MOSCOW, June 7 (RIA Novosti) Why don't they site a missile shield in Israel?/ U.S. starts battle for Caspian pipeline/ Enel wins tender for blocking stake in OGK-5/ Aeroflot hopes to sign contract with Boeing/ Aeroflot will not be Europe's odd man out, says its general director
Nezavisimaya Gazeta
Why don't they site a missile shield in Israel?
Russia's current relations with the West are growing increasingly tense over the same old issues. The West is concerned with democracy in Russia, while this country is worried by U.S. missiles deployed along its border. The level of democracy, although important, is not easily verified, while Moscow has several very specific objections to the U.S. anti-missile plans in Central and Eastern Europe.
Vladimir Putin's popularity at the close of his presidency is proving more popular than Tony Blair's and George Bush's ratings at the beginning of their tenures. It is evidence that the people, whose rights and freedoms concern the Russian opposition and Western public so much, are satisfied with their leader. The latter assertion can hardly be challenged. The Americans often use abstract terms to argue their point, using such formulas as "the interests of the American people." While Putin's current rating is proof that his domestic policies support the interests of the Russian people who have the right to decide on their government's priorities.
As of now, the U.S. missile defense system comprises 18 interceptors, with 16 of them deployed in Alaska and 2 in California, with their number expected to reach 54 by 2013 (40 in Alaska, 4 in California and 10 in Poland). So far, Russia has not been given a comprehensible answer why it should not be concerned by the trend.
Involvement by former Warsaw Pact member countries in the U.S. missile defense plans looks like a deliberate challenge to Moscow and as provocative as NATO's expansion to the former Soviet countries.
Moreover, Washington's political rhetoric has failed to justify the choice of Poland as a place to shoot down Iranian missiles. Tehran has never threatened Europe or the United States, but it has often made threatening statements to Israel. Why not build a U.S. anti-missile base there?
Putin will certainly weather his G8 partners' criticism. On the other hand, he will have to adjust his domestic policies, which should not be a problem for "pure democrats." But will it make the West abandon its plans with regard to Russia?
Gazeta.ru
U.S. starts battle for Caspian pipeline
The White House has decided to play a cunning game and submit the Nabucco project to compete with the Caspian pipeline project Russia, Turkmenistan and Kazakhstan are planning as an alternative gas route. However, Europe does not need that much gas, so it will have to choose only one project, experts say.
The U.S. administration has decided to change the location of the Nabucco pipeline, which is to supply Central Asian gas to Europe bypassing Russia. According to Matthew Bryza, Deputy Assistant Secretary of State, the projects run parallel and are unrelated to one another because gas for Nabucco will be supplied from other fields in western Turkmenistan and Kazakhstan.
Analysts are unanimous that the United States is avoiding admitting that the projects are parallel.
Konstantin Cherepanov, an analyst with Rye, Man & Gor Securities, says the projects are really unrelated to each other as far as their resource bases are concerned. Nabucco is oriented mostly at Iranian and Azerbaijani fields, while gas for the Caspian pipeline will flow from Turkmenistan, Kazakhstan and Russia. However, there is just one market for selling their gas - Europe, so "the pipelines will compete over this issue," the analyst forecasts.
Yekaterina Kravchenko, an expert with Broker Credit Service, is of the same opinion: "Initially, Nabucco was intended as an alternative project to bypass Russia. However, the pipelines are directed at one market - Europe, whose requirements are limited. Statements made by representatives of the U.S. State Department are the sort of advances designed to attract Europe to its side and involve it in its project." As she said, the European consumer will have to choose now.
"I think a great deal will depend on the construction time and the project recuperation. It is difficult to say now which of the two projects Europe might choose but, in my opinion, Nabucco will not be an impossible obstacle for Gazprom," Kravchenko summed up.
Vedomosti
Enel wins tender for blocking stake in OGK-5
Italian energy concern Enel made a higher offer for a blocking stake in wholesale generating company OGK-5, which at 39.2 billion rubles ($1.52 billion) was more than RusAl or Novatek. However, according to experts, foreign companies are not permitted to buy more than 10% of the Russian energy sector.
Enel, which bought about 1% of OGK-5 during its IPO last autumn, will now hold 26%, the Russian government will hold a blocking stake, and the rest will be distributed among Russian electricity monopoly RAO UES and minority OGK-5 shareholders.
The winner should transfer the bid price within 50 days, said Sergei Dubinin, UES's financial director. The Federal Antimonopoly Service (FAS) has issued a permit to Enel, said FAS's Vitaly Korolev.
Russian energy assets are undervalued compared to foreign ones according to Matvei Taits, an analyst with the UralSib financial corporation, adding that Russian generating companies are currently sold at an average of $515 per 1 kW, whereas the figure is $900 for India, China, Thailand, and the Philippines, and $1,200 for Britain, New Zealand, and Australia.
Sergei Arinin, an analyst with the Aton brokerage, said several other foreign investors may follow the trail laid by Enel, but the Russian authorities are unlikely to allow them to buy more than a 25% stake in generating assets.
Arinin said that foreign shares in Russian generating assets will not exceed 10%, particularly when it comes to Rosenergoatom, which oversees Russia's 10 nuclear power plants and hydropower plants. E.On, RWE, GEZ and EDF may follow Enel's trail.
Anatoly Golomolzin, deputy head of the FAS, said that Enel's possible participation in other OGK tenders (notably the OGK-4 tender) could create competition risks, adding that the FAS would look at each decision individually.
According to Aton, the alliance between energy giant Gazprom and SUEK, the country's largest coal producer, will hold a 40% stake in the generating sector, while RusAl, Norilsk Nickel and other major producers will own 20%, with the nuclear and hydro power sectors holding 15% each.
Kommersant
Aeroflot hopes to sign contract with Boeing
On Saturday, U.S. aviation giant Boeing will announce its strategy for Russia at the Eleventh International Economic Forum in St. Petersburg.
Boeing and Aeroflot Russian Airlines, the largest national carrier, are to revive their $2 billion contract for the sale of 22 Boeing 787 Dreamliners blocked by the Kremlin in 2006. In exchange, Boeing will help Sukhoi Civil Aircraft Company to promote its Sukhoi SuperJet 100 regional airliner on the global market.
The rather vague long-term Boeing-Aeroflot cooperation agreement will be detailed in the contract for the delivery of 22 B-787 Dreamliners and a letter of intent between Sukhoi Civil Aircraft and Boeing.
Under the latter document, Boeing, which had previously offered marketing, design, and production advice to the state-backed Sukhoi SuperJet project, will now help establish a joint personnel training center and provide after-sales support.
Industry experts said the deal is an affront to Brussels, which did not allow Moscow to co-manage the European Aeronautic Defence and Space Company (EADS), a global leader in aerospace, defense and related services, after state-controlled Vneshtorgbank (VTB) bought a 5% stake in the company.
"Russia is trying to court the United States after failing to sign a lucrative agreement with the European Union," Oleg Panteleyev, head of Aviaport web site's analytical department, told the paper.
Agvan Mikaelyan, deputy general director of the FinExpertiza auditing and consulting group, said Russia teamed up with the EU and EADS and turned its back on the United States in 2006 and early 2007, but that now the tables have turned.
Kommersant
Aeroflot will not be Europe's odd man out, says its general director
Experts have said there will be only three air carriers left in Europe in the future - British Airways, Air France-KLM and Lufthansa, writes Valery Okulov, general director of Aeroflot, Russia's international airlines.
"Other companies will either go under or will be taken over. We do not agree with those forecasts, and believe there will be four airlines, and that the fourth will be Aeroflot."
"One can boost one's world market presence either through one's own efforts, which we are doing, or through mergers and acquisitions. We think the latter is within our strength, too."
"Unlike other European, and particularly Italian, players, Aeroflot will bring more customers to Alitalia, Italy's national airline. Any European player buying into Alitalia will just corner part of its market."
"The Russian air passenger market is among the most dynamic in the world. Aeroflot reported good financial results in 2006 and excellent performance in the first quarter of this year."
"Our strategy is to boost passenger volumes by 20% a year. Lastly, we have a fine record of getting companies out of a crisis. We did this with Aeroflot and turned a loss-making operation into one delivering good profits and solid operating revenues."
"Absorption of Alitalia will doubtless add enormously to our presence on the European market and expand our commercial opportunities, first of all in Europe (Italy in particular), North Africa and Latin America."
"As regards Serbia's JAT Airways, the question should be addressed to the government of Serbia. If it decides to privatize the company, we will be interested in buying its shares."
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