income.

If this is true, what might it mean to investors? In the big picture, it means the Russian economy isn’t as strong as its current growth rates may suggest. But that doesn’t mean the country isn’t full of investing opportunities. In fact, in the first half of 2007, the net flow of foreign investments into Russia increased 150%, to more than $60 billion, compared to the first half of 2006.

Rising food prices are certainly an issue in the country and do present a threat to future growth. Yet, aside from inflationary pressures, the food retail industry has shown signs of significant growth because of the rising amounts of disposable income. According to a Russian Food and Non Food Retail Forecast report, retail food sales accounted for more than 46% of Russian retail sales in 2006.

Local producers such as juice-and-dairy manufacturer Wimm-Bill-Dann (NYSE: WBD) are one way to play the insatiable Russian appetite. And for more diversified investment vehicles that also have a hand in the Russian food markets check out McDonald’s (NYSE: MCD), Coca-Cola (NYSE: KO), and PepsiCo (NYSE: PEP), which have been investing in Russia for some time.

Russia may be known for its lucrative oil and gas sector. But as the country becomes more stable and its population increases its wealth, investors should turn to food retailers associated with the Russian economy, as it is the fastest-growing retail food sales market in the world.

Thanks for reading La Russophobe !

Annals of Khodorkovsky

RIA Novosti reports:

Russia’s Supreme Court has overturned a lower court decision stating that a new investigation into the activities of jailed Yukos founder Mikhail Khodorkovsky and his business partner was illegal. The Supreme Court thereby upheld an appeal filed by the Prosecutor General’s Office. It did not comment on its motives. A district court and the Moscow City Court had earlier upheld the illegitimacy of a new investigation.

Lawyers acting for Khodorkovsky and Platon Lebedev said they would appeal the Supreme Court’s ruling at the European Court of Human Rights. “Everything that has taken place in connection with this case has already been translated into the official languages of the European Court,” the former oil tycoon’s lawyer, Yury Shmidt, said.

Khodorkovsky and Lebedev, who were convicted of fraud and tax evasion in 2005 and are currently serving eight-year prison sentences, were transferred to a detention center in Chita, east Siberia, last December for a new probe on charges of embezzling government shares, expropriating oil, and laundering $25 billion of illegal oil receipts in 1998-2004. Both businessmen have denied the accusations, calling them politically motivated. Khodorkovsky and Lebedev participated in the court session via a video link from Chita. Once Russia’s largest oil producer, Yukos collapsed after tax evasion claims, which led to the company being broken up and sold off to meet debts. The bulk of its assets were acquired by government-controlled oil company Rosneft.

RIA also reports:

Santa Claus, known in Russia as Ded Moroz, will deliver presents and cards to jailed Yukos founder, Mikhail Khodorkovsky, and his business partner Platon Lebedev. A Chita city court earlier extended custody for the former Yukos CEO and ex-Menatep Group head until February 8, 2008, over a new probe against the imprisoned former businessmen. “Santa Claus and his granddaughter Snegurochka will also decorate a Christmas tree near the prison,” said Marina Savvateyeva, the chairman of a committee supporting the two jailed businessmen.

The new charges against Khodorkovsky and Lebedev, who were convicted of fraud and tax evasion in 2005, include stealing government shares, expropriating oil, and laundering $25 billion earned from oil sales in 1998-2004. Both businessmen have denied the allegations, calling them politically motivated. The new investigation against the Yukos founder was upheld by the Moscow City Court on September 19, and Russia’s Supreme Court ruled on December 25 that the investigation was legal. Khodorkovsky, who acquired oil assets through controversial privatization deals in the 1990s, insists that his prosecution was orchestrated by the authorities to silence his criticism of President Vladimir Putin, and as part of a campaign to bring oil and gas assets under the Kremlin’s control. Once Russia’s largest oil producer, Yukos collapsed after claims of tax evasion, which led to the company being broken up and sold off to meet debts. The bulk of its assets were subsequently bought by government-controlled oil company Rosneft.

Thanks for reading La Russophobe !