MOSCOW, April 7 (RIA Novosti) Move toward new Eurasian union/ Local self-govt. and party lists/ Gazprom-Armenia energy deal/ Russia's automotive industry/ Trade wars could hurt Russia's WTO bid/ Historians for Lenin reburial
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Moskovskiye Novosti
Russia, Kazakhstan to lead the way in new Eurasian union
Kazakh President Nursultan Nazarbayev, who was reelected on December 4, 2005, announced plans to implement the Common Economic Space project without Ukraine during his first post-election visit to Moscow. It appears that Belarus, Kazakhstan and Russia would find it easier to realize their ambitious plans without Kiev, which has hampered the integration process, the weekly digest reported.
A Moscow-Astana partnership, which plans to supervise the integration process, would help both countries adapt to the political and economic dynamics of globalization. Kazakhstan would benefit from a strategic partnership with Russia because of the latter's status as a regional power and G8 member.
Moscow has few stable partners left on post-Soviet territory because, in some cases, it has been unable to fully compete against the United States, which is trying to influence the CIS (Commonwealth of Independent States), and because the Kremlin does not always behave tactfully toward its neighbors.
Russia's former partners, such as Moldova and Ukraine, are drifting toward the West. Even Alexander Lukashenko, the newly reelected Belarusian president, has proven not to be the best negotiating partner for the Kremlin.
However, some CIS states recognize the obvious advantages of an alliance with Russia and are moving away from illusory partnerships with the West. Uzbek President Islam Karimov, whose country joined the Eurasian Economic Community (Eurasec) this year, will now have to understand that Moscow and Astana control regional integration processes, and that he is losing the underlying struggle for regional leadership to President Nazarbayev, who has made the right choice in favoring Russia.
Vremya Novostei
Russia forcing local self-government to follow party line
The Russian government established local self-governments, but it is now trying to add party elements to these bodies.
The federal center is not in a position to tell the constituent members of the Russian Federation which of the three electoral systems - majority, proportional or mixed - to choose in electing local self-governments. However, an explanatory letter sent to the regions by the Central Election Commission "hints" that voting according to party lists would be preferable.
Alexander Kynev, an expert with the International Institute of Humanitarian and Political Studies, said the adoption of a model law on the election of deputies in municipal districts according to party lists "is connected with the general trend." "Independent and opposition candidates will be unable to run in such elections," he said.
Vladimir Lysenko, a member of the Central Election Commission, does not regard this as a problem. He said it was impossible to create a streamlined system of government in the country without harmonizing party development with local self-government. "If we regard local self-governments as bodies of authority that are independent of the state, this will halt the solving of many local problems," he said.
"Political issues concerning the political regime, ownership and the Constitution cannot be tackled on that level," Kynev argued. He said an active use of the proportional system would render self-governments, as institutions elected by local residents to address local problems, completely useless.
Kynev called such a system of elections to local self-governments in rural districts a "mockery." "There are no parties at that level," he said.
"This amounts to depriving people of their passive voting right and transferring it to state-controlled intermediaries," Kynev said. "It is as if the people cannot unite without the government's assistance."
Biznes
Gazprom gaining control over assets in former Soviet republics
Gazprom has scored its first success in obtaining control over energy assets in former Soviet republics. In exchange for freezing the gas price for Armenia at $110 per 1,000 cubic meters until 2009, the Russian monopoly will receive a number of strategic assets, most notably a pipeline currently under construction that will supply gas from Iran.
Prior to this deal, the energy giant's only gain had been the assets of Moldovagaz in Transdnestr, a breakaway region in Moldova. Negotiations with Moldova and Belarus are still ongoing. But on Thursday, Moldovan Economics Minister Valery Lazar told parliament that proposals concerning "several investment projects" had been sent to Gazprom. He said the objective was to keep the gas price for Moldova at $110.
Securing control over the Armenian segment of the Iran-Armenia pipeline is making Gazprom's price talks with Georgia and Ukraine easier. "These republics can receive alternative Iranian gas via the Iran-Armenia gas pipeline," said Arif Zeinalov, head of research for investment finance company Sovlink.
To guarantee even its own contracts (with Ukraine, for example), the monopoly has to buy Turkmen gas. But, Zeinalov said, it is important for Gazprom "to control the volumes of Iranian gas, which will allow the state company to manipulate the price of its own export deliveries to Ukraine and Georgia."
The Iranian side, despite the unfavorable turn of events, is unlikely to quarrel with Russia, its only ally in its nuclear conflict with the West.
In addition to the gas pipeline, Gazprom will also be sold the fifth generating unit of the Razdan power plant. According to Armenian Energy Minister Armen Movsisyan, the concern will have to fork out $248.8 million for the asset, plus $140 million to complete the unit whose capacity is set to be increased to 440 MW.
The agreement specifically outlines Gazprom's right to export electricity from the Razdan plant. Alexei Solovyov, an analyst with the Prospekt brokerage, said Iran and Turkey might become the main consumers.
Vedomosti
Foreign carmakers entitled to privileges in Russia
Officials will stop collecting requests for 15% customs-duty discounts from car assembly plants after Moscow and Washington sign a protocol on Russia's accession to the World Trade Organization (WTO) this June. Experts said foreign car manufacturers would then receive unequally favorable opportunities in Russia.
In April 2005, Russian Prime Minister Mikhail Fradkov signed a resolution stipulating the annual production of at least 25,000 vehicles. The document assigns privileged duties of 3%, or nothing at all on imported accessories, to companies that have concluded investment agreements with the Economic Development and Trade Ministry.
Alexander Agibalov of AG Capital told the paper that car prices would remain the same, carmakers would benefit from low customs duties, and industry profitability would increase by 10%.
The country's automotive industry is experiencing a real boom, with six foreign companies either assembling cars or applying for permission to build plants in Russia. Economic Development and Trade Minister German Gref said that foreign companies would invest about $2 billion into car production.
A senior economic ministry official told the paper that the resolution, which ran counter to WTO regulations, would be annulled in mid-summer. Other officials said that all companies that had signed investment agreements with the ministry would receive the privileges and be placed on a list to be coordinated with WTO members.
Vyacheslav Smolyaninov, an analyst with Uralsib, said investors would not be happy with the uncertain rules of the game being created by officials.
Metropol analyst Alexander Zhukov told the paper that foreign companies were interested in entering the Russian market even without privileges, and that French carmaker Renault had been working this way for a year.
Valery Tarakanov, head of marketing for Rolf Group (a Mitsubishi dealer), said that building an automotive plant in Russia was not always the best strategy because medium-sized companies find it more profitable to import cars.
Gazeta
Amateur trade wars may hinder Russia's accession to WTO
Ukraine may ban livestock imports from Russia, a possible gesture of revenge for a similar decision by Russia regarding Ukrainian products. But this will not seriously affect Russian producers because Russia exported only 263 metric tons of meat to Ukraine in 2005. But trade scandals with its neighbors may affect Russia's accession to the World Trade Organization (WTO).
Russia's trade policy, including a recent ban on wine imports from Georgia and Moldova under the pretext of bad quality, looks strange particularly because Russia is beginning the final round of WTO talks. Offended Georgia and Moldova are WTO members, and if Ukraine joins the organization before Russia, it would become one more WTO negotiating partner with a list of complaints.
"It would not be very profitable for us to put spokes in their wheels," Alexei Vorobyov, a leading analyst with Maxwell Capital brokerage, said. "But this is a political matter. Georgia, Ukraine and Moldova are pursuing an opposition policy regarding Russia, and trade sanctions are a small form of revenge."
"The political lining of the problem is apparent," said Mikhail Delyagin, head of the Institute for Globalization Studies. "We have not yet learned to put civilized pressure on adversaries, as shown by the gas scandal, which was based on a real problem but took the form of blackmail," he said.
"Accession to the WTO will be a big mistake because the WTO's primary goal is to ensure conditions of equal competition, whereas Russia cannot compete on par with more developed countries," Delyagin said. "But this is not a meaningful, rather a political, measure for the Russian authorities."
On the other hand, any country that wants to play a considerable role in global politics has to use trade levers for political pressure, said Yaroslav Lisovolik, chief economist with United Financial Group.
Kommersant
Historians recommend reburying Lenin
On Thursday, the Russian History Institute at the Russian Academy of Sciences denounced the political activity of Vladimir Lenin and recommended reburying the leader of the world's proletariat and closing his mausoleum on Red Square. The institute has prepared a corresponding document at the request of a little-known public organization. Representatives of pro-presidential United Russia and political analysts said the historians' recommendations would be put into place in the next two years.
Calls to bury Lenin have been repeatedly voiced by various politicians over the past few years. But this is the first time that a historical argument has been made for burying the Bolshevik leader. The document, signed by acting director of the institute Dr. Vladimir Lavrov, reads as follows: "Lenin and his successor Stalin are responsible for massacring millions of innocent people, social genocide, the Gulag system (the Chief Directorate of Collective Labor Camps), concentration camps, the use of torture, etc. Lenin and Stalin committed crimes against humanity that cannot be limited by time."
Academician Valery Kozlov, vice president of the Academy of Sciences, was surprised by his colleagues' decision and said he suspected the matter involved "a direct political plot." "The Academy's institutes conduct scientific work, and when they voice a political opinion in an official letter to a public organization, well, that clearly smacks of someone's order," he said.
"I have been informed that Vladimir Putin has long been obsessed by the idea of removing Lenin's body from the mausoleum," political analyst Stanislav Belkovsky said. "The leader's burial is likely to be the final chords of Putin's office, after which he will have nothing to lose."
A pro-Kremlin party representative agreed that such a scenario was possible. "It is necessary to make a delayed decision and announce that Lenin will be buried in two years to enable those who have not yet bid the leader farewell to do so," said Andrei Isayev, a member of the board of United Russia's general council.
