Moskovsky Komsomolets
Vladimir Putin not in Favor of Hijabs
Prime Minister Vladimir Putin attended the Forum of Ethnic Groups of Southern Russia, which attracted over 300 people from the South and the North Caucasus Federal Districts. Each delegation included representatives of regional associations, youth organizations, the clergy and councils of elders, as well as cultural, academic and scientific figures. Members of the Russian Popular Front also participated.
The main issue was the socioeconomic development of the South and the North Caucasus districts. Central government officials view this as the key to success in many other areas. Putin began by emphasizing the need for unity.
“The south has always been inhabited by strong and courageous people loyal to their languages and cultures, but within one big homeland, possessing a very controversial, though great history,” said Putin. “Its lessons speak of mortal danger of injustice and ethnic strife. In preserving the memory of the past, we must preserve unity. When we feel united, Russia will always overcome any difficulties.”
Putin mentioned ethnic relations as a key issue.
“Often the cause of national tension is the uneven development of different regions in Russia, which is a consequence of mass migration,” Putin said. “And then there is the corruption and inertia of officials, who cover up for the insolent behavior of newcomers, and even acquit people who have committed serious crimes, and the local population feels unsafe.”
Putin expounded on a cue from the audience that the basis of national unity was laid during the Soviet era.
“Yes,” agreed Putin, “There were no interethnic conflicts then, and during my childhood, ethnic groups were unaware of each other. Because the government at the time was engaged in education – I do not think it was because of repression. I believe that education and culture are what we must concentrate on today. But this work requires very delicate and sharp instruments.”
Teachers were the next to speak. In Karachayevo-Circassia, for example, female students returning home from vacation were advised to wear hijabs. “Our mothers and grandmothers always wore them, and talk of the enslavement of women from the Caucus is just a myth,” said one teacher. “But now religion has begun attacking our common values. For example, we cannot have Christmas trees now. What kind of common path can there be if we're questioning whether Russia needs the Caucasus?”
Forum delegates decided to preserve unity at all costs, and laid the blame for the lack of it with “liberals,” who were deemed, if not enemies, then political opponents. Putin called them “flawed people who are ashamed of themselves because of their inferiority.”
“As for the girls with their faces hidden,” he continued, “we are now experiencing a renaissance of traditional Russian religions, but some religious leaders have lost their bearings. Retreating further back would be simply preposterous. We must not allow ourselves to be pushed back into the Middle Ages. We must strengthen our moral values.”
Vedomosti
Government to Buy $3-Million Mansions from Obscure Developer
The Presidential Administrative Directorate (AD) plans to spend 6.5 billion rubles ($207.5 mln) on 72 luxury townhouses from an obscure developer and without a tender.
A draft resolution mentions 3,200-square-foot houses with gardens outside Moscow in the village of Polyanka Deluxe, one of the most prestigious areas for country estates.
Consultations between government agencies to approve the resolution have been going on for a year, three government sources said. The draft requires government approval because the houses are to be bought from a single supplier, Country Life Laboratory.
Three country real estate agencies interviewed by Vedomosti said they never heard of this developer. According to the state register of legal entities, its chief executive, Nikolai Moskvinov, and the Presidential AD are shareholders in a large apartment building project in Moscow, also ordered by the AD.
The cost puts the price of each house at $3 million, almost twice the average property value in the area, according to Natalia Kats from Usadba property agency.
The Finance Ministry refused to approve the project because the AD failed to justify the cost of the expensive dachas. There are government approved rules for providing housing for state officials, a ministry official said. According to those rules, the spending should be cut to 1.6 billion rubles. The AD also failed to estimate expected operational and maintenance costs.
The government representative was unavailable for comment.
Government approved rules should be followed regardless of the format of the acquisition, said Mikhail Yevrayev from the Federal Anti-Monopoly Service, adding that the FAS has no position on the issue yet.
The AD plans to raise the money for the acquisition by selling some rural hotels and dachas it owns, according to its website.
A federal official said the AD plans to hire an agent with a 2% commission fee to sell the properties. He did not elaborate. At the same time, some planned amendments to the state privatization program envisage the sale of more than 50 properties. VTB Capital will act as a privatization agent. However, a representative of VTB declined to comment.
AD spokesman Viktor Khrekov also declined to comment, as did representatives of the developer.
The area is good for vacations but not for a permanent residence, Kats said. It is not close to the city and the traffic is rather busy. It would take homeowners hours to get to work.
Buying property from a single developer without a tender should be fully justified, said Yelena Pamfilova from Transparency International Russia. The AD must prove that it could not find any other suitable property for the officials’ dachas. Very few Western officials are granted housing or dachas, except the U.S. president who lives in the White House. Housing costs are usually included in salaries and benefits. This kind of “generosity” isn’t characteristic of civilized countries, she added.
RBC Daily
Energy Providers, Functionaries Puzzled over Putin’s Orders
After the storm of criticism over energy providers, Prime Minister Vladimir Putin signed 18 orders to make improvements in the industry. While some of the orders are already being carried out, experts believe bureaucrats are only acting for the sake of formality.
Out of the 18 orders that Vladimir Putin issued, only three relate to the fight against corruption and affiliation. If you follow Putin’s reasoning, the industry watchdogs must be fully aware if the management of state companies are involved in other commercial activities. Moreover, they must have a good understanding of cash flows to be able to identify overseas and offshore schemes.
The orders have not been examined by the public yet, but some of them concern the major market players. The Rosatom state corporation and RusHydro will have to do without a fund mechanism (power supply agreements) granted them by the state for the construction of new facilities. The prime minister also set a limit on capital expenses for the construction of new nuclear and hydropower stations – based on the cost of previous projects.
It is obvious, however, that Rosatom and RusHydro will not be able to invest government money – often in the form of follow-on offerings – into power supply agreements. How the capital expenses ceiling is going to be set remains unclear, as large projects are often unique and cannot be estimated on the basis of previous projects.
After cutting the “excessive profits” of the power supply companies in November, Putin raised the issue again. According to Foresight Group, over half of suppliers will now sustain losses (they were previously able to take out loans on the strength of their excessive profits and cover any cash deficits). To avoid bankruptcy, Putin requested proposals on supporting individual companies recording negative financial results over an extended period of time. The market experts and bureaucrats questioned do not foresee any such support mechanism. “We are currently analyzing the losses of the power suppliers for 2010-2011,” was the Energy Ministry’s only comment.
And finally, the top management of energy companies will have their bonuses capped. Government agencies will analyze large payments to managers of energy companies and suggest reasonable limitations that would comply with the law. There are no limitations for major power generators at the moment just as there is no possibility to set common rates for state-run companies dealing with completely different business volumes. So far, the Energy Ministry has only requested the tax declarations of the top managers.
The good news is that “it is one of the first instructions to protect consumer interests,” says Dmitry Govorov, head of the Energy Market Customers Association. Most of the measures are there to reduce consumer expenses, improve payment systems, and reduce the cost of power supply agreements. How this is going to be done is an important part of the deal that remains unclear.
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