Moskovsky Komsomolets
Russia needs fresh blood and clear vision
Vladimir Putin’s call to set up a “broad popular front” at the United Russia party conference in Volgograd has triggered controversy.
Some were skeptical, others euphoric. Opposition activists were quick to find unfortunate connotations and hidden motives. Members of the trade unions and organizations whose leaders joined the popular front’s coordination council have adopted what is probably the most realistic approach. Seeing their leaders with Putin, they actually believed in being involved and felt more motivated.
As they watched, their leaders worked hard to get to the bottom of the prime minister’s ideas, which ranged from stirring up Russia’s biggest political party to raising Russians’ morale back to its 2005 level.
That year, Putin’s popularity was soaring and every Russian felt involved in improving their country. Over the years of stability, people have grown out of habit of following politics, leaving it to the government to take care of problems, which it sometimes fails to do. But people no longer want to be involved. The most discontented ones write comments on Putin’s blog. Others feel like five years after an overhaul of their apartment – it’s no longer as fresh and new as it was, but they just don’t have the heart for anything but small improvements.
The Popular Front is an attempt to restore a direct communication channel between Putin and ordinary Russians: the people who know that annual motor vehicle inspections are expensive and pointless, as are regular re-appraisals of people’s disabilities to confirm they are entitled to benefits since an amputated arm cannot regrow; those who know how long it takes to wait in line outside your local doctor’s practice, how fast the buckwheat price is growing and that having a national auto industry up and running is crucial for them to have their own cars. People who watch the world through public transport windows certainly know more about these things than government officials who have long lost touch with reality.
Even the liberal opposition realizes that a popular front will inject fresh blood and renew the system. The only risk is that regional officials’ habits risk jeopardizing that effort. Active and hard working young people in important positions often find themselves replaced by some official’s son or mistress. As a result, those people who could make a difference don’t even try, thinking any effort will be wasted on their region, let alone at the federal level.
Therefore, whatever appeals they hear on TV, they don’t believe these calls are intended for them. They ignore the appeals, while officials ape involvement. Therefore, it is the duty of the new coordination council to monitor the recruitment to this new front. If they succeed, Russia will have a totally different parliament. People will be ready to get involved and overhaul their country again.
Nezavisimaya Gazeta
Gasoline prices to soar in Russia
Prime Minister Vladimir Putin must choose between covering the budget deficit by bankrupting the unprofitable refining industry and continuing to subsidize it. The authors of Strategy 2020 think that only by lifting export duties on oil and petrochemicals can the government help the industry overcome a drawn-out crisis.
Each of the three options will compensate for the shortfall in budget revenues while causing a price hike on the domestic fuel market. The differences between them concern only the timeframe and compensation methods.
In late March, the authors of Strategy 2020 proposed lifting all export duties on oil and simultaneously raising the oil production tax to replenish the budget. They argued that subsidizing the unprofitable refining business is economically senseless in Russia.
At present, crude oil costs more than any refined oil products in Russia. The authors say hydrocarbon prices should reflect the real value of the resources and that innovation-based and energy efficient development is possible only with market prices.
In 2010, the oil export duty earned the budget 1.672 trillion rubles, or 3.8% of GDP, and the petrochemical export duty only 603.8 billion rubles or 1.4% of GDP. Therefore, the mineral extraction tax should be raised to at least 5.2% of GDP.
Oil producers will gain additional revenues both from the lifting of the export duty and from growing prices on the domestic market. But that policy could increase gasoline prices by 80%, diesel fuel prices by 60%, and jet fuel and fuel oil prices by 40%. The utilities fees would grow by 10% to 20%.
Experts proposed three options for dealing with that problem. “The worst-case scenario provides for a full or partial closure of the domestic market for foreign refining companies to allow Russian firms to adjust to the new reality,” said Georgy Idrisov from the Gaidar Institute for Economic Policy.
In this case, gasoline prices will grow 20% for individuals and 26% for corporate consumers.
The second option stipulates a partial closure of the domestic market and also tighter administration and antimonopoly regulation. This would increase gasoline prices 11% or 12% for individuals and 20% for companies.
The third and most attractive option provides for creating a competitive environment by allowing foreign producers to enter the Russian market, modernizing Russian refineries, and adjusting domestic prices to European ones (less transport costs).
“In this case, prices will grow 8% to 9% for individuals and 25% to 26% for corporate consumers,” Idrisov said. Unfortunately, a painless implementation of this scenario would take 12 years.
Head of the Economic Expert Group Evsei Gurvich said the lifting of export duties would encourage Russian refineries to improve performance and quality.
But Dmitry Belousov from the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF), who opposes the lifting of export duties, said this is something Russia will eventually have to do after joining the WTO. But this is a step that is better left for later, he believes.
Gazeta.ru
Chechen beauty: Grozny’s Kadyrov stadium opens
On Wednesday, Grozny, Chechnya’s capital, grandiosely inaugurated a new 30,000-seat stadium named after Akhmad Kadyrov, the father of Chechnya’s current leader Ramzan Kadyrov.
The event was held on a grand scale. The organizers initially intended to invite Barcelona or Juventus to the game but since they were too busy, past soccer stars were invited instead. The home team, Caucasus, was led by Alexander Khloponin, Presidential Envoy to the North Caucasus Federal District, and included Chechen leader Ramzan Kadyrov alongside prominent Russian former soccer players Rinat Dasayev, Dmitry Alenichev, and Nikolai Pisarev.
The team comprising world soccer stars boasted Diego Maradona, Luis Figo, Fabien Barthez and Christian Vieri. They all unanimously said they came to Grozny out of love for “the beautiful game” rather than money. Well, the Brazilians who played a friendly game in Grozny in March said much the same thing. Until one of them, Rai, confessed to the Brazilian press that each player received 215,000 euros and that the event itself had a political agenda.
The stadium was packed. The organizers handed out free caps, ratchets and flashlights as well as colored T-shirts to spectators so that they formed the Russian and Chechen flags.
In length and pomp the opening ceremony could easily pass for that of the Olympics. It featured Toto Cutugno, C.C.Catch and local pop stars. After one three-hour long performance Ramzan Kadyrov came onstage to introduce Sergei Fursenko, president of the Russian Football Union. Fursenko yelled “Allahu Akbar” and started chanting “Russia is the world champion” and that Grozny is now the capital of world soccer.
After that, fireworks lit up the sky over Grozny for at least 20 minutes – outshining Moscow’s Victory Day display. For some odd reason, the UEFA Champions League anthem was chosen for background music.
Finally, at about midnight in Grozny, the players appeared on the pitch. Again, for some strange reason, both teams turned out to be wearing white strips. So, the world stars were forced to don orange waistcoats just to differentiate themselves from their opponents. Ivan Zamorano assisted by Luis Figo scored the first goal in the 13th minute. Five minutes later, Maradona scored. At the end the first half, only 23 minutes long, Anzor Ismailov, coach of Terek Grozny, scored one for the Caucasus team.
Popular English singer Craig David performed at halftime. In the second half, the Caucasus team went on the attack and scored four goals. Ramzan Kadyrov did not score. With the final score at 5:2 to the Caucasus team, Chechnya rejoiced at the triumph.
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