Wednesday, October 22, 2014


The Power Vertical

Putin's Icarus Moment

Dmitry Medvedev (back) and Vladimir Putin wave to delegates at a United Russia congress in Moscow on November 27.
Dmitry Medvedev (back) and Vladimir Putin wave to delegates at a United Russia congress in Moscow on November 27.
Let's take a brief trip into an parallel universe.
 
At the September 24 United Russia congress, Dmitry Medvedev announces -- with Vladimir Putin's blessing -- that he will seek a second term as president. Putin, for his part, announces that he will step down as prime minister after the 2011-12 election cycle, but cryptically adds that he will remain in politics in some yet-to-be-determined capacity.
 
Just over a month later, in the December 4 State Duma elections, United Russia hangs on to its majority by a thread, but the big story of the day is that the newly configured Right Cause party, under the leadership of billionaire oligarch Mikhail Prokhorov, comes in a very strong third, just behind the Communists. The new Duma would have five parties, United Russia in the center, Right Cause on the center-right, A Just Russia on the center-left, and the Communists and Vladimir Zhirinovsky's LDPR on the flanks. Prokhorov, who enjoyed strong support from the growing urban professional class, is immediately touted as the leading candidate for premier.
 
Medvedev easily wins the March 4 presidential election with about 70 percent of the vote and -- as expected -- nominates Prokhorov for prime minister. Finance Minister Aleksei Kudrin hails the choice. But the big post-election story comes when Medvedev unexpectedly names Putin to serve as secretary of a revamped and beefed-up Security Council. As part of the overhaul, Medvedev also announces that the so-called "power ministries" -- FSB, Interior, Defense, and Foreign Affairs -- will report directly to the Security Council secretary.
 
OK. Thought experiment over. Now back to reality. But ask yourself the following question: From the perspective of Russia's ruling elite hanging on to its power in a stable environment, would they have been better off under this alternative scenario I just described or in the one they find themselves in now?
 
In the last episode of the Power Vertical Podcast, New York University professor  and veteran Russia-watcher Mark Galeotti, author of the blog "In Moscow's Shadows," suggested that the ruling circle -- the so-called "collective Putin" --would have been better off with Medvedev staying on as their formal front-man:
 
There is very little reason to believe that if he had let Medvedev continue for another term that things would have gone bad for him and those around him. It probably would have been a relatively stable continuation of the tandem. He just didn't seem willing to let go.... It's clear that Putin made a phenomenal blunder there. For whatever reason, he just wasn't willing to let go. Maybe it was because he had qualms about whether Medvedev could handle the job. We don't really know. Someday, maybe it will emerge.
 
Regular readers of this blog know that I like to describe the emerging political arrangements in Russia as an embryonic "deep state" -- a permanent super-elite that rules from the shadows, setting the parameters of acceptable politics for the formal institutions of governance. The term was coined to describe the cabal of military officers that de facto ruled Turkey prior to the rise of current Prime Minister Recep Tayyip Erdogan.
 
But as Mark pointed out in the podcast, for a deep state to work, "it has to remain deep." Everyone knows it's there, but everybody pretends that it is not. Putin's mistake was "dragging the deep state into public view" -- a move that broke the spell and inflamed public opinion:
 
The deep state worked when everyone was aware that it existed, if you look at Turkey for example, but it was willing to operate behind a carapace, a facade of politicians. Putin made the presence of the deep state so clear. He rubbed it in Russians' noses and that was a big mistake.
 
Returning to my little parallel universe for a bit, a second Medvedev term with Putin retaining control of the power ministries would not have been without its problems. Big disagreements would have still existed over issues of modernizing and diversifying the economy and the privatization of the energy sector -- issues dear to technocrats who favor reform but deeply threatening to the siloviki who control the commodities sector. There would still be plenty of conflicts between the "shareholders" and "managers" in the elite.
 
But in an environment of relative social and political tranquility, Putin -- who would remain de facto in charge due to his control over the security services -- would have been able to act as "arbiter in chief" and settle them behind the scenes. His authority and clout would still be unchallenged.
 
Now, he looks diminished and the deep state looks vulnerable.
 
So why did Putin take the path he did? As Mark noted, we really don't know yet. But there are some plausible explanations out there.
 
Political analyst and former Kremlin spinmeister Gleb Pavlovsky suggested in a recent interview with "New Times" that Putin's inner circle simply didn't trust Medvedev to protect their wealth and privilege:
 
I think that it was a few cohorts -- who owed their position and wealth to Putin -- who pushed him into it. They asked themselves a simple question: if it were not Putin, would their capital be guaranteed or not? That is why I, like a maniac, since I was close to the presidential staff then, said all the time that Medvedev must find a way to give guarantees to the "collective Putin." But Medvedev thought that the president was above these trivialities.
 
Along similar lines, longtime "Economist" correspondent Edward Lucas, author of "Deception: Spies, Lies, And How Russia Dupes the West," suggested that formal power matters more in Russia than in other countries with similar deep-state arrangements:
 
The way the Russian system works, these formal channels of power are important. It isn't like China where you can have Deng Xiaoping behind the scenes or Singapore where you have Lee Kuan Yew behind the scenes. The paper flow matters, the signature matters, the pechat [stamp] matters. I think that it was a source of some awkwardness and instability for them that Medvedev was theoretically in the top job and so Putin had to have a guy in Medvedev's office managing the paper flow so people didn't run around behind him.
 
In the end, as I blogged here, it appears that the "managers" who opposed Putin's return to formal power were outflanked by the "shareholders" who wanted him back in the Kremlin at all cost.

The September 24 United Russia congress, I believe, was a critical juncture, one of those inflection points in Russian politics that set the stage for the next era. And we are now seeing the results of the choices made in the run-up to that day.
 
-- Brian Whitmore

Tags: Vladimir Putin,Putin-Medvedev tandem,Dmitry Medvedev,Russia's Deep State

This forum has been closed.
Comment Sorting
Comments
     
by: Ray F. from: Lawrence, KS
May 28, 2012 18:01
Not sure that I agree with the title or the allusion to Icarus. From what I can tell, Putin remains nearly as popular as ever and he doesn’t look to crash anytime soon. Should the price of oil remain at about $100 per barrel, Putin will have no problem in continuing to distribute largesse, and staying above the fray of genuine politics. I think a more apt metaphor for the Russian leader would be Sisyphus. I sense that Putin now firmly believes in his indispensable role in keeping the system moving. Whether it is actually moving anywhere is an altogether different question.
In Response

by: Eugenio from: Vienna
May 29, 2012 06:24
Obviously you are right, RAY, when you say that "Putin remains nearly as popular as ever and he doesn’t look to crash anytime soon". But please do not forget that the "journalists" working for the RFE/RL are getting their salaries paid for doing their best to create in the heads of their readers the impression that such places as Russia, Iran, the DPRK etc etc are just craddles of horror - so that the people in the US would forget about the fact that their own economy is going down the drain and their army is losing the war in Afghanistan.
In Response

by: Steve from: Brisbane
May 29, 2012 15:31
Yes, but who pays you to comment on practically every story on this site?
In Response

by: Eugenio from: Vienna
May 30, 2012 04:41
Hey, Steve from Brisbane, thank you for your timely question! Yes, you know, it all started when Putin, Fidel and Chávez put together a couple of rubbles, pesos and bolivares and paid me to "comment on practically every story on this site". Then it was Ahmadinejad and Kin Jong Un who spent a few dinars and North-Korean wons to pay my salary. And finally Assad allocated a few dinars for me to sing glory to him too.
On the top of that, I am getting food-stamps with which I can any time get a free lunch in the canteen of the Chinese embassy here in Vienna. But you know, eating Chinese food the whole time is not really so healthy - so I just exchanged those food-stamps for a few Credit-Default Swaps on Greek, Spanish, Italian and Portugese sovereign debt. And it means I am going to win big when all these (and other) NATO member states go bankrupt over the next few months :-)).
In Response

by: Konstantin from: Los Angeles
May 30, 2012 07:10
If it is true that Eugenio is indeed an unemployed immigrant in Austria, then I must commend him for his brilliant knowledge of English and express my astonishment at his inability to get a job!! Perhaps during every interview he responds to every question about NATO minions, Frau merkel and greek default.
In Response

by: Oly from: New Mexico
May 31, 2012 17:19
Do you really think that anyone with half a brain pays attention to what you say, Eugenio? Your words are the same as the ones Pravda used to print during the heyday of your Soviet Union. Please get over your anger and get a life....
In Response

by: William from: Aragon
May 31, 2012 22:44
It good to see you have a faithful following on this site, Eugenio :-)
In Response

by: Konstantin from: Los Angeles
June 01, 2012 03:06
Eugenio, Ray is right, not withstanding "popularity" of nazi "salut",
His country going wrong way, simce Russian inheritted desese.
Your point is - it isn't so horrible. Engels was by Lenin usurped
(and Russia was saved by Stalin). Hitler is by Putin usurped -
Who saves Russia now? Me, killed by Russ for its nemesis?

USA almost started Afghanistan war, put-on by aparatchics.
East Europe and CIS manage turn USA to a reconstruction.
Russia does all to turn it to raten wound of "democratchics",
Basted West economy, that you name loose war to Russia.
He salut "Victorious Russia" you salut "Russ Pobedonosik!"



by: Maria L from: Prague, CZ
May 28, 2012 20:02
An interesting take on the situation from the perspective on the ruling elite, but I think Putin had to have done more than just "rub the public's nose" in the reality of the deep state to provoke this kind of reaction. It makes it sound as if people just got angry because the cool kid in class started showing off and it hurt their self-esteem. The length and strength of the protests in Moscow and other bigger cities, that are still going strong, five months after the Duma elections, show that the frustration built up over time. It does seem that well-educated and financial stable Russians just woke up, but I think in reality they've been aware of the problems the whole time, just didn't want to rock the boat. This was just deemed an important enough reason to abandon the fear of loosing stability. Putin didn't just rub in the farce of his rule, he finally showed the full extent of his megalomania, making it clear that if he's not stopped he will take over every morsel of power in Russia.

by: Marko from: USA
May 29, 2012 10:47
A few disagreements.Putin remains quite popular with the majority but a third of the country hates him. Not even half of that third though are liberals. So a Medvedev return and a sharp turn toward policies favored by the West would have alienated Putin's own supporters and not won over all opponents-- without even getting into the matter of what those policies would have produced. Remember the 1990s? There were definitely some drawbacks and complications to what Putin did, but he seems to be through the worst of it now. The problem with your scenario is that, from the point of view of Russian rather than Western interests, Medvedev couldn't do it. Like Yeltsin, he was weak and malleable putty in the hands of the West. Libya proved that-- costing Russia tens of billions in commerce and Medvedev, in all probability, his job.
In Response

by: Regular Joe from: USA
May 29, 2012 20:38
I'm not sure from where you conclude that Libya proved anything about Medvedev. Russia was in no position to do anything about Libya, or frankly, to stop NATO from doing anything about the situation in Libya. I'm not supporting NATO's actions in Libya, but just saying that outside of its "near abroad" (ie. Georgia), Russia is too weak to have much influence if the Western powers feel they really want to take action, regardless of whether Medvedev or Putin might be the titular leader in Moscow. Russia's "tens of billions in commerce" were lost when they backed Ghadaffi, because he was already beaten, not when they yielded to Western pressure in the Security Council. Assad survives in Syria, not from the "protection" of Russia, or even China, but because the West has finally seen that the devil they know may be better than the devil they don't, as in Libya and Egypt.
In Response

by: Marko from: USA
May 31, 2012 21:54
Don't entirely disagree that Russia couldn't have done about Lybia directly-- but it certainly could have not gone along with what happened. Very strange and rather cowardly of Meedvedev to simply go along with Russian interests being removed. It also could have responded asymmetrically in its "near abroad" -- as Putin in fact did in 2008 vis a vis the US creation of Kosovo as an independent state out of the territory of Russia's ally Serbia. Not sure what you mean about Russia backing Khadafy in terms of interests being cleansed from Libya by the US-- that was happening regardless of what policy Russia adopted.

by: rkka from: USA
May 30, 2012 00:12
"But ask yourself the following question: From the perspective of Russia's ruling elite hanging on to its power in a stable environment, would they have been better off under this alternative scenario I just described or in the one they find themselves in now?"

No.

But thanks for the pathetically transparent attempt to stir up dissention amongst the Russian elite.

"Regular readers of this blog know that I like to describe the emerging political arrangements in Russia as an embryonic "deep state" -- a permanent super-elite that rules from the shadows, setting the parameters of acceptable politics for the formal institutions of governance."

You mean, like Goldman Sachs et. al. does here in the US?

No.

Putin kicked the "malefactors of great wealth" out of power in Russia years ago.

by: George from: USA
June 01, 2012 03:19
What I find startaling is not one comment has a "Russian" location.
Althow I am sure some one of the commenters may be a ex-pat Russian. Besides the SVR officer of course.

The Power Vertical Feed

In this space, I will regularly comment on events in Russia, repost content and tweets I find interesting and informative, and shamelessly promote myself (and others, whose work I like). The traditional Power Vertical Blog remains for larger and more developed items. The Podcast, of course, will continue to appear every Friday. I hope you find the new Power Vertical Feed to be a useful resource and welcome your feedback. More

11:12

THE BEGINNING OF THE END OF RUSSIA'S 'GAS WEAPON'

In less than a week, on October 27, Lithuania is scheduled to open its first Liquified Natural Gas (LNG) import terminal at the port of Klaipeda. The terminal, which will begin receiving deliveries in early 2015, is a significant step toward changing the energy equation in Lithuania, the Baltic states, and ultimately in Europe as a whole.

Initially, Lithuania plans to buy enough LNG to cover about a quarter of its domestic needs. But once the terminal is operating at full capacity, and once Lithuania's pipelines to Latvia are upgraded, it will be able to supply 90 percent of the three Baltic states' natural gas demand.

Oh, and by the way, Lithuania's current supply contract with Gazprom expires at the end of next year.

And this is just one of the ways the gas game is changing. Poland is also building a LNG import terminal, which is scheduled to go online in mid-2015.

And as energy analyst  Wenyuan Qiu writes in "The Moscow Times" today, a steep rise in U.S. production has made it "functionally independent of offshore suppliers." As a result, "the closure of the U.S. LNG import market is forcing producers in the Middle East and Africa to look for customers elsewhere" leading to "downward pressure on prices" in Europe.

"Russia will remain an important European energy provider because its gas is relatively economic. But Russia's ability to leverage this resource as an instrument of foreign policy is diminishing," Qiu writes.

 

08:27

MORNING NEWS ROUNDUP

Some items from RFE/RL's News Desk:

RUSSIA-UKRAINE GAS DEAL REPORTEDLY CLOSER

European Energy Commissioner Guenther Oettinger has announced substantial progress was reached in October 21 talks between representatives of Ukraine and Russia on gas supplies, but a final deal has yet to be agreed.

A summit held in Milan October 17 had produced hopes for a breakthrough, after Ukraine's President Petro Poroshenko met Russian counterpart Vladimir Putin and said they had reached a preliminary agreement on a gas price until March 31.

Oettinger said as part of tentative deals, Ukraine planned to purchase some 4 billion cubic meters of gas from Russia before the end of this year.

Oettinger also said Ukraine would pay $1.4 billion of its debt to Russia for gas supplies already received before the end of October and another $1.6 billion by the end of this year.

The head of Russia's delegation to the talks, Energy Minister Aleksandr Novak, said the price of gas for Ukraine would be $385 per 1,000 cubic meters, much lower than the $485 that Russia's state-controlled Gazprom was demanding just weeks ago.

However, the price, which was first announced by Poroshenko following his meeting with Putin on October 17, is still higher than the average of some $350 that Gazprom charges EU companies

Novak said that price would be in force from October 2014 until late March 2015 -- provided Ukraine pays in advance.

However, Novak added the EU should take responsibility for guaranteeing Ukraine pay its $5.3-billion debt for gas to Russia before the end of 2014.

Kyiv has asked the EU for an additional loan of $2.6 billion, but a spokesman stressed on October 21 that the request was not made in connection with the ongoing gas talks.

The EU has so far offered Kyiv loans totalling more than $2 billion.

Russia cut off gas deliveries tro Ukraine in mid-June, citing the $5.3-billion debt. However, Gazprom has not halted supplies transiting Ukraine en route to EU member states.

But Novak again ruled out Gazprom's agreeing to let EU states re-export its gas to Ukraine.

Oettinger announced another meeting would be held in Brussels on October 29.

Separately, the Kremlin said Putin and Poroshenko discussed Russian gas supplies to Ukraine among other issues during a telephone conversation October 21.

It didn't provide further details.

(Based on reporting by Reuters, TASS, and Interfax)

PROSECUTORS TARGET EKHO MOSKVY

The independent Russian radio station "Ekho Moskvy" said it has been informed of an unscheduled inspection by the prosecutor's office.

The station's deputy chief editor Sergei Buntman said on October 21, "We received a document dated from yesterday (October 20) that said the main directorate of the Emergency Situation's Ministry" had requested the prosecutor's office to conduct an inspection of the radio station.

Buntman said according to the document, the inspection would start on October 22 and last for 20 working days.

"Taking into consideration days off, that means almost a month," Buntman said, and he added that the inspection should not affect the activities of the station.

Buntman said, "Of course questions arise about why this decision is taken so suddenly."

"Echo Moskvy" posted a copy of the document the radio station received that indicated the inspection was meant to determine if the station was in compliance with fire safety laws.

(Based on reporting by "Ekho Moskvy" and Interfax)

PUTIN, POROSHENKO DISCUSS CEASEFIRE AND GAS SUPPLIES

The Kremlin said the Russian and Ukrainian presidents stressed the importance of supporting the peace process in Ukraine and observing the ceasefire the country's south-east during a phone conversation on October 21.

President Vladimir Putin and Petro Poroshenko also discussed Russian gas supplies to Ukraine after a tentative agreement reached in Milan last week on the basic terms of future supplies, the statement said.

It didn't provide further details.

Russia raised the price it charges Kyiv for natural gas after Ukraine's pro-Russia President Viktor Yanukovych was ousted in February, then halted gas supplies to Ukraine in June when Kyiv failed to pay the higher price.

Some progress was reportedly made toward resolving the issue of Russian gas supplies to Ukraine during last week's talks in Milan.

Poroshenko said a preliminary agreement had been reached on a price of $385 per 1,000 cubic meters until the end of March -- $100 less than Russia had originally demanded.

(Based on reporting by Reuters, TASS, and kremlin.ru)

RUSSIAN INVESTIGATORS SAY 'CRIMINAL NEGLIGENCE' BEHIND TOTAL AIR CRASH

Russian investigators say the air crash that has killed the chief executive of French oil giant Total was caused “criminal negligence” by airport officials.

Christophe de Margerie and three French crew members died when his corporate jet collided with a snow-removal machine at Moscow's Vnukovo Airport late on October 20.

The Investigative Committee warned that several senior airport officials would be suspended, adding that investigators will assess the "actions and non-action" of management.

The snow plough driver has already been detained.

Investigators have said the man was drunk at the time of the accident, which his lawyer denied.

Total is one of the top foreign investors in Russia.

The Kremlin said President Vladimir Putin "highly esteemed" Margerie's business qualities and his "consistent devotion" to developing bilateral Russia-French relations.

(Based on reporting by AFP, Interfax, and TASS)

 

16:08 October 17, 2014

NEW POWER VERTICAL BLOG

I just posted a new piece on the Power Vertical blog: Putin's Class of 2014.

The iPhone-toting hipsters hanging out in their trendy downtown Moscow office are just the high-profile part of the Kremlin's new youth strategy.

Founded in November 2013, the youth group Set -- which means "Network" in Russian -- has organized patriotic fashion shows and film festivals, created an alphabet for schoolchildren that highlights the regime's accomplishments, and painted murals in seven cities on October 7 to mark Russian President Vladimir Putin's 62nd birthday....

But the rise of Set is just one side of the story. The other aspect of the Kremlin's youth strategy is stealthier -- and much more consequential.

Over the past 18 months, Putin has been quietly bringing a new cadre of officials to Moscow, reshaping the rank-and-file bureaucracy in his own image.

You can read it all here.

AND A NEW POWER VERTICAL PODCAST COMING SOON

We're in post-production for the new Power Vertical Podcast: Ukraine's Loyal Russians

A country divided between a Ukrainian-speaking west and a Russian-speaking east. An irreconcilable schism forged in history and set in stone. Lviv vs. Luhansk; Orange vs. Blue.

It's long been a truism that Ukraine was hopelessly split. It's a truism repeated endlessly by the Kremlin's propaganda machine -- and one used by Vladimir Putin to justify his Novorossiya project.

But it's a truism that the majority of Ukraine's ethnic Russians -- in cities like Odesa and Mariupol in the south to Dnipropetrovsk and Zaporizhia in the east to Kharkiv in the north  -- are proving false. Most of Ukraine's ethnic Russians, it turns out, are loyal Ukrainian citizens.

Joining me are Andreas Umland, a professor of Russian and Ukrainian history at Kyiv Mohyla University and Natalya Churikova, Senior Editor of RFE/RL's Ukrainian Service. It's in post-production now and will be up soon.

 

13:25 October 17, 2014

AFTERNOON NEWS ROUNDUP

Some items from RFE/RL's News Desk:

RUSSIA-WEST RIFT PERSIST AFTER DIFFICULT UKRAINE CRISIS TALKS

By RFE/RL

Italy's prime minister said he was "really positive" about the prospects for a solution to the Ukraine conflict after a meeting attended by Russian President Vladimir Putin, Ukrainian President Petro Poroshenko and European leaders, but the Kremlin suggested deep rifts remained after the "difficult" talks and accused Western officials of inflexibility.

"In general, I am really positive after this meeting," Italian Prime Minister Matteo Renzi said after the talks over breakfast during a Europe-Asia summit that was overshadowed by the crisis in Ukraine, where deadly fighting persists in the east despite a cease-fire between government forces and pro-Russian separatists.

Putin, in the spotlight and under pressure from the West to do more to bring peace to Ukraine, said the meeting -- attended by Putin and Poroshenko as well as German Chancellor Angela Merkel, French President Francois Hollande, British Prime Minister David Cameron, Italian Prime Minister Matteo Renzi, and outgoing EU leaders Herman Van Rompuy and Jose Manuel Barroso -- was "good, positive".

But his spokesman, Dmitry Peskov, gave a grimmer account.

"The talks are indeed difficult, full of misunderstandings, disagreements, but they are nevertheless ongoing, an exchange of opinion is in progress," Peskov told reporters.

He said some participants displayed "a complete lack of desire to take an objective approach" to the Ukraine crisis, which Russia blames on the European Union, the United States, and the pro-Western government that gained power in Ukraine after the ouster of a president sympathetic to Russia, Viktor Yanukovych, In February.

Kyiv, NATO, and Western governments say Russia has supported the rebels with troops, weaponry, and propaganda after illegally annexing the Black Sea peninsula from Ukraine in March.

The conflict in eastern Ukraine has killed more than 3,660 combatants and civilians since April and driven Moscow's ties with the West to post-Cold War lows, prompting punitive sanctions against Moscow and a Russian ban on many foods from the EU, its biggest trading partner for years.

The breakfast-table talks came hours after lengthy Putin-Merkel meeting that stretched past midnight and failed to resolve what the Kremlin said were "serious differences of opinion about the genesis of the internal Ukrainian conflict as well as about the causes of what is happening there now."

Western leaders have rejected Russia's denials of involvement and said Moscow must see to it that a cease-fire and steps toward peace agreed on September 5 in Minsk, the capital of Belarus, are implemented.

"It is obviously above all Russia's task to make clear that the Minsk plan is adhered to," Merkel told reporters on October 16. "Unfortunately, there are still a lot of shortcomings but it will be important to look for a dialogue here."

British Prime Minister David Cameron said Putin assured the other leaders at the breakfast that Russia does not want a divided Ukraine or a frozen crisis.

Kremlin critics say Russia has supported the cease-fire and plans for peace because the September 5 agreement followed rebel gains that left the separatists in control over large portions of Ukraine's Donetsk and Luhansk regions, giving Moscow a lever to influence its France-sized neighbor and keep it destabilized - and out of NATO - for years to come.

Putin and Poroshenko were to meet with Merkel and Hollande later on October 17.

Putin, who basked in attention at a military parade in mostly Slavic, Orthodox Christian Serbia on October 16, set the stage for tense talks in Milan by warning in Belgrade that a dispute with Kyiv over natural gas could jeopardize Russian supplies to Europe via transit nation Ukraine this winter.

He said Europe faces "major transit risks" to gas supplies from Russia.

Blaming Kyiv in advance for any possible cuts in supplies to Europe, Putin said that if Ukraine siphons gas from transit pipelines to the European Union, Russia will reduce supplies in the amount of the "stolen" gas.

Russia raised the price it charges Kyiv for natural gas after Yanukovych was ousted by street protests he had touched off last November by scrapping plans for a deal tightening ties with the EU and turning toward Russia instead.

In June, Russia halted gas supplies meant for domestic consumption in Ukraine when Kyiv failed to pay the higher price.

Russia is the EU's biggest external gas supplier, providing about one-third of the gas consumed there, and previous price disputes between Moscow and Kyiv have led to supply cuts that have chilled Europeans in wintertime.

Some government officials said the Western leaders would ask Putin to explain the threat of gas supply cuts.

Merkel and Poroshenko held talks earlier on October 16, and Poroshenko said he received "a great demonstration of support for Ukraine" from the German leader.

Kremlin spokesman Dmitry Peskov said Putin also met with former Italian Premier Silvio Berlusconi, whom he referred to as Putin's "old friend."

Dutch Prime Minister Mark Rutte said he spoke briefly to Putin and asked him for "maximum cooperation" over the downing of a Malaysian Airlines passenger jet in the conflict zone in eastern Ukraine in July.

More than half of the 298 people killed were Dutch citizens, and many in the West suspect the plane was shot down by the separatists with a missile system provided by Russia.

Hundreds of people have been killed since the cease-fire, with fierce fighting focusing on the devastated Donetsk international airport and shelling reported in the city of Donetsk and elsewhere almost daily.

Ukrainian military officials said three soldiers were killed and nine wounded on October 16.

NATO said it has not yet detected "significant" movements of Russian troops in a region near the border with Ukraine back to their home bases, as the Kremlin said Putin ordered last week.

A NATO spokesperson said "there is still a large and capable force sitting on the border of Ukraine, and heavy equipment still has to be pulled back [from the border]."

(With reporting by Reuters, AP, TASS, Interfax, and AFP)

GEORGIAN PM SAYS NO PROGRESS NORMALIZING RELATIONS WITH MOSCOW

Georgian Prime Minister Irakly Garibashvili says attempts by Tbilisi to normalize political relations with Russia have thus far been unsuccessful.

Garibashvili said in Tbilisi on October 16 that the Georgian government had done "all it could" to improve bilateral relations with Moscow has only achieved progress in the economic sector.

The premier's Georgian Dream party took power two years ago pledging to engage with Moscow.

Garibashvili made his comments one day after Russia announced it would sign an "alliance and integration" treaty with the breakaway Georgian region of Abkhazia.

The treaty would create a "common defense infrastructure" between Abkhazia and Russia while forming joint law-enforcement structures and a more integrated economic space.

Georgian President Giorgi Margvelashvili issued an "emergency statement" on the treaty on October 15.

Moscow recognized Abkhazia as an independent state after a brief war between Russia and Georgia in 2008.

(Based on reporting by Interfax, AFP, and TASS)

RUSSIA DETAINS TWO JOURNALISTS OVER WORKSHOP

Russian officials temporarily detained and then banned two American journalists from conducting an investigative-journalism workshop in St. Petersburg.

The men were found by a court on October 16 of violating Russian visa regulations and released after several hours.

Randy Covington, a professor at the University of South Carolina, and Joe Bergantino of the New England Center for Investigative Reporting were detained by immigration authorities while conducting the first of a two-day workshop for 14 Russian journalists.

St. Petersburg's branch of the Federal Migration Service said the men's activities "did not correspond" to the purpose of their trip to Russia.

Officials said they could no longer teach the workshop but were free to leave Russia as scheduled.

The New England Center for Investigative Journalism said the men had tourist visas and had already held a workshop in Moscow.

(Based on reporting by AP and "The Boston Globe")

18:00 October 16, 2014

EVENING NEWS ROUNDUP

Some items from RFE/RL's Newes Desk:

PUTIN WARNS EUROPE OF GAS CRISIS THIS WINTER

President Vladimir Putin has warned that Europe faces "major transit risks" to natural gas supplies from Russia this winter.

Putin told reporters in Belgrade on October 16 that if Ukraine siphons off natural gas without permission from transit pipelines to the European Union, Russia “will consecutively reduce the stolen volume at the cost of supplies."

Putin made the remarks ahead of talks in Milan on October 16 and 17 with EU leaders and Ukrainian President Petro Poroshenko.

Russia raised the price it charges Kyiv for natural gas after Ukraine's pro-Russia Preident Viktor Yanukovych was ousted in February, then halted gas supplies to Ukraine in June when Kyiv failed to pay the higher price.

The price standoff is the third between Moscow and Kyiv since 2006.

Russia is the EU's biggest gas supplier, providing about a third of the gas consumed there.

(Based on reporting by Reuters, AP, and AFP)

U.S. HELSINKI COMMITTEE DECRIES RUSSIAN ATTEMPT TO CLOSE MEMORIAL RIGHTS GROUP

By RFE/RL

The U.S. Helsinki Commission says Russia’s attempt to liquidate Memorial, the country's oldest and best-known human rights organization, is “an obvious attempt to silence the voice of its own conscience.”

“It is very troubling that an organization founded by [Soviet dissident] Andrei Sakharov to address the crimes of the Stalinist era now has become the target of a new wave of repression,” the commission’s chairman, U.S. Senator Ben Cardin, said in an October 16 statement.

Russia's Justice Ministry on October 10 appealed to the country’s Supreme Court to close Memorial, which comprises more than 50 bodies nationwide. The reasons for the request were not made public.

Created in the 1980s by Soviet-era dissidents, Memorial has served as a tireless rights watchdog and important source of Soviet-era records for a quarter century.

PUTIN VOWS TO SUPPORT SERBS ON KOSOVO

Russian President Vladimir Putin pledged continued support for Serbia on the divisive issue of Kosovo during a state visit that mixed meetings with officials with attendance at a military parade.

Putin is the guest of honor at Serbia's first military parade in some 30 years as Belgrade marks the anniversary of its liberation from the Nazis by partisans and Soviet Army troops in 1944, a celebration Serbia moved forward four days to accommodate Putin's schedule.

The visit highlights Serbia's delicate balance between the European Union, which it is seeking to join, and relations with Russia that are rooted in history and religion but encompass economic and geopolitical interests.

Russia angrily criticized the NATO bombing of the rump Yugoslavia in 1999 and has backed Belgrade's opposition to independence for mostly ethnic Albanian Kosovo, defying the United States and preventing Kosovo from getting a seat at the United Nations.

Putin promised Serbian President Tomislav Nikolic that Russia would stand firm over Kosovo, saying the Kremlin's stance was "a position of principle that is not to be subjected to any adjustments."

"We supported Serbia in the past and we intend to continue supporting it in the future. In Russia friendship is not an object of trade-offs," Putin said.

Nikolic said Serbia "sees in Russia a great ally and a partner and Serbia won't compromise its morals with any kind of bad behavior towards Russia."

Despite Serbia's desire to become a member of the European Union, ties between Belgrade and Moscow have become stronger since the EU started imposing sanctions on Russia for the Kremlin's annexation of Ukraine's Crimean Peninsula and support for separatists in eastern Ukraine.

Criticizing sanctions the United States and European Union have imposed on Moscow over its actions in Ukraine in an interview on the eve of his visit, Putin told the Serbian daily "Politika" that isolating Russia was an "absurd, illusory goal" and attempts to do so would hurt Europe's economy.

In a pointed reminder of Russia's nuclear might, Putin said: "We hope our partners will realize the futility of attempts to blackmail Russia and remember what consequences discord between major nuclear powers could bring for strategic stability."

Putin used the visit to promote South Stream, a Russian gas pipeline project that that the EU has suspended in member states.

Serbia has recently indicated it will not start building South Stream. Prime Minister Aleksandar Vucic said last week "it makes no sense" to start without an agreement on the pipeline's legality between the EU and Moscow.

"It is necessary to unblock the situation with South Stream," Putin said. "I am convinced that this project will make a palpable contribution to Europe's overall energy security. Everyone wins from this: Both Russia and European consumers, including Serbia."

The European Commission released a report on candidate countries earlier this month that warned Belgrade's plans to build a portion of the pipeline and its refusal to follow the EU's lead on sanctions against Russia could jeopardize Serbia's bid for EU membership.

Serbia has recently indicated it will not start building South Stream. Prime Minister Aleksandar Vucic said last week "it makes no sense" to start without an agreement on the pipeline's legality between the EU and Moscow.Serbia has recently indicated it will not start building South Stream.

Putin told "Politika" the pipeline project would bring Serbia more than 2 million euros in new investment and "substantially strengthen the country's energy security."

Putin's warm Serbian welcome may contrast with greeting he faces hours later at an October 16-17 Europe-Asia summit in Milan, where he will meet Western leaders angry over Russia's role in the Ukraine crisis.

NATO says Russian has sent troops and weapons to help pro-Russian separatists fighting government forces in a conflict that has killed more than 3,660 people in eastern Ukraine since April, including 298 passengers and crew abroad a Malaysian jet shot down there in July.

Putin said the importance of the liberation anniversary events could not be overestimated.

"Seventy years ago, our peoples together crushed the criminal ideology of misanthropy that threatened civilization," he said in the interview.

In a veiled swipe at the United States, he said "it is important today that people in various countries, on various continents remember what terrible consequences certainty in one's own exceptionalism can bring."

Putin said he hopes for peace in Ukraine but suggested Ukrainians whose protests toppled a president sympathetic to Moscow in February presented a Nazi-like threat.

"Unfortunately the vaccine against the Nazi virus ... is losing its potency in some European states.," he told "Politika," adding: "particular concern on this score is prompted by the situation in Ukraine, where there was an anticonstitutional coup d'etat in February whose driving forces were nationalists and other radical groups."

In comments to RFE/RL's Balkan Service, Vucic pointed to the complications his country is facing as it balances its foreign policy between the EU and Russia.

"We are not part of the EU and nobody asked us about sanctions against Russia so why should we have to accept them now?" Vucic asked.

Vucic said Serbia respects what EU stands for and what EU membership offers but rejects Brussels' recent habit of telling Belgrade about changes it must make to be admitted.

However, he told reporters last week that Serbia's "strategic goal is not in question – Serbia is on the EU path."

That may not always be evident to the naked eye.

In anticipation of Putin's visit, shops around Belgrade have been selling T-shirts with Putin's face printed on them.

"Nothing better could happen to us," Belgrade resident Vukan Baricanin, a retired economist, said of Putin's visit. "Putin is a famous personality. He turned a country that was on the verge of bankruptcy into a world power."

But Dragan Sutanovac, Serbia’s defense minister between 2007 and 2012, denounced “a desire for idolatry in regard to Putin.”

(With reporting by TASS, Reuters, AFP, AP, and Interfax)

RUSSIAN AMBASSADOR AGAINST 'PUTIN PUB' IN BISHKEK

By RFE/RL's Kyrgyz Service

Russian Ambassador to Kyrgyzstan, Andrei Krutko, has protested the new "Putin Pub" restaurant in Bishkek.

Krutko said late October 15 that naming "a dubious drinking site" after "our president" is "unethical" and therefore he asked Bishkek authorities to remove the commercial banners and billboards advertising the pub.

Krutko added that he would do everything possible "either to shut down the place or to make it change its name."

Last month, Bishkek authorities removed all billboards and banners in the city that advertised the "Putin Pub."  

The billboards carried a black screen with white and black silhouetted portrait of the Russian President Vladimir Putin in a circle with the name of the restaurant -- "Putin Pub," below.  

(With reporting by "Vecherny Bishkek")

17:35 October 16, 2014

UKRAINE CALLS ON ITS CITIZENS TO DITCH VKONTAKTE

VIa slon.ru:

Ukraine's Security Service has urged Ukrainians not to use Russian social networks.

Markiian Lubkovsky, an adviser to the Interior Minister told the television channel "112 Ukraine" that the site "VKontakte" is an "element of pressure and influence." 

"We urge all Ukrainians, all of our citizens to be careful not to use these networks, because they are now part of the information war against Ukraine," he said.

Read it all here. And a big h/t to Kevin Rothrock for flagging.

 

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About This Blog

The Power Vertical is a blog written especially for Russia wonks and obsessive Kremlin watchers by Brian Whitmore. It covers emerging and developing trends in Russian politics, shining a spotlight on the high-stakes power struggles, machinations, and clashing interests that shape Kremlin policy today. Check out The Power Vertical Facebook page or