Russia in Review

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

Nuclear security:

There is no more spent nuclear submarine fuel left in Russia’s Primorye and Kamchatka regions, head of Rosatom Sergei Kiriyenko said on Friday. “In the past year, we have removed 21 trainloads of spent nuclear fuel from submarines in the Far East. And today, Primorye and Kamchatka free of spent nuclear submarine fuel,” he said. Kirienko also said Rosatom has scrapped 198 of 201 nuclear submarines, which the Russian Defense Ministry has decommissioned and transferred to Rosatom. (Interfax, 09.04.15).
IAEA director general Yukiya Amano said: “Ten years after world leaders agreed to amend the landmark 1987 Convention on the Physical Protection of Nuclear Material to make it harder for terrorists to obtain nuclear material, the new measures have yet to enter into force. The resulting vulnerability needs to be addressed urgently… The fact that there has never been a major terrorist attack involving nuclear or other radioactive material should not blind us to the severity of the threat. There is evidence that terrorist groups have tried to acquire material to construct a crude nuclear explosive device, or a dirty bomb.” (The Australian, 09.07.15).
Cyber attackers successfully compromised the security of U.S. Department of Energy computer systems more than 150 times between 2010 and 2014, according to a review of federal records obtained by USA Today. The National Nuclear Security Administration, a semiautonomous agency within the Energy Department responsible for managing and securing the nation’s nuclear weapons stockpile, experienced 19 successful attacks during the four-year period, records show. (USA Today, 09.10.15).

Iran’s nuclear program and related issues:

Russia and Iran will sign an agreement for the delivery of advanced Russian-built S-300 anti-aircraft missile systems “soon,” Russian Deputy Foreign Minister Sergei Ryabkov said Wednesday. (Moscow Times, 09.09.15).

NATO-Russia relations:

Russia says the establishment of six NATO hubs along the alliance’s eastern flank will “feed the artificially created climate of confrontation” in relations with Moscow. Russia’s envoy to NATO, Aleksandr Grushko, said in Brussels on September 4 that the opening this month of the small NATO centers reaffirms that “the alliance’s military machinery has been retooled to the task of warding off a mythical threat from the East (RFE/RL, 09.04.15).
As China and Russia boost their military presence in the resource-rich far north, U.S. intelligence agencies are scrambling to study potential threats in the Arctic for the first time since the Cold War. Over the last 14 months, most of the 16 U.S. intelligence agencies have assigned analysts to work full time on the Arctic. (LA Times, 09.07.15).
The United States has denied that the presence of a Russian intelligence ship in the vicinity of a U.S. oil exploration vessel in the northern Pacific is cause for concern. (RBTH, 09.09.15).

Missile defense:

No significant developments.

Nuclear arms control:

No significant developments.

Counter-terrorism:

No significant developments.

Cyber security:

A group of sophisticated Russian-speaking hackers is exploiting commercial satellites to siphon sensitive data from diplomatic and military agencies in the United States and in Europe as well as to mask their location, a security firm said in a new report. The group, which some researchers refer to as Turla, after the name of the malicious software it uses, also has targeted government organizations, embassies and companies in Russia, China and dozens of other countries,, said Stefan Tanase, senior security researcher at Kaspersky Lab. (Washington Post, 09.09.15).

Energy exports from CIS:

Igor Sechin, a Kremlin heavyweight and chief executive of Russia’s top oil producer Rosneft, said Monday that Russia had received — and rejected — an offer to join the Organization of the Petroleum Exporting Countries. “For Russia there’s no point in joining this organization,” he said. (Moscow Times, 09.07.15).
Rosneft CEO Igor Sechin said that Rosneft’s cost of production had fallen to less than $3 a barrel due to the drop in value of the ruble, down from around $5 a barrel last year. (Financial Times, 09.07.15).
The global oil market is set to stabilize by the year end, with oil prices seen hovering at what seems to be “fair levels” between $50 and $70 per barrel, Russia’s Energy Minister Alexander Novak said Friday. (Wall Street Journal, 09.04.15).
Russia’s Gazprom has bolstered its industrial presence in the heart of Europe with two major gas deals that were announced last week. The first of the deals, an asset swap with German chemicals group BASF that gives Russia greater access to gas trading and storage in Germany. The second deal would double the capacity of the Nord Stream pipeline to deliver gas to Europe through the Baltic Sea, bypassing Ukraine. (Reuters, 09.04.15).
Gazprom has launched its first public auction for spot gas supplies in Europe, marking a concession to Brussels in a long-running battle over the shape of the European gas market. (Financial Times, 09.07.15).

Bilateral economic ties:

No significant developments.

Other bilateral issues:

Russia’s Ministry of Foreign Affairs is unhappy after the president of Russia’s Wrestling Federation Mikhail Mamiashvili was refused a visa to enter the United States. (Reuters, 09.08.15).
Texas man Alexander Fishenko who U.S. prosecutors say was a secret agent who stole technology for the Russian military has pleaded guilty to federal charges in New York. (AP, 09.09.15).
Edward Snowden, the U.S. intelligence leaker granted asylum in Russia in August 2013, has criticized his country of residence for its crackdown on Internet freedom and gay rights in a speech after receiving a Norwegian prize. (Moscow Times, 09.06.15).

II. Russia news.

Domestic politics, economy and energy:

In Russia’s Sunday elections, 16 regions will choose governors and 14 will select parliaments. (Financial Times, 09.10.15).
Russia used in the first eight months of the year 900 billion rubles ($13.30 billion) from its Reserve Fund, one of its sovereign wealth funds, to finance federal budget expenditures, Finance Minister Anton Siluanov said Wednesday. (Reuters, 09.09.15).
The Bank of Russia should consider resuming purchases of dollars and euros for the country’s reserves once the ruble strengthens beyond 60 to the dollar, presidential aide Andrei Belousov said Friday. (Wall Street Journal, 09.04.15).
Russia’s Trade and Industry Ministry has prepared legislation that would ban the use of foreign currencies in commercial lease deals. (Moscow Times, 09.07.15).
On September 8, the Russian government announced the establishment of two new agencies to speed up the development of the country’s Far Eastern regions. (RBTH, 09.10.15).

Defense and Aerospace:

President Vladimir Putin has ordered snap combat-readiness drills in Russia’s central military district. Defense Minister Sergei Shoigu said on September 7 that the exercises involve paratroopers and military transport aviation as well as some aircraft from other military districts. (RFE/RL, 09.07.15).

Security, law-enforcement and justice:

Russian secret services have said that in 2014 security agencies exposed 290 foreign agents and published several reports concerning the work of CIA officers in Moscow, involving disguise techniques such as dress-changing when communicating with their informers. (Interfax, 09.04.15).
The Investigative Committee of Russia says two masked men shot dead Magomed Khidirov early in the morning of September 9 while he was on his way to a mosque in Novy Kurush in Dagestan. (RFE/RL, 09.09.15).
Russian journalist Oleg Kashin has released the names of men who have been charged with severely beating him in a 2010 attack in which he nearly died, and he expressed fears for his safety in connection with the influential figures he believes ordered the attack. (RFE/RL, 09.06.15).

Foreign affairs and trade:

Russian forces have begun participating in military operations in Syria in support of government troops, three Lebanese sources familiar with the political and military situation there said on Wednesday. Two of the Lebanese sources said the Russians were establishing two bases in Syria, one near the coast and one further inland which would be an operations base. “The Russians are no longer just advisers,” one of them said. “The Russians have decided to join the war against terrorism.” (Reuters, 09.09.15).
Russian military units are not involved in the Syrian conflict because it is impossible without a relevant decree issued by the Federation Council and such a decision has not been made, Nikolai Fedoryak, first deputy head of the Federation Council committee on defense and security, told Interfax on Sept 9. (RBTH, 09.09.15).
According to a report by Russian investigative journalist Ruslan Leviev, growing numbers of Russian troops over the last two months have been sent to a Russian naval maintenance facility in Tartus, in western Syria. Leviev has managed to track down several troops from Russia’s 810th marine brigade and monitor their movement to Syria through photos and status updates they posted online. (Foreign Policy, 09.08.15).
U.S. intelligence has captured evidence of a significant escalation of Russia’s military engagement in Syria’s civil war, including satellite images of an apparent Russian base for staging troops and heavy equipment under construction near a port city that is a stronghold for Syrian President Bashar Assad, U.S. officials say. The reconnaissance photos of possible military housing being built near the international airport in Latakia province provides strong evidence of deepening involvement by President Vladimir Putin’s government in the four-year-old Syrian war, according to the officials. (LA Times, 09.04.15).
Russia has sent a military advance team to Syria and has transported prefabricated housing units for hundreds of people to an airfield near Latakia, according to American intelligence analysts. Russia has also delivered a portable air traffic station to the airfield and has filed military overflight requests through September. (New York Times, 09.07.15).
“We’ve been seeing evidence of more weaponry from Russia (in Syria), but not more manpower. We’ve noticed more fighter jet missiles, as well as artillery. It’s a continuation of Russian support rather than a major increase — but that still means support for the regime’s military effort,” said Rami Abdelrahman, head of the UK-based Syrian Observatory for Human Rights, which has a network of activists across Syria. (Financial Times, 09.07.15).
Russian forces have moved new personnel, planes and equipment into Syria in recent days, raising concerns that Moscow is moving to establish a new military base to aid embattled President Bashar al-Assad, U.S. military officials said Tuesday. “You see all the indications that they are getting ready to establish a major air operations hub,” a senior U.S. military official said. (Wall Street Journal, 09.09.15).
NATO and the United States have expressed concern over reports of growing Russian military activity in Syria. During a visit to Prague on September 9, NATO Secretary-General Jens Stoltenberg said that, if confirmed, Russia’s involvement would “not contribute to solving the conflict.” U.S. Secretary of State John Kerry called his Russian counterpart, Sergei Lavrov, to reiterate his concerns. . Lavrov told Kerry Moscow had never concealed that it “was delivering military hardware to the Syrian authorities with the purpose of fighting terrorists.” (Interfax, 09.07.15, RFE/RL, 09.10.15).
Answering journalists’ questions about whether Russia is ready to engage in military operations to combat ISIS, Russian President Vladimir Putin said it was premature to speak about Moscow’s participation. “But we are already providing Syria with quite strong support in terms of equipment, training of military servicemen and weapons,” Putin said. He reminded that Moscow and Damascus have certain military contracts and they are being fulfilled. (Russia Today, 09.04.15).
The Russian Foreign Ministry expressed surprise on Monday over an American warning to Russia against escalating the conflict in Syria, saying that the Kremlin’s Syrian policy — in particular furnishing military aid to help the government confront extremist forces — had been consistent for years. (New York Times, 09.08.15).
Russia acknowledged Wednesday it has military advisers in Syria and left open options to deepen its weapons training and assistance. “Russia has never made a secret of its military-technological cooperation with Syria. Russian military specialists help Syrians master Russian hardware,” Russian Foreign Ministry spokesperson Maria Zakharova told journalists in Moscow. She added that Russia also would consider “extra measures to intensify counterterrorism efforts in Syria” if needed, but gave no possible plans or timetables. (Washington Post, 09.09.15).
Tehran is not obstructing the flights of Russian planes carrying humanitarian aid to Syria through Iranian air space, the Russian embassy in Iran said. (RBTH, 09.09.15).
Moscow on Tuesday demanded answers from Greece and Bulgaria after Sofia banned Russian supply flights to Syria from its airspace and Athens said it had been asked by Washington to do the same. (AFP, 09.08.15).
The conflict in Syria will not be resolved unless Russia and Iran use their influence on Syrian President Bashar al-Assad to help reach a political solution, British Foreign Secretary Philip Hammond said Wednesday. (Reuters, 09.09.15).
A reason for the migrant crisis in Europe is that Europe is following the U.S. policy that thrusts its standards on other regions, Russian President Vladimir Putin has said. “Europe is blindly following this policy within the framework of the so-called allied commitments and then it has to bear the burden on its own,” he told reporters on Sept.4. (Interfax, 09.04.15).
Hillary Clinton has called for a stronger response to Russia’s actions in Ukraine and Syria, saying Moscow'’ objectives were “to stymie, to confront, and to undermine American power whenever and wherever.” (RFE/RL, 09.09.15).
European Commission President Jean-Claude Juncker has warned Russia that the security and borders of EU member states are “untouchable.” “The Baltics and Poland are very important members of the European Union and they should not think that we would not be there if in any way if their security and their borders were in danger,” he added. (RFE/RL, 09.08.15).
The European Commission has offered a 500 million euro relief package that farmers in the bloc say does little to address slumping prices due to the loss of exports to Russia. (RFE/RL, 09.08.15).
President Vladimir Putin of Russia could have an audience with Pope Francis on the sidelines of the development summit meeting at the United Nations. (New York Times, 09.10.15).
The Czech Republic’s counter-intelligence agency says the number of Russian spies remains high and they are particularly interested in the country’s nuclear program. (U.S. News and World Report, 09.04.15).

Russia's neighbors:

At least 7,962 people have been killed and 17,811 wounded in the fighting that erupted in April 2014 in Ukraine, the United Nations human rights chief, Zeid Ra’ad al-Hussein said. (New York Times, 09.09.15).
The leaders of Russia, Ukraine, Germany, and France discussed the contentious issue of holding local elections in separatist eastern Ukraine in a 90-minute telephone conversation September 9, the Kremlin said. With foreign ministers from the four countries due to meet in Berlin on September 12, German government spokesman Steffen Seibert said “the immediate task is to reach an agreement on the date and conditions of local elections in Donbass.” (RFE/RL, 09.10.15).
Reports say Russian President Vladimir Putin and Ukrainian President Petro Poroshenko will meet with the French and German leaders in Paris on October 2 to discuss efforts to resolve the Ukraine conflict. (RFE/RL, 09.10.15).
Russia has threatened to challenge an IMF bailout loan with Ukraine if Kyiv doesn’t pay back its $3 billion bond due in December. “We will turn to the relevant judicial bodies” if Ukraine fails to make the payment, Finance Minister Anton Siluanov said in Moscow on September 7. “Also, we are members of the IMF and we will question the validity of the IMF program to Ukraine.” (RFE/RL, 09.08.15).
Russia has warned that there’s only a slim chance of averting a trade embargo against Ukraine when Kyiv’s free-trade pact with the European Union takes effect in January. Russian Economy Minister Aleksei Ulyukayev said after a day of meetings in Brussels that the talks had been “positive” though “difficult,” and “there is a chance of [success], although I wouldn't say it's very great.” (RFE/RL, 09.08.15).
French President Francois Hollande has said that following recent ceasefire progress in Ukraine he hopes to see the end of sanctions against Russia. (BBC, 09.07.15).
Kyiv says NATO Secretary-General Jens Stoltenberg will visit Ukraine later this month, for the first time since taking office in March 2014. “We will approve a number of strategic documents, including military doctrine,” Ukrainian Foreign Minister Pavlo Klimkin said, adding that these will notably pave the way for NATO to open an embassy in Ukraine. (RFE/RL, 09.07.15).
A war of words has erupted between Ukrainian Prime Minister Arseniy Yatsenyuk and former Georgian President Mikhail Saakashvili, now governor of Ukraine’s Odessa region, over the pace and depth of reforms being implemented by the government in Kyiv. Saakashvili's supporters in Ukraine have collected more than 26,000 signatures on a petition recommending him to become Ukraine’s prime minister. (RFE/RL, 09.04.15, RFE/RL, 09.09.15).
Russia has reportedly started building a major military base in Belgorod Oblast near the Ukrainian border. (RFE/RL, 09.10.15).
Three Ukrainian paratroopers who had gone missing from their base near Crimea have turned up in the Russian-held peninsula, where they had supposedly traveled to “fraternize” with their Russian counterparts and treat them to watermelon and a few drinks, Moscow’s Federal Security Service (FSB) said Monday. (Moscow Times, 09.08.15).
A top Russian law enforcement official has accused Ukrainian Prime Minister Arseniy Yatsenyuk of fighting alongside Chechen rebels and torturing and killing Russian soldiers during Moscow’s bloody war with separatists in the 1990s. Yatsenyuk has described the accusations of Russian Investigative Committee chief Alexander Bastrykin that he fought against Russian servicemen in Chechnya in the 1990s as “Stalin’s justice.” (RFE/RL, 09.08.15, Kyiv Post, 09.09.15).
Ukraine’s parliament has passed a measure banning Russians from establishing or being involved in the business of television or radio stations in the country. (RFE/RL, 09.03.15).
Tajikistan’s security forces are searching for renegade former deputy minister Abduhalim Nazarzoda and his followers, two days after clashes in and around Dushanbe killed 22 people, including nine police and 13 militants. The hunt for Nazarzoda is focusing on a mountainous area near Romit Gorge, about 150 kilometers east of Dushanbe. (RFE/RL, 09.06.15).
Armenian President Serzh Sarkisian has secured a $200 million preferential loan and a $25 gas price cut on a visit to Russia, the president’s office said on September 7. (RFE/RL, 09.08.15).
Azerbaijani troops have killed an Armenian soldier in the latest border clash between the arch-foes, Armenia said September 3. (RFE/RL, 09.03.15).
A Swedish prosecutor says there is abundant evidence suggesting that Uzbek authorities were behind a February 2012 assassination attempt against émigré cleric Obidkhon Qori Nazarov, who was critical of President Islam Karimov's government. (RFE/RL, 09.03.15).

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