NATO to carry on dialogue with Russia on ABM; Ukraine to look for alternative to Russian gas; The lower house of the Russian Parliament approves the 1st reading of bill to increase fines for rally law violations; Russian President Putin promises to increa
  • Share
  • Tweet
  • Email
  • Whatsapp
  • Linkedin
  • Print

    • According to reports, NATO Secretary General Anders Fogh Rasmussen has said that despite differences with Russia, NATO will carry on dialogue with it. NATO has just announced the completion of the first phase of the creation of an ABM system of the Alliance. 1

    President Viktor Yanukovich has said that Ukraine will look for and find an alternative to Russian gas. Ukraine pays close to 620 US$ for Russian gas while the Europeans pay in the range of US$ 450. 2

    The State Duma or the lower house of the Russian parliament has approved the 1st reading of the high-profile bill on large fines, up to 1.5 million roubles, for abusing the law on rallies. The house voted for the document 236-207, with one abstention. The new legislation was proposed by United Russia lawmakers following the May 6 events in Moscow, when the March of Millions escalated to mass disturbances and clashes with police. 3

    Russian President Vladimir Putin has set a task of increasing spending on science to 2.5 percent of the GDP by 2015. 4

    Prime Minister Medvedev will become a member and Chairman of the United Russia Party. He follows in the footsteps of President Putin who had to step down as Party chairman after taking office since the President’s job rules out any party membership. 5

    According to reports, in a sign of a major reshuffle in the President and Prime Ministerial team, some significant appointments have been made. Sergei Ivanov has been appointed as head of the Kremlin administration, Nikolai Patrushev as secretary of the Russian Security Council and Igor Sechin as chairman of the Rosneft Board of Directors. 6

    Reports noted that the State Duma has approved a bill adjusting the key parameters of federal budget of 2012. According to an adjusted socio-economic development prognosis, Russia's GDP will increase from 58.683 trillion roubles to 60.59 trillion roubles /a 3.4 percent increase, down from the previously projected 3.7 percent/. The price of Urals oil is expected to be at 115 dollars per barrel versus the previous estimate of 100 dollars per barrel. Wages fund is expected to reach 14.75 trillion roubles versus 14.472 trillion roubles planned before. The consumer price index /inflation/ is unchanged at 5 to 6 percent. Federal budget revenue in 2012 increases by 897.1 billion roubles, including 808.4 billion roubles of oil and gas review and 88.7 billion roubles of non-oil/gas revenue to 12.677 trillion roubles. Budget deficit has been decreased from 1.5 to 0.1 percent of the GDP. Some 500 billion roubles of additional oil and gas revenue are to be used for cutting the volume of internal borrowings, while the rest will be added to the Reserve Fund. 7

    Reports noted that the next round of talks to discuss the Iranian nuclear issue will be held in Moscow on June 18-19, 2012. 8

    In other developments, according to reports, British Foreign Secretary William Hague will visit Moscow on May 28, 2012 and is scheduled to have talks with Russian Foreign Minister Sergei Lavrov. The main topics of discussion will be the situation in the Middle East and North Africa, Afghanistan and Iran and Russia-EU-NATO interaction. 9

    Meanwhile, reportedly, Russia will provide the second tranche of a loan of the amount of US$ 800 million to Serbia for meeting its infrastructural needs. In 2010 Russia had provided a loan of US$ 200 million. 10

    Top