MOSCOW, January 10 (RIA Novosti) Russia bans official country names from company names/ Uzbekistan to gradually raise gas price/ Presidential elections end "color revolution" in Georgia/ Parliament wants to perpetuate President Putin's era/"Bad guy" moves to Kremlin
Vedomosti
Russia bans official country names from company names
Part 4 of Russia's Civil Code in force since January 1 will probably compel thousands of companies to change their names. The new clauses have left many lawyers shocked, in particular Article 1473 of the amended code, which no longer allows the use in company names of official names of countries, Russia and foreign states alike.
Official registration agencies will control the observance of the new clause. If a company bearing an unlawful name tries to make amendments to its founding documents, tax inspectorates will be authorized to require it to change its name through a court of law.
According to the new regulations, only companies with over 75% of government-owned shares will be allowed to show their Russian origins in their names. With the required government share as high as that, even Aeroflot-Russian Airlines, the country's flag air carrier, will probably have to change its name soon, as the government owns a mere controlling stake in the company.
The Aeroflot management plans to ask the government for permission to retain the "Russian Airlines" name, said Irina Dannenberg, the company's spokesperson. However without official status, Aeroflot remains the de facto national carrier, she added. Major companies may still be allowed to use "Russia" as part of their names, Dannenberg said.
Nestle-Russia, the Russian subsidiary of Swiss Nestle packaged food company, seems to be cherishing similar hopes, as it was granted the Russian government's permission to use the name in 2006. The company is studying the current situation and waiting for some clarifications on how the new code clauses will be applied in practice, said Andrei Bader, Nestle-Russia's Corporate Matters Director.
If the new clauses are interpreted literally, then companies whose names point out their foreign origins will also find themselves at risk, for example Deutsche Bank or British American Tobacco, said Yevgeny Arievich, a partner at Baker & McKenzie.
Olga Podoinitsyna, vice president of the Deutsche Bank group in Russia, said the changes in the legal environment were unlikely to affect the bank, as the word "Deutsche" used in its name is not part of the official name of the FRG, the Federal Republic of Germany.
"The company could also explain in court that its name was registered in accordance with foreign law," one of the authors of the amendments to the Civil Code said, speaking on condition of anonymity.
Dmitry Kostalgin, a partner at Taxadvisor, warned that the new requirements could be handy for tax inspectors who wish to cause problems for companies that they dislike.
Gazeta
Uzbekistan to gradually raise gas price
Russian energy giant Gazprom will purchase Uzbek gas at $130 per 1,000 cubic meters in the first half of 2008 and at $150 in the second half, according to a review prepared by Uzbekistan's Avesta Investment Group.
This means the Russian company has persuaded its partners not to rush into a conflict but to raise the price gradually.
Gazprom has declined to comment on the agreements reached.
Last year, Gazprom bought Uzbek gas at $100 per 1,000 cubic meters. However before the New Year, Uzbekistan followed Turkmenistan and Kazakhstan's example and demanded that Gazprom raise the price to $180. The Russians found the hike unacceptable. The most Gazprom was willing to discuss was $130 or $150.
Analysts were already saying then that Uzbekistan did not have as strong a position as its neighbors. It was selling Gazprom less gas than Turkmenistan and Kazakhstan and was not of use to the gas monopoly as a transiter. Besides, there were no other buyers and would not be. All things considered, Gazprom stuck to its guns.
According to Mark Markartur, director for strategic decisions at 2K Audit-Business Consulting, Uzbekistan probably had little chance of negotiating gas deliveries to Gazprom at $180 per 1,000 cubic meters.
"Such a high average price for Asian gas would have forced Gazprom to review its price agreements with a number of suppliers," he said. "In addition, higher purchasing prices would have affected consumers. For example, Gazprom would have had to revise agreements with Ukraine, which could have triggered a serious international conflict," he said.
The analyst said, however, that "Uzbekistan was unlikely to have expected the Russian company to accept the terms. Perhaps the $180 ceiling was established to do some bargaining." According to Markartur, Uzbekistan must have expected to raise disbursement prices to Turkmenistan's levels.
The low price negotiated by Gazprom may have adverse effects in the future, however: after striking deals with Russia, the Central Asian republics could start negotiations with China this year, whose gas requirements keep growing all the time.
Izvestia
Presidential elections end "color revolution" in Georgia
Officials in Georgia said re-elected President Mikheil Saakashvili received 52% of votes in the first round of the January 5 presidential elections, while the opposition claimed that he was backed by just 42%.
Although leaders of some countries have congratulated Saakashvili on his victory, official election returns are still lacking.
One can discuss the triumph or failure of Georgian democracy; however, all post-election comments and predictions are far-fetched.
Any national election legislation and the instructions of non-governmental organizations overseeing elections anywhere in the world are more vague than the proceedings for appealing election results.
Although the support of the Armenian and Azerbaijani diasporas for Saakashvili seems exaggerated, there will probably be no legal repercussions because it is unclear whether the general election results should be annulled or whether this should only concern the overseas votes.
The Georgian Election Commission's failure to promptly count all votes will not cause any negative consequences either.
A "color revolution" seems likely in case of numerous violations. Unlike Eduard Shevardnadze, who was overthrown in 2003, it seems that Saakashvili will retain his post this time.
A casus belli can always be found in case of profound mutual contradictions and when the sides think they are ready for a decisive clash. But no incident will lead to a confrontation when open conflict seems impossible.
The frequency of national elections and the legitimacy of power is a highly important issue in the context of domestic development prospects. But domestic and international politics imply that the one, who effectively controls the territory of any specific country, is bound to win.
And there will be few, if any, over-fastidious statements if it turns out that Saakashvili is firmly in charge.
Gazeta.ru
Vedomosti
Parliament wants to perpetuate President Putin's era
A bill has been submitted to the lower house of the Russian parliament, which is in fact aimed at perpetuating President Vladimir Putin's name. The members of A Just Russia faction in the Duma propose to establish, with the government's money, Ex-Presidents' Historical Heritage Centers, which would include museums, archives and research programs.
Curiously, the bill does not apply to Boris Yeltsin.
In fact, the bill boils down to perpetuating the name of President Vladimir Putin, who will officially leave office in May.
Each of the centers will be set up by a decision of the Presidential Executive Office, agreed with the former head of state. The centers will be financed by federal funds, although additional sourcing is not ruled out.
Experts estimate that one such center will require investment of 1.225 billion rubles from the federal budget, while annual contributions will amount to 122.5 million rubles. The center will be set up by the Presidential Executive Office upon agreement with the former president within 12 months of his leaving office.
Although largely financed by the government, a center will enjoy unique autonomy, as government bodies will not be authorized to interfere with its operations, close it down, or make it bankrupt. It will have the right to operate commercially, for example, to produce gifts and souvenirs with Putin's image.
However this law, if passed, will not apply to former Russian President Boris Yeltsin. "The bill as proposed will only apply to the current president, Vladimir Putin, but this issue could arouse discussion during the second reading of the bill," one of the bill's initiators, Vladimir Yemelyanov, said.
A Kremlin source said he was not aware of any such plans discussed in the Kremlin, adding that Putin was far too keen to continue his political activities after leaving office in May to waste time and effort on perpetuating his heritage.
The issue even sounds odd given the expectations that Putin will become Russia's next prime minister, said Mikhail Vinogradov, head of the Center for Current Politics in Russia. A Just Russia probably wanted to draw attention to itself at the first Duma session and to raise its favorite issue of presidential powers, the expert suggested.
Trud
"Bad guy" moves to Kremlin
Sources say Mikhail Zurabov, a former Minister of Health and Social Development, strongly disliked by tens of millions of Russian pensioners, the disabled and public sector workers, will soon become a presidential adviser.
Eyewitnesses swear that a plate with his name and new post was put up on the door of an office in building No. 14 in the Kremlin before the New Year, opposite the room occupied by Vladislav Surkov, deputy presidential chief of staff.
Zurabov and members of his family led the field in the past government for the number of corruption scandals credited to them. Experts, however, did not express any surprise.
"The unpopular minister's sins have never been proved, and all talk about them was just emotion and no more," said Vyacheslav Nikonov, president of the Politika Foundation. "Zurabov is a highly professional man, he knows the ropes and can be very useful," he said.
"This appointment decision has nothing surprising about it," said Dmitry Orlov, general director of the Agency for Political and Economic Communications, echoing Nikonov. "Vladimir Putin has repeatedly praised Mikhail Zurabov and fended off attacks against him from different social sections and the elite. Besides, Zurabov has a long-running relationship with the presidential team. He is, of course, unlikely to fill an important post soon but will be close to the decision-making center."
Analyst Dmitry Oreshkin reminds us that the incumbent president follows a neat personnel policy. "Putin always gives a retiree a sort of parachute for the person to land in a new position. Not unless that person is his political opponent, like Mikhail Kasyanov. I do not remember a single instance without that rule being observed: former prime minister Mikhail Fradkov, for example, is now head of the Foreign Intelligence Service, while Alexander Voloshin, former presidential chief of staff, is the CEO of electricity monopoly Unified Energy System."
However, no expert risked saying Zurabov would keep his post under a new president.
With the departure of Zurabov and Economic Development and Trade Minister German Gref from the Cabinet, the top administration is now practically free of "bad guys" - officials who set society's teeth on edge.
In 1990s, this role of Aunt Sally was played by Anatoly Chubais, who Boris Yeltsin blamed for the Duma elections going wrong for the party of power and "just for everything. "
Since then the title of "public straw man" has been successively claimed by Zurabov, Gref and Finance Minister Alexei Kudrin (the latter has regained some of his good standing following regular wage and pension rises).
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