Russia in Review

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

Nuclear security:

The United States has formally ratified the Amendment to the Convention on the Physical Protection of Nuclear Material, a move welcomed by IAEA Director General Yukiya Amano as “an important step to bolster nuclear security around the world.” “Nuclear terrorism is a risk that we should not ignore,” Mr Amano said. (IAEA, 07.31.15).
The National Nuclear Security Administration's (NNSA) 25-year budget estimates for modernizing the nuclear security enterprise in its fiscal year 2015 budget materials total $293.4 billion, which is an increase of $17.6 billion (6.4 percent) compared with the prior year's materials.(GAO, 08.06.15).
Russia’s first point for long term storage of “special” radioactive waste is to be built at the site of the EI-2 uranium graphite weapons-grade plutonium production reactor in Siberia’s closed nuclear city of Seversk by the end of December. Decommissioning of that reactor enhances public confidence in the nuclear industry, general director of Siberian Chemical Combine Sergei Tochilin said. Earlier this year EI-2 has become the first of such reactors to be decommissioned. (RIA Novosti, 07.31.15, Bellona, 07.29.15).
Rebels in Ukraine are working to develop a radioactive dirty bomb with the help of Russian nuclear scientists, according to a Ukrainian security service dossier. The report claims that Russian specialists have withdrawn radioactive industrial waste from a secure bunker at the Donetsk state chemical plant and moved it to a rebel military base, where it can be combined with explosives to create a devastatingly effective weapon. Documents provided by the Security Service of Ukraine are Kiev's "yet another lie" and attempt to discredit the self-proclaimed Donetsk People's Republic, according to Eduard Basurin of the DPR militia. The DPR authorities said they are ready to allow OSCE observers to monitor the state of the radioactive waste repository at the Donetsk plant. (Times, RIA Novosti, 08.01.15, Interfax, 08.02.15).
Ukraine’s security service has said it seized a small quantity of what appeared to be ore-grade uranium from a criminal gang in a peaceful western region. The State Security Service of Ukraine said the group had been trying to sell the uranium-238 isotope to an unknown client at the time of their arrest. (Guardian, 08.06.15).

Iran’s nuclear program and related issues:

Top diplomats from Russia and China joined a rare meeting of world powers’ envoys on Capitol Hill this week with roughly 30 Senate Democrats to tamp down concerns over the nuclear agreement with Iran. (Foreign Policy, 08.06.15).
The shadowy Iranian Quds Force commander Qassem Soleimani recently visited Moscow to meet with senior Russian leaders, according to two Western intelligence sources, despite a travel ban and U.N. Security Council resolutions barring him from leaving Iran. (FoxNews.com, 08.06.14).

NATO-Russia relations:

The NATO military alliance will reduce in September the number of planes patrolling Baltic skies on the lookout for Russian bombers by 50 percent amid a moderate decrease in Russian bomber and fighter jet incursions along alliance airspace in the region. In 2014, NATO aircraft were scrambled 442 times to intercept Russian aircraft all along Europe's airspace boundaries — a significant increase over previous years, NATO's press office cited one official as saying in e-mailed statements. One hundred and fifty intercepts took place in the Baltic region. A NATO official said that in the first six months of this year, NATO fighters were scrambled 250 times in response to Russian aerial activities, but that “regionally, we have observed a moderate decrease in Russian air activity over the Baltic and North seas compared to the first half of last year.” (Moscow Times, 08.05.15).
NATO has increased the number of military exercises near Russia's borders from 90-95 to 150 per year while the number of reconnaissance aviation flights has grown nine times, a spokesman for the Russian Defense Ministry said. According to data collected by Russian authorities, NATO carried out more than 3,000 tactical aviation sorties near Russian borders in 2014, more than double the previous year. (The Guardian, 08.03.15, TASS, 07.31.15)
“Remember when Russia was going to be our friend?” Marine Lt. Gen. Vincent Stewart, the head of the Pentagon’s Defense Intelligence Agency, asked rhetorically. “It seems like a long time ago.” (Foreign Policy, 07.31.15).

Missile defense:

No significant developments.

Nuclear arms control:

No significant developments.

Counter-terrorism:

Russia and the United States agree on the need to combine efforts in combating Islamic State, but they so far do not have a specific approach toward this, Russian Foreign Minister Sergei Lavrov said. Lavrov, who also met with U.S. Secretary of State John Kerry and Saudi Foreign Minister Adel al-Jubeir in Doha on Monday, also said that any U.S. military strikes against the Syrian government army would complicate attempts to fight Islamic State and other groups. He was echoed by Kremlin spokesman Dmitry Peskov. (Reuters, 08.03.15, Interfax, 08.0.5.15, Interfax, 08.03.15).
Russian Foreign Minister Sergei Lavrov has proposed the creation of a united front to fight against the Islamic State militant group, which would include, in addition to the Iraqi and Kurdish forces, Syrian government troops loyal to President Bashar Assad, bringing all anti-jihadist forces together into a coalition. (RBTH, 08.04.15).
This year’s meeting of the heads of special services, security agencies and law enforcement partners of the Russian Federal Security Service in Yaroslavl has drawn delegations from 64 countries. The United States was represented by officials from the CIA, the FBI and the National Counterterrorism Center. (Rossiyskaya Gazeta, 07.29.15).
Russia's Federal Security Service forces killed eight Islamic State militants on Sunday and six other Islamist rebels on Monday in the North Caucasus, the National Anti-Terrorism Committee said. (Reuters, 08.03.15).
Moscow is planning to step up measures to block "extremist propaganda" on the Internet as part of its fight against Islamic State recruitment and radicalization, according to Igor Barinov, the head of Russia's new Federal Agency for Nationality Affairs (RFE/RL, 08.01.15).
The share of Russians who think Russia should fight the Islamic State is twice as large (36%) as the share of those who hold the opposite view. Moreover, two-third of those who believe Russia should fight ISIS – also think Russia should do so in cooperation with Western countries, according to a recent poll by Russia’s Public Opinion Foundation. (Moscow Times, Belfer Center, 08.05.15).
The Islamic State group is emerging as the dominant recruiting force in the North Caucasus, threatening the recruitment abilities of the smaller groups from the North Caucasus in Syria. (RFE/RL, 08.03.15).
The number of people killed and injured during the first six months of this year in fighting in the North Caucasus between police and security forces and the Islamic insurgency has fallen by almost two-thirds compared with the same period in 2014, from 279 to 95. (RFE/RL, 08.05.15).

Cyber security:

U.S. military officials said Thursday that they suspect Russian hackers infiltrated an unclassified Pentagon e-mail system used by employees of the Joint Chiefs of Staff. The electronic intrusion was detected about July 25, officials said. The network remains offline, although officials said they hoped to restart it in the coming days. (Washington Post, 08.07.15).
A new poll shows that nearly three-fifths of Russians would support "shutting off the Internet" in the event of a national emergency. (RFE/RL, 08.03.15).

Energy exports from CIS:

Despite low prices and faltering state finances, Russia has overtaken Saudi Arabia and the U.S. as the world’s largest oil-producing state, according to U.S. government figures for 2014. Last year, Russia exported 4.7 million barrels of oil a day to Europe and Asia. (Daily Call, 08.06.15).

Bilateral economic ties:

Despite the introduction of Western anti-Russian sanctions, trade between Russia and the United States over the past six months increased by 15 percent, according to former Prime Minister Sergei Stepashin. (Rossiyskaya Gazeta, 08.03.15).

Other bilateral issues:

The United States and Russia will support a United Nations Security Council resolution to identify the perpetrators of attacks using chlorine and other chemical agents in Syria. (New York Times, 08.07.15).
Russia's Foreign Ministry has vowed retaliation against the United States for expanded sanctions over the Ukraine crisis. (RFE/RL, 08.01.15).
The U.S. Department of Justice is investigating trades worth billions of dollars that Deutsche Bank AG made on behalf of Russian clients. (Reuters, 08.04.15).
NASA has informed U.S. lawmakers that because Congress has failed to fully fund its Commercial Crew Program for the last five years, it is signing a $490 million contract extension with Russia to send Americans to space. (The Hill, 08.05.15).
Russia has supplied the first two RD-181 rocket engines for the Antares rocket to the U.S. under the previously signed contract. The 60 Russian engines will cost the customer about $1 billion, which includes a whole range of services – flight training, rocket engine installation and testing. (Tass, 08.04.15).
Sergei Naryshkin, the speaker of Russia’s lower house of parliament, said an international tribunal should be set up to prosecute those responsible for the atomic bombings of Hiroshima and Nagasaki in August 1945. Deputy head of the Russian Federation Council’s committee for foreign affairs Andrey Klimov has said an international court must look into all US wars, in particular the Vietnam campaign. (Russia Today, 08.06.15, RBTH, 08.06.15).
Wisconsin Gov. Scott Walker was one of the few candidates during the GOP candidates’ debate to specify a new approach for dealing with Russia. He said he would “send weapons to Ukraine" and put in place a tougher missile-defense system in Poland and the Czech Republic. All in all Russia got all of nine mentions in the whole debate. (Wall Street Journal, Moscow Times, 08.07.15).
A U.S.-based Pew Research Center poll released on August 5 shows that a median of just 30 percent have a positive opinion of Russia among respondents from 39 countries around the world, excluding Russia. Among U.S. respondents, 75 percent said they had "no confidence" in Putin's handling of world affairs. Only 11 percent of Russians said they trusted U.S. President Barack Obama, down from 41 percent in 2011. (RFE/RL, 08.05.15).

II. Russia news.

Domestic politics, economy and energy:

Ramping up enforcement of a ban on European food imports, the Russian authorities on Thursday destroyed hundreds of tons of foodstuffs they said violated the proscription, instituted a year ago in retaliation for Western sanctions over Ukraine. (New York Times, 08.06.15).
The Russian government has introduced a bill to parliament that allows the confiscation of property belonging to foreign states, sparking fears of a tit-for-tat round of seizures if European countries implement court rulings against Russia won by the shareholders of former oil giant Yukos. (Moscow Times, 08.06.15).
Russia's economy faces the loss of as much as 9% of its inflation-adjusted value of goods and services it produces if Western sanctions and Moscow's retaliatory measures remain in place in the medium term, the International Monetary Fund said on Monday. (Wall Street Journal, 08.04.15).
A 14 percent depreciation of the ruble since the end of June, the most among 31 major currencies tracked by Bloomberg, has pushed the ruble’s relative strength index below 30 for the past week, the threshold signaling to some technical analysts that an asset is oversold. (Bloomberg, 08.07.15).
According to the Russian government, 203,659 people left in the first nine months of 2014, up from 120,756 in the same period the year before. (RFE/RL, 08.02.15).

Defense and Aerospace:

Russia has merged several branches of its military into the Aerospace Forces — reorganization aimed at enhancing coordination and efficiency. The new branch will include the nation's air force, air defense, anti-missile and space forces. (AP, 08.03.15).
The Russian Airborne Troops are ready to assist Syria in countering terrorists, if such a task is set by Russia’s leaders, commander of the Airborne Troops Colonel-General Vladimir Shamanov told reporters on Tuesday. (Tass, 08.04.15).
More than 700 Russian and foreign companies from 30 countries will put their products on display at the MAKS-2015 aerospace show y in late August. Airbus and Boeing will take part in the show, Deputy Industry and Trade Minister Gleb Nikitin said. (Interfax, 08.05.15, Interfax, 08.06.15).
Russia added a new fleet of Su-33 fighter jets Monday to its growing military contingent in the Arctic. (IBTimes, 08.03.15).
A Russian Mi-28 military helicopter has crashed during an aerobatic display, killing one pilot and injuring another. (AP, 08.02.15).

Security, law-enforcement and justice:

A months long inquiry into the 2006 death from poisoning of former Russian spy Alexander Litvinenko concluded Friday after a parade of witnesses provided evidence that British police said "points unwaveringly" at former KGB agent Andrei Lugovoi and a longtime acquaintance Dmitry Kovtun working at the behest of the Russian state. Mr. Lugovoi dismissed the accusations of his involvement and said the British government was seeking to "demonize" Russia. (Wall Street Journal, 08.03.15).
The father of Russian tycoon Mikhail Khodorkovsky has been questioned in Moscow by the Investigative Committee. The questioning that the case was related to the 1998 slaying of Nefteyugansk Mayor Vladimir Petukhov. (RFE/RL, 08.06.15).

Foreign affairs and trade:

Russia says it has submitted to the United Nations a bid for vast territories in the Arctic Ocean. The Foreign Ministry said on August 4 that Moscow is claiming 1.2 million square kilometers of the Arctic sea shelf. (RFE/RL, 08.04.15).
France and Russia said they agreed to terminate a contract to supply the Russian navy with two warships whose delivery had been put on hold amid the conflict in Ukraine. (Wall Street Journal, 08.06.15).
Russia has accused the British government of forcing out its diplomats in violation of international law, saying it believes some of the country's politicians have taken a strategic decision to worsen relations with Moscow. (Reuters, 08.06.15).
The engineering subsidiary of Russia's Rosatom has signed a general framework agreement with Electricity of Vietnam for construction of unit 1 of the planned Ninh Thuan nuclear power plant. (World Nuclear News, 08.03.15).
Sweden has expelled a Russian diplomat and Moscow has retaliated by throwing out a Swedish diplomat. (Reuters, 08.03.15).
Syrian Foreign Minister Walid al-Moualem arrived in Tehran on August 4 for talks with Iranian and Russian officials aimed at ending the four-year-old war in his country. (RFE/RL, 08.05.15).
Russian president Vladimir Putin is having a change of heart on the Kremlin's wholehearted support for Syrian leader Bashar al-Assad and may "give up on him" in the future, Turkish President Recep Tayyip Erdogan said. (AFP, 08.03.15).
Nationalist celebrations to inaugurate a major extension of the Suez Canal began on Thursday when Egyptian President Abdel Fattah al-Sisi boarded a historic yacht to welcome foreign dignitaries including Russian Prime Minister Dmitry Medvedev. (Reuters, 08.06.15).

Russia's neighbors:

Ukraine's National Security and Defense Council Secretary Oleksandr Turchynov reported on August 5 the death of three more soldiers in overnight rocket attacks. Kyiv said four of its troops had been killed on August 3, and the rebels reported one loss in the past two days. Ukrainian military spokesman Andriy Lysenko said on August 3 that 3 soldiers had been killed and 15 other soldiers had been wounded in the past 24 hours. (RFE/RL, 08.03.15, RFE/RL, 08.05.15).
At least dozens of the fighters sent to Ukraine by the Don Cossacks, the main Cossack group, have died in mysterious ambushes in recent months, according to local news reports. (New York Times, 08.04.15).
Peace talks between the warring sides in the conflict in eastern Ukraine broke up after six hours on August 3 amid reports that they failed to secure progress on a planned buffer zone. (RFE/RL, 08.04.15).
Ukrainian security officials have renewed their request for U.S. weapons while meeting with a visiting congressional delegation headed by House Democratic leader Nancy Pelosi. (AP, 08.05.15).
"At the end of the day, the U.S. isn't interested in confrontation between Russia and states on its periphery,” a senior U.S. official said. (Wall Street Journal, 08.01.15).
According to a poll by the Ilko Kucheriv Democratic Initiatives Foundation, if a referendum on Ukrainian membership of NATO was held on Sunday, a total of 63.9% of respondents would vote in favor. In June 2010 only 24.6% would have voted for joining NATO. According to the poll, 51.2% of the respondents considered joining the EU a priority. (Interfax, 08.03.15).
Ukraine has received a second tranche of financial aid from the International Monetary Fund, worth $1.7 billion. (Reuters, 08.04.15).
Ukraine’s bailout faces “significant uncertainty” even if the government is able to secure a debt-restructuring deal, the International Monetary Fund warned Tuesday. (Wall Street Journal, 08.04.15).
The Ukrainian government's latest proposal over how to restructure $19 billion of debt is unacceptable to bondholders, a person familiar with the negotiations said Wednesday. (Wall Street Journal, 08.05.15).
Ukraine’s Eurobonds slid the most in two months as renewed signs of discord between the nation and a Franklin Templeton-led creditor group increased the likelihood of default. The sovereign’s $2.6 billion of debt due July 2017 fell 1.31 cents to 55.44 cents on the dollar at 5:28 p.m. on August 6 in Kiev. (Bloomberg, 08.06.15).
Former Ukrainian Prime Minister Mykola Azarov has announced the formation of a "Ukraine Salvation Committee," calling for "total regime change" through early elections and vowing to "restore order in our home." (Voice of America, 08.03.15).
Ukraine has subpoenaed fugitive former President Viktor Yanukovych to testify in a corruption investigation. (RFE/RL, 08.06.15).
Maria Gaidar, a Russian political activist recently appointed deputy governor of Ukraine's Odessa region, has given up her Russian citizenship. Gaidar has earlier received Ukrainian citizenship. (Moscow Times, 08.07.15, RFE/RL, 08.04.15).
A court in Kazakhstan's northwestern city of Aqtobe has condemned eight local men to prison for propagating terrorism (RFE/RL, 08.031.15).
Kyrgyz government figures indicate the country is home to 92 hazardous dumps containing 475m tons of waste, with a quarter of these near Mailuu-Suu. (EurasiaNet, 08.03.15).
Six people were wounded by gunfire and several were injured by stones as cross-border violence between villages in Kyrgyzstan and Tajikistan persisted for a second day. (RFE/RL, 08.04.15).
Azerbaijan's state prosecutor has asked a court in Baku to sentence human rights defender Leyla Yunus to 11 years in prison. (RFE/RL, 08.06.15).
The trial date for Russian soldier Valery Permyakov suspected of killing an Armenian family of seven has been set for August 12. (RFE/RL, 08.06.15).

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