WHAT THE RUSSIAN PAPERS SAY

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MOSCOW, February 18 (RIA Novosti)

Nezavisimaya Gazeta

What Will Putin And Bush Discuss In Bratislava?

The Russian-US summit in Bratislava will give the two presidents an opportunity to revive their former relations, and reverse trends toward hostility and even confrontation, because this will be even more difficult to do in the future.

Marshall Goldman, deputy director of the Davis Center for Russian and Eurasian Studies at Harvard University (Boston) put forward his view on the summit agenda in an interview with Nezavisimaya Gazeta.

One of the mandatory points will be the Jackson-Vanik amendment. Now that practically everyone can emigrate, there is little sense in demanding that Russia should open up its borders. The problem now is rather finding a country willing to accept Russian immigrants, something that the US no longer wants to do. Russia has complained that since September 11 even legitimate businessmen from Russia have sometimes been unable to get an American visa.

Iraq is more sensitive to Russia. Vladimir Putin will need assurances that Iraq will pay back at least some of the loans extended to Saddam Hussein, and that Russian and Iraqi companies will be able to resume their economic relations.

Mr. Putin will also press for US support for Russia's desire to become a full-fledged member of the Group of Seven.

President Bush is certain to ask Putin about a decision taken by the Ministry of Natural Resources to ban foreign companies from developing oil and other mineral reserves.

Russia's continued refusals to pay compensation to American companies and investors for property put under Russian government control may also draw Mr. Bush's attention. This departure from international business standards is all the more conspicuous against the background of an increasing number of American enterprises being acquired by Russian companies, with no one objecting.

Of course, both sides have reason for politicalcomplaints. Moscow wants the US to stop interfering in the CIS. At the same time, Washington, including Mr. Bush, is worried about anti-democratic and nationalist sentiments emerging in Russia. Besides, concern is growing over restrictions on media freedom, especially the television. Many people in America also believe that Russia could be more flexible in Chechnya.

Vedomosti

Paris Club Wants Premium From Russia

While Russia asked the Paris Club for a discount on its debt (up to 10%) for repaying it early, the creditors themselves demanded a premium for their agreement on the grounds that Russia's energy revenues are high, and Standard and Poor's awarded it investment-grade status earlier this month, writes Vedomosti.

The Russian Finance Ministry has refused to comment officially because of the issue's "sensitivity." A ministry official said there were hopes for a compromise during a round of talks due in March but said a stalemate could not be ruled out. According to another source in the Finance Ministry, Germany had raised the premium idea in January, before S&P upgraded Russia's rating. He says Germany, this country's chief creditor, wants a premium of 2.5% on the par value of the debt.

A government official said Russia had not yet considered the limits it could impose on a possible compromise, but he was sure the government would refuse to pay the premium. Experts say a compromise could also be "politically unacceptable" for the State Duma.

However, Alexei Moiseyev, chief analyst with Renaissance Capital, argues Russia wins economically, even paying a 2.5% premium on the deal. Eurobonds, Russia's most liquid securities to be redeemed in 2030, cost 5% a year to service, and from 2007 the interest will rise to 7.5% a year. Mr. Moiseyev puts the same interest (around 7%) on Russia's debts to Italy and Germany. With Russia-30 Eurobonds currently trading at 106.25% on par value, the analyst says Russia will win in any deal that is lower. According to him, a premium of 2.5% for redemption now is a fair deal if the interest on the bonds is over 6%. Moreover, Mr. Moiseyev says the premium will have to be paid only once, whereas interest would have to be paid for several years to come.

According to the Finance Ministry, Russia's aggregate debt to Paris Club member states is $44.4 billion.

Izvestia

Kyoto Protocol: For And Against

On February 16, the Kyoto protocol, which is designed to cut emissions of greenhouse gases, entered into force. However, the heated debates around the document and its ratification by Russia are still burning, Izvestia tells its readers.

A corresponding member of the Russian academy of Sciences, Igor Mokhov, says global models on climate change show the warming periods of the first half and the end of the 20th century differ substantially. The latter cannot be explained without taking man-made factors into consideration.

Aside from scientific data, experts and ordinary people have a great deal of evidence indicating that the climate is changing, including extreme temperature fluctuations and unprecedented levels of precipitation. The water level in the oceans is rising and glaciers are melting, which might cause the flooding of coastal regions in such countries as Bangladesh, the Netherlands and Italy. For Russia, in contrast, global warming might be beneficial because it will increase the bio-productivity of many Russian regions. In addition, the scientist says Russian winters will become milder, thereby meaning less energy will be used in the country.

However, according to Mr. Mokhov, even the full-scale implementation of the Kyoto protocol will not lead to drastic climate changes. "It is more of an economic and political agreement," he says, "a declaration of intent that promotes future dialogue."

Andrei Illarionov, the president's economic advisor is a staunch opponent of the Kyoto protocol. He believes that the adoption of thedocument will not allow Russia to double its GDP in ten years. Mr. Illarionov has many supporters who insist that the Kyoto Protocol will severely limit Russia's economic development. Experts from the Russia and Kyoto Protocol group believe that the document was ratified for political reasons. Moscow has given up the freedom of carbon dioxide emissions in exchange for accession to the WTO.

In contrast, Mr. Illarionov's opponents consider Kyoto almost a panacea for all problems. Russia is allowed to produce 17.5 billion tons of carbon dioxide. According to Sergei Kurayev, an expert from the Russian Regional Ecology Center, the country will be able to produce only 80% of the allowed amount. The remaining 20% of the quota can be used at Russia's discretion. It can be sold or saved for future purposes; for example they could be added to the next five-year period quota. Kyoto supporters are not promising the world, but the profits might be substantial.

Nezavisimaya Gazeta

Navy Starts Building Base Near Novorossiisk

Nezavisimaya Gazeta writes that Commander-in-Chief of the Russian Navy, Admiral of the Fleet Vladimir Kuroyedov has announced two new Black Sea Fleet bases will be built in the Novorossiisk area on the Black Sea coast of the North Caucasus by 2017.

At the moment the Novorossiisk base accommodates a brigade guarding the water area, Marine units, and some Black Sea Fleet aircraft squadrons.

Given the construction of the Novorossiisk base, Defense Minister Sergei Ivanov recently said that Russia was not going to move the Black Sea Fleet's main base from the Ukrainian city of Sevastopol to Novorossiisk. "Our main base has been, is and will continue to be in Sevastopol," he said. The minister explained that Novorossiisk would provide base facilities for only those ships that had moved to the Krasnodar Territory since 1991.

Admiral Vladimir Masorin, the Black Sea Fleet's commander, believes the fleet cannot expand in Sevastopol and can only be maintained at the required level, whereas on the Russian coast it can develop in accordance with the objectives to be set to it.

Experts believe, however, that Novorossiisk harbor is not suitable for the construction of a naval base, since the space that can be allocated for basing Black Sea Fleet ships is "extremely small." Besides, climatic considerations make the area unsuitable for a base to maintain large warships.

An informed source believes that although Ukraine is making every effort to drive the Black Sea Fleet out of Sevastopol, Russia should by no means abandon it. The base has existed for hundreds of years. It has huge infrastructure. If the fleet leaves Sevastopol, it will just cease to exist.

The establishment of a naval base in Novorossiisk is a stage in increasing basing points for the fleet. Before the collapse of the USSR, the fleet was based in Sevastopol, Odessa, Donuzlav, and Poti. Today, Russia has lost nearly all its bases on the Black Sea. The fleet has only Sevastopol and Novorossiisk left.

Tribuna

Dining Aboard The ISS

Russian cosmonauts aboard the International Space Station like to dine on Lamb in white sauce, spicy pikeperch, soup with pickles, meat and oatmeal with peaches for breakfast. They also enjoy fresh fruits, biscuits, shortcakes with honey, and fresh juices instead of compote for dessert, Tribuna reported.

While this might sound like restaurant fare or hardy home cooking, there is one big difference: this food is not served on plates and not even in recognizable form.

The Biryulyovo-based experimental factory has been cooking food for cosmonauts for 40 years now. Almost all food cosmonauts consume while on a space mission is in vacuum packing, not in tubes contrary to the widespread stereotype. All soups and cereals are sublimated, or de-watered. This is a rather expensive process, but it helps reduce meal weight.

Products are put in a flash evaporator system and are frozen to minus 38 degrees Celsius. In 26-28 hours, the food is dehydrated.

First courses are a must for most cosmonauts. They have to pour water in vacuum packs through a funnel that resembles a swallowtail. Ten or fifteen minutes later, cosmonauts can drink the soup through a hole in the pack. Mashed potatoes, cottage cheese, oatmeal and other side dishes are prepared the same way.

Mustard, sauces, and honey are packed in tubes.

"Extraterrestrial" bread is baked at a special factory in small loaves so that cosmonauts do not get crumbs all over the space station. One loaf of bread consists of 12 small pieces.

The expiration date of all "space dishes" ranges from 12 to 47 months.

Cosmonauts are not allowed to drink alcohol, and they cannot have ice cream, as the space station is not outfitted with a freezer or refrigerator.

American astronauts like Russian soups and oatmeal, while Russians have always preferred Russian food. ISS cosmonaut Salizhan Sharipov has even sent a thank-you note to the chefs for their culinary skills.

Noviye Izvestia

Wood Smuggling Costs Russia $700 Million A Year

According to a report of the international Environmental Investigation Agency, China, the largest buyer of wood smuggled from Russia, procures an annual total of 9.2 million cubic meters of illegally exported Russian wood, worth over $700 million, Noviye Izvestia writes.

Russia's Federal Forestry Agency says most often wood is "depersonalized" before smuggling. An expert can tell a log's age and origin, if he sees the rings on the cut end, but to cover up their crimes, smugglers quarter-saw the logs at small illegal sawmills.

In one of wood-smuggling schemes, shell companies are registered with tax authorities and report that they have signed several contracts for wood exports. The companies open accounts and file all necessary documents about their deals with banks, and then sell wood to China for a month or two.

When the time comes for the first inspection and check on how it is complying with tax and customs regulations, company personnel withdraw the money from the accounts using corporate cards and vanish, thereby escaping prosecution.

Roman Shipov, an aide to the head of the Forestry Agency, says the agency is preparing a special operation together with the police - an effort he called Operation Sawmill - to prevent illegal quarter-sawing and wood exports. The official said each batch of exported wood would leave traces in an electronic wood trading system to be created this year, while wood transport and processing inspection systems, as well as a marking system, would also be set up.

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