MOSCOW, October 29 (RIA Novosti) Russian-Polish meat war nearly over/ EU widens gap in its 'steel curtain' for Russian products/ Ireland's Celtic reluctant to get sold to Severstal/ Russia to set up a financial services market for Muslims/ Russians believe in 'the Putin plan'
Nezavisimaya Gazeta
Russian-Polish meat war nearly over
The Russian-Polish trade war, which began in November 2005 when Moscow banned the import of Polish beef, could end soon. Warsaw has agreed to allow Russian veterinary inspectors to visit its meat-processing plants.
Both countries will stand to gain from this decision. Poland will regain access to the Russian meat market, while Russia will be able to draft a new partnership and cooperation agreement with the European Union. Poland had also threatened to block Russia's accession to the World Trade Organization unless Moscow lifted the ban from Polish meat deliveries.
A spokesman for the Russian veterinary watchdog said Russia had formed two groups of inspectors to work in Poland and is preparing the necessary documents.
Alexei Alekseyenko, press secretary for the service, said: "Political changes in Poland have clearly helped to clear the problem of political complications."
The victory by Donald Tusk's pro-European Civic Platform, which is less confrontational toward Russia, in the parliamentary elections a week ago is expected to soften Warsaw's irreconcilable stance.
However, the outgoing Polish government continues to resist this. Anna Fotyga, who will remain Polish Foreign Minister for a week, said Saturday that her country would not allow Russian inspectors in until Moscow lifts its embargo of Polish livestock products.
Experts believe that Poland heavily depends on meat exports to Russia. According to the Polish Agriculture Ministry, the country's annual revenues from meat exports to Russia before the embargo amounted to approximately 400 million euros, or some 5% of its total export revenues.
Agvan Mikaelyan, head of the Russian audit and consulting group FinExpertiza, said: "In the past, the share of Polish beef in the Russian meat processing sector was 10%-15%, but it will not be more than 5% when the embargo is lifted. Its niche has been taken by Brazil, which is also more stable politically."
Kommersant
EU widens gap in its 'steel curtain' for Russian products
The European Union has agreed to expand quotas for the import of some brands of steel and steel products from Russia for 2008-2009. Russian metallurgical companies did not expect the EU to lower the barriers. However, the remaining restrictions allow them to make only tactical, not strategic plans for EU sales.
As part of the EU-Russia summit, a new trade agreement was signed allowing Russia to start supplies of a wider range of steel products to the EU from 2008. The 2007 quota of 2.2 million metric tons will be increased to 2.9 million metric tons in 2008 and to 3.03 million in 2009, and it will be cancelled when Russia joins the WTO.
Russian steel exports to the EU have been subject to restrictions since 2002. From the early 21st century, the largest Russian producers have redirected their exports to Southeast Asia and they have no plans for an immediate return to the EU market.
Judging by all signs, the EU returned to its steel agreement [with Russia] when faced with sizeable price rises for steel supplies from China and other Asian countries. In 2007, prices on the European metals market continued rising for a large number of products. Since the introduction of steel quotas, Russian imports of metal products have also expanded, including from EU countries, and domestic demand for Russian steel has grown. Therefore, the new agreement with the EU was a surprise for Russian companies: this was not a priority issue considering that the new quotas do not provide for their strategic expansion.
Managers of Novolipetsk Steel (NLMK), which is the main transformer steel producer in Russia and who could expand its export possibilities due to the new quotas, said they "have not seen the document," and do not want to comment on what consequences the agreement might have for the company's business.
The TMK group, which produces industrial steel pipes that will also benefit from the quota increase, declined to comment on the striking news from Portugal until information is published specifying the structure of quotas.
In any case, the key issue is Russia's accession to the WTO. The abolition of EU quotas will allow Russia to form its strategic, not only tactical, positions on the European market.
Gazeta
Ireland's Celtic reluctant to get sold to Severstal
Ireland's Celtic Resources, a company mining gold in Russia, rejected yet another offer from Russian steel giant Severstal of 2.7 pounds sterling per share for the company's entire issued share capital.
It appears from the offer that Severstal is putting a value for Celtic at 161 million pounds sterling ($327 million). The Irish company's board reproached Severstal for sticking to the past and significantly undervaluing Celtic. Severstal, in turn, advised the Irish company's shareholders to think twice, as its shares were likely to plummet soon.
The Celtic board of directors said in a letter to shareholders it would soon explain why the offer of 2.7 pounds sterling per share was considered low, but in the meantime recommended that they refrained from taking any action. Celtic is probably expecting its shares to rise.
Severstal's offer was indeed formally below Celtic's market value. On Friday, the company's stocks were trading at 2.75 pounds sterling, a level they had reached even before Severstal announced its latest offer.
Severstal said the Irish gold-miner's shares had begun to grow after investors began showing interest in it - Alexei Mordashov's company bought a 22% stake in Celtic from Aton International Ltd. for $54.4 million in mid-August. Severstal described Celtic's financial statements as "very weak" - especially considering the company's return on invested capital of 2.6%.
"Our offer is the only one made to Celtic's shareholders," Severstal wrote to the Irish company's shareholders. "We believe that the current value of Celtic's shares is unstable and without this or another competitive offer, they could fall sharply."
Russia's Alfa Bank, for example, posted the target value of Celtic's shares of $5.1 (2.55 pounds sterling per share), deriving from the Irish company's assets, which brings the company's market value to $246 million.
Severstal could still opt for gradually buying out Celtic's shareholders, as the East Guardian Opportunity Fund has already sold it a 4.6% stake at 2.32 pounds sterling per share, while DWS Investments with 3.1% and Barrick Gold with 6.6% have agreed to make a deal at 2.7 pounds sterling.
Vedomosti
Russia to set up a financial services market for Muslims
The Federal Service of Financial Markets on Friday registered rules for the entrusted management of an open-end unit investment share fund for Muslim investors.
Investors can now be confident that their funds will only be channeled into financial instruments approved by Islam, explained a spokesman for the company BKS - Halyal Fund.
"Russia has more than 20 million Muslims living here, and up to now collective investments have been beyond them from the point of view of the Muslim religion," said Ramil Hazrat Yunusov, board chairman of the Zam-Zam + independent non-profit organization, which will see to it that the BKS managing company invests according to Islamic rules.
For example, the foundation's money cannot be used to buy shares of companies producing and marketing alcoholic drinks, pork, or some nutritional supplements, fixed-yield bonds, derivatives, or credit loans.
The new unit investment fund will be formed in the period from November 12 of this year to February 8 next year. The minimum investment amount is 5,000 rubles. BKS expects to accumulate more than 1 billion rubles in the BKS - Halyal Fund.
This is another extravagant attempt to make market news, one most likely doomed to failure, said Aren Apikyan, deputy director general of VTB Asset Management. The fund will not be in demand, he said.
The market for collective investment in Russia is not sufficiently developed to discuss tens of thousands of Muslims investing in a specialized unit investment fund, he said. Besides, the BKS's core business is located in the country's Orthodox regions, he added.
Russia is a multiethnic country, and the fund will be in demand among some of the potential investors, said Olga Ogorodnikova, director general of Promsvyaz managing company. But some of them could refuse to invest in the unit fund because of a limited number of investment instruments and increased risks, she said.
"Global Fortis has accounts which they manage with an eye to certain requirements. They do not, for example, invest in companies working with Iran or producing bombs," said Vladimir Kirillov, director general of KIT Fortis Investments. "They also run accounts for Muslin investors," he said. In his view, the BKS should actively promote the new fund in the Muslim population and, for example, in mosques.
Vremya Novostei
Russians believe in 'the Putin plan'
More than half of Russians believe there is "the Putin plan," even though they don't know its contents. But they hope that its implementation will make Russia a strong and prosperous country.
The Yury Levada analytical center polled 1,600 Russians on October 12-16 (3% statistical margin of error).
According to the poll, 65% of Russians believe President Vladimir Putin has a reform plan and clear-cut goals, while 19% said there was no plan, and 14% did not know.
Russians are very vague about "the Putin plan" advertised by the pro-Kremlin party United Russia. Nearly half of the respondents (47%) said they had not heard about it, 29% said they heard about it, but were not sure about the details. Only 6% said they had heard about the plan and could give details, while 12% said they knew about it, but could not give further information.
Experts are not surprised. Dmitry Orlov, head of the Russian Agency of Political and Economic Communications, said such sentiments have a positive effect during the election period. "The people believe in the "Putin plan" but don't know the details; they view it as a slogan. This is always simpler than trying to comprehend a complicated scheme," he said.
However, even a specialist finds it difficult to understand the "Putin plan." Orlov said: "The plan does not exist as a document. It is a package of Putin's addresses to parliament and national projects and special programs adopted on the president's instructions. Only experts, and then not all of them, can understand how all of this merges to form a strategy."
Iosif Diskin, a political analyst and co-chairman of the National Strategy Council, said: "Ask Americans about Bush's Iraq plan and nobody will tell you about its real meaning. It is not [knowledge of the leaders' plans] that determines the electorate's behavior, because the majority of Russians do not view Putin as a Western-style leader. They vote for him as 'the father of the nation,' and not for a document."
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