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Business & government
» Hospitality events in lieu of the Russian banya
By Aleksei Tarasov | Quarter 1, 2010 | Business & government |

"The administrations of both countries have found courage and wisdom to stop these negative processes. It was essential to get an unbiased assessment of the state of our relations so that we would be able to work on improving them."
- Nikolay Babich, Consul General of the Russian Federation in Houston.
» Resources Ministry cautious over hydrocarbons reserves
By R-A Business staff | Quarter 1, 2010 | Business & government |

The Minister of Natural Resources of the Russian Federation expressed opposition to the plans for forming a state oil reserve comprised of unexplored hydrocarbon fields. Minister Trutnev indicated that it would be of greater advantage for the government to distribute oil and gas fields to companies as demand for fuel rises.
» U.S. and Russia trade: recovery begins
By Olga Tarasova | Quarter 1, 2010 | Business & government |

The volume of trade between Russia and the United States in 2009 has decreased significantly as a result of the world-wide economic crisis and the consequences it held in store for both countries. According to the Foreign Trade Division of the U.S. Census Bureau, in 2009, the volume of trade was only USD 21.7 billion.

» Home » magazine » Market analysis
Market analysis
» Economic Ministry revises 2010-2012 forecast
By R-A Business staff | Quarter 1, 2010 | Market analysis |

The Ministry of Economic Development of the Russian Federation revised its forecast for 2010-2012. According to the new estimate, inflation is expected to be significantly lower than what previous models predicted.
» Telecom industry ready to intensify investment activity
By R-A Business staff | Quarter 1, 2010 | Market analysis |
As a whole, the telecom sector did not suffer significantly from the economic crisis. Lowered investment activity in 2009 was for the most part a safety measure. At the same time, even while a boost in investments is anticipated, the total capital expenditure figures for the current year are not likely to be as high as those in 2008.
» Fitch reaffirms BBB rating for Russia
By R-A Business staff | Quarter 1, 2010 | Market analysis |

Fitch Ratings changed its assessment of the Russian economy from “negative” to “stable,” affirming long-term domestic and foreign currency issuer default ratings as BBB. Short term foreign currency issuer default rating was set at F3, while the country ceiling indicator was fixed at BBB+.

» ESPO pipeline launched
By R-A Business staff | Quarter 1, 2010 | Market analysis |

The initial capacity of the 1 220-mm (48 in) pipeline is 600 thousand barrels per day. By 2016 the capacity of the pipeline will be increased up to 1 000 thousand barrels per day, and by 2025 up to 1 600 thousand barrels per day.

» Telecom renaissance
By R-A Business staff | Quarter 1, 2010 | Market analysis |

Manufacturers of telecom products in Russia have come to enjoy better relations with major mobile and fixed-line carriers in the country. Russian government officials are now convinced that the country’s communications sector stands on an equal footing with telecom industries in Western European states.
» Refineries in Russia need USD 50 million in investment
By R-A Business staff | Quarter 1, 2010 | Market analysis |

The Russian state is pursuing a program to modernize the country’s refineries by intensifying investment in operations downstream. Within the next 5 years, the Russian oil refining complex requires the infusion of additional investment of RUR 1.4 trillion.
» Home » magazine » Companies
Companies
» Lukoil
By R-A Business staff | Quarter 1, 2010 | Companies |

Russia’s largest non-state-owned oil company Lukoil revealed plans to increase its hydrocarbon production to 2.7 million bbls per day by the end of the current decade. At the same time, the company decided to cut back its investment projects from USD 75 billion to USD 60 billion.

» ECOSORBER
By R-A Business staff | Quarter 1, 2010 | Companies |

The Megasorb sorbent is a non-woven polymer web fabricated with the use of the Strutto technology. The thickness of the web is 25 mm, and web width is 2.0 m. The specific density is 0.02 g/cm3. Oil sorption capacity in one cycle is 36 kg by 1 kg of sorbent.
» Rosneft: planned production for 2010 at 117.6 MT
By R-A Business staff | Quarter 1, 2010 | Companies |

The largest Russian oil company OJSC Rosneft plans to increase the recovery of oil and gas condensate by 4.4 percent in 2010 compared to the results of 2009. The total volume of production should reach 117.6 million tons.

» Magnitogorsk Iron and Steel Works: net profit is up
By R-A Business staff | Quarter 1, 2010 | Companies |

For the fourth quarter (actual results not yet released as of the date of publication), Magnitogorsk Iron and Steel Works was expecting to see revenues increase by another 15 percent. The company’s investment program for 2010 comes with a price tag of USD 1.7 billion.
» OIL Traders International
By R-A Business staff | Quarter 1, 2010 | Companies |

OIL Traders International, LLC. is engaged in international petroleum trading and often does business with Russia. All of the company’s clients in the United States are end consumers of fuel. Largest American airlines, cargo transporters, and trucking companies have great demand for oil and petroleum products originating in Russia.
» Home » magazine » In the news
In the news
» Low cost of gas discourages innovation
By R-A Business staff | Quarter 1, 2010 | In the news |

According to Mr. Miller, the difference in the cost of energy – and, more specifically, the cost of natural gas – puts Russian companies at an undue advantage and allows them to enjoy steady cashflow from the sale of products manufactured through the use of an old-style technological process.
» Pipeline charges increase 12.3 percent
By R-A Business staff | Quarter 1, 2010 | In the news |

The Federal Tariffs Service of the Russian Federation made the decision to increase transportation charges for the transit of natural gas through pipelines by independent producers. The increase of 12.3 percent became effective at the start of 2010.
» 9-km oil wells drilled at Odoptu
By R-A Business staff | Quarter 1, 2010 | In the news |

In January 2010, American company Exxon Neftegaz Limited, which is the operator of Sakhalin-1, reported completing two inclined wells at the Odoptu field in the offshore zone of Sakhalin Island. The wells are 9 kilometers deep. The plan is to have 7 wells drilled at Odoptu.

» Gazprom to develop Badra field
By R-A Business staff | Quarter 1, 2010 | In the news |

Gazprom Neft was successful in winning the tender for the Badra oilfield. Reserves at the oilfield have been estimated at 2 billion barrels. In addition to Gazprom Neft that holds 30 percent in the venture, the consortium for the development of Badra includes Kogas of South Korea (22.5 percent), Petronas of Malaysia, and TPAO of Turkey.
» Russian-American relations improving
By R-A Business staff | Quarter 1, 2010 | In the news |

Political analysts unanimously agree that the first year of Barack Obama’s work in office had a positive effect on bilateral relations between Russia and the United States. According to Vyacheslav Nikonov, head of the Politics Foundation, the climate in the relationship “noticeably improved.”

» Russian people like Obama’s work
By R-A Business staff | Quarter 1, 2010 | In the news |

The results of a recent poll conducted by the Russian Public Opinion Study Center shows that the majority of Russian citizens approve the work of President Barack Obama. The poll was conducted in 42 Russian regions in mid-January 2010.

» Second pipe tender for Nord Stream
By R-A Business staff | Quarter 1, 2010 | In the news |

The Nord Stream Consortium intends to commission Russia’s OMK, Europipe of Germany, and Sumitomo of Japan to supply more than 1 million tons of steel pipes for building the second segment of the Nord Stream project.
» Nicaragua’s Pacific-Atlantic canal
By R-A Business staff | Quarter 1, 2010 | In the news |
In the end of January 2010, R.F. Deputy Minister for Transportation Sergei Aristov met Nicaraguan Deputy Foreign Minister Manuel Coronel for discussions related to the construction of a new canal between the Pacific and the Atlantic Oceans.
» Sustained level of grain exports
By R-A Business staff | Quarter 1, 2010 | In the news |

Exports of grain from Russia in the current agricultural year (beginning in July 2009 and ending in June 2010) went down only slightly, even though the harvest volume was substantially lower than one year before.
» Chelyabinsk Zinc Plant posts profits
By R-A Business staff | Quarter 1, 2010 | In the news |

Chelyabinsk Zinc Plant ended 2009 with a profit, contrary to the predictions of some analysts. The company’s operations in the first three quarters of the year brought in a profit of RUR 268 million (computed under International Financial Reporting Standards).
» Accumulation of radioactive wastes to be banned
By R-A Business staff | Quarter 1, 2010 | In the news |

The State Duma of the Russian Federation will in the near future adopt legislative measures to prohibit stockpiling radioactive waste in the country. The lower house of the Russian parliament voted in favor of the bill banning nuclear waste accumulation in the first reading.

» Samsun-Ceyhan oil pipeline
By R-A Business staff | Quarter 1, 2010 | In the news |

Russian officials met with their Turkish counterparts in Moscow to discuss the construction of the Samsun-Ceyhan oil pipeline on January 13, according to R.F. Deputy Prime Minister Igor Sechin. Russia expects to be actively involved in the project. The ownership share that Russia will have in the venture has not yet been agreed upon.

» Techsnabexport – new uranium contracts
By R-A Business staff | Quarter 1, 2010 | In the news |

Russia’s nuclear materials and nuclear services exporter Techsnabexport estimates that in 2010 it will supply uranium products worth USD 1 billion. Atomenergoprom, the only shareholder of Techsnabexport expects three contracts for the delivery of nuclear fuel to be signed soon.

» United Company Rusal raised USD 2.2 billion
By R-A Business staff | Quarter 1, 2010 | In the news |

Rusal, the world’s largest manufacturer of aluminum and alumina, paid its creditors 2.143 billion dollars from the proceeds received as a result of its initial public offering at the Hong Kong stock exchange, the NYSE, and Euronext in Paris.

» Car market to expand by 15 percent
By R-A Business staff | Quarter 1, 2010 | In the news |

In 2010, passenger vehicle sales in Russia are expected to go up 15 percent to 1.6 million cars. The new forecast was prepared by Stanley Root, a partner of PriceWaterhouseCoopers. According to the less-likely pessimistic scenario, sales of automobiles may decrease by 5 percent to only 1.3 million.

» Negotiations in Moscow help American producers understand Russia
By R-A Business staff | Quarter 1, 2010 | In the news |

Discussions between Russian regulators and a U.S. task force on the issue of poultry supplies to the R.F. market helped American officials understand Russia’s position. Talks were being conducted in the latter half of January 2010.

» Regulators contemplate introducing auctions for meat quotas in 2011
By R-A Business staff | Quarter 1, 2010 | In the news |

Russian regulators are seriously considering altering the system for allocating meat importing quotas. Andrei Slepnev, Russia’s Deputy Minister for Economic Development, said that a method for distributing the quotas through an auction may be introduced.

» Home » magazine » Environment
Environment
» Russia’s environmental horizon becomes clearer
By Ruben Mkhitarov | Quarter 1, 2010 | Environment |

Russia’s vast territories and its seemingly inexhaustible natural resources have produced significant environmental problems for the country. In a less-then-wise regime of environmental protection and resources conservation, large open spaces and easily accessible raw materials made the situation perverse on a national scale.
» Home » magazine » Spiritual Diplomacy
Spiritual Diplomacy
» Mikhail Morgulis: “New Road to Peace”
By R-A Business staff | Quarter 1, 2010 | Spiritual Diplomacy |

Spiritual Diplomacy attempts to resolve conflicts between nations and within state borders by relying on the peoples’ spiritual values. This may be the only remaining strategy that provides a true key to the survival of the human race.

» Home » Magazine » Arts & crafts
Arts & crafts
» RussFolk Art
By R-A Business staff | Quarter 1, 2010 | Arts & crafts |

The San Francisco-based company RussFolk Art was established in 1987. RussFolk Art is well-known for the large collection of unique and original lacquer miniature works that are impossible to find elsewhere.
» Old Vyatka’s crafts
By R-A Business staff | Quarter 1, 2010 | Arts & crafts |

The formation of Russia’s cultural centers for different types of handicrafts took many years and even centuries. The mastery of craftsmen, the uniqueness of each particular style, and the cumulative artistic talent developed over a long period of time. One such unique cultural craft center is Vyatka.

» 2010 artist of the year
By R-A Business staff | Quarter 1, 2010 | Arts & crafts |

Every February, Russian-American Business magazine chooses a winner of an honorary recognition and an extraordinary acknowledgement plaque for the artist of the year. Last year’s nominees included individuals from the film, music, and art industries and world renowned writers.
 »  Home  »  Magazine  »  Military affairs
Military affairs
» Reform of strategic missile forces
By Sergey Buntman | Quarter 1, 2010 | Military affairs |

Major General Aleksey Konnov is the Deputy Director of the Strategic Missile Troops Academy. Before assuming his new position, Maj. Gen. Konnov served as a commander of a missile regiment, a commander of two missile division, and, most recently as the deputy commander of the missile army.

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