SOURCE: The St. Petersburg Times DATE: Issue #1290 (56), Thursday, July 19, 2007 ************************************************************************** TITLE: Police Back Berezovsky Assassination Allegation AUTHOR: By David Nowak PUBLISHER: Staff Writer TEXT: MOSCOW — British police said Wednesday that they arrested a suspect last month in London on suspicion of conspiring to kill self-exiled tycoon Boris Berezovsky. “The man was released into the custody of immigration officials two days later,” a Scotland Yard spokesman said by telephone. Berezovsky, an ardent Kremlin opponent, said at a news conference in London that he left Britain on June 16 after police warned him his life was in danger. “Putin is personally behind this plot,” Berezovsky said, adding that he had received threats before. Berezovsky first revealed the plot in an interview published in The Times of London on Wednesday. The Kremlin has denied similar claims in the past. Berezovsky said he flew to an unidentified destination on June 16. He returned a week later after London police called him with the message that it was safe to return. The police did not say why the man was handed over to immigration officials, but a British Home Office spokeswoman said immigration authorities would have become involved if a person were in the country illegally. British media reported Wednesday that Scotland Yard intercepted a man at the London Hilton on Park Lane hotel. An eyewitness said by telephone that television crews were gathered Wednesday afternoon around the entrance to the hotel, situated a short walk from Berezovsky’s office in Mayfair. Berezovsky said he holds many meetings in the hotel because of its proximity. A Scotland Yard spokeswoman refused to comment on whether the arrest had been made at the hotel. The day Berezovsky fled, his close associate Alex Goldfarb returned to London from a business trip to Hamburg, Germany, with Litvinenko’s widow, Marina, who was celebrating her birthday. Goldfarb said he first became aware of a “serious security alert” when he and Litvinenko turned up for a birthday barbeque that evening at the house of Akhmed Zakayev, the Chechen rebel envoy wanted in Russia on charges of terrorism. A large number of plainclothes and uniformed police officers had gathered outside the house, Goldfarb said. “They told us that they were very concerned for our safety,” Goldfarb said by telephone from London. “Then I called Boris, who was invited but wasn’t at the party, and he told me about the police warning.” At the news conference, Berezovsky said the Kremlin wanted to kill him for two reasons: He was a witness to the murder of Litvinenko and he funds the political opposition in Russia. Last year, the Federation Council approved a request by Putin to grant him the right to defend “the human rights and freedoms of citizens [and] the sovereignty of the Russian Federation” by using security forces outside of the country. In 2004, two Russian agents were convicted in Qatar on charges of killing Chechen separatist leader Zelimkhan Yandarbiyev with a car bomb. Berezovsky said threats to his life in Britain began even earlier. In 2002, Scotland Yard police met Berezovsky at his home in Surrey, southwest of London. “They told me, ‘Some Chechens are plotting to kill you,’” Berezovsky said, adding that the police subsequently offered him extra protection, which he accepted, he said. In April, FSB-connected friends visited Berezovsky in London, where they warned him of an imminent attempt on his life, he said. “They said: ‘Someone you know will come and kill you, and not even try to hide it.” The would-be killer would portray the crime as the result of a business quarrel, the friends said. “Two months later, what happened was exactly how they said,” he added, in reference to the June plot. Berezovsky said that although he was withholding some information at the request of Scotland Yard, he did not know the identity of the suspect. Berezovsky is wanted in Russia on charges including money laundering and calling for a violent coup, charges he denies. He told reporters he was willing to stand trial “on any charges” in any country his lawyer considers to possess an independent judiciary. He offered Denmark and Sweden as examples. Russian officials, meanwhile, were skeptical of the allegations. “In order to distract from his combination of money laundering and fraud, he is trying to present himself as a political opponent and draw attention to his own persona,” said Yury Fedotov, the Russian ambassador, Interfax reported. “The stories that Berezovsky is always thinking up are conjured out of thin air,” said Mikhail Grishankov, a senior member of the Duma’s Security Committee. In what many read as a sign of increasing tensions between Britain and Russia, two Russian military jets were dispatched from their base in the Arctic Circle on Tuesday and headed toward British airspace, British media reported. The British Air Force scrambled fighter jets to intercept the planes, which turned back before they entered British airspace. On July 4, Russia officially refused Britain’s request to extradite Lugovoi, a former Federal Guard Service officer. Britain has charged him with the murder of Litvinenko, who died of radiation poisoning on Nov. 23, three weeks after a meeting with Lugovoi in a London hotel. TITLE: Spat Escalates as Russia Expels 4 Diplomats AUTHOR: By Steve Gutterman PUBLISHER: The Associated Press TEXT: MOSCOW — Russia said Thursday it will expel four British diplomats and suspend counterterrorism cooperation with London, the latest move in a mounting confrontation over the radiation poisoning death of former KGB officer Alexander Litvinenko. Britain had announced Monday the expulsion of four Russian diplomats and restrictions on visas issued to Russian government officials after Moscow refused to extradite Andrei Lugovoi, accused of killing Litvinenko in London last November. The dispute marks a new low in relations between Moscow and London, which had already been troubled by Russia’s opposition to the war in Iraq, Britain’s refusal to extradite exiled tycoon Boris Berezovsky to face embezzlement charges, and by Kremlin allegations last year of spying by British diplomats. Foreign Ministry spokesman Mikhail Kamynin announced the expulsions after summoning British Ambassador Anthony Brenton to the ministry and informing him. Kamynin described Russia’s response as “targeted, balanced and the minimum necessary.” He contended that Russia was forced to respond, saying Britain had made a “conscious choice of worsening relations with our country.” U.K. Foreign Secretary David Miliband expressed disappointment. “We obviously believe that the decision to expel four embassy staff is completely unjustified and we will be doing everything to ensure that they and their families are properly looked after,” he said. U.S. Secretary of State Condoleezza Rice called on Moscow to heed British demands and extradite Lugovoi — the first time America’s senior diplomat has weighed in on the dispute. “This is an issue of rule of law to our minds, not an issue of politics,” Rice said at a news conference in Portugal, where she was attending a conference on Middle East peace. “It is a matter of Russia cooperating fully in what is simply an effort to solve what was a very terrible crime committed on British soil.” Russia says such extraditions are prohibited by its constitution and characterized Britain’s demand as an attempt to interfere in Moscow’s internal affairs. “We are disappointed that the Russian government should have signaled no new cooperation in the extradition of Mr. Andrei Lugovoi for the alleged murder of Alexander Litvinenko,” Miliband said. “We are, however, much heartened that over the last 36 hours across the international community, European countries, the EU as a whole and the United States should have put out such positive statements about the need to defend the integrity of the British judicial system, and that is something that we shall be taking forward with the international community over the next few days and weeks,” Miliband said. Litvinenko, a fierce Kremlin critic, died Nov. 23 after ingesting radioactive polonium-210. From his deathbed, he said Russian President Vladimir Putin was behind his poisoning. A letter from Russia’s ambassador in London denounced claims of Kremlin involvement in Litvinenko’s murder. “It is preposterous to assert that the killing of Alexander Litvinenko ‘appears to have the clear backing, if not the active assistance, of the Russian government,’“ Ambassador Yury Fedotov wrote in a letter to The Times, responding to an editorial published Tuesday. Fedotov said there is nothing sinister in Russia’s refusal to hand over Lugovoi, and reaffirmed Russia’s offer to put him on trial at home if British authorities provide enough evidence. Fedotov, who has been uncharacteristically visible in British media this week, said that how far the standoff goes depends on the “political will” of the British government. “The Russian government values its relations with the U.K. and respects its laws and constitutional arrangement,” Fedotov wrote. “A close relationship, of course, requires that the British government does the same.” British police said Wednesday that it had apprehended and deported a suspected Russian assassin who was reportedly planning to murder Berezovsky in June. The tycoon accused the Kremlin of being behind that plot. Kamynin also said Russia would stop issuing visas to British officials and seeking British visas for Russian officials until London provides more information on the restrictions it has imposed. “Until the new procedure is explained, Russian officials will not request British visas. And analogous requests by British officials will not be considered,” he said. He also said Moscow would suspend cooperation against terror. “To our regret, cooperation between Russia and Britain on issues of fighting terrorism becomes impossible,” Kamynin said. He did not elaborate, and the extent of current cooperation — with ties already damaged by Russian intelligence services’ accusations of British spying — was unclear. TITLE: Airborne Drunks Face Travel Ban AUTHOR: By Galina Stolyarova PUBLISHER: Staff Writer TEXT: After a charter flight from St. Petersburg to Turkey was turned back last week when three drunk men started a brawl on the airplane, injuring a female traveler, Russian authorities are discussing the possibility of a complete alcohol ban on board Russian flights. The idea was voiced by Yury Zakharenkov, head of the Russian Interior Ministry’s department for Public Safety on Transport. Speaking to reporters on Tuesday, Zakharenkov said his office will throw its weight behind the ban. “If we really want our air travel to be safe, then this measure is a must,” he said. “Otherwise, those who heavily overdose on alcohol will inevitably create potentially dangerous situations for fellow travelers.” On July 13, after a charter flight to Antalia, Turkey, had been in the air for more than two hours, an argument between three drunken young men escalated into a fist fight. The brawl began after one of them started demanding the attention of a fellow female passenger. Failing to win her affection, the man gave the woman a slap in the face. When another tourist tried to defend the victim, the fight got out of control, and the cabin crew’s intervention failed to stop it. The captain took the decision to return to St. Petersburg. The plane flew to Antalia later that evening — but without the brawlers. International air safety rules forbid the passengers to drink their own alcohol on board, but many Russians ignore the rule. Also, large numbers of Russian travelers get drunk long before boarding. Tatyana Demenyeva, deputy head of the Northwestern branch of the Russian Tourism Industry Union, said that, regrettably, bans will not help the situation unless Russians review their drinking habits. “It is a highly embarrassing thing to admit, but for many Russians words like ‘relaxation’ and ‘unwind’ imply a reckless, ungovernable booze-up which starts right after passing passport control,” Demenyeva said. “Besides, many people are extremely scared of flying, and getting drunk is a common remedy here.” Sergei Bykhal, press secretary of Transaero Airlines told web portal Turist.ru this week that several Russian airlines have started compiling so-called blacklists of passengers with a history of rowdiness. He said the airlines reserve the right to refuse to fly trouble-makers in the future. Bykhal said airlines are ready to exchange their databases on the clients. RST’s Demenyeva is against using the blacklists against the passengers. In her view, the practice of denying someone a ticket on the grounds of a previous incident would be discriminatory. “Anyone would have paid for their mistakes by the time of their next flight,” she said. “Violations of air safety rules involve huge fines, and a court case like that it is a highly humiliating process to be involved in.” Rossija Air Carrier looks set to sue those responsible for last Friday’s brawl for 1 million rubles ($38,000) in damages, Zakharenkov said. The 150 passengers who were on board on the Antalia flight have the right to seek financial compensation for “moral damage” under Russian law. As a possible solution, Demenyeva suggested introducing hefty fines for the passengers who get on board in a drunken state — even if they do not behave aggressively toward others — and distribute a leaflet explaining the system of fines with every airplane ticket sold in Russia. “Faced with a detailed written warning, travelers are bound to show more caution,” she said. Russian travelers have long been notorious for their drinking habits and rampant indulgence in alcohol. In a string of incidents in February 2002, musicians from two prestigious orchestras hit a sour note with alcohol-fuelled antics on two separate flights to the United States. Members of the St. Petersburg Philharmonic got drunk and behaved improperly on the first leg of an eight-hour transatlantic crossing from Amsterdam. In that widely publicized case, the crew serving the flight recalled the Russian musicians talking loudly, walking around in a state of inebriation, throwing objects around the cabin and consistently ignoring warnings from the cabin crew. The musicians were eventually put off the United Airlines flight at Washington’s Dulles International airport, but were allowed to resume their flight to Los Angeles the next day. That same month when the Mariinsky Theater Symphony Orchestra was traveling from Helsinki to New York, some the musicians drank strong liquor they had brought with them and engaged in loud disputes with each other. Following the incident the Finnish air carrier discontinued it agreement with the Mariinsky as the company’s principal international air carrier. TITLE: Correction TEXT: In an article headlined “Teacher Convicted of Causing Suicide” (Tuesday, July 17) misstated the compensation that a court ordered schoolteacher Vera Novak to pay Tatiana Lebedev following the suicide of her grandson Roma Lebedev. The correct amount was 300,000 rubles ($11,540). TITLE: In Brief TEXT: Compensation ST. PETERSBURG (SPT) — The St. Petersburg City Court on Wednesday refused to increase compensation to relatives of victims of air crash near Donetsk, Ukraine, in August 2006, Interfax reported. The Pulkovo Airlines TU-154 plane was heading to St. Petersburg from Anapa, south Russia, when it crashed killing all 160 passengers and 10 crew. “The judgement, made by Court of Moskovsky district, was not changed,” said Vitaly Yusko, a member of the victims’ relatives group. “We are waiting for judgements on other appeals. After that we will go to the European Court in Strasbourg.” For the Record ST. PETERSBURG (SPT) — Crime figures for the past six months show that 68,500 crimes were registered in St. Petersburg, Interfax reported. In comparison with the same period last year, the total amount of crimes that have been registered has reduced, and the crime rate in St. Petersburg is lower than in Russia on average. TITLE: Children’s Charity Plans Advanced Support Center AUTHOR: By Karina Papp PUBLISHER: Special to The St. Petersburg Times TEXT: A roundtable held on July 12, organized by the St. Petersburg charity Parents Bridge, heard how the problem of Russia’s abandoned children and the children’s homes in which they often end up need a rethink. Parents Bridge presented plans for a new center to help systematize its work with children up to seven years old. In cooperation with state bodies, abandoned or cruelly treated children would be transferred to this center after being identified by the department of social protection, a school, polyclinic, other charities or even neighbors. The state would retain administrative control of the center, since non-state organizations do not have access to the necessary documents. But the assignment of social workers or “crisis managers” to work with families as a whole before children are abandoned is a key aim of Parents Bridge’s approach. “Social problems — unemployment, homelessness, lack of documents, alcoholism, drug addiction, family conflict — are not the only factors that contribute to the abandonment of children,” Marina Levina, president of Parents Bridge, said. “On the basis of operational experience, we consider that any family, in which relations between children and parents break down, is in crisis.” Levina added that it is not only poor families that get into trouble. “Our crisis service often receives calls from successful, well-off men who shout ‘I hate my child and I don’t know what to do!’ Many people think that it is simply necessary to give material aid to a family, visit it once, and the problem will be solved,” Levina said. “But after five years’ work, we can assert that it is not so. The primary factors that influence family breakdown are psychological and spiritual. Such families should be divided not into social categories, but on the level of crisis.” The new center is fully planned but awaits financing. It is estimated that the center will cost 7.5 million rubles ($290,000) per year to run. By comparison, the care of 415 children in children’s homes costs $830,000 a year. It is hoped that funds will be forthcoming in 2008, as Russia has declared this as the Year of The Family. Legislative assembly deputy Pavel Soltun said: “We are able to realize this program only after the governor’s understanding and acceptance of the appropriate decision by City Hall.” Presenting five-yearly results, Levina said that Parent’s Bridge had been involved in 769 cases when there was a threat of child abandonment. In 287 of these cases, families themselves asked for help, while other cases were referred to Parents Bridge by maternity hospitals. In 406 of the cases, children remained with their families, meaning that Parents’ Bridge has had a success rate of 53 percent. Levina added that without the work of the charity during the past five years, this figure would represent four additional children’s homes for St. Petersburg. TITLE: Police Arrest Arkhangelsk Mayor AUTHOR: By Carl Schreck and Svetlana Osadchuk PUBLISHER: Staff Writer TEXT: MOSCOW — Law enforcement officers stormed the apartment of Arkhangelsk Mayor Alexander Donskoi on Wednesday and took him to a detention facility, sharply escalating an ongoing battle between him and the region’s governor. The officers forced their way into Donskoi’s apartment Wednesday afternoon and carried him out to a waiting police car, despite protests by doctors present that his blood pressure was dangerously high, Donskoi’s aide, Eduard Gainutdinov, said by telephone. Gainutdinov said he was speaking from the apartment. A woman could be heard wailing in the background. Regional prosecutors said in a statement that Donskoi, 37, was detained on suspicion of illegally dipping into city coffers to pay for bodyguards for himself and his family. Prosecutors are now deciding whether to charge him formally with abuse of office, the statement said. If charged and convicted, he could face up to seven years in prison. Donskoi was formally charged in February with faking his university diploma and participating in illegal business activities while in office, but he had been free on condition that he not leave the city. He has said repeatedly that he is innocent. Donskoi’s legal problems began shortly after his November announcement that he planned to run for president next year. He has said the Kremlin tried to pressure him into staying out of the race. But he has also been embroiled in a dispute with Arkhangelsk Governor Nikolai Kiselyov. On July 11, Donskoi posted a video on the City Hall-connected Archicity.ru showing a man resembling Kiselyov puportedly accepting a bribe. Kiselyov said in a statement posted on the regional administration’s web site the following day that the video was a fake and part of a “dirty” campaign connected with the upcoming election season. “I have already gone to the authorities [in connection with the video],” Kiselyov said in the statement. Donskoi’s 16-year-old son, Alexander, said Wednesday’s detention was Kiselyov’s “revenge” for the video. TITLE: U.S. Language Teacher Drowns in Local Lake PUBLISHER: The St. Petersburg Times TEXT: An American citizen drowned in the early hours of July 8 as he swam in a lake in Leningrad Region, local media reported, quoting police sources. Two St. Petersburg residents who were with the man alerted police using a mobile phone to say that their friend, Richard Hooley, was missing presumed drowned in Lake Vuoksa near Baryshevo, 47NEWS reported on July 12. Hooley, 29, worked as an English teacher in a St. Petersburg language school. A spokesperson for the U.S. Consulate General in St. Petersburg, Mary E. Countryman, confirmed that “the consulate was involved in a case of a death of an American citizen,” but declined to give further details, citing the absence of permission from the next of kin to publicize details of the incident. According to Hooley’s friends, the tragedy happened during a camping trip to Lake Vuoksa, a popular weekend destination for Petersburgers. “I wasn’t there but basically what happened is that he was swimming and then the current pulled him out too far and he could not swim back,” Robert Bothwell, Hooley’s friend and former roommate, said. “He was a very social person. Richard was here for only about two years, but he had a surprising number of friends already — Russians, foreigners, different kinds of people,” Bothwell said. “Most people will remember him as being very generous with a big smile and a big heart.” A memorial service for Hooley was held in St. Petersburg at the Christian University Chapel on Saturday. It was set up as a service for support and prayer because Hooley’s body had not been found at that point. The police could not be reached for comment on Wednesday, but Bothwell said the body was found last week. Originally from Minnesota, Hooley moved to St. Petersburg in 2005 to learn the Russian language and teach English. The tragedy has left many in the language teaching and expatriate communities in shock. “It was really a shock for everybody, because he was a young, healthy and happy guy,” Jennifer Davis, a friend of Hooley’s, said Wednesday. “I heard his students really loved him, especially the young kids. He was good with teenagers. He was a really great guy; we’ll miss him a lot.” TITLE: Ivanov Quits Security Council PUBLISHER: The Associated Press TEXT: MOSCOW — President Vladimir Putin on Wednesday accepted the resignation of Igor Ivanov as secretary of the Security Council. Putin appointed Ivanov’s little-known deputy, Valentin Sobolev, as acting secretary of the presidential advisory body. Sobolev, 60, is a general in the Federal Security Service. Ivanov said Wednesday that he planned to work on a new book and teach at the Moscow State Institute of International Relations. “What I have no plans to do is get involved in politics,” he said, Itar-Tass reported. Alexander Golts, security writer for the online Yezhenedelny Zhurnal, said Ivanov’s resignation might indicate the start of a further shuffling of posts. At the same time, Golts said, “the most sensible explanation” for Ivanov’s stepping down is that “someone has his eye on his position.” TITLE: City Cuts Spending On Okhta Center Project AUTHOR: By Yekaterina Dranitsyna PUBLISHER: Staff Writer TEXT: The St. Petersburg government has decreased its planned spending on the Okhta Center — Gazprom’s controversial construction project to be sited on the Neva embankment near the Peter the Great Bridge. At a meeting of the St. Petersburg government Tuesday amendments were approved to the “Law on the special program for the construction of an administrative and business center in St. Petersburg”, the press service for the St. Petersburg governor said Tuesday in a statement. “The city will get 49 percent of shares in the Public and Business Okhta Center limited company. When construction is completed, we will have the new premises at our disposal. It will provide double and even triple benefits to St. Petersburg. We have to explain this to the citizens,” St. Petersburg Governor Valentina Matviyenko was quoted in the statement as saying. According to the agreement signed by the Gazprom and Gazpromneft companies on May 27, 2007, the construction will be financed from two sources — the city budget and private investors. As a result of the latest amendments, budget funding of this project will decrease by 50 percent. Of the total construction cost of 60 billion rubles, 51 percent will be provided by Gazpromneft and “Public and Business Okhta Center” and 49 percent by the St. Petersburg budget. The city government will get a 49 percent stake in the company that owns the center and will own a corresponding share of the completed property. Instead of the committee for construction, the committee for state property management will be Gazprom’s partner in this project. Matviyenko emphasized that at the moment the industrial area is in a poor state and requires modernization. The rationality of replacing it with a business center is undoubted, she said. Following a request from City Hall, Gazpromneft added a significant number of social infrastructure elements to the project, Matviyenko said, including residential areas and cultural and sports facilities for public use. She stressed that the height of the main building is still a subject for discussion. However, architectural nuances would not stop the project from being realized, Matviyenko said. Okhta Center is to be completed in 2016. The center, occupying 71.4 hectares of land, will become the largest office center in Europe. Gazprom and its subsidiaries will occupy 16 percent of the facilities, tenants will occupy 49 percent and social infrastructure will account for 35 percent. “When analyzing the project for the Okhta Center you just can’t use criteria such as the pay-back period. It’s a political project in the first place,” said Oleg Barkov, general manager of Knight Frank St. Petersburg. “If a historical parallel is to be found, the construction of the Admiralty in St. Petersburg was once a symbol of Russia becoming a sea empire,” he said. However, Barkov admitted, the project could be commercially profitable if parts of the center will be leased. In seven years the expenses could be covered, he said. “If the additional commercial areas will be developed, the normal pay-back period would be five years for office centers and almost immediate return for residential areas. Investors will be highly interested in developing those areas, including the largest western conservative investors,” he said. “In other respects it would be a purely social project with a large number of public areas — exhibition halls, concert halls and sports areas. Investment into such premises for the city is a social obligation in the same way as the construction of schools and nursery schools,” Barkov said. TITLE: France, Gazprom Deny Deal AUTHOR: By Miriam Elder PUBLISHER: Staff Writer TEXT: MOSCOW — Gazprom on Wednesday denied it was seeking assets from merging French firms Gaz de France and Suez, amid speculation that French President Nicolas Sarkozy promised the Kremlin he would support the move. Analysts expect France to offer a reciprocal to Gazprom after the state-run gas giant’s decision to award French oil major Total a share in developing the coveted Shtokman field last week. “Regarding the rumors, we deny them,” a Gazprom spokesman said. “Negotiations on buying GDF or Suez assets are not going on.” Prime-Tass news agency, citing an unidentified source, reported late Tuesday that Sarkozy had pledged his support during a phone call with President Vladimir Putin on July 11, the eve of Gazprom’s decision on Shtokman. A senior adviser in the Elysee Palace denied that Sarkozy had made the promise during the phone call. “The issue did not come up,” said the adviser, speaking on condition of anonymity. “There is no deal. There is no link between the two issues.” Prime-Tass said Sarkozy told Putin that he would support Gazprom bids for several Suez assets, which the French company is to sell off to obtain European Commission monopoly clearance for its delayed merger with GDF. The report identified the assets as a Distrigas liquefied natural gas terminal in Massachusetts and the Zeebrugge LNG terminal in Belgium, as well as power assets in France and Belgium. Gazprom deputy head Alexander Medvedev first floated the idea last August, France’s La Tribune reported at the time. Spokespeople for GDF and Suez declined to comment. As the Kremlin moves closer to completing its strategy of bringing major oil and gas projects into its fold, it has moved to phase two — striking direct deals with European firms in a bid to circumvent opposition to its plans of energy expansion. “Russian companies are growing, and the limits of the Russian market naturally become very tight,” Kremlin spokesman Dmitry Peskov said. “Our closest ally is Europe. Predictably, the first market of attention for big Russian companies is the European market, especially in the field of energy.” Analysts said any moves into the French market after the Shtokman deal would be consistent with the Kremlin’s policy of expecting access to European markets in exchange for allowing Western oil firms to operate in its increasingly lucrative developments. TITLE: State to Give London Stock Exchange Imperial Dossier PUBLISHER: Reuters TEXT: The Natural Resources Ministry will inform the London Stock Exchange of its finding that the oil reserves of Imperial Energy do not match those in Russian records, an official said Wednesday. The report will be delivered next week by two agencies supervised by the ministry that have responsibility for monitoring reserves of natural resources and their exploitation, the official said. Natural Resources Minister Yury Trutnev said last week that a working group, drawn from the ministry, auditors and oil companies, had found that the reserves declared by London-listed independent oil company Imperial Energy were artificially inflated. Imperial Energy has rejected the accusations and said auditor DeGolyer&MacNaughton’s estimates were based on true and correct information. The group studied deposits of Imperial Energy’s units, Nord Imperial and Alyansneftegaz, estimated by D&M. “On three of five deposits [Kiev-Yevganskoye, Festivalnoye and Snezhnoye], reserves estimated by the auditor and registered at the state balance differ by a factor of several times,” the working group’s report said. It also said the commission took into account the difference between reserves classification accepted in Russia, and the globally recognized SPE classification used by auditors. The official also said that Imperial’s exploration licenses for the three fields would expire in 2008. TITLE: U.K. Developer To Invest $1Bln In Hotel Sector PUBLISHER: Bloomberg TEXT: MOSCOW — London & Regional Properties, the British real estate developer owned by Ian and Richard Livingstone, plans to spend at least $1 billion on projects in Russia in the next 12 months, David Geovanis, head of the company’s Russian unit, said in an interview. The investments will include a chain of hotels that the company is building for Hilton Hotels, Geovanis said Tuesday. Separately, London & Regional is constructing a hotel in St. Petersburg that’s due to open in September. “Prices will continue to grow and we want to be there first to take advantage of this dramatic growth,” said Geovanis. “The value of assets that we have already bought has gone up so much.” London & Regional has invested about $689 million in Russia since 2005. The company, based in London, spent the money on developments ranging from residential properties to office buildings, as well as existing malls. TITLE: Insurers Skeptical of New Car Legislation AUTHOR: By Yekaterina Dranitsyna PUBLISHER: Staff Writer TEXT: New legislation on compulsory third party liability motor insurance (OSAGO) has raised serious concerns among both insurers and drivers. Experts believe that tariffs could increase, quality of service could deteriorate and a number of insurers could go bankrupt as a result of the proposed changes. From July 26, 2007, a new scheme for the calculation of insurance rates will be in force. The idea is to increase insurance payments to drivers who have had accidents and award bonuses to those drivers who have kept their insurance record clean. “These rules should already have been in force from February of this year. However, the law requires us to take into account all the accidents related to the insured person and the car. There was no way we could collect this information. Moreover, we could not even compile it in the appropriate format,” Andrei Znamensky, head of the OSAGO department of Russky Mir, said Thursday at a press conference at the Rosbalt news agency. According to the new rules, the insured person is responsible for filing the information on his car accidents. “The application form became more complicated. Any mistakes would allow the insurer to break the agreement. If the mistakes were ill-intentioned, all payments made according to this agreement would be recovered from the person in court,” Znamensky said. It would be a difficult task to file and check every single fact. “One person could own several cars, while the insured car could be driven by an unlimited number of his friends and relatives,” said Yury Berkhman, deputy director of the ASK insurance group. Besides the additional paperwork, experts criticized the underlying concept itself. “Dishonest drivers will remain unpunished. We still do not have a unified information center on car accidents,” Berkhman said. Dmitry Troyan, chairman of the regional branch of the Russian Association of Car Drivers, considered the bonuses offered to drivers insignificant in comparison with the penalties. More changes are likely to be introduced next year. Drivers would receive compensation from their insurance companies, which would then in turn demand compensation from the offender’s insurer. At the moment, victims of car accidents apply to the offenders’ insurers for compensation. Also, if the estimated damage is less than 25,000 rubles ($960), drivers will be allowed to handle the accident documents themselves without the mediation of road police. “Considering the bad general culture of driving, the idea of allowing drivers to file documents is frightening,” said Sergei Soloviev, head of the accident commissars department at LAT assistance company. Experienced drivers will swindle the victims, he warned, while insurance company experts will act in their own interests. Znamensky also forecasted mass fraud. “OSAGO payments are increasing in all regions. In about two years they would exceed insurance premiums. The quality of service will decrease, insurers will exhaust their financial resources,” said Sergei Brovko, marketing director of Reso-Garantia. Troyan forecasted that about 40 companies could go bankrupt, while others will start market wars. “During the first three years of OSAGO insurance companies cashed in in this market, and the Russian Union of Car Insurers earned good profits by selling licenses to the first comers,” Troyan said. About 60 percent of insurance companies in Russia operate only on paper, he said, which will cause lots of problems when insurers start demanding compensation from each other. Troyan was also skeptical about the simplification of the procedure for accident registration. “The driver will blame everyone on earth in order to prove his right to compensation to the insurance company, making the documents pure works of fiction. I really doubt that he’ll ever get those 25,000 rubles without the road police acting as witnesses in his favor,” Troyan said. TITLE: Trutnev Floats Oil Proposal AUTHOR: By Tanya Mosolova PUBLISHER: Reuters TEXT: MOSCOW — The government has revived the idea of tax breaks for offshore oil and gas deposits, and will discuss it with global oil majors Tuesday following a landmark deal with France’s Total over the huge Shtokman gas field. The Natural Resources Ministry said Monday that its chief, Yury Trutnev, would meet executives from ExxonMobil, Royal Dutch Shell, BP, Total and Chevron among other firms Tuesday. “Among the issues to be discussed ... will be possible ways for further tax differentiation aimed at increasing inflow of foreign investment into the [resources] sector,” the ministry said. The government has long mulled tax breaks for eastern Siberia, Timan Pechora and its offshore seas but last year decided to limit the number of regions to one — eastern Siberia, which is heavily dominated by state-controlled majors Gazprom and Rosneft. Analysts have said tax breaks for Timan Pechora dropped off the list as it was heavily dominated by LUKoil, and the Kremlin had little incentive in giving privileges to the private firm. “At that time, Russia also had a very vague idea as to how it wants to tap its offshore fields. The situation is very much different now after the Shtokman deal,” said Valery Nesterov from Troika Dialog. Gazprom agreed last week to bring Total into the Shtokman gas field. Total would become a development partner with a 25 percent stake in a firm that will own $15 billion worth of first-phase infrastructure. Total said it would be able to book reserves from Shtokman, although Gazprom will remain the field’s license holder as well as the sole owner of gas produced. Foreign majors have suffered a number of setbacks in the past years in Russia, with Shell being forced to cede control to Gazprom in its $22 billion Sakhalin-2 project after months of pressure from state authorities. Last month, TNK-BP sold control to Gazprom in its Kovykta gas field. The sale has further soured the outlook for foreign deals in Russia, a mood which was quickly reversed by the Shtokman deal. Analysts say it could become a new constructive, rather than repressive, way of cooperation offered by the Kremlin. “The Shtokman deal gave a much clearer idea of what foreign firms could expect from Russia — there will be no production sharing or access to licenses. The best foreigners can expect is to become development partners,” Nesterov said. Natural Resources Ministry spokesman Nikolai Gudkov said the ministry was primarily focused on encouraging Russian companies to develop new untapped regions, although foreign investments were also important. “If new tax breaks are approved, it will be up to Gazprom to decide how to make them work for foreign partners, such as Total,” Gudkov said. TITLE: Industrial Growth Up 10% PUBLISHER: Reuters TEXT: MOSCOW — Industrial output grew by 10.9 percent in June, posting the first double-digit gain since May 2006 as manufacturing boomed, the State Statistics Service said Wednesday. The figure smashed economists’ expectations of a 6.4 percent year-on-year gain, and the government is now likely to revise up its forecast that the economy will grow by 6.5 percent this year. “Rock and roll — what a number,” said Al Breach, chief economist at UBS. “We have had a 7.5 percent growth forecast from the beginning of the year and the government is moving in that direction. We have always been saying the risk is to the upside: We have a real boom going on here at the moment.” Growth accelerated from 6.7 percent in May in year-on-year terms. TITLE: In Brief TEXT: Chevron Venture MOSCOW (Bloomberg) — Chevron wants a 49 percent stake in a joint venture with oil producer Gazprom Neft, Chevron CEO David O’Reilly told Vedomosti in an interview published Wednesday. Gazprom Neft CEO Alexander Dyukov said in June that he wanted his company to raise its stake in the venture to 75 percent from 30 percent. Gazprom Bond LONDON (Reuters) — Gazprom will stick to its plan to start a $1 billion-plus bond roadshow Friday, despite volatile markets and political tensions between Moscow and London, sources said Wednesday. “The deal is going ahead — absolutely. Gazprom has priced bonds in difficult market conditions before,” a London banking source said Wednesday. Heavily indebted, state-controlled oil major Rosneft this week scrapped a multibillion-dollar issue just after finishing a roadshow, blaming market volatility. VimpelCom’s Licenses MOSCOW (Reuters) — VimpelCom has won its first two licenses to operate GSM wireless networks in the Far East of the country, the organizer of the auction said Wednesday. VimpelCom, which has failed in previous attempts to break into the region, received the licenses to operate in the Jewish autonomous region and the Magadan region, the Federal Service for Mass Media, Telecommunications and the Protection of Cultural Heritage said in a statement on its web site. Pipe Project MOSCOW (SPT) — Deputy Prime Minister Sergei Naryshkin has been named as chief coordinator for the East Siberia Pacific Ocean oil pipeline project, a government source said Wednesday, RIA-Novosti reported. The pipeline project, which is designed to have annual capacity of 80 million tons of crude oil, was started in April 2006 and will provide oil to the Asia-Pacific market. Naryshkin’s appointment was announced during a Cabinet discussion on the pipeline project. New Reactors MOSCOW (Bloomberg) — Russia will spend 90 billion rubles ($3.5 billion) on two new nuclear reactors at a power plant near St. Petersburg as the country expands its atomic energy capacity to cut reliance on fossil fuels, the Leningrad region announced in a statement on its web site Tuesday. Rosenergoatom, the state-owned nuclear power plant operator, will add a third and a fourth reactor to the Leningradskaya plant, each with a capacity of 1,150 megawatts, by 2016, the statement said. Construction will begin in 2011. TITLE: For the Sake of One Man AUTHOR: By Bret Stephens TEXT: In the six or seven years in which they interacted on a regular basis, President Vladimir Putin’s police state and journalist Fatima Tlisova had a mostly one-way relationship. Tlisova’s food was poisoned (causing a nearly fatal case of kidney failure), her ribs were broken by assailants unknown, her teenage son was detained by drunken policemen for the crime of not being an ethnic Russian, and FSB agents forced her into a car, took her to a forest outside the city of Nalchik and extinguished cigarettes on every finger of her right hand, “so that you can write better,” as one of her tormentors informed her. Last year, the 41-year-old journalist decided she’d had enough. Along with her colleague Yury Bagrov, she applied for, and was granted, asylum in the United States. Tlisova and Bagrov are, as the wedding refrain has it, something old, something new: characters from an era that supposedly vanished with the collapse of the Soviet Union 16 years ago. Now that era, or something that looks increasingly like it, seems to be upon us again. What can we do? The most important task is to get some facts straight. Fact No. 1: The administration of U.S. President George W. Bush is not provoking a new Cold War with Russia. That seems to be the view of Beltway pundits such as Anatol Lieven, whose indignation at alleged U.S. hostility to Russia is inversely correlated with his concerns about mounting Russian hostility to the United States, its allies and the likes of Tlisova. In an article in the March issue of the American Conservative, the leftish Lieven made the case against the administration for its “bitterly anti-Russian statements,” the plan to bring Ukraine into NATO and other supposed encroachments on Russia’s self-declared sphere of influence. In this reading, Putin’s increasingly strident anti-Western rhetoric is merely a response to a deliberate and needless U.S. policy of provocation. Yet talk to actual Russians and you’ll find that one of their chief gripes with this administration has been its over-the-top overtures to Putin: Bush’s “insight” into Putin’s soul on their first meeting in 2001; U.S. Secretary of State Condoleezza Rice’s reported advice to “forgive Russia” for its anti-American shenanigans in 2003; the administration’s decision to permit Russian membership in the World Trade Organization in 2006; the “lobster summit” earlier this month at the Bush family compound in Kennebunkport (which Putin graciously followed up by announcing the suspension of Russia’s obligations under the 1990 Treaty on Conventional Armed Forces in Europe). This isn’t a study in appeasement. But it stands in striking contrast to the British government’s decision on Monday to expel four Russian diplomats over Putin’s refusal to extradite Andrei Lugovoi, the former security services officer suspected of murdering Alexander Litvinenko in London in November with a massive dose of polonium-210. “The heinous crime of murder does require justice,” British Foreign Secretary David Miliband said Monday. “This response is proportional, and it is clear at whom it is aimed.” Now turn to Fact No. 2. Russia is acting with increasingly unrestrained rhetorical, diplomatic, economic and political hostility to whoever stands in the way of Putin’s ambitions. The enemies’ list begins with Putin’s domestic critics and the vocations they represent: imprisoned Yukos CEO Mikhail Khodorkovsky; murdered journalist Anna Politkovskaya; harassed opposition leader Garry Kasparov. It continues with foreign companies that have had to forfeit multibillion-dollar investments when Kremlin-favored companies decided they wanted a piece of the action. It goes on to small neighboring democracies such as Estonia, victim of a recent Russian cyber-war when it decided to remove a monument to its Soviet subjugators from the city center. It culminates with direct rhetorical assaults on the United States, as when Putin suggested in a recent speech that the threat posed by the United States “as during the time of the Third Reich” include the same claims of “imperialism and diktat” in the world. None of these Kremlin assaults can seriously be laid at the White House’s feet, unless one believes the lurid, anti-Western conspiracy theories spun out by senior Russian officials. And that brings us to Fact No. 3. Russia has become, in the precise sense of the word, a fascist state. It does not matter here, as the Kremlin’s apologists are so fond of pointing out, that Putin is wildly popular in Russia. Popularity is what competent despots get when they destroy independent media, stoke nationalistic fervor with military buildups and the cunning exploitation of the church, and ride a wave of petrodollars to pay off the civil service and balance their budgets. Nor does it matter that Putin hasn’t renationalized the “means of production” outright; corporatism was at the heart of Hitler’s economic policy, too. What matters, rather, is nicely captured in a remark by Foreign Ministry spokesman Mikhail Kamynin regarding Britain’s decision to expel the four diplomats. “I don’t understand the position of the British government,” Kamynin said. “It is prepared to sacrifice our relations in trade and education for the sake of one man.” That’s a telling remark, both in its substance and in the apparent insouciance with which it was made: The whole architecture of liberal democracy is designed primarily “for the sake of one man.” Not only does Kamynin seem unaware of it, he seems to think we are unaware of it. Perhaps the indulgence which the West has extended to Putin’s regime over the past seven years gives him a reason to think so. On Monday night, Tlisova was in Washington to accept an award from the National Press Club on behalf of Politkovskaya. “She knew she was condemned. She knew she would be killed. She just didn’t know when, so she tried to achieve as much as she could in the time she had,” Tlisova said in her prepared statement. “Maybe Anna Politkovskaya was indeed very damaging to the Russia that Putin has created. But for us, the people of the Caucasus, she was a symbol of hope and faith in another Russia — a country with a conscience, honor and compassion for all its citizens.” How do we deal with the old-new Russia? By getting the facts straight. That was Politkovskaya’s calling, as it is Tlisova’s, as it should be ours. Bret Stephens is a columnist for The Wall Street Journal, where this first appeared. TITLE: Oligarchs Brought Down to Size AUTHOR: By Yulia Latynina TEXT: In a recent interview with the Financial Times, RusAl owner and billionaire Oleg Deripaska declared that, “If the state says we need to give it up, we’ll give it up.” Every oligarch has been making similar oaths to prove their loyalty to President Vladimir Putin. The only exception was former Yukos CEO Mikhail Khodorkovsky, whom the Kremlin turned into a textbook case to show other oligarchs what happens when you don’t swear allegiance to Putin. “I just got lucky,” Deripaska said in his interview with the Financial Times. “It is as if wealth has rained down on me from the heavens.” Just lucky? At the end of the 1980s, when most other young physicists frittered away their time not working, Deripaska had a sixth sense of how to make money by selling raw materials on the market. He went to work for TransWorld Group, one of the most powerful corporate empires of the early 1990s. At a time when former Soviet company directors still thought owning corporate stocks could land a person in jail, Deripaska and TWG bought up shares in the Sayansky Aluminum Plant. The plant had been on the verge of closing after bandits brazenly made the rounds of the various workshops and unloaded aluminum anywhere they could find a buyer. As the company’s young new director, Deripaska is said to have slept at the factory for months, losing teeth due to the fluoride in the water in the same way sailors did during the voyages of the 16th-century Portuguese explorer Ferdinand Magellan. In order to buy up the shares, TWG brought in Vladimir Tatarenkov, the local reputed mobster. No one knows how Tatarenkov managed to obtain the shares. Maybe he bought the shares or simply seized them. But when the shares landed in Tatarenkov’s hands, Deripaska squealed to the police, declaring, “I decided to fight against organized crime.” Tatarenkov was determined to kill Deripaska, having made several attempts on his life. Tatarenkov approached Anatoly Bykov, the Krasnoyarsk Aluminum Plant director at the time, and suggested he pay some type of honorarium in return for the hit, arguing that Bykov had reason to fear Deripaska’s growing influence in the aluminum business. But Bykov declined, reportedly saying, “He’s your enemy, not mine.” It was Deripaska who led a mutiny of Russian managers against the TWG empire, diluting its ownership stake in the Sayansky Aluminum Plant by emitting new TWG shares. With all those nights spent at the Sayansky factory, the deadly feuds with Tatarenkov and Bykov, and the uprising against TWG — can it really be said Deripaska was “just lucky”? In 1730, Peter the Great’s comrades helped create the New Russia. They were strong, cunning, and corrupt. They were also extremely clever, calling to the throne the unintelligent and weak Anna Ivanovna and placing very severe limitations on her powers. Those who had sought to impose limits on her power had done so to preserve their own influence, and not for the good of others. But once she ascended to the throne, she exercised her new authority by tossing those limits out. Those in power always have the upper hand. The oligarchs, like Peter the Great’s compatriots, were tireless, talented and ruthless. Not one of them became a billionaire by chance. But when the oligarchs selected Putin as Boris Yeltsin’s successor, they were not concerned with the rights of others. They only thought about advancing their own rights and freedom. But these same heavy hitters, who enjoyed unprecedented wealth and power for such a long time, now stand meekly on the steps of the gallows. In an attempt to buy time or to keep at least some portion of the plundered fortunes for themselves, the oligarchs are now saying to their president: “Your Majesty, all that is mine is yours. Take what you wish.” Yulia Latynina hosts a political talk show on Ekho Moskvy radio. TITLE: The British are coming! AUTHOR: By Sergey Chernov PUBLISHER: Staff Writer TEXT: With tit-for-tat diplomatic expulsions between the U.K. and Russia over the crisis caused by the poisoning of Kremlin opponent Alexander Litvinenko in London last year, the timing might have been better for an impressive cultural mission from Britain to St. Petersburg on Friday to promote tolerance through music. But true fans will nevertheless welcome the British guests. Headlined by pop singer Lily Allen, the lineup of the British Council-promoted open-air event U.K. Flavours includes such acts as Dub Pistols featuring The Specials and Fun Boy Three vocalist Terry Hall, radical Anglo-Asian rappers Fun-Da-Mental, Guyana-born dub musician and producer Mad Professor, reggae band Misty In Roots and bhangra duo Tigerstyle. According to Toby Brundin, the British Council’s art manager in London, the artists were chosen to represent U.K. multiculturalism, with a stress on Caribbean and Asian cultures. “There’s a strong concept behind this event,” wrote Brundin from his office in London this week. “We went through a number of ideas for this. For the U.K. artists, I thought about all the different musical subcultures that exist and the historical threads that run through them, and how we might illustrate this. In the end we have two main threads. “Firstly, we can look at the influence of Caribbean culture on U.K. music. In the ’60s small Jamaican clubs in West London played ska music (early reggae, which was known in the U.K. as ‘Bluebeat’) and these became popular with adventurous white kids, particularly the Mods (for example, The Who). This created a connection between the two scenes that ten years later gave birth to bands like The Specials and the familiar 2-Tone ska scene with its mixed race bands. And now we have Specials singer Terry Hall performing with the Dub Pistols, to show where this development has got to 25 years after that!” “Misty In Roots are representatives of the classic era of U.K. reggae which arose at the same time as punk in the late ’70s, and was equally political and assertive. Artists like Misty In Roots, Steel Pulse and Aswad were some of the first to raise issues about racial equality on a very public basis in the U.K. without mincing their words. So Misty is important not just musically but socially in our history. “Mad Professor, who is coming with a seven-piece live band unusually, is a legend in a different form of Caribbean music: dub. He moved to the U.K. at the age of 13, and along with Adrian Sherwood from On-U Sound and artists like African Head Charge has actually developed a distinctive sound for U.K. dub which has made it the global center for this music now; and dub has an amazing global reach, with festivals from China to Bulgaria to South America.” Headliner Allen, the 22-year-old pop singer who sold over a million copies of her 2006 album “Alright, Still” and topped the U.K. charts with her single “Smile” that same year, has also been influenced by Caribbean music and was seen performing The Specials’ ska song “Gangsters” with Terry Hall at the Glastonbury music festival last month. “Lily Allen demonstrates just how far Caribbean music has fused into U.K. music since those early days of the 1960s,” said Brundin. “She is a very popular artist in the U.K., and appears in the papers on a daily basis, and yet few people would notice that her music is very much based on Caribbean music; samples from an old Calypso track dominate the song ‘LDN,’ and she often uses that loping reggae beat. However, over the last 40 years this music has become so familiar to British listeners that they probably would not detect its origins.” “So that is the Caribbean thread. Then we have two artists that represent some elements of South Asian culture in the U.K. (India, Pakistan, Bangladesh, Sri Lanka). Tigerstyle are a fantastic production outfit from Glasgow and they show the journey bhangra has made in the U.K. from a traditional Punjabi dance to banging club music which is now exported from Britain back to India, and across the world — remember Panjabi MC? Recently bhangra started to fuse with R&B and black music genres and Tigerstyle are very much part of this modernizing trend, working with an MC. “Fun-Da-Mental have already established a reputation in Russia. They are a band that is impossible to easily define: are they punk? hip-hop? dance? Something of all of them. And they are also a modern band that is unafraid to express a lot of the difficult issues around identity and multiculturalism, and the leader of the band, Aki [Nawaz], will be taking part in the seminars the day before the event. I understand they have a big following in Russia now based on previous live shows.” Promoting tolerance in St. Petersburg, notorious for its increasing rate of hate crimes, is logical, though Brundin argues that it is a general problem. “Tolerance is always an issue in any complex society, particularly in the urban environment,” he said. “The U.K. and Russia are both post-imperial societies and that leaves a fascinating but complicated legacy which is not always easy to deal with. Multiculturalism is a word that is much used without necessarily being clearly understood. To me, music is an excellent way of illustrating what multiculturalism actually means. In a country like the U.K. a multitude of influences have contributed to what our music is today, but that doesn’t make it less British.” “And why St. Petersburg? Well, my colleagues at the British Council St. Petersburg originally came up with the original idea because they feel that there are excellent opportunities for the British Council to contribute to building greater trust and understanding between the U.K. and Russia through our shared experiences of multiculturalism, and by addressing together the challenges that our two societies are facing in terms of community cohesion. Feedback from our partners in the city authorities and other key players confirmed this view, and so the project was born. The point is that St. Petersburg is one of the most diverse cities in Russia and its most fascinating one.” To represent the local scene, a pair of Russian bands were added to the lineup — Moscow rappers W.K? and local reggae/funk band I-Laska. “Of course Russia and particularly St. Petersburg has its own booming ska and reggae scene with artists like Ska-Jazz Review and even Leningrad, and I-Laska illustrate just what a global music this now is,” said Brundin. “I’m afraid I know less about them than I do about the U.K. artists but I’m looking forward to seeing them.” According to Brundin, U.K. Flavours is a long-term commitment for the British Council. “We have already set money and resources aside for follow-up events later this year and in the spring of next,” he said. “The program for this weekend includes the festival, a day of seminars examining issues of tolerance and race relations in our two countries, and a film screening on Sunday evening. “Future events will be shaped from the experience and learning that we gain from this weekend’s activities because we’re very keen for U.K. Flavours to develop organically, as a project that is shaped through close collaboration with our Russian partners. One possible future project could be connected to the fact that we’re bringing over some wonderful costumes used in the Notting Hill Carnival and if these prove popular we could organize some workshops with schools for children to build their own costumes to their own designs.” Brundin said the artists taking part in U.K. Flavours are fully informed of and support its message of tolerance. “I think that what makes the British Council an attractive partner is that we have a long-term commitment to the countries in which we work,” he said. “The British Council has been present in St. Petersburg since 1994, and our team has an in-depth understanding of the local environment and culture. Our U.K. artists really appreciate this when they talk to us about the projects that we’re working on together. “We always try to discuss any project we are doing with the participants involved, whether artists or anyone else, because we want them to be coming with full understanding and commitment to what we’re trying to do. Every project we do has an underlying point and it’s important that people take that on board. I also think it’s very important for British musicians traveling abroad to know something about the culture they are visiting to be better able to communicate and share. Ideas about Russia in the U.K. can be surprisingly out of date, just as the opposite is sometimes true. “Multiculturalism and community cohesion are important issues in Russia which need to be discussed… and as I found out more about the ethnic diversity of Russia I became fascinated by it. Through this event, and the seminar on Friday, I hope I will learn a lot more about how Russians approach this topic today. As I mentioned before it is actually an issue everywhere, especially in Britain after the recent terrorist attacks. We have also had a lot of migration from Eastern Europe in recent years, and for example Poles now make up our largest ethnic minority, so this has brought to light a whole new set of issues. The world never stops changing and one never arrives at a solution, but we can at least do our best to understand the situation in which we currently find ourselves and to understand our fellow human beings.” A seminar on tolerance, featuring Aki Nawaz, an outspoken musician with Fun-da-Mental, will be held at the British Council’s office at 32 Nevsky Prospekt at noon on Friday. Franco Rosso’s 1980 “Babylon”, a legendary reggae music film, will be screened at Dom Kino at 2 p.m. on Sunday. U.K. Flavours will be held at the beach of the Peter and Paul Fortress from noon to 11 p.m. on Saturday. www.britishcouncil.org/russia-arts-uk-flavours-festival.htm TITLE: Chernov’s choice TEXT: The Kremlin’s view of Russia as a besieged fortress, surrounded by enemies, i.e. NATO, has been embodied in a song and a video by Moscow rappers Diskoteka Avariya. Called “Zlo” (Evil), the video uses archive footage of Bolsheviks destroying Russian churches early last century, Germany’s Nazis and the victorious Soviet army, but, closer to the end, switches to packs of dollars and the Bronze Soldier, the World War II-era Soviet monument in Tallinn whose transfer from the city center to a military cemetery caused Kremlin fury. “You’re besieged from the east, the south, the west and the north // From the sea, from the surface, from space,” raps the band. The song warns the listener about western influences (“There is an alien inside you who controls your thoughts”) and dismisses the “starred-and-striped paradise.” The band suggests the listener should recall “great-grandfather’s medals” and the “righteous sword left to you by your great ancestors,” and states, “Only one who fights wins // And let it, the bitch [NATO?], come closer.” “They did for the Yankees, they are brave,” rave the band’s teenage fans in various web forums. The Kremlin seems to have liked the band’s “patriotic” effort as well, as it was booked to open the concert program of the summer camp for pro-Putin youth group Nashi on Tuesday. The Kremlin-backed Nashi, who have recently been besieging the Estonian embassy in Moscow, abusing the Estonian flag and harassing the ambassador as part of an anti-Estonian campaign, have gathered, they claim, 10,000 members for a period of training and indoctrination from such figures as Kremlin ideologist Gleb Pavlovsky. Nashi’s goal, as put by its leader Vasily Yakimenko, is “to make sure that everyone who is against [Putin’s course] loses,” according to Kommersant. Nashi camp’s website proudly lists the bands Umaturman, Zemfira, BI-2, Vyacheslav Butusov, Korol i Shut, Kukryniksy, Ariya, Masha i Medvedi, Nochniye Snaipery, SerGa, Multfilmy, Znaki and Velvet as having performed at the camp in the past two years. But most of them were only in it for the money, apparently. When asked, Butusov’s Moscow manager claimed he saw no difference between performing at the Nashi camp and at a corporate party. “It was not political, because we did not perform on a square under slogans,” he said by phone last year. But singer Zemfira admitted she was wrong when she performed there in 2005. “It was my mistake,” she was quoted by Kommersant as saying. “When you are offered an excessively high fee, it means there’s something fishy about it, you have to look into it. I should’ve been more attentive, I’ve been taught a lesson.” — By Sergey Chernov TITLE: The Ultimate challenge AUTHOR: By Chris Jones PUBLISHER: Special to The St. Petersburg Times TEXT: Maybe you’ve seen them playing in parks throughout St. Petersburg. They have names like JuPiter, Dogma and Flying Steps, and yell “Hammer!” “Huck!” and “Layout!” while they chase a little flying disc down a field. Who are these groups, and what are they doing? They are Ultimate Frisbee teams, and they are one of the newest ways people are staying in shape in St. Petersburg. Ultimate Frisbee (Ultimate for short) is a sport developed in the 1960s in the U.S. It is similar to soccer and American football, but uses a flying disc (the frisbee) to score points. It is usually played on a converted soccer pitch with two teams of seven players. Games last 60-100 minutes — depending on points scored — and are about as physically demanding as a full soccer match. According to George Fedorov, founder of local team JuPiter, the sport has grown rapidly in Russia because it is a low cost, high fun workout. “It’s a non-contact sport and we referee ourselves, so the games are friendly — there is a lot of joking and camaraderie between teams,” Fedorov said. “However, the sport is physically demanding, so we also get a great workout.” Since coming to Russia ten years ago, Ultimate has expanded to almost 20 teams nationwide. “Most teams are in St. Petersburg, Moscow, Veliky Novgorod and Nizhny Novgorod,” Fedorov said. “In St. Petersburg we have five teams, a women’s team and four open [mixed] teams. There are probably 150 players in St. Petersburg alone.” The teams compete throughout Northwest Russia, and regularly travel to the Baltic States and Europe to play in European and World championships. Alina Dunayeva, a member of women’s team Dogma, said several teams have just returned from a tournament in Nizhny Novgorod and this weekend several will play in a regional championship in Pskov. “In August, the women’s national team will travel to England to play in the European Championships,” Dunayeva said. “We also compete against other teams in St. Petersburg on a regular basis.” The background of players varies widely. “Some players are experienced former athletes, and compete in every tournament,” Dunayeva said. “Others have little sports background and just play in the St. Petersburg area to stay in shape — it totally depends. I learned to play in the United States, so I have a different background than most players, and I play twice a week.” Players range in age from their late teens to mid-30s, with most in their early to mid-20s. Most are Russian, and are either students or working professionals. Kirill Skrygan, the current captain of JuPiter, said the sport is addictive. “I just discovered Ultimate a year ago and fell in love with the sport. George and his teammates trained me, and now I am captain of our team,” Skrygan said. “It is fun, keeps me in great shape, and I’ve made a lot of good friends — I play every week and can’t get enough!” According to Fedorov, teams regularly hold open practices for new players. Do you have a recreational club you want people to know about? Contact: brown@sptimesrussia.com