Russia police kill two power plant attackers

(Reuters) – Russian police killed two men on Sunday accused of bombing a North Caucasus hydroelectric plant, media reported, just days after President Dmitry Medvedev threatened to sack security officials if there were another attack.

Six masked men, suspected Islamist militants, stormed the Baksanskaya power plant in Kabardino-Balkaria Wednesday, shot dead two guards and set off remote-controlled bombs beside the main generator units, bringing the station to a halt.

Analysts said the attack could signal a change of tactics by rebels in the North Caucasus trying to expand an Islamist insurgency along Russia’s southern flank and focus on economic targets — a threat they have long made public.

Medvedev threatened Thursday to sack top security officials if they failed to prevent new attacks on strategic assets in the region. No one took responsibility for the bombing.

Russian news agencies quoted a police spokesman as saying the armed men were killed in a shootout during an attempt to detain them as they drove away in a car.

“The rebels had taken part in a number of serious crimes … including the attack on the Baksanskaya power plant on July 21,” the agencies quoted the spokesman as saying.

The Kremlin is struggling to contain an Islamist insurgency in Chechnya, site of two separatist wars since the mid-1990s, Dagestan and Ingushetia where poverty and official abuse of force push some youths right into the hands of the rebels.

(Reporting by Dmitry Solovyov; Editing by Alison Williams)

Russia police say kill two power plant attackers

July 25 (Reuters) – Russian police killed two men on Sunday accused of bombing a North Caucasus hydroelectric plant, media reported, just days after President Dmitry Medvedev threatened to sack security officials if there were another attack.

Six masked men, suspected Islamist militants, stormed the Baksanskaya power plant in Kabardino-Balkaria on Wednesday, shot dead two guards and set off remote-controlled bombs beside the main generator units, bringing the station to a halt.

Analysts said the attack could signal a change of tactics by rebels in the North Caucasus trying to expand an Islamist insurgency along Russia’s southern flank and focus on economic targets — a threat they have long made public.

Medvedev threatened on Thursday to sack top security officials if they failed to prevent new attacks on strategic assets in the region. No one took responsibility for the bombing.

Russian news agencies quoted a police spokesman as saying the armed men were killed in a shootout during an attempt to detain them as they drove away in a car.

“The rebels had taken part in a number of serious crimes … including the attack on the Baksanskaya power plant on July 21,” the agencies quoted the spokesman as saying.

The Kremlin is struggling to contain an Islamist insurgency in Chechnya, site of two separatist wars since the mid-1990s, Dagestan and Ingushetia where poverty and official abuse of force push some youths right into the hands of the rebels. (Reporting by Dmitry Solovyov; Editing by Alison Williams)

Analysis – Russian modernization hinges on education reform

(Reuters) – Russia, the nation that put the first man in space, has been so focused on high-earning oil and gas since communism collapsed that it may find it has no one left to drag the wider economy into the 21st century.

President Dmitry Medvedev has made economic modernization his key priority, but academics say decades of underinvestment in science and technology education and opaque distribution of grants make it a very challenging task.

“Our students are becoming less and less competitive,” said Sergei Guriev, head of the New Economic School in Moscow.

“This is a result of funding shortfall and brain drain, not only to other countries but to business as well.”

Thousands of scientists fled Russia for the United States and Europe after the collapse of the Soviet empire in 1991.

But some observers believe the problems began accumulating long before, that as Russia started building up what is now the world’s biggest energy industry.

“Since the ’70s, the need for quality education has been declining … because an oil- and gas-based economy requires even less education than a coal- and steel-based economy, let alone the post-industrial economy,” said Vladimir Mau, dean at the state Academy of National Economy.

The Kremlin has pledged to bring the best talents back. But with even holders of doctorates still earning only around $500 a month, few are willing to return.

Russia’s education budget has doubled in the past 10 years, but is still only a fraction of what it used to be in the Soviet Union. Mau said the belief that Soviet education was better compounded the problem.

“It was pre-industrial. This education was supposed to give people education for a lifetime, without implying further need to constantly update it. As long as we believe that Soviet education was the best, we won’t increase the demand for quality education.”

This year, education will get 419.3 billion roubles ($13.79 billion), or 4.2 percent of total federal spending, 4.6 percent less than last year. The U.S. education budget for 2010 is more than three times that of Russia, at $46.7 billion.

A study by Thomson Reuters showed this year that Russia’s research output has declined steadily over the past decade.

With research output of 2.6 percent of the world’s papers, Russia lags behind the emerging economies that it is often compared with — India at 2.9 percent and China at 8.4 percent.

Some 2,200 scientists wrote a letter to Medvedev this month, telling him his plan for economic innovation was doomed if Russia failed to attract new young students or teachers into science.

QUALITY DIPLOMA, POOR EDUCATION

At the very least, the state should return to a system in which grants are distributed on the recommendation of leading scientists rather than state bureaucrats, the scientists said.

Surprisingly, the number of Russians graduating has stayed steady or grown compared with Soviet days, even though polls show only one percent are attracted by scientific jobs.

But diplomas for sale and bribes to the right people have become new shortcuts for young people chasing quick money in business and government jobs.

“Everyone wants a quality diploma today, not quality education,” says Andrei Fursenko, Russia’s minister of education and science.

Polls show that most young Russians want to work for the gas export monopoly Gazprom (GAZP.MM) or the Kremlin.

Only one Russian institution, Moscow State University, features in the Times list of the world’s top 200 universities. More than a third of the top 100 are in the United States.

Nikolay Pryanishnikov, president of Microsoft (MSFT.O) in Russia, says that his firm, partners and customers are acutely short of IT specialists, and the trend is worsening.

“Add to that the low birth rate of the 90s (in Russia), and you get an even bigger problem. There are clearly not enough qualified graduates to fill the gap,” he said.

The Kremlin has outlined plans to invest hundreds of millions of dollars into its pet Skolkovo project, dubbed the Russian “Silicon Valley”, to build high tech industries and education from scratch.

But, compared to its plans to invest $1 trillion in infrastructure in the next decade, Skolkovo is a drop in the ocean that cannot change the overall poor state of education.

Guriev says one of the main problems in Russia is that “the money comes from the government, regardless of how well an establishment performs”.

“If the government funded students individually, students would choose how to have the money work best for them. There’s no need to reinvent the wheel, those mechanisms already exist in other universities around the world.” (Additional writing by Dmitry Zhdannikov; editing by Philippa Fletcher and Kevin Liffey)

U.S. and Russia to swap spies after 10 plead guilty

(Reuters) – Ten people pleaded guilty on Thursday to being agents for Russia while living undercover in the United States as part of a spy swap between the U.S. and Russian governments that revived Cold War-era intrigue.

The suspects agreed in court to be deported to Russia. In turn, Russia agreed to release four people imprisoned for suspected contact with Western intelligence agencies, the U.S. Justice Department said.

The swap helped resolve a scandal that threatened to strain U.S.-Russian relations and revealed shocking details about 10 people living double lives as ordinary citizens while trying to infiltrate U.S. policymaking circles.

Such swaps are not unprecedented but were more a fixture of the Cold War, when the United States and the former Soviet Union were sworn enemies competing for world domination.

Both the Kremlin and the administration of President Barack Obama sought to prevent the arrests from affecting relations that had been improving after hitting lows with Russia’s 2008 war against Georgia.

Obama, who hosted Russian President Dmitry Medvedev at the White House last month, needs Moscow’s help for efforts to rein in Iran’s nuclear program and keep supply lines open for the war in Afghanistan. Russia wants U.S. support to gain entry to the World Trade Organization.

Obama “was fully informed” about the swap and endorsed it, White House Chief of Staff Rahm Emanuel said on the “PBS NewsHour” program, stressing that the case was pursued by intelligence and law enforcement officials.

Some of the suspects were shown on NBC television boarding a Vision Airlines jet at New York’s LaGuardia Airport on Thursday night, and footage from Reuters Television later showed the plane taking off.

Neither the U.S. State Department or the U.S. Department of Justice would comment on the reports.

FALSE NAMES

Five of the suspects revealed their real names for the first time publicly and all but one — Peruvian journalist Vicky Pelaez — said they were Russian citizens.

The couple known as Richard and Cynthia Murphy said their names were Vladimir and Lydia Guryev, 44 and 39 years old.

Donald Howard Heathfield was actually Andrey Bezrukov, 49, Tracey Lee Ann Foley was Elena Vavilova, 47, and Juan Lazaro was really Mikhail Anatonoljevich Vasemkov, 66.

Vladimir Guryev told the court he had been in the United States since the early 1990s.

“I resided here under an assumed name and took direction from the Russian Federation and met with Russian officials and I did not register as a diplomat or foreign agent,” he said.

Russian officials promised Pelaez she could go to any country, including her native Peru, with a monthly stipend of $2,000 for life plus visas for her children, her lawyer told the court.

The 10 suspects were sentenced to time already served — 11 days since their arrests on June 27 — and had separate charges of money-laundering dropped.

One of them, Anna Chapman, became a staple of the New York tabloid press, which splashed pictures of her across their pages and labeled her a party-hopping “sexy redhead” and a “Manhattan beauty.”

Also known as Anya Kushchenko, the 28-year-old was arrested in Manhattan, where she ran a $2 million real estate business.

WAITING FOR SUTYAGIN

In Moscow, relatives anxiously awaited word from a jailed Russian scholar they said was to be sent to Vienna on Thursday in the first stage of the swap.

It was unclear whether Igor Sutyagin, convicted in 2004 of passing secrets to the West, had arrived in Austria as part of what his lawyer said Sutyagin was told would be a exchange for Russian agents arrested in the United States.

Sutyagin, a respected nuclear expert, was convicted in 2004 of passing classified military information to a British firm that Russian prosecutors said was a front for the CIA.

He said the information was available from open sources and his conviction cast a chill on Russian scientists.

Three of the prisoners Russia agreed to release were convicted of treason and serving long prison terms, Justice Department prosecutors said. Some were in poor health, and the Russian government agreed to release them and their family members for resettlement.

U.S. Attorney Preet Bharara said the investigation was not done to gain a “bargaining chip” with Russia.

“With the arrests and guilty pleas in this case it would appear that the Russian Federation is unlikely to engage in this methodology in the future, and that is a good thing,” Bharara told reporters.

“These arrests and prosecution send a message to every other intelligence agency that if you come to America and spy on Americans in America, you will be exposed and arrested.”

(Additional reporting by James Vicini in Washington and Aydar Buribayev, Conor Humphries and Sergei Karpukhin in Moscow; Writing by Daniel Trotta; Editing by John O’Callaghan)

Russia’s Medvedev pardons four jailed spies-RIA

July 9 (Reuters) – Russian President Dmitry Medvedev has pardoned four people jailed for passing secrets to the West as part of a Cold War-style spy swap with the United States, local news agencies reported on Friday.

Medvedev signed a decree to pardon Alexander Zaporozhsky, Gennady Vasilenko, Igor Sutyagin and Sergei Skripal, who are all serving prison terms for espionage, his spokeswoman Natalya Timakova was quoted by Russia’s state RIA news agency as saying. (Reporting by Alexei Anishchuk, writing by Guy Faulconbridge)

Russia restarts full gas supplies to Belarus-agencies

June 24 (Reuters) – Russia’s gas export monopoly Gazprom (GAZP.MM) said on Thursday it has restarted gas supply to Belarus in full, Russian news agencies reported.

Stocks | Energy

News agencies said Gazprom’s chief executive Alexei Miller told Russian President Dmitry Medvedev in a telephone conversation that supplies had been resumed after Belarus paid its debt for gas deliveries in full.

Putin’s right-hand man exits Kremlin shadows

(Reuters) – Igor Sechin’s soft tones and courteous manner belie his fearsome reputation.

World | Russia

Ambassadors and officials regard Sechin, a former Soviet military interpreter, as the informal leader of the “siloviki” clan of nationalist, ex-military and security service officers fighting to maintain a big state role in the Russian economy.

Gatekeeper for Vladimir Putin during his 2000-2008 presidency, Sechin is now a deputy prime minister overseeing Russia’s vast energy and metals sectors, the world’s biggest.

Oligarchs snap to attention in his presence and Forbes magazine ranks Sechin among the world’s top 50 most powerful people, one notch above Kremlin chief Dmitry Medvedev, widely regarded as junior to Putin.

The role has brought unaccustomed public attention to a man more comfortable with life in the shadows and Sechin, 49, used a rare interview with Reuters during the St Petersburg Economic Forum to try to soften his intimidating reputation.

“This seems to me to be something from the realm of legends and myth,” he said when asked during the 90-minute conversation whether he was indeed the leader of the Kremlin “siloviki.” “It’s not serious, just not serious to hang a label on someone.”

So how would Sechin like to be described?

“A normal citizen should be a patriot of his country,” the deputy premier replied. “A decent person, professional if you work in the government and effective, that’s all.”

Many U.S. senators and congressmen have a military background, he adds, and they are never described as “siloviki.”

Sechin bristles at the notion that his background, political alliances and duties running Russia’s oil and gas industry put him at odds with Medvedev’s vision of Russia as a modern, democratic, pro-Western knowledge economy.

“The president is talking about the risks (of an oil-based economy), he is not saying we should move away from using natural resources — that is already a given which is the foundation of the Russian economy,” Sechin explained.

Medvedev, he goes on, is right to want to reduce the role of the state in the economy “but we need to sell the share efficiently.” He cites the IPO of the state oil giant he chairs, Rosneft, as an example of how to do this.

LUCRATIVE ASSETS

Although it was “bad” that oligarchs got their hands on highly lucrative natural resource assets for almost nothing during Russia’s chaotic sell-offs in the 1990s, Sechin said:

“What has happened has happened. Privatisation took place. We do not intend to revise privatizations but we hope…that these assets will be used effectively.”

Sechin has been especially active recently in Latin America, traveling to Venezuela to help negotiate arms sales and oil industry partnerships and rebuilding Moscow’s Soviet-era trade and finance links with Cuba.

How do his deals with Washington’s main foes in Latin America fit with Medvedev’s policy of showing a friendly face to the West and boosting relations with Washington?

“It’s nothing personal,” Sechin replies smoothly. He says that socialist Venezuelan leader Hugo Chavez is a “natural partner” for Russia because the two nations have common interests.

As for $4 billion of arms sales to Venezuela, “all countries with high industrial production potential do this” and if Moscow does not supply Caracas with weapons, then someone else will. “Why do we need to refuse?”

A long-term Kremlin insider, Sechin is especially cautious when pressed on Russia’s 2012 presidential election.

Many insiders expect Putin, now prime minister, to return to the presidency — but they do not rule out a continuation of the current “tandem” structure with Medvedev in the Kremlin and Putin running the country as premier.

Could Sechin be a third candidate?

“I have never heard a more interesting question,” he comments caustically. “At least not from the realms of fairy tales and fantasy.”

The question proves so sensitive that his spokesman calls back hours later asking to suggest another response on a possible Sechin presidential candidature: “This is not possible for objective and subjective reasons.”

The deputy premier, who began his association with Putin when the two men worked together in the St Petersburg town hall in the 1990s, said he was surprised to have been invited to work in Moscow’s corridors of power on Red Square.

“I somehow unexpectedly ended up in the Kremlin,” he said. “There is a special feeling there that this place is holy and deeply significant. There is a very good aura there.”

(For a related story from the interview with Sechin’s comments on the energy industry please click on [ID:nLDE65I04B])

(Editing by Robert Woodward)

NEWSMAKER-Putin’s right-hand man exits Kremlin shadows

Ambassadors and officials regard Sechin, a former Soviet military interpreter, as the informal leader of the “siloviki” clan of nationalist, ex-military and security service officers fighting to maintain a big state role in the Russian economy.

Gatekeeper for Vladimir Putin during his 2000-2008 presidency, Sechin is now a deputy prime minister overseeing Russia’s vast energy and metals sectors, the world’s biggest.

Oligarchs snap to attention in his presence and Forbes magazine ranks Sechin among the world’s top 50 most powerful people, one notch above Kremlin chief Dmitry Medvedev, widely regarded as junior to Putin.

The role has brought unaccustomed public attention to a man more comfortable with life in the shadows and Sechin, 49, used a rare interview with Reuters during the St Petersburg Economic Forum to try to soften his intimidating reputation.

“This seems to me to be something from the realm of legends and myth,” he said when asked during the 90-minute conversation whether he was indeed the leader of the Kremlin “siloviki”. “It’s not serious, just not serious to hang a label on someone.”

So how would Sechin like to be described?

“A normal citizen should be a patriot of his country,” the deputy premier replied. “A decent person, professional if you work in the government and effective, that’s all.”

Many U.S. senators and congressmen have a military background, he adds, and they are never described as “siloviki”.

Sechin bristles at the notion that his background, political alliances and duties running Russia’s oil and gas industry put him at odds with Medvedev’s vision of Russia as a modern, democratic, pro-Western knowledge economy.

“The president is talking about the risks (of an oil-based economy), he is not saying we should move away from using natural resources — that is already a given which is the foundation of the Russian economy,” Sechin explained.

Medvedev, he goes on, is right to want to reduce the role of the state in the economy “but we need to sell the share efficiently”. He cites the IPO of the state oil giant he chairs, Rosneft, as an example of how to do this.

LUCRATIVE ASSETS

Although it was “bad” that oligarchs got their hands on highly lucrative natural resource assets for almost nothing during Russia’s chaotic sell-offs in the 1990s, Sechin said:

“What has happened has happened. Privatisation took place. We do not intend to revise privatisations but we hope…that these assets will be used effectively.”

Sechin has been especially active recently in Latin America, travelling to Venezuela to help negotiate arms sales and oil industry partnerships and rebuilding Moscow’s Soviet-era trade and finance links with Cuba.

How do his deals with Washington’s main foes in Latin America fit with Medvedev’s policy of showing a friendly face to the West and boosting relations with Washington?

“It’s nothing personal,” Sechin replies smoothly. He says that socialist Venezuelan leader Hugo Chavez is a “natural partner” for Russia because the two nations have common interests.

As for $4 billion of arms sales to Venezuela, “all countries with high industrial production potential do this” and if Moscow does not supply Caracas with weapons, then someone else will. “Why do we need to refuse?”

A long-term Kremlin insider, Sechin is especially cautious when pressed on Russia’s 2012 presidential election.

Many insiders expect Putin, now prime minister, to return to the presidency — but they do not rule out a continuation of the current “tandem” structure with Medvedev in the Kremlin and Putin running the country as premier.

Could Sechin be a third candidate?

“I have never heard a more interesting question,” he comments caustically. “At least not from the realms of fairy tales and fantasy.”

The question proves so sensitive that his spokesman calls back hours later asking to suggest another response on a possible Sechin presidential candidature: “This is not possible for objective and subjective reasons.”

The deputy premier, who began his association with Putin when the two men worked together in the St Petersburg town hall in the 1990s, said he was surprised to have been invited to work in Moscow’s corridors of power on Red Square.

“I somehow unexpectedly ended up in the Kremlin,” he said. “There is a special feeling there that this place is holy and deeply significant. There is a very good aura there.” (For a related story from the interview with Sechin’s comments on the energy industry please click on [ID:nLDE65I04B]) (Editing by Robert Woodward)

Russia may double minimum vodka price

(Reuters) – Russia is considering doubling the minimum price of a bottle of vodka to 200 roubles ($6.30) and the excise tax on filtered cigarettes to 590 roubles ($18.67) per 1,000 units by 2013.

World | Russia

President Dmitry Medvedev last year ordered tough measures to curb alcohol abuse in a country where the average Russian drinks 18 liters (38 pints) of pure alcohol each year.

In January, Russia raised taxes on beer and introduced a minimum vodka price of 89 roubles per half liter, effectively doubling the cost of the cheapest bottle.

Now the Finance Ministry has proposed increasing the minimum price to 120 roubles in 2011, 160 roubles in 2012 and 200 roubles in 2013, local news agencies quoted deputy minister Sergei Shatalov as saying on Wednesday.

“Vodka should not be cheap, it is not a product of first necessity,” Shatalov said, according to Itar-Tass.

The Ministry also plans to increase the excise tax from current 250 roubles per 1,000 filtered cigarettes by 44 percent to 360 roubles in 2011, 460 roubles in 2012 and 590 roubles in 2013, said the draft amendment to the tax code, seen by Reuters.

The sharp increase in excise tax will force buyers to switch to cheaper tobacco and may increase the amount of bootleg in Russia’s tobacco market, corporate director at Philip Morris in Russia Aleksei Kim said.

“Excessive tax increase may add to inflation, especially at the time, where the buyers’ income drops,” he said.

The tax on the filtered cigarette is now 40 percent, according to Kim.

The Russian tobacco market is almost completely taken by three global players: Japan Tobacco, Philip Morris Int and British American Tobacco.

The tax on tobacco products has more than doubled in the past four years. During that period, prices on cheap cigarettes grew more than 80-85 percent from 8-9 roubles per pack in 2007 to 15-16 roubles in the middle of 2010, according to director of corporate relations of British American Tobacco Russia Alexander Lyutyi.

EXTRA CASH

The extra cash would be useful as the government faces years of budget deficits after Russia weathered its worst recession in 15 years in 2009.

However, analysts at VTB Capital were skeptical about the proposal’s effectiveness and its chances to become reality.

“In our view, there is little threat for vodka producers of consumption declining since market consolidation would accelerate: minor regional players, which just about break even, would go out of business leaving a handful of strong and profitable companies,” they said.

“However, we believe that any sharp increase in the spirits tax would most probably result in a dramatic increase in the production of illegal alcohol and tax collections would fall.”

The proposal could face a tough slog to secure approval from the government and parliament, given the strength of Russia’s alcohol producers’ lobbying power, VTB Capital said.

With elections looming in 2011-2, that may increase the reluctance to adopt the potentially unpopular measure.

(Reporting by Maria Plis and Toni Vorobyova; writing by Nastassia Astrasheuskaya and Toni Vorobyova; Editing by Louise Heavens)

UPDATE 1-Guinea leader postpones Moscow trip, mining talk

MOSCOW, June 9 (Reuters) – Guinea’s acting president Sekouba Konate postponed a visit to Moscow this week that was to have included talks with President Dmitry Medvedev, the Kremlin said.

Konate’s talks had been expected to touch on troubles Russian aluminium giant RUSAL has faced in Guinea, which is struggling to hold a June 27 presidential election after decades of harsh authoritarian rule.

“Due to pressing domestic matters that have arisen in Guinea, the Guinean side has requested a postponement of the working visit to Russia,” a statement on the Kremlin website late on Tuesday said.

It did not say when the visit might take place.

RUSAL in April rejected a claim by Guinea’s mines minister that it owes at least $860 million in unpaid taxes and said it aims to “protect its rights”.

The Guinean government has also said RUSAL paid too little for the Friguia bauxite and alumina complex in 2006 and a local court last year ruled that the sale was unlawful.

RUSAL then agreed to establish a joint high-level commission with the Guinean government to discuss long-term cooperation.

A court of appeal in Conakry also overruled the 2009 court decision on Friguia in March, Rusal said. [ID:nLDE63M0HG]

Mining companies have had a rocky time in Guinea since the December 2008 coup that followed the death of ruler Lansana Conte.

Guinea’s Moscow ties date to Soviet times, when it received Kremlin backing after the end of French colonial rule in 1958.

RUSAL also operates the Compagnie des Bauxites de Kindia (CBK) which develops one of the world’s largest bauxite deposits.

It has a design capacity of 3.1 million tonnes of bauxite per year and delivers more than 2 million tonnes of bauxite per year to Russia’s Nikolaev alumina refinery and more than 500,000 tonnes to other facilities.

(Reporting by Alfred Kueppers)

Russia calls for crackdown on Afghan drugs

(Reuters) – Russia on Wednesday rolled out a global initiative to stem Afghan drug trafficking to include a comprehensive crackdown on opium poppy growing, but the United States gave a cool reception to the plan.

World | Russia

Russia, the world’s largest per capita heroin consumer with an estimated 30,000 people dying of abuse annually, has tried to take the lead to combat a flow of drugs from Afghanistan.

Moscow believes U.S.-led NATO forces fighting the Taliban in Afghanistan are reluctant to uproot local drug output, which has surged after their invasion in 2001 and now accounts for 90 percent of all heroin produced globally.

The U.S. said eradicating poppy plantations would push disgruntled Afghan farmers into the hands of insurgents.

Russian President Dmitry Medvedev said the world community must work out a joint approach to combat Afghan drugs.

“We see drug addiction as a significant, the most severe threat to the development of our country, to the health of our people,” Medvedev told a forum on Afghan drug production.

Russian Foreign Minister Sergei Lavrov called for a binding United Nations resolution on Afghan drugs.

“We are confident there is a need for the U.N. Security Council to call the Afghan drug threat as a threat to international peace and security,” he said.

Russia’s anti-drugs czar, Viktor Ivanov, said the adoption of such a resolution by the U.N. would create a legal basis for an international fight against Afghan drugs.

The plan drafted by Moscow envisages eradication of no less than 25 percent all those areas growing opium poppies, from which heroin is derived, up from last year’s 3 percent.

Moscow also wants the destruction of poppy fields to form part of the remit of NATO forces operating in Afghanistan.

“We should act at least as decisively fighting drug production in Afghanistan as it is done when fighting cocaine production in South America,” Lavrov said, referring to the effort the U.S. puts into combating the cocaine trade.

Injecting Afghan heroin with unclean needles is blamed by the Russian country for its AIDS epidemic.

Experts say around one million people in Russia are infected with the HIV virus, and that the number of cases has doubled over the past eight years mainly driven by drug users, who account for up to 80 percent of the cases.

U.S. COOL TO PLAN, NATO TRANSIT TO CONTINUE

Patrick Ward, acting deputy director for supply reduction at the White House Office of National Drug Control Policy, warned the forum of the dangers of pushing poor peasant farmers into the hands of the militants.

“This will further undermine the rule of law and reinforce the nexus between drugs and terrorism,” he said.

In March NATO rejected Russian calls for it to eradicate opium poppy fields in Afghanistan, saying it cannot be in a situation where it removes “the only source of income of people who live in the second poorest country of the world.”

The Russia plan envisages job creation schemes.

NATO and Afghan forces conducted 56 anti-drug operations in the first three months of 2010, which led to the destruction of 16.3 metric tons of opium, Ward said.

Seventy metric tons of heroin worth $13 billion is consumed in Russia every year, according to U.N. estimates.

Any rift between Moscow and Washington over the drugs issue would not affect the transits of cargo for NATO troops in Afghanistan via Russia, Moscow’s envoy to NATO Dmitry Rogozin said on the sidelines of the forum.

“We’re interested in the transit ourselves, so that the coalition acts without disruptions,” he said. “We’re not going to shoot ourselves in the foot merely to spite them.”

(Reporting by Alexei Anishchuk; Editing by Ralph Boulton)

Russia calls for crackdown on Afghan drugs, U.S. tepid

MOSCOW, June 9 (Reuters) – Russia on Wednesday rolled out a global initiative to stem Afghan drug trafficking to include a comprehensive crackdown on opium poppy growing, but the United States gave a cool reception to the plan.

Russia, the world’s largest per capita heroin consumer with an estimated 30,000 people dying of abuse annually, has tried to take the lead to combat a flow of drugs from Afghanistan.

Moscow believes U.S.-led NATO forces fighting the Taliban in Afghanistan are reluctant to uproot local drug output, which has surged after their invasion in 2001 and now accounts for 90 percent of all heroin produced globally.

The U.S. said eradicating poppy plantations would push disgruntled Afghan farmers into the hands of insurgents.

Russian President Dmitry Medvedev said the world community must work out a joint approach to combat Afghan drugs.

“We see drug addiction as a significant, the most severe threat to the development of our country, to the health of our people,” Medvedev told a forum on Afghan drug production.

Russian Foreign Minister Sergei Lavrov called for a binding United Nations resolution on Afghan drugs.

“We are confident there is a need for the U.N. Security Council to call the Afghan drug threat as a threat to international peace and security,” he said.

Russia’s anti-drugs czar, Viktor Ivanov, said the adoption of such a resolution by the U.N. would create a legal basis for an international fight against Afghan drugs.

The plan drafted by Moscow envisages eradication of no less than 25 percent all those areas growing opium poppies, from which heroin is derived, up from last year’s 3 percent.

Moscow also wants the destruction of poppy fields to form part of the remit of NATO forces operating in Afghanistan.

“We should act at least as decisively fighting drug production in Afghanistan as it is done when fighting cocaine production in South America,” Lavrov said, referring to the effort the U.S. puts into combating the cocaine trade.

Injecting Afghan heroin with unclean needles is blamed by the Russian country for its AIDS epidemic.

Experts say around one million people in Russia are infected with the HIV virus, and that the number of cases has doubled over the past eight years mainly driven by drug users, who account for up to 80 percent of the cases.

U.S. COOL TO PLAN, NATO TRANSIT TO CONTINUE

Patrick Ward, acting deputy director for supply reduction at the White House Office of National Drug Control Policy, warned the forum of the dangers of pushing poor peasant farmers into the hands of the militants.

“This will further undermine the rule of law and reinforce the nexus between drugs and terrorism,” he said.

In March NATO rejected Russian calls for it to eradicate opium poppy fields in Afghanistan, saying it cannot be in a situation where it removes “the only source of income of people who live in the second poorest country of the world”.

The Russia plan envisages job creation schemes.

NATO and Afghan forces conducted 56 anti-drug operations in the first three months of 2010, which led to the destruction of 16.3 metric tons of opium, Ward said.

Seventy metric tons of heroin worth $13 billion is consumed in Russia every year, according to U.N. estimates.

Any rift between Moscow and Washington over the drugs issue would not affect the transits of cargo for NATO troops in Afghanistan via Russia, Moscow’s envoy to NATO Dmitry Rogozin said on the sidelines of the forum.

“We’re interested in the transit ourselves, so that the coalition acts without disruptions,” he said. “We’re not going to shoot ourselves in the foot merely to spite them.” (Reporting by Alexei Anishchuk; Editing by Ralph Boulton)

Police crush protests as Russia-EU summit opens

(Reuters) – Police violently dispersed anti-Kremlin rallies in Russia’s largest cities and detained dozens of protesters on Monday, as President Dmitry Medvedev was set to welcome European Union leaders at a summit.

World | Russia

The crackdown on protesters came two days after Russia’s widely popular and powerful Prime Minister Vladimir Putin said that he did not oppose peaceful protests.

Clashes between riot police and protesters occurred shortly after at least 1,000 opposition activists — several times more than usual — gathered in Triumfalnaya Square in central Moscow, chanting “Freedom” and “Russia without Putin.”

The crowd shouted “fascists” at police and booed as they grabbed protesters — often knocking then down and dragging them along the pavement to nearby buses.

One riot policeman was seen beating young women. A man in his early 20s had a beaten face, with blood dripping from his nose onto the pavement. One elderly woman had her arms twisted and was thrown into a police bus for chanting “Freedom.”

A police official told Reuters police had to use force after protesters tried to disrupt a concert given nearby to a crowd of pro-Kremlin youths and attempted to block traffic in a busy central thoroughfare.

Russian opposition groups last year began to hold rallies on the last day of each month to defend article 31 of the constitution, which guarantees the right of assembly.

MORE CALM AS EUROPE WATCHES

In Russia’s second largest city of St Petersburg, some 300 members of the banned ultra-left National Bolshevik Party gathered in the central Nevsky Prospekt and attached a plaque reading “Freedom Avenue, 31″ to one of the buildings.

At least 100 people were detained.

“European leaders in their summit with Russia must not leave these obstructions unaddressed,” Heidi Hautala, who chairs the European Parliament’s subcommittee on human rights, told reporters in St Petersburg.

“I strongly condemn the violent oppression of peaceful demonstrations in Russia,” she said.

As in Moscow, some St Petersburg protestors said they had joined peaceful demonstrations after Putin, criticized in the West for backtracking on democracy, said at the weekend that he saw nothing wrong with peaceful protest.

Boris Nemtsov, a staunch anti-Kremlin opposition leader, said the authorities had only allowed a demonstration in St Petersburg’s Palace Square, a major tourist attraction, to pass off peacefully because a member of the European Parliament was present.

“Putin has shown hypocrisy and cynicism,” Nemtsov said. “He says one thing, promises another and does a third. Today in Moscow and St Petersburg protesters were beaten for nothing.”

Three dozen people gathered in the southern Russian city of Rostov as President Dmitry Medvedev met EU leaders nearby at the start of a two-day summit.

“People are afraid. Afraid of losing their jobs. Afraid of being beaten up,” said Yelena Belan, a 48-year-old ecologist who wore a vest emblazoned with the words “Putin is killing Russia.”

(Additional reporting by Conor Humphries in Rostov)

(Reporting by Aydar Buribayev and Denis Pinchuk; Writing by Dmitry Solovyov; Editing by Jon Boyle)

Police crush protests as Russia-EU summit opens

MOSCOW/ST PETERSBURG, May 31 (Reuters) – Police violently dispersed anti-Kremlin rallies in Russia’s largest cities and detained dozens of protesters on Monday, as President Dmitry Medvedev was set to welcome European Union leaders at a summit.

The crackdown on protesters came two days after Russia’s widely popular and powerful Prime Minister Vladimir Putin said that he did not oppose peaceful protests.

Clashes between riot police and protesters occurred shortly after at least 1,000 opposition activists — several times more than usual — gathered in Triumfalnaya Square in central Moscow, chanting “Freedom” and “Russia without Putin”.

The crowd shouted “fascists” at police and booed as they grabbed protesters — often knocking then down and dragging them along the pavement to nearby buses.

One riot policeman was seen beating young women. A man in his early 20s had a beaten face, with blood dripping from his nose onto the pavement. One elderly woman had her arms twisted and was thrown into a police bus for chanting “Freedom”.

A police official told Reuters police had to use force after protesters tried to disrupt a concert given nearby to a crowd of pro-Kremlin youths and attempted to block traffic in a busy central thoroughfare.

Russian opposition groups last year began to hold rallies on the last day of each month to defend article 31 of the constitution, which guarantees the right of assembly.

MORE CALM AS EUROPE WATCHES

In Russia’s second largest city of St Petersburg, some 300 members of the banned ultra-left National Bolshevik Party gathered in the central Nevsky Prospekt and attached a plaque reading “Freedom Avenue, 31″ to one of the buildings.

At least 100 people were detained.

“European leaders in their summit with Russia must not leave these obstructions unaddressed,” Heidi Hautala, who chairs the European Parliament’s subcommittee on human rights, told reporters in St Petersburg.

“I strongly condemn the violent oppression of peaceful demonstrations in Russia,” she said.

As in Moscow, some St Petersburg protestors said they had joined peaceful demonstrations after Putin, criticised in the West for backtracking on democracy, said at the weekend that he saw nothing wrong with peaceful protest.

Boris Nemtsov, a staunch anti-Kremlin opposition leader, said the authorities had only allowed a demonstration in St Petersburg’s Palace Square, a major tourist attraction, to pass off peacefully because a member of the European Parliament was present.

“Putin has shown hypocrisy and cynicism,” Nemtsov said. “He says one thing, promises another and does a third. Today in Moscow and St Petersburg protesters were beaten for nothing.”

Three dozen people gathered in the southern Russian city of Rostov as President Dmitry Medvedev met EU leaders nearby at the start of a two-day summit.

“People are afraid. Afraid of losing their jobs. Afraid of being beaten up,” said Yelena Belan, a 48-year-old ecologist who wore a vest emblazoned with the words “Putin is killing Russia.” (Additional reporting by Conor Humphries in Rostov) (Reporting by Aydar Buribayev and Denis Pinchuk; Writing by Dmitry Solovyov; Editing by Jon Boyle)

Russia submits U.S. nuclear arms deal to parliament

Russian President Dmitry Medvedev on Friday said he had submitted a landmark nuclear arms reduction treaty with the United States to the lower house of parliament for ratification.

“I today submitted for ratification the agreement on reducing strategic offensive arms,” Medvedev told members of the ruling United Russia party, which has a majority in the lower house, the Duma.

Signed by Medvedev and President Barack Obama in Prague on April 8, the successor to the 1991 Strategic Arms Reduction Treaty (START I) commits the former Cold War foes to reducing deployed nuclear warheads by about 30 percent.

Approval from the U.S. Senate and the Duma is required for the treaty to enter force.

Medvedev told United Russia party leaders to ensure the new treaty was ratified at the same time as the United States, but not a moment earlier or later.

Obama said earlier this month that he hoped the U.S. Senate would ratify the new START treaty by November, though Senate Majority Leader Harry Reid, a Democrat, cautioned in April that the new treaty may not be ratified until early 2011.

(Reporting by Denis Dyomkin, writing by Guy Faulconbridge)

Death toll from south Russia bomb rises to seven

The death toll from a bomb blast in the southern Russian city of Stavropol rose to seven on Thursday and 16 people were in a critical condition, Russian media reported.

The blast occurred on Wednesday just before the start of a concert by a dance company linked with Kremlin-backed Chechen President Ramzan Kadyrov.

Russia said investigators had opened a criminal case under terrorism laws after the blast in the ethnically Russian Stavropol region, which borders the violence-racked, mainly Muslim republics of the North Caucasus.

Islamist militants have vowed to expand a campaign of shootings and bombings to Russian cities. Suicide bombers on the Moscow metro in March killed 40 people in the worst attack on the Russian heartland since 2004.

A Stavropol doctor told Rossiya-24 television that the death toll had risen by two ovenight to seven and that 16 people were in an “extremely grave condition” with chest, abdominal and head wounds.

The bomb, equivalent to 400 grams of TNT, was disguised as a pack of juice.

Last year, Russian President Dmitry Medvedev ordered that the Stavropol region be included in a new North Caucasus Federal District along with mainly Muslim Chechnya, Dagestan and Ingushetia in a bid to tackle growing violence. (Reporting by Dmitry Solovyov; Editing by Ralph Gowling)

Iran and Russia clash in worst row for years

Iran and Russia clashed on Wednesday over Kremlin support for draft U.N. sanctions against the Islamic Republic, in one of the worst rows between the two powers since the Cold War.

The public clash indicates growing concern in Tehran after the United States said Russia and China, the closest thing Iran has to big-power allies, had agreed to a draft sanctions resolution to punish Iran over its nuclear programme.

In unusually strong criticism of Russia, President Mahmoud Ahmadinejad admonished the Kremlin for bowing to what he said was U.S. pressure to agree sanctions and bluntly warned President Dmitry Medvedev to be more cautious.

“If I were the Russian president, when making decisions about subjects related to a great nation (Iran) … I would act more cautiously, I would think more,” Ahmadinejad said in a televised outdoor speech.

He said that Russian support for the United States was unacceptable and that Moscow should rethink its decision or face being viewed as an enemy by Tehran.

Within hours, the Kremlin’s top foreign policy adviser dismissed Ahmadinejad’s criticism, telling the Iranian president to refrain from “political demagoguery”.

“No one has ever managed to preserve one’s authority with political demagoguery. I am convinced, the thousand-year history of Iran itself is evidence of this,” Sergei Prikhodko said in a statement read out by a Kremlin spokeswoman.

“The Russian Federation is governed by its own long-term state interests. Our position is Russian: it reflects the interests of all the peoples of greater Russia and so it can be neither pro-American nor pro-Iranian,” he said.

ROW WITH RUSSIA

The spat between two of the world’s biggest energy producers — with a personal tirade by a president against a Kremlin leader — is the worst in many years, analysts said.

Though trade ties have grown over the past two decades, Russia is still regarded with deep distrust in Iran after several wars between Persia and the Tsarist Empire, followed by rocky relations with the atheist Soviet Union.

Russia has been dismayed by Tehran’s failure to disclose full details about its nuclear programme and diplomats say privately that Kremlin leaders have been burned several times while attempting to get Iranian leaders to resolve the dispute.

Prikhodko issued a clear rebuke to Tehran over its failure to allay fears about its nuclear programme.

“Any unpredictability, any political extremism, lack of transparency or inconsistency in taking decisions that affect and concern the entire world community is unacceptable for us,” he said.

“It would be good if those who are now speaking in the name of the wise people of Iran … would remember this.”

Since the 1991 fall of the Soviet Union, trade has grown, reaching $3 billion last year. Russia has struck deals to build Iran’s first nuclear power station and sell billions of dollars of weapons.

But the row with Moscow could hurt Russian plans to start the nuclear reactor at the Bushehr power plant in August and Iran is unlikely to see a Russian delivery of the S-300 surface-to-air missiles it agreed to sell Iran.

“Moscow has repeatedly saved Iran from very tough sanctions, so Ahmadinejad’s defiance is quite frankly out of place,” Pyotr Goncharov, a Moscow-based specialist on the Gulf, told Reuters.

“It is simply the latest attempt by the Iranian president to lay the blame for his own problems at someone else’s door.”

(Writing by Guy Faulconbridge in Moscow and Robin Pomeroy in Tehran, additional reporting by Denis Dyomkin and Moscow and Ramin Mostafavi in Tehran; editing by Andrew Roche)

Kremlin tells Iran to stop ‘political demagoguery’

The Kremlin’s chief foreign policy adviser on Wednesday told Iranian President Mahmoud Ahmadinejad to refrain from “political demagoguery” after Tehran admonished Russia for supporting new sanctions.

The public clash came after Ahmadinejad chided Russia for bowing to U.S. pressure over new sanctions against Tehran and bluntly warned Kremlin chief Dmitry Medvedev to be more cautious.

But Medvedev’s top foreign policy advisor, Sergei Prikhodko, dismissed the criticism, saying Russia was neither pro-American nor pro-Iranian and that Moscow’s policy was governed by the national interest.

“No one has ever managed to preserve one’s authority with political demagoguery. I am convinced, the thousand-year history of Iran itself is evidence of this,” Prikhodko said in a statement.

“The Russian Federation is governed by its own long-term state interests. Our position is Russian: it reflects the interests of all the peoples of greater Russia and so it can be neither pro-American nor pro-Iranian,” he said.

In a clear rebuke to Tehran over its failure to allay fears about its nuclear programme, Prikhodko said that Russia could not accept inconsistency and a lack of transparency in resolving major world issues.

“Any unpredictability, any political extremism, lack of transparency or inconsistency in taking decisions that affect and concern the entire world community is unacceptable for us,” he said.

“It would be good if those who are now speaking in the name of the wise people of Iran… would remember this,” Prikhodko said.

(Reporting by Denis Dyomkin, writing by Guy Faulconbridge, editing by Conor Humphries)

Bomb kills 5, injures 20 at Russian dance show

At least five people were killed and 20 injured on Wednesday when a bomb exploded outside a theatre in the southern Russian city of Stavropol just before the start of a Chechen dance show, investigators said.

Investigators opened a criminal case under terrorism laws, the Prosecutor General’s Office said in a statement.

The ethnically Russian Stavropol region, which borders the violence-racked Muslim republics of the North Caucasus, has been hit by Islamist attacks in the past, but not in recent years.

Islamist rebels have vowed in recent months to expand their campaign of shootings and bombings to Russian cities. Suicide bombers on the Moscow metro in March killed 40 in the worst attack on the Russian heartland since 2004.

The prosecutor’s office statement said the bomb, which contained explosives equivalent to 200-250 grammes of TNT, exploded 15 minutes before the start of a concert by a celebrated Vainakh dance troop from Chechnya.

The dance troop is closely associated with Chechen leader Ramzan Kadyrov, who has posed for photographs with the dancers.

“About 15-20 minutes before the start of the concert we heard an explosion. We saw the blast had practically flung aside the crowd that had gathered outside…about 100-150 people,” Rustam, an eyewitness, told Ekho Moskvy radio.

Two bodies covered in white sheets lay near the exit of the Stavropol Concert Hall, which was sealed off by police. RIA news agency quoted local hospitals as saying at least 40 were injured in the blast.

‘BRUTAL PROVOCATION’

“This is an unprecedented, brutal provocation,” said Stavropol Region Governor Valery Gayevsky, Interfax reported.

Russian President Dmitry Medvedev last year ordered that Stavropol Region be included in a new North Caucasus Federal District along with mainly-Muslim Chechnya, Dagestan and Ingushetia in a bid to tackle growing violence.

Medvedev’s new envoy to the district, former metals executive Alexander Khloponin, on Wednesday called an emergency meeting to discuss the bombing, RIA reported.

Stavropol city is 350 km (220 miles) northwest of Chechnya’s local capital Grozny. It has largely escaped Islamist insurgent attacks, but the surrounding region has seen some of the deadliest attacks in the long-running conflict.

Chechen rebels seized hundreds of hostages in a hospital in the Stavropol Region town of Budyonnovsk in 1995 and more than 100 died during the rebel assault and a botched Russian raid.

In the last major attack, seven Russian policemen and 12 gunmen were killed when special forces stormed houses to fight rebels holed up in a village near the city in 2006.

(Writing by Conor Humphries; Editing by Matthew Jones)

Russian support for sanctions “not acceptable”-Iran

President Mahmoud Ahmadinejad said on Wednesday Russian support for new U.N. sanctions against Iran was unacceptable and called on President Dmitry Medvedev to rethink his support for Washington’s stance.

“We shouldn’t see, at sensitive times, our neighbour (Russia) supporting those who have been against us, have shown animosity to us for 30 years. This is not acceptable for the Iranian nation. I hope they will pay attention and take corrective action,” Ahmadinejad said in a televised speech in the south-eastern city of Kerman.

He also said a deal Iran made with Turkey and Brazil to ship some of its enriched uranium abroad was a “great opportunity” that U.S. President Barack Obama should seize. (Reporting by Robin Pomeroy; Editing by Charles Dick)