Already Feuding Over Greenpeace, Russia And Netherlands Now Tiff Over Diplomat’s Arrest

Novatek Advances as Net Seen Doubling: Russia Overnight

If you start with the dissolution of the Soviet Union in January 1992 (officially was Dec. 26, 1991) as the start of Western-style economic practices being incorporated in the Russian economy, then youve got a capitalist system that turns 22 the day after Christmas 2013. To use a drinking metaphor, by U.S. standards Russia is one year in to being legally able to handle its liquor. Bottoms up. Top Down The macro view of Russia is a mixed bag. The investment view is a bag full of holes. Were now trapped in an intermediate level of development, said Moiseev. This is not a cyclical slowdown in Russia. This is a structural one and it concerns us all. Like China, its mostly the government investing billions of dollars in roads and bridges. One of the biggest investments, however, is a private public partnership between government owned Rosavtodor and the North West Concession Company, a Russian and French highway builder. Theyre building the massive 403 mile (650 km) Moscow to St. Petersburg M11 toll road. Last year, the Russian government spent around $1 billion on the worlds longest suspension bridge in Vladivostok, the peninsula that juts into the Sea of Japan.

An artisan gives finishing touches to an effigy of demon king Ravana in preparation for the upcoming Hindu festival of Dussehra in the northern Indian city of Chandigarh October 8, 2013. The effigies are burnt during the festival which commemorates the triumph of Lord Rama over Ravana, marking the victory of good over evil. REUTERS/Ajay Verma (INDIA - Tags: RELIGION SOCIETY TPX IMAGES OF THE DAY)

Simon Denyer Newspapers in China make the most of U.S. presidents absence from Asia-Pacific economic summits. Russian Foreign Ministry spokesman Alexander Lukashevich said Borodin had been arrested over an absolutely contrived allegation of child abuse, and that the Dutch ambassador to Russia had been summoned to the ministry in Moscow to receive an official protest over the case. The Netherlands Foreign Ministry said an incident occurred with a Russian diplomat that led to an arrest by the Dutch police and that it is under review. Speaking from the APEC summit in Bali, Indonesia, Putin described the arrest as a rude violation of treaties on diplomatic relations. The Dutch ministerial statement, while not exactly conciliatory, said, If it emerges from the investigation that actions were taken in conflict with the Vienna Treaty on Diplomatic Relations, the Netherlands will apologize to Russia. The timing of the disputed arrest is sensitive. On Sept. 18, the Russian coast guard seized the Dutch-flagged ship Arctic Sunrise after Greenpeace activists used it to stage a demonstration at an offshore oil platform owned by Gazprom. Last week, the Russians charged all 30 on board the ship with piracy which carries a maximum sentence of 15 years. Dutch Foreign Minister Frans Timmermans said Friday that he would seek to recover the ship at the International Tribunal for the Law of the Sea, based in Hamburg, Germany, because it wasnt clear whether the ships seizure was legal. He said he would seek the release of the 30 detainees, among them activists and journalists, via diplomatic channels.

US, Russia Want Clarity on Iran Nuclear Issue

In addition, Novatek plans to start its Yarudeyskoe crude oil field in 2015. The uptick in financials for Novatek has just started, Oleg Maximov , a senior oil and gas analyst at Sberbank CIB in Moscow, wrote in a note yesterday. He has a buy rating for the shares. If you think you have seen everything with this company, then think again. Novatek reported on Aug. 9 a 20 percent jump in second-quarter profit as sales volumes increased and prices gained. Net income rose to 11.6 billion rubles ($358 million) from 9.66 billion rubles a year earlier, exceeding the 11.3 billion-ruble average estimate of 11 analysts surveyed by Bloomberg. Revenue advanced 29 percent to 58 billion rubles. Export Laws Putin in June called for export law changes to encourage companies to produce LNG and take advantage of a window of opportunity in the Asia-Pacific market. Russia will move to liberalize LNG exports in the nearest future, Putin said at a summit in Bali, Indonesia earlier this week. Sixteen out of 21 analysts tracked by Bloomberg recommend buying Novateks London stock. The GDRs rallied to $137.10 yesterday, the highest level since April 2012, to trade at a 13 percent premium to the Moscow-listed shares. The Bloomberg Russia-US gauge dropped 0.4 percent to 99.22 yesterday. The Micex Index (INDEXCF) added 1.7 percent to 1,505.14 in Moscow, the highest level since Feb.

Secretary of State John Kerry (on the sidelines of an economic summit in Indonesia) that Iran likely wants “more clarity” about the way forward. “Iran probably wants more clarity,” Lavrov said. “More specific steps to be spelled out on the road to the result which we all want to achieve. And I think this will be discussed next week in Geneva, a meeting to which Iran agreed. And to which Iran and three plus three are getting ready in a very constructive mood, as our contacts in New York show.” Kerry said the United States is encouraged by Iran’s recent outreach efforts, but that actions, and not words, are what will make a difference. “So what we need are a set of proposals from Iran that fully disclose how they will show the world that their program is peaceful,” Kerry said. “And we have made it clear that if there are those indicators, the United States and our allies are absolutely prepared to move in appropriate ways to meet their actions. Kerry said Iran has not responded to an offer the P5+1 group made earlier this year, which called for Iran to stop enriching uranium to 20 percent and halt enrichment at one of its nuclear facilities. Iranian Foreign Minister Javad Zarif said Sunday that offer was no longer valid, and that the P5+1 should come to next week’s negotiations with a “new point of view.” Iran says its nuclear program is strictly for peaceful purposes and wants the international community to lift a range of sanctions imposed for its refusal to halt enrichment activity. The possible threat of a ballistic missile strike from countries like Iran has led the United States to plan a missile shield in Europe. Russia disagrees with the move, saying the system could neutralize its own strategic missile force and leave it vulnerable to the West. Kerry said Monday it is too early to make determinations about the system as long as the Iranian threat continues.