Japan says it will continue to export nuclear power plants

Japan today said it would continue to export nuclear power plants after ensuring that the safety of the technology was of highest global standards, even as the country grapples with the crisis at its tsunami-hit Fukushima atomic unit.

The Japanese cabinet approved the sales despite uncertainty over Tokyo's own use of the atomic technology.

Prior to the March 11 devastating earthquake and tsunami that triggered a nuclear crisis in the country, Japan had been actively promoting exports of nuclear technology and had struck an accord last year to build nuclear plants in Vietnam.

India has also been in talks with Japan for importing Japanese nuclear

power plants to feed its ever mushrooming energy needs. Japan has also signed energy cooperation pacts with Russia, South Korea and Jordan.

In an official statement the Japanese government said, “in case other countries wish to utilise our nuclear power technology, we shall provide it by ensuring that its safety is of the highest global standards.”

Without naming any country, the statement said, “a number of countries continue to express interest in Japan's nuclear power technology.”

The statement said Japanese parliament would ratify nuclear accords with Jordan, Vietnam, Russia and South Korea.

The parliament is currently debating the pact.

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Etisalat close to buying 26 pct in Reliance Comm: report

(Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat.

(Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

UPDATE 1-Etisalat close to buying 26 pct in Reliance Comm-FT

MUMBAI, July 19 (Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat. (Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

Russia, Iran sign energy cooperation pact

July 14 (Reuters) – The Russian and Iranian energy ministries signed a “road map” on Wednesday outlining long-term energy cooperation and said they would aim to set up a joint bank to help fund bilateral projects.

The text of the pact said the two countries would aim to increase cooperation in transit, swaps and marketing of natural gas as well as sales of petroleum products and petrochemicals.

(Reporting by Jessica Bachman, writing by Dmitry Zhdannikov; editing by Melissa Akin)

Reliance, Reliance Natural sign revised gas pact

June 25 (Reuters) – India’s Reliance Natural Resources (RENR.BO) said on Friday it had signed a revised gas supply agreement with energy major Reliance Industries (RELI.BO). It did not disclose the terms of the new pact.

Shares in Reliance Natural extended gains to more than 6 percent after the announcement in a subdued market. (Reporting by Sumeet Chatterjee)

UPDATE 1-Alcoa agrees new pact with union workers

June 25 (Reuters) – U.S. aluminium giant Alcoa Inc (AA.N) said it ratified a new four-year contract with the United Steelworkers union covering 5,400 employees at ten of its locations in the United States.

The company, one of the world’s largest aluminum producers, said on its website there would be no wage increases in 2010 and 2011 but all job classes will see their wages go up by 2.5 percent each in 2012 and 2013.

Also, the company’s healthcare program will see increased employee contributions, with price tags increasing every year.

The union contract covers all Alcoa workers in the U.S. under an umbrella deal. (Reporting by Sakthi Prasad in Bangalore; Editing by Mike Nesbit)

Spain government says labor talks in final stages

(Reuters) – Talks between the Spanish government, unions and businesses aimed at reaching agreement on wide-ranging labor reforms are in the final stages, Labour Minister Celestino Corbacho said on Tuesday.

World

Spanish unemployment has more than doubled since the beginning of the economic crisis as struggling construction and service industries hemorrhaged jobs and economists say reform is vital to avoid job market stagnation.

“We’re in the last stages of the process and in the next few days we’ll see a result … We hope it will be a favorable result, but whatever happens, there will be a reform before the end of this month,” he said in a television interview.

The ruling Socialists believe a joint agreement on the reform would be preferable and more sustainable than a unilateral government decree.

“The government has always understood a pact on the reform is better than an imposed reform,” Corbacho said.

The three-way talks originally were working toward a May 31 deadline before the government enforced its own proposals but a deal is proving elusive as the unions and companies struggle to find common ground.

The talks should be concluded, with or without agreement among the three parties, by the middle of next week at the latest, Corbacho said.

(Reporting by Paul Day, Editing by Sonya Hepinstall)

UPDATE 1-Spain government says labour talks in final stages

MADRID, June 1 (Reuters) – Talks between the Spanish government, unions and businesses aimed at reaching agreement on wide-ranging labour reforms are in the final stages, Labour Minister Celestino Corbacho said on Tuesday.

Spanish unemployment has more than doubled since the beginning of the economic crisis as struggling construction and service industries haemorrhaged jobs and economists say reform is vital to avoid job market stagnation.

“We’re in the last stages of the process and in the next few days we’ll see a result … We hope it will be a favourable result, but whatever happens, there will be a reform before the end of this month,” he said in a television interview.

The ruling Socialists believe a joint agreement on the reform would be preferable and more sustainable than a unilateral government decree.

“The government has always understood a pact on the reform is better than an imposed reform,” Corbacho said.

The three-way talks originally were working toward a May 31 deadline before the government enforced its own proposals but a deal is proving elusive as the unions and companies struggle to find common ground.

The talks should be concluded, with or without agreement among the three parties, by the middle of next week at the latest, Corbacho said. (Reporting by Paul Day, Editing by Sonya Hepinstall)

Shares in Ambanis’ cos rally after brothers end non-compete pact

Shares in Reliance Industries, controlled by Mukesh Ambani, rose 4 percent in opening deals on Monday after the billionaire Ambani brothers took a step towards reconciliation in their long-running feud.

The brothers will now be free to compete on each other’s turf, with the exception of gas-fired power plants, removing a source of friction between the two conglomerates.

Telecoms firm Reliance Communications, controlled by Anil Ambani, gained 6 percent, while financial services firm Reliance Capital added 7 percent.

Reliance Natural Resources, also controlled by Anil Ambani, jumped 20 percent.

(Reporting by Devidutta Tripathy; Editing by Ranjit Gangadharan)

(For more business news on Reuters Money visit http://www.reutersmoney.in)

ANALYST VIEWS- Ambani brothers end non-compete pacts

India’s Reliance Industries, controlled by Mukesh Ambani, and Reliance ADA Group, led by his brother Anil Ambani, on Sunday agreed to cancel all existing non-compete pacts which the groups had signed in 2006.

Reliance ADA Group said in statement the two groups have entered into a new and simpler non-compete pact only for gas-based power generation.

The announcement comes weeks after the Supreme Court ruled in Mukesh Ambani’s favour in a bitter dispute over gas pricing that had made headlines, riven India’s richest family and raised questions about the influence of big business on government policy.

The Supreme Court had asked the brothers to renegotiate the contract within six weeks and approach a companies court within eight weeks.

COMMENTARY:

S.P. TULSIAN, INDEPENDENT INVESTMENT CONSULTANT, MUMBAI:

“If you weigh the positives and negatives, this is more positive for Reliance Industries than R-ADAG group, because this gives Reliance an opportunity to look into expansion in other areas, which they were not allowed to do earlier.”

“You can’t rule out the possibility of Reliance entering in sectors such as telecom,” adding the Reliance shares are expected to open up on Monday, in the wake of this development.

AMBARISH BALIGA, VICE PRESIDENT, KARVY STOCK BROKING :

“The main thing is pricing of the gas. As of now there were major roadblocks. This is a first step towards the resolution of dispute. It can not have too much of financial implications immediately. But there will be a sentimental positive impact on both the stocks.

ARUN KEJRIWAL, DIRECTOR, KRIS

“Cancelling this agreement of 2006 very clearly means that Anil (Ambani) has had to give a lot in view of what the court had said. Tomorrow markets are likely to open up as both the brothers have come down to some sort of settlement … But it does not mean that everything is settled down.”

BACKGROUND:

In 2006, the two brothers carved up their father Dhirubhai Ambani’s business empire after his death in 2002.

Mukesh took control of flagship Reliance Industries, with interests in petrochemicals, oil and gas exploration, refining and textiles. He has since launched a retail venture. The Anil Dhirubhai Ambani Group got telecoms, power, entertainment and financial services. The Group includes Reliance Communications Ltd , Reliance Infrastructure Ltd , Reliance Capital Ltd , Reliance Natural Resources Ltd (RNRL) and Reliance Power Ltd.

(Reporting by Sumeet Chatterjee, Devidutta Tripthay, Ketan Bondre; Editing by Surojit Gupta and Krittivas Mukherjee)

Ambani brothers end non-compete pacts

Reliance Industries, controlled by billionaire businessman Mukesh Ambani, and Reliance ADA Group, led by his brother Anil Ambani, on Sunday agreed to cancel all existing non-compete pacts which the groups had signed in 2006.

Reliance ADA Group said in statement the two groups have entered into a new and simpler non-compete pact only for gas-based power generation.

(Reporting by Devidutta Tripathy; editing by Surojit Gupta and Louise Heavens)

New book explores key to lasting romantic relationships

Melbourne, May 14 (ANI): Making a relationship work takes a lot more than just buying expensive gifts and romantic dinners. And with the same idea in mind, American relationship therapists Charlie and Linda Bloom have come up with a book that explores marriage and the obstacles couples face to make it work.

When Charlie and Linda came close to divorce after 37 years of marriage, instead of separating, they decided to work on it mutually, and share their experiences with others like them.

‘Secrets of Great Marriages’, a collection of first-person accounts from 27 couples considered to have extraordinary relationships, was published this year.

The Blooms came close to divorce a couple of times during their marriage. But what kept them together is the mutual desire to move past the hurdles of a marriage and truly be happy with each other.

“It”s not commitment to the marriage or commitment to staying together.

“It”s commitment to the process of using this relationship to grow and make something of our lives that”s greater than it could have been if we”d been on our own,” The Age quoted Charlie as saying.

“We made a pact early on that we would live the growth model of a relationship rather than the comfort/security model,” Linda said.

The book is a collection of stories about couples that pushed through heartbreaking obstacles – affairs, financial ruin, illness – and emerged stronger for it. In an interview, the Blooms discussed their book and what they”ve learned about great marriages.

‘Q: What”s the difference between a good marriage and a great marriage?

Linda: In a great relationship, you”re in a growth mode. There are times it”s going to be tough, but you mine it for the gold. You are growing qualities of courage, of patience, to become a person of integrity. That is the earmark of these great couples. They didn”t start out like that; they didn”t come in with these skills and qualities. This has been on-the-job training. They grew into people who feel good about themselves and they”re still evolving.

Q: A big concern couples often have is that the passion will wane. What are realistic expectations for the fire, and how do you keep it burning?

Charlie: The fire does cool, thank God. I don”t think that”s necessarily a bad thing. … There”s a difference between having a deep relationship and a hot relationship. Sometimes you can have both. Part of it is a cultural thing where we are adrenaline junkies and people are terrified of not having enough stimulation. But stimulation is not all it”s cracked up to be. These couples (in the book) stimulated each other in ways that they didn”t when they were younger. It”s a function of how alive they stay in life.

Q: Is there such a thing as being too independent from each other?

Charlie: There is such a thing as too much separateness. There should be a mutually satisfying degree of separateness and togetherness. Most good couples, they just like each other, they just enjoy each other”s company, so naturally they will want to spend time together. But if one person is working at a job that takes her away for long periods of time, but when she comes back she is able to be really present with her partner, then that may work for them.

Linda: When people are able to attend social functions separately, it can be a good sign. There”s enough trust in the relationship and closeness in the relationship that they don”t have to hold onto each other so tight.

Q: How do you know when it”s time to cut bait?

Charlie: There are relationships that really can”t and shouldn”t be saved. But I believe that most couples that divorce, divorce before they”ve really given the marriage their best shot. If they had hung in there longer, there”s a chance they may have been able to salvage it,’ reports The Age. (ANI)

UK talks roll on as support grows for poll reforms

London, May 10 — Britain’s Conservative and Liberal Democrat parties continued holding secret talks aimed at striking an unprecedented power-sharing pact as a series of polls suggested growing public support for reforms to the electoral system. Aided by three senior civil servants, negotiators for the two parties met on the neutral ground of the Cabinet Office in central London, following a face-to-face meeting between Conservative leader David Cameron and Liberal Democrats chief Nick Clegg on Saturday. The two sides described the 70-minute meeting, held after a general election returned a hung parliament, as “constructive and amicable” but gave no other details.

The sticking point in negotiations between the key Liberal Democrats and the Conservatives is likely to be the Lib Dem demand for fundamental reforms to the British electoral system, which is seen as unfair. The Lib Dems want to replace the present first-past-the-post system with proportional representation (PR) but have only been offered an all-party review by the Conservatives.

Govt pact unlikely before Monday – UK Conservatives

Britain’s opposition Conservatives and Liberal Democrats will hold more talks on Sunday on a pact after Thursday’s indecisive election, but they are unlikely to reach a deal before Monday, the Conservatives said on Saturday.

The Conservatives won most parliamentary seats in the election but fell short of a majority and are seeking the support of the smaller Lib Dems to end 13 years of Labour rule.

The talks, starting at 11 a.m. (1000 GMT), will be face-to-face between the two parties but below the level of leader, a Conservative Party spokesman said.

He said it was unlikely a deal could be reached by Monday, noting that Conservative members of parliament, who will be briefed on the negotiations, will not meet until Monday evening.

(Reporting by Adrian Croft; Editing by Keith Weir)

Even without iPhone, AT&T can thrive-Barron’s

NEW YORK, April 25 (Reuters) – Concerns over the loss of AT&T’s (T.N) exclusive pact with Apple Inc (AAPL.O) are overshadowing AT&T’s ability to sell other services to its customers, Barron’s reported in its April 26 edition.

Stocks | Technology | Telecommuncations Services

The telecom company, which posted better-than-expected quarterly earnings last week, is the exclusive carrier for the iPhone. Most analysts expect this to continue until 2011.

In the meantime, investors should not overlook the company’s ability to sell data, broadband, voice and other services to home and wireless customers, the financial newspaper reported in its “Plugged In” column.

AT&T and other phone companies have also been hurt by the slowdown in the number of customers buying lucrative, long-term contracts. But AT&T said its revenue per user from data and other services continues to rise, which will compensate for slower contract growth.

Pacific Crest analyst Steve Clement has an outperform rating on the stock, with a $30 target. AT&T shares slipped 2 cents to $26.25 on Friday on the New York Stock Exchange. (Reporting by Deepa Seetharaman, editing by Maureen Bavdek)

Geithner: pact agreed on World Bank capital rise

(Reuters) – World Bank members have agreed to pour more capital into the lender and give developing countries a greater voice in running the bank, Treasury Secretary Timothy Geithner said on Sunday.

“We can feel proud that we have concluded agreements on a transformative financial and governance reform agenda, along with new capital for the World Bank and a new and more representative shareholding formula,” Geithner said in a statement delivered to its development committee.

He also said that the United States, which holds the largest voting share in the World Bank at 16.4 percent, would not seek any increase for itself under a revised voting formula that is to better reflect developing countries’ economic heft.

“Because we believe this overall outcome merits our strong endorsement, the United States agreed not to take up its full shareholding in this new arrangement,” Geithner said.

Geithner said the World Bank deserved more capital to help it in efforts like helping Afghanistan to develop more productive farming and for relief efforts such as those it has undertaken in Haiti after it was struck by an earthquake.

The World Bank had asked for a capital increase of $3 billion to $5 billion, allocated proportionally among its members.

Geithner said he considered the World Bank had made “a strong and compelling case” for a $3.5 billion increase and said he would ask Congress to approve the U.S. share of it.

(Reporting by Glenn Somerville; Editing by Padraic Cassidy)

Partition ‘most traumatic event’ of 20th century, India-Pak should accept reality:Singh

Lahore, Apr.17 (ANI): Former Foreign Minister Jaswant Singh has described the bifurcation of the Indian subcontinent as the ‘most traumatic event’ of the 20th century and said that both India and Pakistan must accept the reality and find ways to move ahead.

Speaking during the launch function of his controversial, yet popular book: “Jinnah: India-Partition-Independence” here, Singh said people of both India and Pakistan should accept the reality and find way to move ahead and end the animosity as envisioned by Muhammed Ali Jinnah.

Describing Jinnah as an ardent supporter of Hindu-Muslim unity, he said Jinnah wanted to separate religion from politics.

“Jinnah was a pure secularist and constitutionalist who believed in logic and wanted to separate religion from politics, but the consequences of the Lukhnow Pact of 1916 and the Uttar Pradesh elections of 1937 disheartened him so much that he quit politics and returned to England,” The Daily Times quoted Singh, as saying.

Singh said Jinnah and Mahatma Gandhi had different opinions over bringing reforms in society.

“Gandhi supported civil disobedience while Jinnah, who was five years his senior in Congress, believed in changing the society through education,” Singh said.

Responding a question over his basic aim behind writing the book on Jinnah, Singh said he wanted to help people understand the past, which he said is shared by both countries.

“We should not stumble again,” Singh said. (ANI)

Branson slams EU Commission over tie-up – FT

LONDON, April 11 (Reuters) – The founder of Virgin Group (VGIAY.PK), Richard Branson, has slammed the European Commission’s handling of a proposed tie-up between British Airways (BAY.L) and American Airlines (AMR.N) in an interview published on Monday.

Stocks | Regulatory News | Industrials

British Airways, American Airlines and Spain’s Iberia (IBLA.MC), members of the Oneworld alliance, want to deepen the pact to take advantage of the U.S./EU “Open Skies” agreement, which liberalises trans-Atlantic aviation.

But Branson, who last month called proposals by Oneworld members to cede a number of lucrative trans-Atlantic slots in an in effort to seal approval for the alliance “woefully inadequate”, said he strongly opposed such an alliance.

“We actually believe the Commission should just say: No way BA-AA’” Branson told the Financial Times.

“The way the Commission is currently going about it is fundamentally flawed and misguided, and to be honest it’s rather a lazy approach,” he said.

Alliances are seen as a lucrative alternative to mergers and large-scale investments. The airlines want to jointly manage schedules, capacity and pricing as well as share revenues on routes between North America and Europe.

The commission opened an investigation into a planned alliance last April. But Branson said the commission should treat the proposed tie-up as a merger.

“In every other way they’ll be behaving as a single entity,” Branson said.

“So we believe that the Commission should be treating it as they would treat any merger situation.”

Last week British Airways and Spain’s Iberia signed an $8 billion merger to create the world’s third-largest airline, bringing a three-way tie-up with American Airlines a step closer. [nLDE63707M] (Reporting by Caroline Copley; Editing by Muralikumar Anantharaman)

Olivia Newton John’s lost ex-flame ‘sends voice clues’

Melbourne, April 1 (ANI): Olivia Newton John’s ex-flame Patrick McDermott may finally be found – private detectives have secured recordings of his voice.

McDermott was believed to have been dead when he disappeared after a 2005 fishing trip off the California coast.

However, in 2009 it emerged that he was living in a Mexican village.

And now sources confirm McDermott sent voice recordings to the detectives as part of a deal that requires them to call off his search.

McDermott has been in touch with lead American investigator Phil Klein for months, sending out faxes, photographs and now voice recordings.

Texas-based Klein, who is penning a book on the hunt, recently received “voice imprints” and “proof of life” documents as part of the pact, reports the Daily Telegraph.

The documents were reportedly handed in by a man claiming to be McDermott”s lawyer. (ANI)

Russia, U.S. reach deal on new arms pact – Kremlin

Russia and the United States have reached agreement on a landmark nuclear arms reduction treaty, the Kremlin said on Wednesday, but the White House said some issues still needed to be worked out.

“All documents for the signing of START have been agreed,” said the Kremlin official, who asked not to be identified. The official said Russian President Dmitry Medvedev and U.S. President Barack Obama would decide when to sign it.

In Washington, White House spokesman Robert Gibbs said, “We are very close to having an agreement on a START treaty, but we won’t have one until President Obama and his counterpart, Mr. Medvedev, have a chance to speak again.”

“There are still some things that need to be worked out,” Gibbs told a daily news briefing, adding he expected the two leaders to speak to each other in the next few days.

Asked later about Gibbs’ statement, a Kremlin official who spoke on condition of anonymity said, “The deal is agreed on the whole, but there are some technical details that still need to be resolved.”

Both sides said the successor to the last major Cold War arms reduction pact would likely be signed in Prague, capital of the Czech Republic, a former Soviet satellite now in NATO.

Russian and U.S. negotiators have been trying to hammer out a successor to the 1991 Strategic Arms Reduction Treaty, START I, for almost a year. They missed an initial deadline of Dec. 5, when START I expired.

The new pact is a crucial element of efforts to improve Russian-U.S. relations after years of tension that peaked following Russia’s war with U.S.-supported Georgia in 2008.

It could also strengthen Obama politically, giving him a major foreign policy success and building on the domestic political victory he scored this week when he signed sweeping healthcare reform into law.

“I don’t think the discrepancy (in the statements from Moscow and Washington) is significant in the long term,” said Greg Thielmann, a former State Department analyst and senior fellow at the Arms Control Association in Washington.

“We are on the verge of getting another very significant reduction in nuclear forces that is verifiable and helps put U.S.-Russian arms control back on track,” he said.

In a joint understanding last July, Obama and Medvedev said the treaty would reduce operationally deployed nuclear warheads to between 1,500 and 1,675 each, with a more specific ceiling to be determined in the negotiations.

COLD WAR TREATY

The most recent treaty to cut the Cold War foes’ nuclear weapons numbers, signed by former Presidents George W. Bush and Vladimir Putin in 2002 before ties deteriorated, limited each side to 2,200 warheads each by the end of 2012.

U.S. and Russian officials say they hope further cuts in the world’s largest nuclear arsenals would send a signal to other nations that have or want atomic weapons, helping reduce the threat of armed conflict.

The START successor pact is a key goal for Obama as he seeks to rein in Iran’s nuclear ambitions and promotes efforts to rid the world of nuclear weapons. He is due to host a summit on nuclear nonproliferation in Washington next month.

The signing of the new pact could take place around the anniversary of Obama’s April 5, 2009, speech in Prague offering his vision for reducing global nuclear arsenals.

“I anticipate that when we have something to sign, it will be in Prague,” Gibbs said. Medvedev is scheduled to visit Bratislava, in neighbouring Slovakia, on April 6 and 7.

Analysts say the treaty is also in the Kremlin’s interests, estimating that Russia’s aging arsenal will drop below 1,500 warheads in less than a decade.

Signing a major arms treaty with the United States could help Russia bolster its image as a global power and improve relations with Washington amid disputes on issues ranging from other weapons to trade and human rights.

But Russian officials — most prominently the powerful prime minister, Putin — repeatedly cast doubt on the chances for a deal by suggesting Moscow might not sign without U.S. concessions on the divisive issue of missile defence.

The Kremlin has expressed concern that further cutting its offensive arsenal without binding the United States to limits on defensive systems could upset the strategic balance in favour of Washington.

Obama last year scrapped a Bush-era plan for missile defence facilities in Poland and the Czech Republic, which the Kremlin had said was meant to weaken Russia. Moscow has also grumbled about amended plans that could involve Romania.

Any limit on U.S. missile defences in the START successor would jeopardize its chances of ratification in the U.S. Senate.

John Kerry, chairman of the Senate Foreign Relations Committee, said he would push for Senate action this year on the treaty once it was finalized.

Last week, the Senate’s two top Republicans — Mitch McConnell and Jon Kyl — wrote a letter reminding Obama of a requirement in recent legislation that the administration submit a 10-year plan for modernizing the U.S. nuclear arsenal at the same time it submits the new START deal to the Senate.

Russia’s lower house of parliament, dominated by Putin’s United Russia party, must also ratify the treaty for it to enter force.

(Additional reporting by Susan Cornwell and Patricia Zengerle; Writing by Steve Gutterman; Editing by Tim Pearce and Peter Cooney)
Denis Dyomkin and Ross Colvin