Friday, October 24, 2014


The Power Vertical

Now That The Thaw Is Over

Time's up for Medvedev's 'thaw'
Time's up for Medvedev's 'thaw'
Does anybody remember Skolkovo? What seems like eons ago, back when iPads were still must-have gadgets for the Russian elite, the scientific and technological center was the showcase project in Dmitry Medvedev's efforts to modernize the country's economy to make it less dependent on oil and gas.
 
Well Skolkovo is back in the news, but probably not for reasons Medvedev welcomes.  The Investigative Committee announced this week that it was launching a probe into the alleged embezzlement of nearly 24 million rubles ($797,000) at the center.
 
How about Nikita Belykh? Does that name ring a bell? Back in 2008, months after assuming the presidency, Medvedev caused a minor sensation when he appointed the onetime opposition figure as governor of Kirov Oblast. The surprise move was part of a Kremlin strategy at the time to bring some elements of the opposition in from the cold and establish at least the appearance of a more pluralistic system.
 
Belykh's term is up this year and he has indicated he would like to stay on. But don't bet the house on that happening. President Vladimir Putin won't even meet with him.
 
And late last month, Investigative Committee agents searched his offices and interrogated him over alleged improprieties in the privatization of a local distillery -- a case tied to the Kremlin's ongoing efforts to prosecute anticorruption blogger and opposition figure Aleksei Navalny.
 
The back-to-back assaults on Belykh and Skolkovo represent hits on two key pillars of "Medvedevism," a short-lived and ultimately half-hearted effort to diversify the Russian economy and introduce a degree of managed pluralism into the political system.
 
The attacks are the strongest indication yet that President Vladimir Putin is determined to not only eradicate any traces of Medvedevism, but to utterly humiliate Medvedev himself and discredit the legacy of his entire interim presidency.
 
"Putin was not very pleased with his experiment involving his successor, who overtly started playing games, building his own political coalition, and criticizing the national leader himself," political analyst Tatyana Stanovaya wrote recently in Politcom.ru.
 
"By initiating a political thaw Medvedev created the social basis for the protests that erupted in December 2011...Medvedev's presidency smashed the inertia of the Putin regime and against this backdrop the current president is reinstating [repressive] mechanisms and eradicating Medvedev's 'green shoots.' The overturning of Medvedev's decisions, the stalling of his projects, the criticism in the media, and the discrediting films are all links in the same chain -- the process of politically destroying Medvedev."
 
It may be just a matter of time before the pro-Kremlin media accuses Medvedev of "hare-brained schemes, half-baked conclusions, and hasty decisions and actions divorced from reality," as Soviet Communist Party mouthpiece "Pravda" wrote of Nikita Khrushchev  following his ouster in 1964.
 
The steady dismantling of Medvedev's thaw, of course, has been building since Putin returned to the Kremlin last spring. Since then, we've had the Pussy Riot trial, the so-called "Bolotnaya case" against demonstrators who took to the streets on the eve of Putin's inauguration, the ramped up efforts to prosecute Navalny and Left Front leader Sergei Udaltsov, the rolling back of tepid political reforms on the election of governors, and the taming of the "systemic opposition" in the State Duma.
 
"The revision of Medvedev's legacy began virtually from the moment of the announcement of Vladimir Putin's future return to the presidency," Stanovaya wrote.  
 
"Now it already seems that Medvedev's presidency was a different era. The atmosphere in the country has changed so rapidly and fundamentally. The regime has become tougher. Political power has reverted to the 'Putinites.' The siloviki have acquired a second wind. Traditionalists and conservatives have started to win moral and political victories over the remnants of the liberals in the regime."
 
The powerful security service veterans in the Kremlin, many of whom are closely linked to the energy industry, staunchly opposed Medvedev's modernization efforts as well as the liberal experiment to allow for some managed pluralism in the political system. And now they are getting their revenge.
 
But as Gazeta.ru  wrote in a recent editorial, "When people get involved in vengeance, they do not weigh up the political costs very well."

The trap here is that in dismantling Medvedevism and all its remnants, Putin and his political managers are dealing with symptoms and not even coming close to addressing the underlying cause of the systemic crisis gripping the elite.
 
The Medvedev thaw, tepid as it was, didn't appear out of thin air. And it had very little to do with Medvedev himself -- he was just its iPod-toting front man, and a clumsy one at that.
 
It happened because the more savvy minds in the Kremlin grasped -- correctly -- that Russia was changing and the way it was governed needed to evolve as well.
 
They understood that the economy was, and remains, dangerously dependent on commodities, dooming it to an endless cycle of boom and bust as energy prices fluctuate. They understood that diversifying and decentralizing the economy would inevitably lead to new centers of political power and the need for some semblance of greater pluralism.
 
And they understood that Russian society was developing rapidly and becoming more differentiated and sophisticated as the prosperity of Putin's first term trickled down and spread. Such a society cannot be governed effectively in the paternalistic fashion that characterized Putin's 2000-08 rule.

But those pushing for this path -- Arkady Dvorkovich, Vladislav Surkov, Igor Yurgens, and Gleb Pavlovsky -- to name a few, lost the argument and are no longer in the Kremlin (although some have migrated over to the government with Medvedev).
 
Putin's political strategy is now dominated by people like Deputy Kremlin Chief of Staff Vyacheslav Volodin, who believe the mounting restlessness in society and disquiet in the elite can be pounded into submission. Perhaps it can in the short term. But the underlying causes of the current political crisis aren't going away.
 
"Discontent is going to grow everywhere, either rapidly or more slowly. The forward-leaning section of Muscovites were only the first people to express it," Gazeta.ru opined in its editorial.

"Defending a system that has run out of steam is a hopeless cause. And senseless repressions that compromise the regime only deepen the systemic crisis." 
 
-- Brian Whitmore

NOTE TO READERS:  Be sure to tune in to the new "Power Vertical" podcast here, where I will discuss the strange death of Medvedevism with my co-host, New York University's Mark Galeotti, author of the blog "In Moscow's Shadows."

Tags: Vladimir Putin,Skolkovo,Dmitry Medvedev,Medvedevism,Nikita Belykh

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Comment Sorting
Comments
     
by: La Russophobe from: USA
February 15, 2013 10:40
"It happened because the more savvy minds in the Kremlin grasped -- correctly -- that Russia was changing and the way it was governed needed to evolve as well."

I for one don't agree with this at all, and I don't believe there is any evidence to support such a thesis. In my view, it happened simply because Putin knew he needed to undercut criticism, especially Western criticism, upon his return to power as "president" for life. He needed to get the West and the domestic opposition to drop its guard until he had fully secured formal power, and seeming to give power to Medvedev accomplished this. His crowning glory was when he had Medvedev munching burgers with Obama. At no time did Medvedev ever have any real power nor was there any real chance of any kind of reform.

It was a Potemkin presidency.
In Response

by: marko from: USA
February 15, 2013 12:39
I guess that I would disagree with the assertion that diverse economies require more pluralism. China's economy is pretty diverse, and it has zero political pluralism. Russia's economy is also a bit more diverse than Western analysts give it credit for-- military industries, agriculture, metals, chemical sectors are all in pretty good shape under Putin. Yeah, growth rates aren't what they were (and how realistically could they be with the world economy the way that it is) and some middle-class people in Moscow aren't happy, but could things be much better really then the are-- probably not. Russian liberalism is too associated with Western hegemony over Russia. Russia doesn''t develop well with someone else's imported ill-fitting political and economic system or as someone else's semi-colony-- the 90s proved that.
In Response

by: Alex from: Baltimore
February 15, 2013 16:31
Ridiculous comment by Marko. Russia was never under "Western hegemony" or a "semi-colony," nor did "the West" ever aspire to hegemony over Russia. That is just uninformed left-wing claptrap. As a US government employee working in Russia in the 1990s, I can tell you that the mission back then was to help Russia overcome its Soviet legacy and transition to free politics, free markets, and the rule of law, which are universally valid concepts in demand everywhere (see East Timor, Syria, etc., etc.). There was tremendous good will towards Yeltsin's Russia in the US Government and in other Western nations. People were excited to help the Russians to make a better life for themselves and to help make Russia into a partner of the West instead of its enemy, which was incredibly refreshing after decades of the Cold War. Stop repeating Putinist propaganda; Russia in the 1990s, despite its many challenges, was a far freer and much more optimistic country than it is today, after 13 years of misrule and increasing repression by Putin and his band of spooks and crooks.
In Response

by: Eugenio from: Vienna
February 15, 2013 19:42
To Alex from Baltimor: You are saying that Marco's comment "is just uninformed left-wing claptrap", and then yourself come up with perls like this one: "free markets, and the rule of law... are universally valid concepts in demand in... Syria" :-)). Beavus, who exactly is demanding "free market and the rule of law" in Syria? Is it those US-Saudi funded al-Qaeda terrorists that have been terrorizing the people of Syria with the help of Hillary Clinton and your disgusting "country" the last two years? Or is it maybe Bashar - when he kills those US-Saudi backed losers in thousands? Is he maybe the one looking for "free market and the rule of law" there :-))?
Beavus, in general, you appear to watch too much CNN and other bankrupt US-made crap. Try to make an effort, wake up and face the reality, instead of calling other people "ridiculous".
Cheers from Vienna :-)!
In Response

by: Jack from: US
February 15, 2013 21:07
Eugenio, be aware that "Alex from Baltimor" is my friend Moisha, disguising himself again, this time as "Alex". He works for CIA. He does not lie when he says he was happy with Russia under Yeltsin's gang of moishas like Berezovsky and Khodorkovsky stealing billions from Russian people in 90-ies
In Response

by: Eugenio from: Vienna
February 16, 2013 15:36
Ah, ok, Jack, it was your friend Moischa who made this posting, I understand :-))). Very frankly, I was about to think that it was Hillary Clinton herself, as long I one can hardly imagine anyone else post this kind of cheap US propaganda and want people to take it seriously :_)).

by: Laura
February 15, 2013 17:43
Yes, some people remember Skolkovo. Top scientists from my country are going there to work on nanotechnology for pharmaceutical use. Why don't you post on that instead of petty theft?

by: Ben
February 16, 2013 16:13
The most laughable figure in Soviet-Russian history was A.Kerensky.The same with Medvedev, and the protests initiated by different influences of his ended thaw.Despite the journalist`s impatience ,Russia`s changes will follow the Kremlin ones.

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08:29

MORNING NEWS ROUNDUP

From RFE/RL's News Desk:

UKRAINIAN PM WARNS OF RUSSIAN DESTABILIZATION OF ELECTIONS

Ukrainian Prime Minister Arseniy Yatsenyuk is warning that Russia could attempt to disrupt Ukraine's parliamentary elections scheduled for October 26.

Yatsenyuk told a meeting of top security officials and election monitors on October 23 that "It is absolutely clear that attempts to destabilize the situation will continue and will be provoked by Russia."

Yatsenyuk said "we are in a state of Russian aggression and we have before us one more challenge -- to hold parliamentary elections."

The prime minister said Ukraine needs the "full mobilization of the entire law-enforcement system to prevent violations of the election process and attempts at terrorist acts during the elections."

Interior Minister Arsen Avakov said authorities have ordered some 82,000 policemen on duty for election day.

He said 4,000 members of a special reaction force would be among those maintaining order during polling hours and would be concentrated in "those precincts where there is a risk of some terrorist acts or aggressive actions by some...candidates."

The warning by Yatsenyuk comes on the heels of three violent attacks on parliamentary candidates in the past week.

The latest, against Volodymyr Borysenko, a member of Yatsenyuk's People's Front Party, occurred on October 20 when Borysenko was shot at and had an explosive thrown at him.

He allegedly survived the attack only because he was wearing body armor due to numerous death threats he had recently received.

Elections to the Verkhovna Rada, the parliament, will be held despite continued fighting in the eastern part of the country between Ukrainian government forces and pro-Russian separatists.

Voting will not take place in 14 districts of eastern Ukraine currently under the control of the separatists.

Those separatist-held areas -- in the Donetsk and Luhansk regions -- are planning on holding their own elections in November.

Additionally, Russia's illegal annexation of Crimea in March means the loss of 12 seats from the 450-seat parliament.

Polls show President Petro Poroshenko's party leading with some 30 percent of respondents saying they would cast their vote for the Petro Poroshenko Bloc.

It that percentage holds on election day it would mean Poroshenko's bloc would have to form a coalition government, likely with nationalist groups who oppose conducting peace talks over fighting in the east.

(Based on reporting by Reuters and Interfax)

RUSSIA DENIES ESTONIAN AIRSPACE VIOLATIONS

By RFE/RL

Moscow has denied claims of an incursion by a Russian military plane into Estonia's airspace.

A Russian Defense Ministry spokesman told Interfax news agency on October 23 that the Ilyushin-20 took off from Khrabrovo airfield in the Russian enclave of Kaliningrad on October 21.

The spokesman said the reconnaissance plane flew "over neutral waters of the Baltic Sea" while on a training flight.

On October 22, Estonia’s Foreign Ministry summoned the Russian ambassador in Tallinn, Yury Merzlakov, after the Estonian military said the Russian plane had entered its air space.

In a statement, NATO said the Ilyushin-20 was first intercepted by Danish jets when it approached Denmark, before flying toward non-NATO member Sweden.

Intercepted by Swedish planes, the alliance said the Ilyushin entered Estonian airspace for “less than one minute” and was escorted out by Portuguese jets.

NATO has stepped up its Baltic air patrols and Moscow has been accused of several recent border violations in the region amid heightened tensions between Russia and the West over the Ukraine conflict.

Last month, Estonia accused Russia of abducting one of its police officers on the border.

Russia claims Eston Kohver was seized inside Russia on September 5, while Estonian officials say he was captured at gunpoint in Estonia near the border and taken to Russia.

The European Union and United States have called for the immediate release of the Estonian security official, who is facing espionage charges in Russia.

Meanwhile, the Swedish Navy has been searching for a suspected submarine sighted six days ago some 50 kilometers from the capital, Stockholm, although it said on October 22 it was pulling back some of its ships.

Swedish officials have not linked any particular country to the suspected intrusion and Moscow has denied involvement.

(With reporting by Interfax, TASS, and the BBC)

RUSSIAN COURT POSTPONES RULING ON OIL FIRM BASHNEFT

A Moscow court postponed to next week a ruling on a move to take control of Bashneft, an oil company from tycoon Vladimir Yevtushenkov.

The judge said on October 23 that the next hearing will take place on October 30 after the prosecution requested more time to prepare its case.

Prosecutors filed the suit in September to regain state ownership of Bashneft, citing alleged violations in the privatization and subsequent sale of the company to AFK Sistema investment group.

Yevtushenkov, the main shareholder of the conglomerate, is under house arrest on suspicion of money laundering during the firm's acquisition in 2009.

Yevtushenkov, 66, was arrested on September 16.

He is ranked Russia's 15th richest man by U.S. magazine Forbes, with an estimated fortune of $9 billion.

(Based on reporting by Reuters and TASS)

11:11 October 23, 2014

THERE IS NO RUSSIA WITHOUT PUTIN?

According to a report in the pro-Kremlin daily "Izvestia," deputy Kremlin chief of staff Vyacheslav Volodin told a meeting of the Valdai Discussion Club in Sochi that Western politicians "do not understand the essence of Russia."

"Volodin stated the key thesis about the current state of our country: As long as there is Putin there is Russia. If there is no Putin, there is no Russia," Konstantin Kostin, head of the Foundation for the Development of Civil Society, told "Izvestia."

11:01 October 23, 2014

MORNING NEWS ROUNDUP

From RFE/RL's News Desk:

MOSCOW AIRPORT MANAGERS RESIGNED, MORE SUSPECTS DETAINED OVER CRASH

Top managers at a Moscow airport have resigned and four more airport workers have been detained over a plane crash that killed the chief executive of French oil giant Total.

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

The Investigative Committee said on October 23 that prosecutors had detained an air-traffic controller intern, her supervisor, the head of air-traffic controllers, and the chief of runway cleaning.

Meanwhile, the airport announced the resigntion of its director-general, Andrei Dyakov, and his deputy, Sergei Solntsev.

And a Moscow court ordered that the snowplough driver remain in custody until December 21.

The driver says that he has lost his bearings before the collision.

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

And these items from Reuters:

COURT POSTPONES RULING ON BASHNEFT SHARES

By Denis Pinchuk

MOSCOW, Oct 23 (Reuters) - A Russian court decided on Thursday to postpone to next week a hearing on a move to wrest control of an oil company from oligarch Vladimir Yevtushenkov, a case that has deepened investors' fears the Kremlin wants to reclaim prized assets.

Russian prosecutors filed the suit last month to regain state ownership of Bashneft, saying there had been alleged violations in the privatisation and subsequent sale of the oil producer to Russian oil-to-telecoms conglomerate Sistema in 2009.

On Thursday, the judge at the Moscow Arbitration Court ruled in favour of the prosecutors who had requested more time to prepare their case and said the next hearing would take place on Oct. 30.

Sistema's shares, which lost 70 percent after it reached a peak this year in July, traded down nearly 5 percent in early trading in Moscow. Bashneft's shares were down 1.3 percent on the day.

In September, a Moscow court ordered the seizure of Sistema's majority stake in Bashneft a day after a judge refused to release Yevtushenkov, who is under house arrest on suspicion of money laundering during the firm's acquisition.

The case centres on the privatisation of oil production and refining assets in the Russian republic of Bashkortostan in the Ural mountains in the early 2000s and Bashneft's subsequent sale to Sistema.

The Russian investigators say the privatisation and the sale was illegal.

Sistema, which directly owns almost 72 percent of Bashneft's voting rights and has a stake of 86.7 percent, including 12.6 percent which it owns through its subsidiary Sistema-Invest, has denied the allegations.

Yevtushenkov is ranked Russia's 15th richest man by U.S. magazine Forbes, with an estimated fortune of $9 billion.

Some analysts have said that state-controlled Rosneft , Russia's biggest oil producer run by an ally of President Vladimir Putin, was interested in buying Bashneft.

The company, Russia's sixth largest crude oil producer, extracted more than 16 million tonnes (320,000 barrels per day) of crude oil last year, increasing output by more than 4 percent - the best results among domestic majors after launching production at new deposits in the Arctic.

Its oil refining capacity stands at 24.1 million tonnes a year. (Reporting by Denis Pinchuk; writing by Katya Golubkova and Vladimir Soldatkin, editing by Elizabeth Piper and William Hardy)

NATO, SWEDISH FIGHTERS SCRAMBLE TO INTERCEPT RUSSIAN PLANE

BRUSSELS, Oct 22 (Reuters) - NATO and Swedish fighter jets were scrambled to intercept a Russian intelligence-gathering plane that briefly entered Estonian airspace on Tuesday, the alliance said on Wednesday.

The Estonian Foreign Ministry called the Russian ambassador to the ministry and gave him a protest note over the incursion, the Estonian defence forces said.

Fighters from Denmark as well as Portuguese F-16s from NATO's air policing mission in the Baltics took off after radar detected an unidentified aircraft flying close to NATO airspace in the Baltic Sea, NATO said.

The plane was identified as a Russian IL-20 intelligence-gathering aircraft that had taken off from Russia's Baltic enclave of Kaliningrad, heading towards Denmark.

The Russian aircraft was first intercepted by Danish F-16s and later, as it headed further north, by fighters from Sweden, which is not a NATO member.

The Russian aircraft turned south again, entering Estonian airspace for less than one minute, a NATO statement said.

Portuguese F-16s, which had been scrambled from their base in Lithuania, escorted the Russian plane away from NATO airspace.

Interceptions of Russian military aircraft by NATO planes over the Baltic region have increased since Moscow annexed Ukraine's Crimea region in March, but usually Russian planes only approach NATO airspace and do not enter it, a NATO source said.

At a time when tension between Russia and the West is running high over Ukraine, Swedish forces have been scouring the sea off Stockholm following reports of activity by foreign submarines or divers using an underwater vehicle. (Reporting by Adrian Croft in Brussels and David Mardiste in Tallinn; Editing by Tom Heneghan)

11:12 October 22, 2014

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 October 22, 2014

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.

 

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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