Thursday, October 30, 2014


The Power Vertical

The Kremlin's New Deal

'Let me make you an offer you can't refuse.'
'Let me make you an offer you can't refuse.'
Tsar Peter I once proposed to his prosecutor-general that corrupt officials be either exiled to Siberia or executed.

"But then who will be left?" the prosecutor responded, according to the oft-repeated historical anecdote. "We're all thieves."

President Vladimir Putin repeated this tale during his press conference in December to illustrate how difficult it is to combat corruption. He was, of course, painting himself as the good tsar who, regretfully, had to discipline his bad boyars.

But if Putin wanted to be more honest, he could have chosen a popular Soviet-era joke about a minor bureaucrat imprisoned for graft:

"The poor guy. Why'd they pick on him?" one colleague asked.
"He stole too much for someone of his rank," another answered.

The second anecdote is more appropriate for the simple reason that it illustrates that official corruption is not a bug in Russia's operating system, but an essential feature. And it's a feature that Putin has used very effectively to keep the elite motivated and in line.

Putin's deal with the elite was always pretty straightforward: Steal (but not too much for your rank) and nobody will mess with you as long as you give unwavering loyalty to the national leader.

But now, one year after Putin won election to a third term in the Kremlin, he is rewriting the terms of the bargain. Putin's "New Deal" with the elite could turn out to be one of the riskiest and trickiest initiatives of his rule.

And it has nothing to do with fighting corruption. It's all about reestablishing control and ensuring loyalty -- both of which the Kremlin leader apparently believes are slipping.

This week, the State Duma is expected to pass the final version of legislation forbidding certain categories of officials from keeping their assets abroad. According to the daily "Nezavisimaya gazeta," the bill forbids officials from having a bank account abroad, keeping money in any foreign account, or holding bonds issued by any foreign entity. They will also be required to declare any foreign real-estate holdings.

The Russian media calls this the "re-nationalization" of the elite, and part of the logic behind it is the fear that Russian officials keeping assets abroad could turn out to be disloyal.

Such fears were redoubled by new legislation in the United States providing for visa bans and asset freezes against Russian officials who violate human rights. Some European countries are considering similar legislation, and Putin is clearly worried that this would give Western governments unacceptable leverage.

According to the respected political analyst Yevgeny Minchenko, Putin believes officials "should be completely independent of foreign countries and fully accountable to the president."

Additionally, the opposition's successful rebranding of the elite as "swindlers and thieves" has stuck in the public consciousness -- meaning the Kremlin will now need to more convincingly pretend to care about official graft. Some officials who thought they were untouchable will be vulnerable.

"This is a fundamentally new Putin with regard to the elite," political analyst Igor Bunin, director of the Center for Political Technologies, told the daily "Moskovsky komsomolets."

"Previously, he kept the balance between the interest groups; now he has decided to reformat the elite. It had lived comfortably in symbiosis with the regime, and suddenly it was told that it needed to be nationally oriented, and not have accounts abroad."
 
If Putin follows through with all this, it will change his relationship with the ruling elite pretty dramatically. Putin's elite support was largely based on two services he provided: He was the ultimate arbiter in disputes between warring factions and he was the protector of their wealth and privilege.

Both could now come under question.

"This law is about political, and not legal, control," Dmitry Gorovtsov, a Duma deputy from the center-left A Just Russia party, told "Nezavisimaya gazeta."

"It will be applied selectively and subjectively."
 
Putin, in essence, is asking the elite to give something up they had become accustomed to, while offering nothing in return. And this comes at a time when many of them are uncomfortable with the traditionalist and xenophobic line the Kremlin has recently adopted.
 
Whether this is an offer the elite can't refuse is still an open question. Lilia Shevtsova of the Moscow Carnegie Center told "The Washington Post" that Putin risks losing the support of key sectors of the ruling class, which could begin seeking ways to replace him.

Such fears may be the reason the Kremlin toned down an earlier, much stricter, version of the legislation now pending in the Duma.

Meanwhile, all this attention on the elite's property has been a godsend for oppositionists like anticorruption blogger Aleksei Navalny -- who appears to be delighting in stealing the Kremlin's thunder on the issue.

Navalny was instrumental in detailing and publicizing the undeclared real estate in Miami owned by lawmaker Vladimir Pekhtin, which was initially exposed by the Spain-based blogger Dr. Z.
 
Pekhtin was forced to resign his seat in the Duma as a result. His departure was followed by the resignations of two more lawmakers with undeclared property issues, Anatoly Lomakin and Vasily Tolstopyatov.
 
And last week, Navalny turned his sights on Andrei Turchak, the governor of Pskov Oblast whose father was once Putin's judo partner. According to documents Navalny posted on his blog, Turchak is the proud owner of an undeclared villa, worth 1.27 million euros.

And as the whole thing plays out, a funk is settling in among the elite, according to Gleb Pavlovsky, a onetime Putin adviser.
 
"It seems that Vladimir Vladimirovich’s general idea is that only he should manage everyone, trusting no one. But this is impossible," Pavlovsky told "Moskovsky komsomolets."
 
"Officials at all levels perceive the president’s strange behavior as a signal: Remain silent, don't act, and don't stand out. Remain sitting, do not move, and be afraid. Stagnation is setting in."
 
-- Brian Whitmore

Tags: Vladimir Putin,Russia corruption,Aleksei Navalny

This forum has been closed.
Comment Sorting
Comments
     
by: Babeouf from: Ireland
March 11, 2013 21:26
Why bother with all the paragraphs. Just write 'Russian regime' its a bad thing. After all that's what you do in practice but more wordily. You run stories on the Regimes corruption 'Russian regime' its a bad thing. Then you run stories essentially about the regime actually trying to do something about corruption. Guess what. ' Russian regime' targets corruption, its a bad thing. Not exactly Russia Today is it. The US government should look for a refund for your amateurish productions.
In Response

by: Alik from: Lithuania
March 12, 2013 17:05
In fact, Putin's moves are not "about the regime actually trying to do something about corruption". They are about making the bureaucracy members isolated from any western ties and trying to even more control Russian MPs and other designated gentry, because there are little people elected, most of them are designated by Putin's ruling group.

by: Jack from: US
March 12, 2013 02:01
Ugh these corrupt Russian officials with Putin at the helm.. they clearly have a lot to learn from one freedom-loving syndicate called US federal government. For example how a fellow named Bernanke can print trillions of dollars out of thin air and give it out to his fellow tribesmen from Wall Street under clever disguise of "bailout funds". The fellows then safely stash the cash in their offshore accounts or launder through real estate purchases in Dubai, where property prices went astronomically high not because there is some "business activity" among sand dunes but because some poor fellow from US feel their money can be used better in Al Qaeda-run mid-eastern bank
In Response

by: Camel Anaturk from: Kurdistan
March 12, 2013 20:57
Thats right jackie,dear,its high time we scrape the hot thin air $$$ and use the mighty rouble instead-its backed with the iron clad stalin assurances of mother Russia-its enormous billion roubles` worth vodka and selyodka deposits guaranteed by the russian politicians`verbal assurances-and what else do we need for the recovery from the economic crisis-well a coupla Natashkas maybe,if not Eugenio and Jack will do!!!

by: Alex from: Baltimore, MD
March 12, 2013 20:15
Brian, welcome back, you've been missed. Nice piece, trenchant analysis, as always. You know you're doing good work when the pro-Putin/anti-American trolls come after you! Write on.

by: Dane from: Washington
March 12, 2013 22:08
Only on Radio Liberty would Russia combating corruption be a bad thing. Why must the American taxpayer fund such an organization?
In Response

by: Brian Whitmore from: Prague
March 13, 2013 08:00
Nowhere does this post say fighting corruption is a bad thing.
There are two main points:
1) The current campaign is about control and loyalty, not corruption
2) This is changing Putin's relationship with the elite, which has broader political implications.
It is probably a good idea to read the post carefully before commenting.

by: Ben
March 13, 2013 19:07
While "thinkers" like Minchenko discussed Putin`s successor,the late decided to lead the changes himself.Soviets pinched everything they managed to reach,Russian empire`s official has his post as kormlenie(feeding).Putin`s attempt was to change it for the private busines but Navalnys of allkindes spoil this happy practice.The answer can be- the communists in Duma, who will make Russians nostalgic about these days!

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18:33 October 29, 2014

EVENING NEWS ROUNDUP

From RFE/RL's News Desk:

KREMLIN MOVES TO QUASH PUTIN HEALTH RUMORS

Vladimir Putin's spokesman said on October 29 that the Russian president is in good health, seeking to quash rumors of an illness.

Dmitry Peskov told reporters in Moscow that "everything is okay" with Putin's health, Russian news agencies Interfax and TASS reported.

"They will wait in vain. May their tongues wither," Peskov said of those who claim Putin is ill.

Peskov spoke after a spate of Russian media reports referring to an October 24 column in the tabloid "New York Post" whose author, Richard Johnson, cited unidentified sources as saying Putin had pancreatic cancer.

Putin and the Kremlin have strongly discouraged reporting about the 62-year-old president's private life.

(Based on reporting by TASS and Interfax)

ROSNEFT THREATENS TO SUE NEWSPAPER OVER SANCTIONS REPORT

Russia's largest oil company, Rosneft, is threatening to sue the Russian daily "Kommersant" for a report alleging Rosneft sent President Vladimir Putin proposals for countersanctions against Western companies and individuals.

"Kommersant" reported on October 29 that state-run Rosneft's proposals include limiting cooperation aboard the International Space Station, prohibiting burial of U.S. and EU nuclear waste in Russia, and possible confiscation of property in Russia owned by Western countries or their citizens.

Putin's spokesman, Dmitry Peskov, denied there were any Rosneft proposals for sanctions, but presidential aide Andrei Belousov and Economy Minister Aleksei Ulyukayev seemed to contradict this.

State-run TASS reported Peskov said reports Rosneft had sent such proposals were untrue.

Peskov said decisions on imposing sanctions were made "in line with the relevant departments, and taken on the level of the government and president."

A different TASS report quoted Belousov as saying, "We are closely studying Rosneft's proposals."

Belousov went on to say, "I would say the radicalism of the proposals for now exceeds the current level of tensions."

The Interfax news agency quoted Ulyukayev as saying the proposals were a "very complex document" and adding, "I don’t think it is grounds for making any decisions."

The "Kommersant" report said "Russian government officials" had provided information about the alleged proposals.

A statement from Rosneft said the company was "deeply shocked" by the "Kommersant" article and might sue the newspaper.

Western governments have imposed several rounds of sanctions on Russia over its annexation of Crimea and support for separatists in eastern Ukraine.

The sanctions target key Russian industries and individuals close to Putin, including Rosneft and its head, Igor Sechin, who is a former Kremlin deputy chief of staff.

The sanctions have hurt Rosneft, which has already requested additional funding from the Russian government to make up for losses incurred due to sanctions.

British oil company BP reported on October 28 that its income from its operations with Rosneft dropped from $808 million in the third quarter of 2013 to $110 million in the same period this year.

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

WHITE HOUSE DETECTS SUSPICIOUS CYBER ACTIVITY, REPORT BLAMES RUSSIA

The White House says it has taken measures to counter suspicious activity detected on its unclassified computer network.

A White House official would not say who might have been responsible for the activity on what was described as an unclassified computer network used by employees of the Executive Office of the President.

The official, who spoke on condition of anonymity, said the authorities had taken "immediate measures to evaluate and mitigate the activity."

In a report on October 28, the "Washington Post" cited sources as saying hackers believed to be working for the Russian government breached the unclassified computer network in recent weeks.

The White House has declined to comment on the "Washington Post" report.

A U.S. administration official said there were no indications that classified networks had been affected.

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

VICTIMS OF STALIN TERROR REMEMBERED IN MOSCOW CEREMONY

By RFE/RL

Activists are gathering near the former KGB headquarters to honor the memory of thousands of men and women executed by Soviet authorities during Josef Stalin's "Great Terror."

Speakers at the daylong ceremony at the Solovetsky Stone memorial on Moscow's Lubyanka Square read out aloud the names, ages, occupations, and dates of executions of some 30,000 people killed by Soviet authorities in 1937-1938.

Muscovites and others brought flowers, pictures of victims and candles to the site of the "Returning the Names" commemoration, which began at 1000 (local time; 0800 Prague time) and was to end at 1000 (local time; 0800 Prague time).

The annual ceremony is organized by Memorial, Russia's oldest and best-known human rights organization, which is under pressure from the government.

On October 10, Russia's Justice Ministry appealed to the Supreme Court to close Memorial.

Memorial has held the ceremony every year since 2006 at the site near the headquarters of the Federal Security Service, the KGB's main successor.

Ceremonies were also being held in other Russian cities.

(Based on live broadcast by october29.ru)

SEPARATISTS SHELL UKRAINIAN TROOPS

Pro-Russian separatists reportedly shelled the position of Ukrainian government troops in southeastern Ukraine on October 29, despite an almost two-month-old cease-fire agreement.

Authorities in the port city of Mariupol say military positions located near the village of Talakovka were targeted on October 29 by conventional artillery and Grad rockets that were fired from from the separatist-controlled region of Donetsk.

Casualties were reported among troops.

The cease-fire agreement signed in early September ended most fighting between the two sides -- although battles at the Donetsk airport, in Mariupol, and in villages near the city of Luhansk continue on an almost daily basis.

The UN says more than 3,700 people have been killed in six months of fighting between government forces and separatists in eastern Ukraine, with hundreds of thousands fleeing their homes.

(Based on reporting by Interfax and UNIAN)

RUSSIAN AIRLINE PLANS YEREVAN-CRIMEA FLIGHTS OVER kYIV'S OBJECTIONS

By RFE/RL's Armenian Service

The Grozny Air civil aviation company, based in the Russia's Chechnya region, is pressing ahead with plans to launch regular flights from Yerevan to Crimea, despite protests from Kyiv.

Timur Shimayev, an executive officer for Grozny Air, told RFE/RL on October 29 that the firm's inaugural flight to Crimea is scheduled for November 17.

But Ukraine's Ambassador to Armenia, Ivan Kukhta, told reporters in Yerevan on October 29 that any commercial flights between Yerevan and Crimea must first be approved by Kyiv.

Kukhta's statement came five days after a spokesman for the Armenian government’s Civil Aviation Department, Ruben Grdzelian, said that a Russian regional airline had not been allowed to launch flights between Armenia and Crimea since the Ukrainian penninsula was annexed by Russia in March.

Moscow's annexation of Crimea has been condemned as illegal by the United States, the European Union, and the United Nations General Assembly.

 

12:55 October 29, 2014

SANCTION THIS!

The Russian daily "Kommersant" reports that the state-run oil giant Rosneft is calling on President Vladimir Putin to impose new sanctions on the West. The new moves reportedly include limiting cooperation aboard the International Space Station, prohibiting burial of U.S. and EU nuclear waste in Russia, and possible confiscation of property in Russia owned by Western countries or their citizens.

12:41 October 29, 2014

AND IN THE FALLOUT DEPARTMENT...

Just a few things I've noticed this morning:

Russian-German Trade Down

German exports to Russia have dropped by more than a quarter, "The Moscow Times" reports. In August, exports from Germany to Russia were 2.3 billion euros, a 26.3 percent decrease from a year ago. Moreover, German exports to Russia fell by 16.6 percent from January-August 2014.

Russian Elite More Cohesive -- For Now

According to a report by Reuters, sanctions have had the "opposite effect to the one intended" among the elite. "Far from dividing those closest to President Vladimir Putin, they have forced the main players in the energy sector to rally behind him. This circle has by necessity become more focused, Western and Russian businessmen, diplomats and politicians said," according to the report.

Sweden Is Warming Up To NATO

Foreign Directors Bail On Russian Firms

Since the start of the year, 14 percent of foreigners serving on the boards of Russian firms have left their posts, "The Moscow Times" reports. "Western sanctions have forced some foreign directors to step down or curb their activities on the boards of publicly traded Russian companies, leaving a critical gap that few domestic candidates are equipped to fill," according to the report.

09:17 October 29, 2014

MORNING NEWS ROUNDUP

From RFE/RL's News Desk:

RUSSIA AND UKRAINE TO RESUME GAS TALKS

Russia and Ukraine are set to resume talks over a gas dispute on October 29 in Brussels.

The new round of negotiations comes after inconclusive talks October 21, when European Energy Commissioner Guenther Oettinger announced some progress, but said a final deal has yet to be agreed.

Russia cut off gas deliveries to Ukraine in mid-June, citing a $5.3-billion debt.

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

Russia on October 21 said the it would sell gas to Ukraine for $385 per 1,000 cubic meters, much lower than the $485 that Russia's state-controlled Gazprom was demanding just weeks ago.

Moscow said that price would be in force from October 2014 until late March 2015 -- but only if Ukraine pays in advance.

(Based on reporting by AFP and AP)

KYIV CONDEMNS MOSCOW'S SUPPORT FOR SEPARATIST ELECTIONS

Ukraine on October 28 condemned as “destructive and provocative” Russia’s support for elections organized by pro-Russian separatists in eastern Ukraine, while the United States said a vote by separatists in eastern Ukraine would be unlawful.

The November 2 vote was scheduled by rebels in defiance of Ukrainian national elections on October 26, which were won by pro-Western parties.

Ukrainian President Petro Poroshenko on October 28 described the vote planned by rebels as "pseudo-elections," saying they "grossly contradict the spirit and letter" of international agreements reached in Minsk in September.

Russian Foreign Minister Sergei Lavrov says Moscow plans to recognize the elections that are being organized by separatists in the Donetsk and Luhansk regions of Ukraine.

Meanwhile, U.S. Secretary of State John Kerry warned that the the vote "will be a clear violation of the commitments made by both Russia and the separatists that it backs in the Minsk agreements."

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

GAZPROM NEFT CHALLENGES EU SANCTIONS IN EUROPEAN COURT

Gazprom Neft, the oil arm of Russia's state-controlled natural gas monopoly Gazprom, said on October 28 that it has challenged European Union sanctions against the firm in the EU’s Court of Justice.

The sanctions against Gazprom Neft were imposed as part of wider restrictions against Russia over its illegal annexation of Crimea from Ukraine and its support for pro-Russian separatists in eastern Ukraine.

The EU sanctions restrict the ability of Gazprom Neft, Russia's fourth biggest oil producer by output, to raise funds on European markets.

The United States also has imposed sanctions against Gazprom Neft in response to Russia’s role in Ukraine’s crisis.

The West says Moscow is supplying arms and troops to help pro-Russian separatists in eastern Ukraine battle Ukrainian government forces.

Moscow denies that, despite increasing evidence to support the charges.

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

18:54 October 27, 2014

THE BIG CHILL

Sam Greene, Director of the Russia Institute at King’s College London and author of "Moscow in Movement: Power & Opposition in Putin’s Russia," has a depressing (and must-read) blog post up about his recent trip to Moscow titled: "Russia's Tomorrow, Today."

It opens like this:

The news and the invitation were waiting for me, both, when I got off the plane from London to Moscow. I saw the invitation first—from a long-time colleague, to attend a workshop on the future of Russian politics later this month at Memorial, the venerable Russian historical society and human rights organization. I saw the news two hours later: 17 days after that workshop, Russia’s High Court will hold a hearing on the government’s demand that Memorial be liquidated.

That is the condition of life in Russia these days: two hours in which an invitation takes on a funerary pallor, 17 days in which the world becomes immeasurably smaller. Rarely has the distance between today and tomorrow been so great and so fraught as it is now.

And it concludes like this:

The tomorrow whose arrival now seems inevitable is one in which the archives of Memorial and the Sakharov Center disappear, to be replaced with a single national history textbook and a single national literature textbook, so that the past may have no bearing on the future. It is one in which policy analysis disappears from the public space, along with honest reporting, so that the present may also have no bearing on the future. Tomorrow, when it arrives, will bring one sole purpose: to preserve and protect the status quo. It is a tomorrow after which there are meant to be, politically speaking, no more tomorrows at all..

What the designers of this new tomorrow may not realize, however, is that, once freed from the paralysis of a pointless today, the despair of disaffection becomes the desperation of dissent. Dissidents, pitted against a regime that can never fall, take risks that are unnecessary in a more fluid system. They speak at all costs to demonstrate that they have no voice, and they go to jail to demonstrate that they are not free. Once today becomes tomorrow, and there are no more tomorrows for which to wait, the imperative of immediate action reemerges. 

Is the Kremlin ready for an opposition that, because everything is already lost, has nothing left to lose?

Read it all here.

And a h/t to Ben Judah for flagging.

 

15:42 October 27, 2014

FROM THE YOU-CAN'T-MAKE-THIS-STUFF-UP DEPARTMENT

The Russian health and consumer watchdog Rospotrebnadzor has issued a dire warning: SEFIES CAUSE HEAD LICE!

No, really. I'm serious! It is actually on their official website:

"One reason for the spread of lice among teenagers, in the opinion of experts, is because selfie photographs have become more common. In these group photos, lice are transfered due to the touching of heads."

And it is causing a lot of laughs on the Twitter:

15:24 October 27, 2014

UKRAINIAN ECHOES: RUSSIA AND THE NEIGHBORS

The Russian newspaper "Novaya gazeta" has launched a new video series on its YouTube channel called Украинское эхо, or The Ukrainian Echo, that looks at Moscow's relations with former-Soviet states in the aftermath of the Ukraine crisis.

The first installment, which was out on October 20, focused on Georgia:

And the latest, which went online today, looks at Kazakhstan:

15:04 October 27, 2014

AFTERNOON NEWS ROUNDUP

From RFE/RL's News Desk:

AS EU PRAISES UKRAINE ELECTIONS, RUSSIA CRITICIZES 'DIRTY CAMPAIGN'

The European Union has hailed the parliamentary election in Ukraine as a victory for democracy and pro-European reforms in the ex-Soviet republic.

European Commission President Jose Manuel Barroso said in a tweet on October 27: "Congratulations to the people of #Ukraine! Victory of democracy and European reforms' agenda."

Pro-Europe parties won a sweeping victory in a parliamentary election that Ukrainians hope will strengthen the country after a year of political turmoil and months of warfare against Russian-supported separatists in the east.

Russian Deputy Foreign Minister Grigory Karasin said it was clear the election was valid "in spite of the rather harsh and dirty campaign," Interfax news agency reported.

He said the new Rada would have to "start an inclusive dialogue with entire society."

(Based on reporting by AFP and Interfax)

AEROFLOT RESUMES FLIGHTS TO GEORGIA

State-controlled Russian airline Aeroflot has resumed flights between Moscow and the Georgian capital, Tbilisi, after a six-year hiatus caused by the war between the two former Soviet republics.

An Aeroflot Airbus 320 carried about 100 passengers from Moscow to Tbilisi on October 27.

It was the Russian flag-carrier's first direct flight since a five-day war in August 2008 over breakaway South Ossetia.

Russia recognized South Ossetia and another Moscow-backed separatist province, Abkhazia, as independent states after the war, and it has troops stationed in both regions.

Diplomatic ties were severed over the war.

Direct flights between Russia and Georgia - operated by Russia's S7 and Ural Airlines as well as Georgian Airways - have been available in charter form only since August 2010.

(Based on reporting by apsny.ge and Interfax)

And via Reuters:

CZECH SECRET SERVICE SEES 'EXTREMELY HIGH' NUMBER OF RUSSIAN SPIES

PRAGUE, Oct 27 (Reuters) - Russia deployed an "extremely high" number of intelligence officers at its Czech embassy last year, the NATO member country's secret service said in an annual report released on Monday.

The reported increase in spying comes as relations between Russia and the West have worsened, culminating in the Ukraine crisis that began a year ago with street demonstrations against pro-Russian president Viktor Yanukovich.

Czech spy-watchers have long warned about Russian intelligence services activities in the central European country, a member of the European Union, which is popular with Russians who often travel to and buy property in the country.

The Security Information Service (BIS) said Russian and Chinese spies in the Czech Republic work mostly to use politicians or journalists to extend their influence and secure their countries' economic interests.

"Both the Russian and the Chinese embassy employ intelligence officers serving under diplomatic cover. In 2013, the number of such officers at the Russian embassy was extremely high," the BIS report said.

Other intelligence officers travelled to the Czech Republic individually as tourists, experts, academics or businessmen.

"Russian intelligence services attempted to make use of both open and covert political, media and societal influence to promote Russian economic interests in the Czech Republic," the report said.

Russian intelligence activity previously jumped in 2007, when the Czech Republic and the United States held negotiations on building a missile defence radar in the country. The plan was eventually cancelled by President Barack Obama's administration after also running into opposition in the Czech parliament.

The current centre-left Czech government has taken a cautious approach as relations between Western countries and Russia have deteriorated this year over Moscow's role in the Ukraine crisis.

A number of Czech officials have spoken against sanctions imposed by Brussels -- for which Russia has retaliated by banning food imports from Europe -- although the government has backed the EU's actions.

Yanukovich's overthrow in February prompted Moscow to annexe the Crimea peninsula and back separatist rebellions in eastern Ukraine in which more than 3,700 people have died.

The BIS has in the past warned of Russian intelligence officers building networks in the country using Czech citizens as well as the local Russian community.

The Polish government said on Saturday it had withdrawn accreditation from a Russian journalist after arresting two Poles, including a military officer, earlier this month on suspicion of spying for Russia.

The BIS said rejecting Czech visas or accreditation for Russians with ties to the intelligence services had led to cases of retaliation against Czech career diplomats.

RUSSIAN FM SAYS UKRAINE VOTE MAY LEAD TO PEACE, WARNS OF NATIONALISTS

MOSCOW, Oct 27 (Reuters) - A parliamentary election in Ukraine offers a chance for peace in the country's east, a deputy Russian foreign minister said on Monday but warned that "nationalists" in the chamber could undermine the process, RIA news agency reported.

An initial vote count showed pro-European parties had secured a clear victory in the Ukrainian poll, the first to be held since street protests ousted the country's pro-Russian leader, Viktor Yanukovich, earlier this year.

"Parties supporting a peaceful resolution of the internal Ukrainian crisis won a majority. This gives them a new chance to return to the agreements made, first and foremost, in Minsk," Deputy Foreign Minister Grigory Karasin said, referring to agreements made by Kiev, Moscow and pro-Russian separatists in eastern Ukraine.

Ukraine's pro-Western President Petro Poroshenko hailed the election result as a show of popular support for his plan to end a pro-Russian rebellion in the east and pursue reforms.

Kiev and the West blame Moscow for destabilising Ukraine by supporting and arming the rebels as well as reinforcing them with Russian troops. Moscow denies taking part in the armed conflict.

"The fact that openly nationalistic and chauvinistic forces won considerable support and will be represented in the Rada (parliament) creates an additional threat that again calls will sound ... for the use of force, for bloodshed," Karasin added.

"That is extremely dangerous."

14:36 October 27, 2014

PREPARING FOR A WAR AGAINST ALL

Just now catching up with defense analyst Pavel Felgenhauer's disturbing analysis of Russia's military thinking: "Preparing for War Against the US on All Fronts—A Net Assessment of Russia’s Defense and Foreign Policy Since the Start of 2014."

"During all of 2014, Russia’s rulers and most of the population seem to have been living together in a daydream. Consequently, Russian defense and foreign policy plans as well as the country’s decision making apparatus have, for months, been based on little more than strange fantasies and outlandish assumptions. Yet, these fantasies are backed up by a formidable military machine, billions of petrodollars and a nuclear superpower arsenal of weapons of mass destruction. And this is a truly dangerous mix."

Read it all here.

17:49 October 24, 2014

EVENING NEWS ROUNDUP

From RFE/RL's News Desk:

PUTIN ACCUSES UNITED STATES OF 'UNILATERAL DIKTAT'

Russian President Vladimir Putin has accused the United States of escalating conflicts around the world by imposing what he called a "unilateral diktat."

Putin made the remarks in a combative speech to political experts at the Valdai International Discussion Club, in Russia's Black Sea resort of Sochi.

Putin said the United States has been "fighting against the results of its own policy" in Iraq, Libya and Syria.

He said risks of serious conflicts involving major countries have risen, as well as risks of arms treaties being violated.

He also dismissed international sanctions over Russia's actions in Ukraine as a "mistake," saying they aimed at pushing Russia into isolation and would end up "hurting everyone."

We did not start this," he added, referring to rising tensions between Russia and the West.

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

MERKEL URGES PUTIN TO SOLVE UKRAINIAN GAS DISPUTE

German Chancellor Angela Merkel has urged Russian President Vladimir Putin in a telephone call to push for a quick resolution of the ongoing gas dispute with Ukraine as winter looms.

The call by Merkel to Putin on October 24 comes as representatives of the EU, Russia, and Ukraine are due to meet again next week in EU brokered talks aimed at solving the gas dispute between Kyiv and Moscow.

Merkel also underlined that upcoming elections in areas of eastern Ukraine controlled by Russian-backed separatists must respect Ukrainian national law.

Pro-Russian insurgent leaders are boycotting a parliamentary snap poll on October 26 in Ukraine and are holding their own election in the Lugansk and Donetsk regions, home to nearly three million people, on the same day instead.

(Based on reporting by AFP and Reuters)

UNHCR SAYS MORE THAN 800,000 DISPLACED IN UKRAINE CONFLICT

By RFE/RL

The United Nations says the conflict in Ukraine has forced more than 800,000 people from their homes.

Around 95 percent of displaced people come from eastern Ukraine, where government troops have been battling pro-Russian separatists.

UNHCR, the UN refugee agency, told a briefing in Geneva that an estimated 430,000 people were currently displaced within Ukraine -- 170,000 more than at the start of September.

It said at least 387,000 other people have asked for refugee status, temporary asylum, or other forms of residency permits in Russia.

Another 6,600 have applied for asylum in the European Union and 581 in Belarus.

The agency said it was "racing to help some of the most vulnerable displaced people" as winter approaches.

It also said the number of displaced people is expected to rise further due to ongoing fighting in eastern Ukraine.

THREE ALLEGED MILITANTS KILLED IN NORTH CAUCASUS

Three alleged militants have been killed by security forces in Russia's volatile North Caucasus region.

Russia's National Antiterrorism Committee says that two suspects were killed in the village of Charoda in Daghestan on October 24 after they refused to leave an apartment and opened fire at police and security troops.

One police officer was wounded.

Also on October 24, police in another North Caucasus region, Kabardino-Balkaria, killed a suspected militant after he refused to identify himself, threw a grenade towards police, and opened fire with a pistol.

A police officer was wounded in that incident.

Violence is common in Russia's North Caucasus region, which includes the restive republics of Daghestan, Kabardino-Balkaria, Ingushetia, and Chechnya.

Islamic militants and criminal groups routinely target Russian military personnel and local officials.

(Based on reporting by Interfax and TASS)

MOSCOW LAWYER IN HIGH PROFILE ORGANIZED CRIME CASE KILLED

A lawyer, who represented an alleged victim of the notorious Orekhovo criminal group in Moscow, has been assassinated.

Police in the Russian capital say that Vitaly Moiseyev and his wife were found dead with gunshot wounds in a car near Moscow on October 24.

Moiseyev was representing Sergei Zhurba, an alleged victim of the Orekhovo gang and a key witness in a case against one of the gang's leaders Dmitry Belkin.

Belkin was sentenced to life in prison on October 23 for multiple murders and extortion.

Last month, another of Zhurba's lawyers, Tatyana Akimtseva (eds: a woman), was shot dead by unknown individuals.

The Orekhovo group was one of the most powerful crime gangs of the Moscow region and in Russia in the 1990s. Its members are believed to be responsible for dozens of murders.

(Based on reporting by TASS and Interfax)

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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