Russian Deputy Prime Minister Sergei Ivanov: Economic ties are next step in reset; Russia hands over declassified Katyn documents to Poland; Soyuz docks 50 years after Gagarin's voyage; On the verge of economic disaster, Belarus turns to Russia;
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  • According to Russian Deputy Prime Minister Sergei Ivanov, economic ties between the United States and Russia must be improved if the two countries want to "cement" their relations. He noted that bilateral economic ties were languishing far below their potential. He noted that in 2010, trade between Russia and the United States amounted to only $23.5 billion. Finland and Sweden invest more in Russia than does the United States. But Ivanov also noted some improvements. He said more and more leading U.S. technology companies, such as Google and Microsoft, were taking part in the development of the Russian high-tech center at Skolkovo outside Moscow. In the context of Russia’s new innovation-driven development policy, he said "we hope to expand our bilateral economic horizons in the following priority areas: space, information technology, medical technology, nuclear energy, and power efficiency.”1

    However, according to reports, Russia has provided Poland with 11 volumes of declassified documents on the 1940 massacre of more than 20,000 Polish officers and others by the Soviet secret police. This brings the total number of declassified volumes given to Poland to 148. A statement on the prosecutor's website noted that the 11 volumes refer to the criminal records and place of burial of the victims. Russia's long-delayed cooperation on the wartime killings has helped mend ties between Moscow and Warsaw. The Soviets falsely blamed the Katyn massacre on the Nazis for years, before Mikhail Gorbachev acknowledged the Soviet role in 1990.2

    Meanwhile, a Soyuz space craft named after the first man in space has docked with the International Space Station, days before the 50th anniversary of Yuri Gagarin's pioneering flight. The Russian rocket is carrying an American and two Russians who will spend the next six months in space. Their Soyuz craft, with a picture of Gagarin on the side, blasted off on April 5 from Russia's Baikonur launch pad in Kazakhstan, where Gagarin's April 12, 1961, flight began. Russia plans a range of events to mark the April 12 anniversary3.

    Reports noted that with an economy teetering on the brink of collapse and a nervous population standing in hours-long lines to buy foreign currency or gold, Belarus has sought Russian help. Belarus has run through 20 percent of its hard-currency reserves since the beginning of the year and implemented partial currency devaluation at the end of March4.

    Meanwhile, Russian Prime Minister Vladmir Putin has said Russia will boost its efforts to explore the solar system and seek a bigger share of the market for space launches in the next decade. Speaking ahead of the 50th anniversary of Yuri Gagarin's pioneering space flight, Putin said Russia's plans go beyond transporting crews to the International Space Station. He noted, "In 2013 we should start flight and construction tests of Angara carrier rockets of both light and heavy classifications at the Plesetsk cosmodrome," Putin said. "Beside that we are to build the Rus-M carrier rocket, which will bring manned and cargo spaceships into orbit." Russia's space budget for 2010-2011 is $7.09 billion, which Putin said made it the world's fourth-largest spender on space after U.S. space agency NASA, the European Space Agency and France.5

    However, Prime Minister Putin noted that Russia will not abide by any World Trade Organization (WTO) rules until it becomes a member and is free to slap duties on cheap machinery imports from China. Russia is growing increasingly frustrated with its 18-year-long bid to join the WTO, and the rules it has already implemented during the accession process have been criticized by domestic manufacturers. Russia had hoped to wrap up negotiations before the spring session of the WTO's ruling council at the start of May, but that now looks increasingly unlikely.6

    According to reports, the Kremlin has rejected a proposal by a senior official of Russia's main domestic security agency who said authorities should ban Skype, Gmail, and Hotmail because they are a major threat to national security. Russian news agencies have reported that Aleksander Andreyechkin, chief of the FSB's information security and special communications department, told a government meeting on April 8 that encrypted communications providers such as Gmail, Hotmail, and Skype "pose a large-scale threat to Russia's security" and proposed to ban them. The Kremlin quickly responded that Andreyechkin had expressed his personal opinion and abused his authority by making the statement. The FSB backtracked on April 9, saying it was not planning any measures to limit Skype and Gmail in Russia7.

    In another development, Russia's Federal Space Agency Roscosmos and NASA will discuss the development of a nuclear-powered spaceship on April 15. A nuclear engine design is to be completed by 2012, while the project's implementation will require 17 billion roubles ($600 million). Most of the funding will come from Russian state-run nuclear corporation Rosatom.8

    Meanwhile, reports noted that Russia has delivered two Mi-35P Hind E attack helicopters to Peru under a contract to provide the South American country with air power to combat cocaine production and terrorism. The disassembled helicopters were delivered to Peru on board a Russian An-124-100 Condor transport plane. The Mi-35 is an improved export version of the famed Mi-24 attack helicopter, which combines high fire power with troop transport capability. Russia's state arms exporter Rosoboronexport and the Peruvian Defence Ministry signed a $108-million contract on the delivery of six Mi-171 Hip H multirole helicopters and two Mi-35 helicopters in July 2010. The delivery of the first two Mi-171s to Peru is expected in May. The helicopters will be used in anti-drug and anti-terrorism efforts in the valley of the Apurimac and Ene rivers. The area was declared a zone of military operations in August 2009 as fighting between government troops and the Sendero Luminoso Maoist guerrilla group intensified. Sendero Luminoso, regarded by Peru as a terrorist organization, is believed to have strong ties with drug traffickers. The group is on the U.S. and EU lists of terrorist organizations.9

    In other developments, German truck maker MAN will announce this week a plan to start production in St. Petersburg. The plant will be an assembly site and make use of an already existing facility that will allow MAN to start production quickly.10

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