Research, ideas, and leadership for a more secure, peaceful world

Press Release

Russia in Review

Published: November 15, 2012

Russia in Review: a digest of useful news from U.S.-Russia Initiative to Prevent Nuclear Terrorism for 9-15, 2012

Russia in Review: a digest of useful news from U.S.-Russia Initiative to Prevent Nuclear Terrorism for November 9-15, 2012

I. U.S. and Russian priorities for the bilateral agenda.

Nuclear security agenda:

  • No significant developments.

Iran nuclear issues:

  • For the first time, Russia has publicly encouraged the U.S. and Iran to begin direct one-on-one negotiations over the Islamic republic’s nuclear programme. Sergei Ryabkov, Russia's deputy foreign minister, argued that the creation of a negotiating channel between Washington and Tehran could help avert conflict. (Financial Times. 11.12.12).

NATO-Russia cooperation, including transit to and from Afghanistan:

  • Russia is ready for talks with NATO on limiting conventional military forces in Europe as long as the Western alliance does not bring politics into the picture, Russia's new envoy to NATO said. (Reuters, 11.15.12).

Missile defense:

  • The Obama administration has begun to reassess its foreign policy on a range of challenges, including missile defense, that were viewed as too politically sensitive for any substantial shift during the presidential campaign. (LA Times. 11.12.12).
  • Russia will “react in the sharpest manner” to any U.S. ships equipped with the Aegis combat system attempting to sail by its shores, Russian Deputy Prime Minister Dmitry Rogozin said. (RIA Novosti, 11.12.12).

Nuclear arms control:

  • No significant developments.

Counter-terrorism cooperation:

  • No significant developments.

Cyber security:

  • Of the 20,938 requests for access to Google accounts from nations around the world, by far the largest single number — 7,969 — came from U.S. government agencies. The percentage of those U.S. demands that were “fully or partially complied with” by Google was also, by far, the highest with 90 percent. Of Russia’s 58 requests, zero percent were complied with. (New York Times, 11.15.12).

Energy exports from CIS:

  • Gazprom signed the final investment agreement with its European partners, confirming next month as the starting date for construction of South Stream. (AP, 11.15.12).
  • Gazprom agreed an asset swap with Germany's BASF SE, which industry analysts said will likely help the Russian gas giant avoid a repeat of winter supply disruptions that have occurred in recent years. (Wall Street Journal, 11.14.12).
  • In its annual world energy outlook, International Energy Agency said the U.S. is likely to surpass Saudi Arabia as the world's largest oil producer as early as 2020 and Russia as the leading producer of natural gas in 2015. (Wall Street Journal, New York Times, 11.14.12).

Access to major markets for exports and imports:

  • On Tuesday, The House Rules Committee approved a closed rule that paves the way for permanent normal trade relations with Russia. The House will consider the bill either Thursday or Friday, sending it to the Senate. The legislation combines the trade language repealing the Jackson-Vanik provision with human-rights legislation that would punish Russian officials for their involvement in the death of whistleblower Sergei Magnitsky. Russia warned the United States on Thursday to expect a tough response if Congress passes the "unfriendly and provocative" Magnitsky bill. (The Hill, 11.13.12, Reuters, 11.15.12).

Other bilateral issues:

  • Vladimir Putin and Barack Obama have spoken on the phone and the American president has expressed his readiness to visit. Obama “confirmed his readiness to come to Russia at a date to be agreed upon by the two sides,” Putin’s spokesman Dmitry Peskov said. (AP, 11.13.12).
  • U.S. and Russian diplomats continued to clash this week over the drafting of an announcement on postponing an international conference on banning weapons of mass destruction from the Middle East. Over the past few weeks, Russian envoys have indicated that they believe the conference can go forward even without Israeli attendance. (GSN, 11.14.12).
  • The Emergency Situations Ministry will send two Ilyushin-76 cargo planes to New York carrying 50 tons of humanitarian aid to Americans feeling the effects of Hurricane Sandy. (Moscow Times, 11.13.12).
  • “It seems to me that America needs its own perestroika,” Former Soviet President Mikhail Gorbachev said. (Moscow Times, 11.14.12).

II. Russia news.

 

Domestic Politics, Economy and Energy:

  • Russian President Vladimir Putin backed a plan on Wednesday to reduce employers' payments into retirement savings and free up cash for the strained budget - a step that economists and fund managers warn will crimp capital markets. (Reuters, 11.14.12).
  • President Vladimir Putin has given his approval to plans for the relocation of the Supreme Court, the Supreme Arbitration Court, and the Supreme Court's judicial department from Moscow to St. Petersburg. (Moscow Times, 11.15.12).
  • Russia’s economy expanded in the third quarter at the slowest pace since it began recovering at the start of 2010, rising by 2.9 percent. (Bloomberg, 11.12.12).
  • Russia ran a federal budget surplus of 1.4 percent of GDP in January-October, the same as in the first nine months of 2012. (Dow Jones, 11.14.12).

Defense:

  • New Chief of Russia’s General Staff Valery Gerasimov has suspended the formation of aerospace defense forces. (Interfax, 11.14.12).
  • President Vladimir Putin replaced two deputy defense ministers - Yelena Kozlova and Dmitry Chushkin. They were replaced with two associates of the new defense minister.  Ruslan Tsalikov and Yuri Borisov, of former Defense Minister Anatoly Serdyukov, reportedly joined Russian Technologies as an adviser. (Moscow Times, RFE/RL, 11.15.12).
  • Defense Minister Sergei Shoigu will travel to China next week on his first foreign trip in his new post. (Moscow Times. 11.13.12).
  • The new generation Voronezh-DM radar station, which is part of the missile attack warning system built near Armavir, is undergoing the final stage of preparation for combat duty. (Interfax, 11.09.12).
  • Russia is not planning to build into its next-generation strategic bomber aircraft a capacity to fly at hypersonic speeds. (GSN, 11.14.12).

Security and law-enforcement:

  • A new law expanding Russia’s definition of treason took effect Wednesday, and critics say it’s so vague that the government can now brand anyone who dissents as a traitor. The FSB explained that the new clause better protects confidential information. Putin promised at a meeting with the presidential rights council late Monday to have another look at the treason bill. (AP, 11.14.12, 11.13.12).
  • A Russian court on Tuesday ordered the parole of physicist Valentin V. Danilov, who was convicted of selling China secret information about satellites. (New York Times, 11.13.12).
  • $472.5 million allocated for infrastructure projects ahead of the Asia-Pacific Economic Cooperation Summit in Vladivostok were misused, the Audit Chamber said. (Moscow Times, 11.14.12).
  • High-ranking officials working in the Moscow region government embezzled $110 million in budget money, investigators said. (Moscow Times, 11.14.12).
  • The Moscow City Court has ruled to release former Rosatom deputy head, Yevgeny Yevstratov, on bail for $160,000. (Moscow Times, 11.13.12).
  • Several dozen tons of Afghan heroin are brought to Russia annually for domestic consumption, Federal Drug Control Service Director Viktor Ivanov said. (Interfax, 11.12.12).

Foreign affairs:

  • The Kremlin denounced a rise in anti-Russian rhetoric in Germany on Thursday before a visit by Chancellor Angela Merkel, and made clear that Vladimir Putin would stand his ground if she lectures him on human rights. (Reuters, 11.15.12).
  • On Thursday, Russia said the naming of a new leadership in China would lead to stronger relations between the political and economic heavyweight neighbors. (Reuters, 11.14.12).
  • Iraq is reconsidering plans to buy more than $4 billion in arms from Russia, Iraqi officials said (AP, 11.10.12).
  • A British Royal Navy submariner acknowledged discussing the movement of British nuclear submarines with two agents he thought worked for Russia. (RFE/RL, 11.13.12).

Russia's neighbors:

  • Nine former officials of Georgia's Interior Ministry have been detained on charges of abuse of office and illegal deprivation of freedom. Georgia's prosecutor-general has also announced new charges against the country's former Defense Minister Bacho Akhalaia and the Armed Forces Chief of Staff Giorgi Kalandadze. (RFE/RL, 11.13.12, 11.15.12).
  • NATO and European Union leaders upbraided Georgian Prime Minister Bidzina Ivanishvili on Monday over the arrest of political opponents as he visited Brussels to try to bolster ties with the West. (Reuters, 11.13.12).
  • , U.S. Deputy Secretary of State Philip Gordon was to arrive in Georgia Thursday to speak with local officials in preparation for newly elected Prime Minister Bidzina Ivanishvili's visit to the U.S. later this month. (Moscow Times, 11.14.12).
  • U.S. Vice President Joe Biden has expressed U.S. concern over Ukraine's recent elections to Ukrainian President Viktor Yanukovych. (RFE/RL, 11.14.12).