Russia regrets western states’ military intervention in Libya; Russia seeks to improve economic ties with Turkey, discusses range of issues; US Secretary of Defence Robert Gates visits Russia in an attempt to consolidate the gains in US-Russia ties;
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    • Russia has regretted the continued western military action on Libya. This comes in the backdrop of Russia abstaining rather than vetoing the UN proposal to initiate military action and imposition of a no-fly zone in the beleaguered nation of Libya. Russia has called on the international military force striking Libyan targets to stop the "indiscriminate" use of force as it has the potential to kill innocent civilians.1

    Turkish Prime Minister Recep Tayyip Erdogan visited Russia and presented Russian President Dmitry Medvedev a copy of the treaty on friendship and fraternity between the two states and a stamp issued by Turkish authorities to mark 90 anniversary of the document, recalling that on March 16, 1921 Soviet Russia recognized the Republic of Turkey and gave security guarantees of the joint borders. On March 16, 1921, the Treaty of Moscow was signed.2 During Erdogan's visit, the second meeting of the High-Level Cooperation Council between Russia and Turkey -- an intergovernmental cooperation mechanism -- was held with Erdogan and Medvedev co-presiding the meeting. Russia and Turkey agreed last year during Medvedev's May visit to launch the High-Level Cooperation Council and held the first meeting then. According to agreement, Medvedev and Erdogan will meet annually to review ties. Reports noted that last year, bilateral trade volume with Russia rose to $26.6 billion, representing an annual increase of 15.7 percent. Turkish exports to Russia surged 44.7 percent last year to $4.6 billion, while imports – consisting mostly of energy items – advanced 11 percent to $21.5 billion. In January this year, Turkish exports to Russia rose to $420 million, an increase of more than 69 percent compared to January 2010. Imports rose 13.9 percent to $2 billion. Russia currently hosts nearly 2,000 Turkish businesses. Companies from Turkey have invested $7 billion in Russia. Turkish contractors have completed 1,252 projects in the country worth $33.8 billion.3

    Meanwhile both the leaders have termed nuclear energy safe and promised to press ahead with the construction of a Russian atomic power plant in Turkey despite Japan's nuclear crisis. "With these conditions met, nuclear power is safe and more and more beneficial for mankind," Medvedev said. Russia and Turkey signed a $20 billion agreement last year for the construction of a four reactor power plant in Akkuyu in the south of the country, some 25 from an active fault line.4 Both the sides have also agreed to work out the modalities of introducing a visa free regime between the two countries.5

    Reports noted that Turkish Prime Minister Erdogan's trip to Moscow focused primarily on ‘energy’ but the two sides failed to achieve a breakthrough on gas cooperation. Meanwhile, according to other reports, Russia and Turkey are engaged in close cooperation to solve the Caucasus problem. Turkish Prime Minister was quoted as saying “we have also taken a step to launch an initiative to bring together Russia, Turkey, Azerbaijan, Armenia and Georgia under a Caucasus cooperation council.”6

    The US Secretary of Defence Robert Gates who was on an official visit to Moscow, praised bilateral efforts what he called the "extraordinary" progress” that the Russia and the United States have made in improving their ties in recent years. He pointed to Russia’s cooperation with the U.S.-led coalition in the Afghan war and its support of United Nations Security Council resolutions targeting North Korea and Iran. He also noted that Russia had abstained in last week's Security Council vote on military intervention in Libya, effectively allowing for the allied assault on Muammar Qaddafi's regime to go forward.7 However, Secretary Gates noted that U.S. and Russian cooperation on missile defense, long an irritant between the two nations, may include exchanging launch information and setting up a joint data center. The U.S. may also reveal more information about its missile-defense plans and exercises and conduct a joint analysis with Russia to determine how the two nations can collaborate in the future.8

    Reports noted that as part of the major defence modernization programme, the Russian navy is planning to induct up-to 10 Graney class nuclear-powered attack submarines by 2020.9 The first Graney class submarine will enter service with the Navy by the end of 2011. The second vessel, the Kazan, is being built at the Sevmash shipyard in the northern Russian city of Severodvinsk. The construction of the third Graney class submarine will begin in 2011. Graney class nuclear submarines are designed to launch a variety of long-range cruise missiles (up to 3,100 miles or 5,000 km), with conventional or nuclear warheads, and effectively engage submarines, surface warships and land-based targets. The submarine's armament includes 24 cruise missiles and eight torpedo launchers, as well as mines and anti-ship missiles.

    According to reports, under the defence modernization programme, the Russian Defence Ministry will buy 36 strategic ballistic missiles, two strategic missile submarines and 20 strategic cruise missiles in the year 2011. Over 19 trillion rubles ($665 billion) has been set aside for the state arms procurement program. The budget will also cover spacecraft (5), warplanes (35), helicopters (109), missile defense systems (21), multirole nuclear powered submarines (3) and a surface warship.10

    However, Russia’s Rosneft and China’s National Petroleum Corporation (CNPC) have bickered over the price of Russian oil supplied under the 2009 contract. The disagreement runs contrary to the intergovernmental oil deal signed in February 2009 when China agreed to lend $25 billion to Rosneft and pipeline monopoly Transneft in exchange for long-term oil supplies. Rosneft used the funds to refinance debt and fund its investment program, while Transneft completed the pipeline link to China and used the remaining cash for current operations. Rosneft believes China unilaterally cut the price of the crude supplied, causing the state oil producer a shortfall of $40 million in January, the source said.11

    In other developments, Russian Prime Minister Vladimir Putin's ruling party United Russia has swept local elections held on March 13. The vote is seen as a test run indicating voters' leanings in the impending parliamentary and presidential elections, scheduled for December 2011 and March 2012, respectively. Opposition figures, however, say the vote was marred by fraud, including ballot stuffing and multiple voting -- and the authorities' ability to utilize the so-called "administrative resources" to maximize the party's vote. United Russia won a combined total of 68 percent of seats in regional legislatures, down from the 76 percent it gained in regional elections last October. They also won elections to city legislatures, which were held in 10 provincial capitals.12

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