SOURCE: The St. Petersburg Times
DATE: Issue #1359 (23), Tuesday, March 25, 2008
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TITLE: European University Reopened
AUTHOR: By Galina Stolyarova
PUBLISHER: Staff Writer
TEXT: The Dzerzhinsky federal court on Friday upheld an appeal by the European University that allows the school the right to resume its activities after it had been closed last month for fire code violations.
Teaching at the university — an internationally recognized seat of learning and one of Russia’s best private universities — was suspended after the city fire inspectorate found 52 violations of fire safety rules during a routine annual check that was completed on January 18, prompting a rapid court ruling suspending the school’s activities. 
After correcting more than 20 of the violations, the university filed an appeal asking for permission to resume teaching while gradually correcting other violations, but the court ruled against the school.
The Friday ruling was the third in the case.
The university’s plight caused concern both in Russia and abroad due to what some observers said was a political motive behind the case. 
“What we felt was most alarming was the uniqueness of our situation,” said university rector Nikolai Vakhtin. “Fire safety standards in other universities are very similar to ours, but the European University was for some reason made a scapegoat and the only one to be closed down. “
Following the first court ruling, Alexander Viktorov, head of the City Hall’s Science and Higher Education Committee, promptly issued an order to revoke the school’s license.
Governor Valentina Matviyenko last week gave her personal guarantee that the conflict between the university and the fire inspectorate would be resolved within days. 
Neither the governor nor the university offered any specific comments as to what Matviyenko’s intervention into the matter may have been but the verdict on Friday met the school’s expectations.
“Had the conflict dragged on for half a year — as so often happens in the country’s courts — the university would have likely ceased to exist, at least in the form that it had operated before,” Vakhtin said.
Speculation about an alleged political motive behind the shutdown has been rife. Human rights advocates were worried by the torrent of court rulings against the university and the way the drama escalated. 
A major concern was the fact that the university shut down an educational project that involved training election observers, carrying out independent monitoring of elections in Russia and informing the Russian people about the electoral process. 
Funded with a large grant from the European Union, it was closed unexpectedly in the wake of the row with the fire inspectors, without the university explaining the decision other than by saying that the project did not in some parts correspond with the school’s license. 
The project had drawn sharp criticism from some ruling United Russia parliamentarians in the State Duma who called for it to be closed and the university’s activities investigated. In line with those calls, the university found itself subject to three different inspections early this year.
“The Russian authorities are going full steam ahead in imposing a strict system of control over people’s minds and suppressing independent thinking,” Yuly Rybakov, a veteran human rights advocate with Memorial human rights group, said. “The Kremlin is seeking to regain its grip and incorporate education into its ‘vertical of power.’ Back in the U.S.S.R. the state had a firm, unrelenting grip over all schools.”
During the weeks when the university was officially suspended, many of the professors helped students to continue to work on dissertations on an unpaid basis, arranging to meet in their homes or in cafes. The students meanwhile campaigned against the closure by staging “flash-mobs” (theatrical protests) and street conferences.
The first rector of the European University, Boris Firsov, who currently holds the post of its honorary vice-chancellor, has warned that private educational and cultural organizations can get buried in red tape and bureaucracy if they do not toe the political line of the state.
“The Russian state has shown very well that it cares for fire safety but it has yet to demonstrate that it cares for academic talent,” Firsov added.
March 27 sees the next seminar in the series Evenings in the European University, with Professor Vladimir Gelman delivering a lecture on the prospects of authoritarian modernization in Russia.

TITLE: Mitvol’s Agency to Probe TNK-BP
AUTHOR: By Miriam Elder and Max Delany
PUBLISHER: Staff Writers
TEXT: MOSCOW — The Natural Resources Ministry said Friday that it would investigate TNK-BP’s largest oil field, putting further pressure on the Russian-British firm one day after the Federal Security Service said it had charged an employee with industrial espionage.
Oleg Mitvol, deputy head of the ministry’s environmental watchdog, will lead the investigation into the Samotlor field in western Siberia, the ministry said in a statement.
The latest move against TNK-BP added to concern that a state-run firm was aiming to muscle into the company, a private 50-50 joint venture between British energy major BP and three Russian oligarchs.
TNK-BP spokeswoman Marina Dracheva insisted Sunday that the environmental agency’s investigation was “a regular check, which is done for all fields and license users every two years. The last one at Samotlor was done in 2005, so we see it as a routine compliance check.”
Mitvol’s sustained campaign against Shell for purported environmental violations at Sakhalin-2 ended in late 2007, after the British-Dutch firm and its Japanese partners agreed to sell a controlling stake in the $20 billion project to state-run Gazprom.
Mitvol also issued repeated threats to revoke TNK-BP’s license at its flagship Kovykta gas field in eastern Siberia for failing to fulfill license terms there. TNK-BP agreed to sell its entire 63 percent stake in the project to Gazprom last summer, but has yet to finalize the deal.
The FSB last week brought charges of industrial espionage against TNK-BP employee Ilya Zaslavsky and his brother Alexander, an independent energy consultant who heads the British Council’s Alumni Club.
The charges against the Oxford-educated brothers, who hold dual U.S. and Russian citizenship but maintain strong links to Britain, also sparked fears that Russia was intensifying attacks on British organizations in the country.
“It is possible that there could be some political elements to this case, but that is only something of limited significance,” Gennady Gudkov, deputy head of the State Duma Security Committee, said by telephone Friday.
“Whatever the political situation, one thing is for sure — this is the result of a lot of planning and work by the security services,” said Gudkov, a member of the Kremlin-friendly A Just Russia party and a former KGB agent.
“This will not be resolved in two days,” he warned.
TNK-BP’s Russian shareholders — Viktor Vekselberg’s Renova, Len Blavatnik’s Access Industries and Mikhail Fridman’s Alfa Group — issued a statement in February saying they had no plans to sell.
Vekselberg said in January that he would only consider selling if potential buyers met his $60 billion valuation. TNK-BP’s current market capitalization is $27 billion, near its record low.
Plainclothes law enforcement officers raided the offices of BP and TNK-BP on Wednesday, in what was the first public sign of increasing pressure on the firms.
Spokespeople for the two companies denied reports in Vedomosti and Kommersant that senior management had been brought in for questioning last week.
“It’s [expletive],” said BP spokesman Vladimir Buyanov, when asked to comment on whether BP Russia president Richard Spies had been questioned.
Dracheva, the TNK-BP spokeswoman, said reports that the company’s vice president for international affairs, Shawn McCormack, had also been questioned “had nothing to do with reality.”
The Zaslavsky brothers, who were briefly detained March 12, then released on orders not to leave the country, remained unavailable for comment Sunday.
A source inside TNK-BP said Ilya Zaslavsky remained an employee of the firm, where he works as a gas business adviser, Interfax reported. “He has not quit and he has not been fired,” the employee said.
Lawyers said industrial espionage cases had to be initiated by one of the firms involved.
The FSB said last week that the Zaslavsky brothers were arrested while trying to obtain classified information from an employee of a “national hydrocarbon institution.” The two men were working to undermine the competitiveness of Russian firms, it said.
Pavel Krasheninnikov, chairman of the State Duma’s Legislation Committee, hinted Friday that the two men were unlikely to face the full force of the law.
The men face up to three years in prison if found guilty of industrial espionage. Yet since the charges relate to the strategic natural resources sector, they could classify as state secrets, prompting stiffer penalties. Punishments for espionage range from 10 to 20 years in jail.
The Zaslavsky brothers were born in Moscow but raised in the United States and educated at Oxford University. Ilya Zaslavsky, 29, heads Moscow’s Oxford alumni club, while Alexander Zaslavsky, 33, in December was voted president of the British Alumni Club, which was created by the British Council to maintain contacts among graduates of British universities.
Earlier this year, the Foreign Ministry ordered the British Council, which acts as the British Embassy’s cultural arm, to close its offices in St. Petersburg and Yekaterinburg. The council initially refused but later closed the offices, citing pressure by police and the FSB.
The head of the British Council, Lord Kinnock, a former leader of the British Labour Party, lashed out at Russia in an interview with Moskovsky Komsomolets published Saturday.
“It was almost 100 percent a game of political chess by the Russian government,” Kinnock said of the campaign against the British Council.
Kinnock’s son Stephen headed the British Council’s St Petersburg office and in January was briefly detained by traffic police and accused of drunk driving.

TITLE: Opposition Activists Meet to Mark Reznik’s Release
AUTHOR: By Sergey Chernov
PUBLISHER: Staff Writer
TEXT: Supporters of Maxim Reznik gathered Sunday two days after the leader of the local branch of the opposition democratic party Yabloko was released, having spent weeks in custody on charges he says have been fabricated.
Although some celebrated Reznik’s release, many pointed out that the criminal case against him, which may lead to him being sentenced to up to five years for allegedly insulting and assaulting three policemen, is still under way. 
“The Maxim Reznik case is the most significant, because it’s the first time that a criminal case has been launched against a prominent opposition figure,” Garry Kasparov, who was sentenced to 5-days civil detention in November, said at a speech given on Sunday. 
Kasparov, the leader of the United Civil Front and co-chairman of The Other Russia pro-democracy coalition, was charged with organizing an unsanctioned march and failure to follow a policeman’s order.
“It’s very important that not only Maxim Reznik is released — it’s important that those who fabricated these charges be put in prison,” Kasparov said to applause and cheers from protesters. 
“The authorities should be held responsible for their crimes. The impunity of the authorities provokes them to commit more crimes, more repression.”
Reznik, who spent 18 days in custody was released on Friday after the City Court annulled the Dzerzhinsky District Court’s earlier decision to hold Reznik in custody for the course of the police investigation and ruled that Reznik should be released.
Before the court ruling, daily street pickets had been held in St. Petersburg and Moscow, letters protesting the arrest had been sent from cultural figures and activists to prosecutors, and Yabloko national leader Grigory Yavlinsky had a meeting with President Vladimir Putin where the case was discussed.
At Sunday’s rally, speakers addressed the public from a platform wrapped with a red banner reading “Free Political Prisoners,” next to a monument to Alexander Griboyedov, a 19th century Russian playwright and diplomat. An estimated 250 people took part in the rally, but the number would have been higher if Reznik had not been released on Friday, according to the organizers.
“We estimated that between 200 and 250 people [showed up],” said Olga Kurnosova, the local coordinator of the United Civil Front, who co-organized and co-chaired the meeting, speaking by phone on Monday.
“It’s a natural emotional reaction from people [not to attend the rally after Reznik’s release. The rally was attended by] a core of activists and a small number of the general public, because many thought that [the case was] finished even though it is not.
“I agree with [journalist] Dmitry Travin who said on Ekho Peterburga radio that one of the reasons Reznik was released on Friday was an attempt by the authorities to downscale the meeting on Sunday.”
Reznik himself did not attend the meeting — minutes after being released he was handed a summons to visit an investigator at 2 p.m. on Sunday, the exact time of the meeting, even though Sunday is supposed to be a day-off for the investigators.
“[Reznik] said that they were obviously marking time [during the interrogation], waiting to hear that the rally was over,” said Kurnosova. 
In place of Reznik, his mother, Galina Malinovskaya spoke. She thanked supporters and the press for their help in securing Reznik’s release.
Speakers also included Natalya Yevdokimova of Yabloko, Ivan Starikov of Mikhail Kasyanov’s People Democratic Union, Mikhail Bashin of Eduard Limonov’s banned National Bolshevik Party, Igor Soshnikov of the Union of the Right Forces and Ilya Yashin, the leader of the Youth Yabloko in Moscow.
Although the police did not intervene at the rally, which was held with the agreement of the local administration, the meeting was targeted by provocateurs. 
Two or three young men in the crowd threw dildos at the speakers but missed, while several men brought plastic bags containing manure and cans of fluid with a strong smell of ammonium.
“Because of the smell, people’s eyes were watering and one old woman fainted,” said Kurnosova. During the rally, an ambulance arrived to provide help to the woman.
Kurnosova said most of the provocateurs were stopped before they could undertake any action.
“They didn’t have time to do much, it seems, as soon as the people with the bags were spotted, they were detained quickly enough,” said Kurnosova.
“It looks like they wanted to smear the participants [with manure] or throw it around. I don’t know what they wanted.”
According to Kursonova, eight provocateurs were detained by the police. She added that all those detained came from Ryazan Oblast, the area around Ryazan, a city 816 kilometers south-east of St. Petersburg.
“It looks like [the people behind the provocation] could not hire anybody in St. Petersburg for such a job,” she said on Monday.
“Some of them were recognized as the same people who tried to arrange provocations during one-person pickets near the Prosecutor’s Office.”
“As an organizer, I wrote reports to the police, and was told that they would spend the night in a police precinct and [were due to be taken to a] court on [Monday] morning.”
Reznik was arrested on March 2, near Yabloko’s local offices, on the eve of a March of Dissenters, a massive opposion protest. Assaulting a policeman, one of the offenses he was charged with, is punishable by up to five years in prison.

TITLE: Reporter, TV Boss Killed in Dagestan
PUBLISHER: The St. Petersburg Times
TEXT: MOSCOW — The head of Dagestani state television and a Dagestan-born reporter for Channel One television died in brutal killings Friday.
Gunmen fired on a car carrying the head of state television company GTRK Dagestan, Gadzhi Abashilov, in a drive-by shooting Friday evening in Dagestan’s capital, Makhachkala. 
Hours earlier, in an apparently unrelated incident, Channel One reporter Ilyas Shurpayev was found stabbed and strangled with a belt in his Moscow apartment.
Media freedom groups regularly identify Russia as one of the most dangerous places in the world for journalists to work, and law enforcement officials said over the weekend that they were considering the possibility that both killings were connected to the men’s work.

TITLE: In Brief
TEXT: <b>Monkey Business</b>
ST. PETERSBURG (SPT) — The last of the orangutans at the city’s Leningrad Zoo will be shipped out shortly, Fontanka.ru reported on Monday. 
Zira, a female orangutan that the zoo had originally procured from a German zoo in 2003, is being moved out of Russia because there is not enough space for her to move about comfortably and because this breed of ape is not accustomed to harsh winter weather. 
Last January Zira’s mate Rabu died from pneumonia caused by St. Petersburg’s biting climate. 

<b>Missing Child Found</b>
ST. PETERSBURG (SPT) — Police on Monday called off a search for a three-year-old girl who went missing with her father after the pair returned home. 
A 31-year-old Ukrainian reported to the police on 3 a.m. Sunday morning that her husband had left the house on Saturday afternoon with the child and never returned, Fontanka.ru reported. 
The case follows a spate of children going missing in recent months in St. Petersburg and the surrounding area.

TITLE: Strategic Sector Bill Clears 2nd Reading
AUTHOR: By Tai Adelaja and Natalia Krainova
PUBLISHER: Staff Writers
TEXT: MOSCOW — The State Duma on Friday passed in a key second reading the government’s long-awaited bill limiting foreign investment in a swathe of strategic sectors, ranging from energy and defense to media and fishing.
Deputies said the bill, which sailed through the Duma 355-3, with three abstentions, would guarantee national security by regulating foreigners’ participation in areas such as nuclear energy, space exploration and natural monopolies.
“We need this law to defend our national interests, and for the foreigners it would create a level playing field,” Deputy Duma Speaker Valery Yazev, an influential gas expert known as a Gazprom lobbyist, told reporters after the vote. “Foreign investors need hard and fast rules to help them to determine what they can and cannot buy in our country.”
The bill also reflects efforts to clarify the “rules of the game” for foreign investors.
The list of 42 strategic industries with limited access for foreigners also included aviation, mining and extraction, arms production and sale, and other defense-sensitive industries.
Firms controlled by foreign governments are barred from seeking control over Russian companies on the list.
Foreign firms would also need permission from a committee chaired by the prime minister if they wish to take a 25 percent to 50 percent stake in a firm listed as strategic.
The provisions of the bill will likely formalize the current situation, where Kremlin approval is widely seen as essential for any major business deal inside the country. After President-elect Dmitry Medvedev is inaugurated in May, he has said he will appoint President Vladimir Putin as prime minister.
Fishing remained on the list, as did television, radio and publishing — sectors whose inclusion has raised eyebrows and worried foreign investors.
Large-circulation newspapers and publishing companies with the capacity to print 200 million pages per month are included, as are periodicals with a circulation of at least 1 million copies.
According to the bill, broadcast media covering at least half the country would be deemed strategic.
This effectively excludes foreigners from holding majority stakes in television stations such as state-controlled Channel One, Rossia and NTV, all of which have nationwide coverage.
As expected, Friday’s session accepted the recommendations of the Duma’s Construction and Land Use Committee’s to exclude telecoms firms, Internet providers and small power distribution grids from the list.
In a significant move, the bill classified major fixed-line telecoms companies as strategic, meaning that any sale in the government’s stake in national fixed-line operator Svyazinvest would likely come under government scrutiny.
The inclusion of telecoms companies “with a significant market share in five or more regions” or in “cities of federal significance,” a common euphemism for Moscow and St. Petersburg, would in practice mean Rostelecom and Svyazinvest.
While small regional power distribution grids have been excluded, the bill still covers larger grids.
It outlines requirements for concluding any transaction where foreign investors are concerned and specifies a list of business deals that would require government approval.
The decision of the government on any issue can be contested in court by foreign firms, the bill says.
Martin Shakkum, chairman of the Construction and Land Use Committee, which was responsible for drawing up the bill, said the legislation was liberal in comparison with similar regulations in some other countries.
“We should emphasize that limits on the participation of foreign capital in national media exist in many countries,” Shakkum said. “As a rule, authorities in other countries impose very tight limits on the stakes in broadcasting companies that foreigners are allowed to own.”
Caps on foreign investment in the broadcast media are put at 25 percent in some countries and 20 percent in others, Shakkum said.
“This particular bill would create and safeguard the conditions for the formation of a predictable and transparent investment climate for foreigners,” Shakkum said.
Deputies did not say Friday when the bill would come up for its third and final reading, which is usually regarded as a formality. After being passed by the Duma, the bill would require the approval of the Federation Council and the president to become law.

TITLE: CIS Plans Legal Body in City
AUTHOR: By Ali Nassor
PUBLISHER: Special to The St. Petersburg Times
TEXT: In a move aimed at strengthening its influence over member states, the Commonwealth of Independent States (CIS) is working out plans to establish a legal institution in St. Petersburg to settle economic disputes among its members.
“It will be chaired by a prominent St. Petersburg lawyer,” said CIS Secretary General Mikhail Krotov, declining to disclose a name.
The appointment will be on the agenda at a two-day session of the CIS Inter-Parliamentary Assembly that will for the first time involve heads of state on April 3.
But official inauguration of the new Parliamentary Center where the Economic Court will be located is scheduled for April 3 at 53 Shpalernaya Ulitsa.
Playing down media reports that the bloc formed to maintain political and economic ties among the former Soviet republics following the split of the Union, was also on the verge of collapse, Krotov said on Friday that “establishing the Economic Court in St. Petersburg is a clear sign that the CIS is consolidating its influence in the region is as strong as it’s ever been.”
“There are many disputes in the CIS territory, but unfortunately they are settled either in Geneva or in the Hague, because there is no common economic court in the region... it is unfair,” he said. “We are tired of having our internal disputes resolved in the West, where sometimes it takes ages and unfair rulings are issued.” 
Krotov was in part responding to a question whether CIS was about to collapse following the latest developments that found Russia at loggerheads with Western-aligned Ukraine and Georgia seeking entry to the European Union and NATO.
“After all, I don’t see any connections between their joining NATO and their exit from the CIS,” he said, adding that “[the] decision to join a political or military bloc is a right of any sovereign state... and it does not necessarily lead to the breaking of ties with other states.”

TITLE: Lavrov Calls on Israel to Open Gaza
PUBLISHER: The Associated Press
TEXT: RAMALLAH, West Bank — Foreign Minister Sergei Lavrov on Friday called for an end to the blockade of the Hamas-ruled Gaza Strip and demanded that Israel halt its settlement activity.
Both the Israeli-led blockade and the Israeli construction have hurt the standing of moderate Palestinian President Mahmoud Abbas, who restarted peace talks with Israel four months ago. On Friday, an Israeli Defense Ministry spokesman said Israel had agreed to let Russia deliver 25 armored vehicles to Palestinian forces in the West Bank — a move meant to bolster moderate Palestinian President Mahmoud Abbas in his struggle with Islamic Hamas militants.
Lavrov termed the blockade — imposed by Israel and Egypt after Hamas seized control of Gaza in June — “unacceptable.”
“The siege should stop so the Palestinian people in the strip could lead normal lives,” he said at a news conference in Ramallah with Abbas, who rules only the West Bank.
Lavrov expressed his support for Palestinian reconciliation talks underway in Yemen and said it was very important for Israel and the Palestinians to carry out their commitments under the “road map” peace plan, which is the basis for negotiations renewed at an international conference in Annapolis, Maryland, in November.
He said Russia was “very much worried” about Israeli construction on land the Palestinians claim for a future state.
Israeli officials weren’t immediately available to comment.
Lavrov arrived in the region late Wednesday for a three-day trip to Syria, Israel and the West Bank. In Syria, his meetings included a session with Hamas’ Damascus-based supreme leader, Khaled Mashaal, who fiercely opposes peace efforts with Israel. In Israel, Lavrov met with Prime Minister Ehud Olmert and other Israeli leaders.

TITLE: Duma Backs 2 Separatist Republics
AUTHOR: By Steve Gutterman
PUBLISHER: The Associated Press
TEXT: MOSCOW — The State Duma has urged the Kremlin to consider recognizing the independence of Georgia’s separatist regions of Abkhazia and South Ossetia, stepping up the government campaign to keep Georgia out of NATO.
The Duma, which overwhelmingly adopted the nonbinding declaration Friday, is dominated by United Russia. The measure would not have passed had the Kremlin opposed it.
Georgia’s state minister for reintegration, Temuri Yakobashvili, dismissed the Duma declaration as “a propaganda step,” Itar-Tass reported.
The Duma said the government must protect the residents of Abhkazia and South Ossetia — most of whom have Russian citizenship — against Georgia’s push for NATO membership. It suggested that Western recognition of Kosovo’s Feb. 19 declaration of independence from Serbia gave Moscow more flexibility in its approach to the breakaway regions, which it said have “far greater grounds to seek international recognition than Kosovo does.”
Moscow strongly opposed Kosovo’s independence, warning that Western recognition of Kosovo would boost the legitimacy of separatist movements worldwide.
But Putin has said Moscow would not imitate Western support for Kosovo by rushing to recognize the Georgian regions as independent — an action that would badly damage Moscow’s relations with the West, ruin its claim to moral high ground in the dispute over Kosovo, and potentially foment a war with Georgia.
Reflecting such circumspection, the Duma rejected one lawmaker’s proposal for a stronger statement that included an outright call for such recognition.
Instead, it asked Putin and the government to “consider the question of the expediency of recognizing the independence of Abkhazia and South Ossetia.”
It also called for “speeding up the process of sovereignty” for the regions if Georgia’s drive to join NATO accelerated, suggesting that the government should recognize their independence if the alliance puts Georgia on membership track at the April summit.
The vote was 440-0 in the 450-seat Duma; two lawmakers abstained.
Fyodor Lukyanov, editor of the Russia in Global Affairs journal, called the declaration “compensation for the fact that Russia is not recognizing Abkhazia and South Ossetia” He said the Kremlin would only consider doing so if Georgia appeared headed for NATO membership. 
The declaration was “part of the effort to prevent Georgia from joining NATO,” he said.
Meanwhile, a vehicle carrying a Russian peacekeeper in South Ossetia was hit by an explosion Sunday, badly injuring two men, a spokeswoman for the South Ossetian government said.

TITLE: LenSpetsSMU Sells Stake, Planning IPO
AUTHOR: By Yekaterina Dranitsyna
PUBLISHER: Staff Writer
TEXT: St. Petersburg-based development and construction company Etalon-LenSpetsSMU has sold a 15 percent stake to Baring Vostok investment fund, as a result of which the company expects to gain access to international financial markets and use the expertise of Baring Vostok in its forthcoming IPO.
“An internationally acknowledged financial investor has become a long-term partner of the largest construction union in the Northwest region. Its resources will ensure the further development of Etalon-LenSpetsSMU holding and realization of large development projects,” the company said Friday in a statement.
According to the agreement, Baring Vostok acquired 15 percent of the share capital of Etalon-LenSpetsSMU. Representatives of the investment fund will be elected to Etalon-LenSpetsSMU’s board of directors.
The company’s founder and main shareholder, Vyacheslav Zarenkov, and other top managers will focus on a long-term development strategy and on increasing the holding’s capitalization. Baring Vostok’s funds will be used to expand operations in St. Petersburg and other regions of Russia. The company plans to add several large residential and commercial projects to its portfolio.
“Our partnership with Baring Vostok gives Etalon-LenSpetsSMU access to international capital markets, strengthens our position in Russia and creates opportunities for business development. Baring Vostok will bring their international expertise of corporate governance and successful IPOs to the company,” the statement said.
Sergei Filchenkov, analyst at FINAM investment company, estimated the 15 percent stake in Etalon-LenSpetsSMU at between $75 million and $80 million.
“This deal will give LenSpetsSMU access to cheaper financial resources in western markets. It will provide the company with the funds necessary for development and allow it to strengthen its position on the booming St. Petersburg market,” Filchenkov said.
However, he predicted that Etalon-LenSpetsSMU could announce an IPO no sooner that one or even two years from now.
“I do not think that an IPO could be announced in the near future. The company is not ready for an immediate listing and the situation on the fund market is not favorable,” Filchenkov said.
Alexei Kalashnikov, director for investment projects at the assessment and asset management department of Balt-Audit-Expert, estimated the stake at $154 million or $185 million maximum.
“One of the advantages of this partnership for Etalon-LenSpetsSMU is the opportunity to raise the funds necessary to complete its current projects. The company could take a stronger stand in dialogue with regional authorities. It also now has a reason to reorganize its business, making its structures more transparent and comprehensible for foreign investors,” Kalashnikov said.
He also predicted that Etalon-LenSpetsSMU could announce an IPO after two years.
Etalon-LenSpetsSMU focuses on large development housing projects like the Yubileiny district (more than 650,000 square meters), Golden Harbor (about 210,000 square meters), Raduga (180,000 square meters) and Novoye Sozvezdie (more than 140,000 square meters).
The holding is also developing a number of elite complexes such as Petrogradsky Etalon and U Rosstralnykh Kolonn.
Last year Etalon-LenSpetsSMU completed the construction of 232,000 square meters of commercial and residential buildings. Among last year’s projects were Grazhdanka City, Oktyabrskaya Embankment, a building at Ulitsa Bryantseva and some of the buildings in the Golden Harbor complex.
Since its formation, the company has completed over 40 projects, constructing more than 1.7 million square meters of residential and commercial space. Currently Etalon-LenSpetsSMU is managing 18 development projects and constructing about 1.8 million square meters.
Last year Etalon-LenSpetsSMU issued Credit-Linked Notes (CLN) worth a total of $100 million.

TITLE: Superjet Delivery Could Be Delayed
PUBLISHER: Reuters
TEXT: MOSCOW — Russia might delay delivery of its new Superjet-100 passenger planes to Aeroflot beyond its contractual deadline of end-2008 as the plane has not yet launched, the head of state aviation major UAC said on Monday. 
Aeroflot last year ordered several dozen of the planes from state-owned UAC, or United Aviation Company. 
“Without a doubt, the timing became constrained. I don’t exclude that it could be shifted. I can’t say when they will be delivered to Aeroflot,” UAC head Alexei Fyodorov told reporters.  The Superjet-100, designed to carry between 75 and 95 passengers, was jointly created with U.S. air company Boeing. It was meant to start flying by the end of last year but its launch was delayed. 
“We hope to get it up in the air during the month of April,” Fyodorov said, adding that UAC hopes it will avoid any penalty fees. Aeroflot has said UAC would face fines for late delivery.  The Superjet 100 is the fruit of almost a decade of efforts by Russia’s largest warplane maker, Sukhoi, which is part of UAC. 
It is Russia’s first all-new airliner since the fall of the Soviet Union and is being targeted at Western airlines. 
The Superjet will replace Russia’s ageing Soviet-made fleet of Tupolev Tu-134 and Yakovlev Yak-42 planes on domestic routes, which have a longer range of 4,550 km.

TITLE: One-Kopek Coin Facing Extinction
AUTHOR: By Catrina Stewart
PUBLISHER: Staff Writer
TEXT: MOSCOW — The country’s state-owned mint is considering abolishing the one-kopek coin in a bid to save on production costs, a senior official said. 
Arkady Trachuk, the head of Goznak, the government agency that produces banknotes and coins, said in an interview with Izvestia last week that it was looking at ways to produce coins more cheaply, given the recent spike in metal prices, in response to a request from the Central Bank. 
“We could make the decision to round up prices to 10 kopeks,” he said, noting that there were a number of other proposals on the table, including the use of cheaper metals. “Where are kopeks [still] required here?” 
Goznak will send its proposals to the Central Bank within two months, Trachuk said. 
The agency has, however, been slow to adopt this measure, chiefly because of the perception that such a move would provoke. It would lead to a slight increase in prices, the official said. “For that reason, we haven’t made a decision on this yet,” he said. 
But economists said the changes would have little practical effect. 
“If they are get rid of just one kopek, it will not have a big impact. It has become so small, and inflation is on the rise,” said Tatyana Orlova, an economist at ING. “Many shops have [already] rounded up their prices. ... So if they take [the single] kopek out of circulation, it should not affect prices greatly.” 
Analysts said the government should proceed with caution in any significant moves on the ruble, given the population’s fragile confidence in the national currency. 
Rumors of a potential redenomination of the ruble have been swirling in the last couple of months. Analysts say this is partially because there was a 48 percent increase in the money supply last year. 
The government also printed new banknotes, including the new 5,000 ruble note, which evoked memories of the 1990s, when the Yeltsin government introduced larger-denomination notes shortly before chopping three zeroes off the ruble. 
“If I were a monetary authority, I would not do anything that could be interpreted as a redenomination by the population,” Orlova said. Fears of a redenomination mean “that people stop saving, and they try to spend, and the economy is already quite overheated and inflation is on the rise. The Central Bank would probably want to wait for the time when inflation has gone down a bit.” 
Trachuk dismissed the rumors as “nonsense,” echoing President Vladimir Putin’s denial last month that the government had any intention of considering redenominating the ruble. 
Trachuk also said the mint plans to recall old banknotes, based on recommendations from Interpol that banknotes be removed from circulation every seven years to clamp down on forgeries.

TITLE: Russia, U.S., China Compete In Asia
PUBLISHER: Agence France Presse
TEXT: WASHINGTON — The United States is bracing for tough competition from Russia and China as cash-flush Asian economies look up to the trio for a new breed of fighter jets to beef up their air forces, experts say.
Japan, India, Australia and South Korea are keen to have the most modern, fifth generation, jet fighters while Southeast Asian nations such as Malaysia and Indonesia are reportedly eyeing fourth generation fighters from China.
With Asia powering ahead with military modernization and capability growth, the United States wants to maintain leadership in defense sales in the region attracted by low cost offerings from Russia and China, experts said.
“The Americans and Russians are competing hard for the Asian fighter aircraft market, but everybody is also watching to see how aggressively the Chinese will be entering this market,” Richard Fisher, an expert with the Washington-based International Assessment and Strategy Center, told AFP.
The tight competition comes as Asian economies move ahead “much more aggressively” to upgrade their air defense capabilities, he said.
“It’s not quite right to say an arms race, but there is an arms jog in Asia,” Fisher said.
The United States is currently the sole producer of fifth generation fighters — the F-22s and F-35s. Export of F-22s is barred by law while the lower cost F35s have just started flight testing ahead of deployment around 2012.
Russia and China’s fifth generation fighter offerings could well be on the market between 2015 and 2020, a time frame experts say is not very far away in terms of defense planning.
“I don’t want to get into the numbers because they were given to me in confidence but the price the Russians are estimating for their fifth generation fighter is substantially less than the Joint Strike Fighter (F-35) and substantially less than F-22,” US aviation expert Reuben Johnson told a Washington forum last week on “challenges to the Asian air power balance.”
He said the Russian arms industry was grappling with high production costs.
Russian weapon exports to China have also plunged as Beijing became more wary over Moscow’s sales of its most advanced weaponry to neighbor India, Johnson said.
“What is really the challenge is we have two very large countries, China and India, whose economies are booming and who are buying lots of hardware and we are looking at a situation down the road where they are going to have very, very sophisticated air forces,” he said.
Russia had already teamed up with India to co-develop and co-produce a version of Moscow’s fifth generation fighter, but Fisher said that given the Indian preference of diversifying its weapons sources, it was possible New Delhi could purchase a US fifth generation fighter at some point.
The United States is also vying with Russia and others for a 12-billion-dollar contract to sell 126 fourth generation fighter jets to the Indian air force.
The competition from Russia could prod the Americans to lift an export ban on F-22s, eyed by Australia and Japan, top US allies in the region, experts said.
US Defense Secretary Robert Gates hinted during a recent Australian visit that Congress may be asked to reconsider the ban.
“It is imperative that the United States consider selling some version of the F-22 to maintain a strong deterrent posture in Asia,” Fisher said.
“I would say categorically that Japan requires a capability of the level of the F-22 in order to sustain a sufficient position to deter China,” he said.
Japan and another key US ally, South Korea, have indigenous fifth generation fighter programs but their transition to full scale development is uncertain.
Australia is also in the midst of a debate over the future of its fighter force.
Canberra recently said it would go ahead with the previous government’s decision to acquire 24 US F/A-18 fighter jets for 5.6 billion dollars.
It also may review whether to purchase all of the F-35s the previous government committed to, or include F-22s in the package as well, experts said.
“There is a considerable private lobby and even some bipartisan interest in trying to purchase the F-22 because of fear of Russian sales to Southeast Asia and China’s looming challenge,” Fischer said.
Singapore, with one of the most powerful air forces in the region, is seen as probably a good potential customer for the F-35s.
The US-Russia competition for the fourth generation fighters is expected to be intense — but China is emerging as a wild card.

TITLE: Norilsk CEO Denies RUSAL Rumors, Cites Potential Risks
PUBLISHER: Reuters
TEXT: MOSCOW — Norilsk Nickel should be at the core of any potential merger with one or more privately owned Russian miners, its chief executive said in an interview with Russian daily Kommersant published on Monday.
Denis Morozov said Norilsk was in the early stages of evaluating a merger proposal from Metalloinvest, the iron ore and steel firm controlled by billionaire Alisher Usmanov, but had received no concrete proposal from United Company RUSAL.
“Theoretically, anything is possible. But in my view, if such deals are possible, then it would only be on the base of Norilsk Nickel,” Morozov told Kommersant in the interview.
While Norilsk, the world’s largest nickel miner, is open to potential merger proposals, Morozov said rumors unaccompanied by an official approach could lead to share price volatility.
“This creates unpredictability and potential risks, most of all for our minority shareholders,” he said.
Norilsk’s market capitalization is currently $51.9 billion. Its stock, though more than double its worth two years ago, has fallen about 15 percent from its peak in November last year.
Billionaire Mikhail Prokhorov has agreed to sell his 25 percent-plus-one-share stake in Norilsk to UC RUSAL as part of a wider division of assets with his former business partner and another large shareholder in Norilsk, Vladimir Potanin.
UC RUSAL has stated its long-term intention to effect a merger of the two companies and Russian media have speculated that talks to this end have already begun.
Morozov said in the Kommersant interview that UC RUSAL had yet to become a shareholder in Norilsk.

TITLE: Belarus To Pay $128 For Gas
PUBLISHER: Reuters
TEXT: MOSCOW — Russia will sell gas to Belarus at $128 per 1,000 cubic meters in the second quarter of 2008, up from $119 in the first quarter, news agencies quoted an Economic Development and Trade Ministry official as saying. 
Deputy Economic Development and Trade Minister Andrei Belousov told reporters in Minsk on Friday that the price of natural gas would be calculated according to the same formula the two countries were using in the first quarter. 
Prime Minister Viktor Zubkov said earlier Friday that Russia was not going to review the formula anytime soon. 
“The contracts were signed in December 2006. All the issues arising should be solved according to the contracts,” Zubkov said after attending a Russia-Belarus government meeting in Minsk. 
According to the contracts, the price for Russian gas to Belarus is set at 67 percent of the average price of gas to Europe in 2008. The contracts also stipulate that the price is supposed to increase to 80 percent of the European price in 2009 and to 100 percent in 2011. 
Moscow raised gas prices for Belarus by $19 per 1,000 cubic meters starting this year, from $100 in 2007, although government sources in Minsk have said Gazprom was seeking an increase of up to 60 percent.

TITLE: In Brief
TEXT: <b>Sberbank Lowers Rates</b>
MOSCOW (Bloomberg) — Sberbank, Russia’s biggest bank, lowered interest rates for mortgages and retail loans while raising rates for car loans.
The Moscow-based bank, which holds more than 50 percent of all retail deposits in Russia, lowered mortgage rates by 0.5 to 1.25 percentage points to as low as 9.5 percent, the lender said in a statement posted on its web site Monday.
The bank lowered rates for retail loans from 15.5 percent to 13.5 percent, while raising rates for car loans by as much as 1 percentage point to 10.5 percent. It gave no reason for the changes.

<b>Primorsk Port Valued</b>
ST. PETERSBURG (Bloomberg) — Deloitte & Touche LLP valued the Primorsk port on Russia’s Baltic Sea coast at $2.2 billion, Kommersant reported, citing Summa Kapital, which owns 50 percent of the complex.
Summa Kapital commissioned Deloitte’s report to attract as much as $1.5 billion for the development of Primorsk’s oil terminals, the newspaper said Monday, citing Chairman Konstantin Koshkin. The port’s expansion will include building elevated rail links to handle 8.4 million metric tons of oil products a year, Kommersant reported, citing Koshkin.
Summa Kapital plans to undertake the project with Gazprom Neft, which bought a stake in the complex this year, Kommersant said.

<b>Exchange Plans Dropped</b>
ST. PETERSBURG (Bloomberg) — Russia’s Economy Ministry backed out of a planned commodities exchange in St. Petersburg and will be replaced by the markets regulator, Kommersant reported.
The Federal Financial Markets Service will take over the project, the newspaper said, citing agency chief Vladimir Milovidov. Prime Minister Viktor Zubkov signed an order on March 18 to shift the responsibilities for the exchange to the regulator by March 24, Kommersant said.
Zubkov wants the exchange to open by May, a deadline that may be missed after the government ended its relationship with the New York Mercantile Exchange, Kommersant said, citing unidentified Finance Ministry officials.

<b>Yukos Inquest Rejected</b>
MOSCOW (Bloomberg) — An Amsterdam court on Friday rejected a request for an investigation into the management of bankrupt oil firm Yukos’ Dutch unit. 
Promneftstroi, an investment vehicle controlled by U.S. businessman Stephen Lynch, in August agreed to buy the unit, Yukos Finance BV, for $305.8 million. The transaction was effectively canceled in October by a Dutch court when it ruled that the oil company’s Russian bankruptcy administrator had no right to sell its Dutch assets. 
Promneftstroi does not qualify as an authorized shareholder and therefore cannot submit a request for an investigation, the Amsterdam Court of Appeal’s Enterprise Chamber, headed by Judge Huub Willems, said Friday in a faxed statement. 

<b>Graft Agency Opposed</b>
MOSCOW (Bloomberg) — Russia’s chief auditor opposes the creation of a government anti-corruption agency, a stance that may put him at odds with President-Elect Dmitry Medvedev, Interfax reported.
Sergei Stepashin, a former prime minister who heads the Audit Chamber, said creating a special agency for corruption would be a “road to nowhere’’ and “dangerous,’’ the Russian news service said Monday. If existing government bodies aren’t coping, “they need a change of staff,’’ Stepashin told lawmakers in the upper house of parliament, the Federation Council.
Medvedev made combating corruption a centerpiece of speeches before his landslide election victory on March 2, including calling for a “national program’’ against graft.

<b>More GDP For Roads</b>
MOSCOW (Bloomberg) — Russia must spend about 4.8 percent of gross domestic product to upgrade its transportation infrastructure, First Deputy Prime Minister Sergei Ivanov said. The government will contribute less than a half of this “gigantic amount,’’ as much as 2.2 percent of GDP, Ivanov said Monday during a meeting at the Transportation Ministry, in comments posted on the government’s web site.
Crumbling roads cost Russia’s economy 1.8 trillion rubles ($73 billion) every year, or about 3 percent of GDP, Ivanov said on Feb. 13.

<b>Inflation Forecast at 9%</b>
MOSCOW (Bloomberg) — Russian inflation will probably be between 9 percent and 10 percent this year, at least half a percentage point more than the government’s target, the World Bank’s lead economist for Russia told RIA Novosti.
Global liquidity problems should help the government curb inflation as Russia’s net capital inflow is reduced and slowing global growth lowers the price of oil and gas, its main exports, Zeljko Bogetic told the state-run news service in an interview.
The government has set an 8.5 percent inflation target this year after the rate reached 11.9 percent last year.

<b>Inflation Accelerating</b>
MOSCOW (Bloomberg) — Inflation in Russia, the world’s largest energy producer, accelerated in February to its fastest pace in 31 months as food prices rose.
The inflation rate increased to 12.7 percent compared with 12.6 percent in January, the Moscow-based Federal Statistics Service said in an e-mailed statement today. The increase was the fastest since July 2005 and was less than the median forecast of 12.8 percent by 15 economists surveyed by Bloomberg. For the month, consumer prices rose 1.2 percent, compared with 2.3 percent in January. February price growth was led by food costs, which increased a monthly 1.7 percent, the Service said.

<b>Unemployment Climbs</b>
MOSCOW (Bloomberg) — Russia’s unemployment rate rose more than expected in February after falling the previous month, the Federal Statistics Service said.
The jobless rate rose to 6.6 percent from 5.8 percent in January, the Moscow-based Statistics Service said in an e-mailed statement on Monday. That was higher than the median forecast of 13 economists in a Bloomberg survey for 5.9 percent.
Russia, the world’s largest energy exporter, is in its 10th year of growth, boosted by high global oil prices. The annual unemployment rate has declined from a high of 12.4 percent in 1999.
Wages increased an annual 13.3 percent in February, reaching 15,214 rubles ($640), the Statistics Service said. Disposable income increased an annual 10.6 percent in February, it said.

TITLE: Severstal Buys U.S. Mill for $810 Million
AUTHOR: By Robin Paxton
PUBLISHER: Reuters
TEXT: MOSCOW — Severstal, the country’s largest steel maker, will expand its U.S. presence with the $810 million acquisition of the Sparrows Point mill in Maryland, which  ArcelorMittal is selling for antitrust reasons. 
Severstal said Friday that it expected to close the all-cash deal to buy the former  Bethlehem Steel unit in the 2008 second quarter. The additional capacity is equivalent to about 20 percent of the company’s crude steel output last year. 
“We remain committed to growth in North America and believe in the long-term promise of the U.S. market,” said Severstal chief executive and main owner Alexei Mordashov, ranked the world’s 18th-richest man by Forbes magazine. 
Severstal is among several steel makers in Russia to have acquired assets in the United States by taking advantage of a weaker dollar to gain access to one of the world’s major steel-consuming markets. The company owns the former  Rouge Steel plant in Dearborn, Michigan, and the SeverCorr joint venture in Columbus, Mississippi.  But its North American unit was its worst performer in 2007 as a weak market and blast furnace reline hit profits. 
Analysts said  Severstal, with  Merrill Lynch as adviser on the deal, would have to convince investors that the purchase added value, but that opportunities existed to improve plant efficiency. 
“The plant is a good addition to  Severstal’s U.S. portfolio of assets bought at attractive prices,”  UniCredit Aton equity analyst Dmitry Kolomytsyn said. 
He said Sparrows Point had average earnings before interest, tax, depreciation and amortization of more than $110 million in recent years, then dropping to just $24 million in 2007.  Severstal expects 2008 EBITDA of at least $74 million, he said. 
Sparrows Point has an annual production capacity of 3.6 million tons of crude steel and has direct access to a deepwater ocean port. 
Severstal could potentially plug an annual 800,000-ton supply gap following the closure of an existing U.S. blast furnace with slab from Sparrows Point, Renaissance Capital said. 
The plant sold 2.3 million tons of finished products last year and makes hot-rolled, cold-rolled and galvanized sheets, and ranks among the top U.S. suppliers of tin mill products. 
The U.S. Justice Department ordered ArcelorMittal, the world’s largest steel maker, to sell the mill as a precondition for allowing the merger of ArcelorMittal in order to forestall its gaining a monopoly of the tinplate market. 
An earlier $1.35 billion deal to sell Sparrows Point to E2 Acquisition Corp, an entity of steel services company Esmark, collapsed in December. 
Severstal last week posted a 33 percent rise in 2007 net profit to $1.94 billion as it enjoyed higher steel prices. But its stock fell after pretax earnings missed forecasts, with EBITDA in North America declining to $21 million. 
Severstal’s total  2007 crude steel output at 17.5 million tons remained at 2006 levels.

TITLE: Gazprom, IES Bid for TGK-7
PUBLISHER: Reuters
TEXT: MOSCOW — Gazprom and Viktor Vekselberg’s Integrated Energy Systems will jointly bid for power producer TGK-7 and have set up a vehicle to do so, a source close to TGK-7 said Friday. 
The partners have emerged as the most active investors in the country’s liberalized power sector, but this would be their first joint move to buy an electricity asset. 
The source said the two had already set up an investment firm that will enter their joint bid for the government’s 32 percent stake in TGK-7, to be sold next month. 
The price of the stake is likely to be 2.848 rubles per share, or $456 per kilowatt of TGK-7’s generating capacity, the same as the price of the new share sale TGK-7 held last week. 
IES already owns 23 percent of TGK-7 and bid for all of the new shares sold on March 14. 
TGK-7 is one of 20 major electricity producers being sold off by Unified Energy System. 
Gazprom and IES have separately acquired some of the choicest of these companies, threatening to partly remonopolize the sector, which has drawn scrutiny from the Federal Anti-Monopoly Service. 
Gazprom has secured effective control of four of the 20 large power producers, including the main suppliers of electricity to Moscow and St. Petersburg. 
IES has bought up effective control of three, while all of the other strategic investors acquiring UES assets have each gained control of only one firm so far.

TITLE: Transneft Paid Out More Charity Than Dividends
AUTHOR: By Greg Walters and Torrey Clark
PUBLISHER: Bloomberg
TEXT: MOSCOW — Transneft, the state-controlled crude oil pipeline monopoly, gave 14 times more money to charity in the third quarter of last year than it paid in dividends to its private shareholders for all of 2006. 
The expenditure raises concerns about Transneft’s corporate governance, Renaissance Capital said in a research note to investors Friday. Transneft spokesman Mikhail Barkov was unavailable to comment on the donations because he was on a business trip, his secretary said by telephone. 
Transneft spent 5.1 billion rubles ($214 million) on “charitable contributions” in the third quarter of 2007, the company said Thursday in a report posted on its web site. That equals 58 percent of the company’s $370 million net profit for the quarter, as reported under international financial reporting standards. The company paid 351 million rubles in dividends on its preferred shares for 2006. 
Higher charitable giving is a result of better management of the company’s pipeline network, Transneft’s former spokesman, Sergei Grigoryev, said by telephone Friday from Frankfurt, Germany. 
Every quarter the company assumes a marginal loss of oil during operations. If losses are less than predicted, Transneft sells the “surplus oil” left in the network and gives the money to charity, he said. 
Transneft earned 7.9 billion rubles from sales of surplus oil and gave 6.2 billion rubles to charity in the first nine months of 2007, according to the report. 
The company’s charitable giving has always been approved by the state-controlled board, Grigoryev said. The company has contributed to projects such as housing for veterans, he said, without commenting on what causes the current management supports. 
Chief executive Nikolai Tokarev has said maximizing shareholder value is not a priority for the state-controlled company. “I don’t care how much our shares cost,” he said in an interview posted on the company’s web site. 
Renaissance maintained its “buy” recommendation for Transneft shares. “Transneft’s fundamental value is driven by its invested capital and allowed returns, which do not depend on quarterly returns,” Renaissance analyst Alexander Burgansky wrote in the research note. 
Transneft’s share price performance “has been negatively affected by poor corporate governance and the management’s disregard of the interests of minority shareholders,” Burgansky said. 
Transneft preferred shares trade at a price of 3.18 times the company’s earnings per share, according to Bloomberg data. The average for the dollar-denominated RTS Index is 10.55 times earnings per share. 
Semyon Vainshtok, Transneft’s former chief executive, left the company in September after President Vladimir Putin put him in charge of the country’s preparations for the 2014 Sochi Winter Olympics. He announced his move on Sept. 11. 
Transneft paid a total of 822 million rubles in dividends for 2006, including 472 million rubles on common shares, which are all owned by the state.

TITLE: Candidates Reveal Their Fears
AUTHOR: By Yekaterina Dranitsyna
PUBLISHER: Staff Writer
TEXT: Over fifty percent of candidates looking for a job doubt whether their CV shows them in a favorable light, and about the same proportion of candidates are not confident in their ability to produce a positive impression on a prospective employer during a face-to-face interview, says a report produced by Kelly Services.

The company conducted a survey in which more than 115,000 people from 33 countries (including 4,000 people from Russia) were asked about their concerns and expectations regarding the recruitment procedure. Kelly Services discovered that 52 percent of candidates doubt the adequacy of their CV, while 47 percent feel unsure of their interview skills.
“Your chances of getting a job often depend on your ability to “sell yourself” to the employer. You never get a second chance to make a first impression — candidates should do their very best at the first meeting,” says Yekaterina Gorokhova, general director and vice president of Kelly Services CIS.
Lacking in self-confidence, candidates often resort to tricks. Around 30 percent of candidates confided that some of the facts on their CV and some statements they made during interview were not entirely true.
The most frequent embellishment made by people was overstating their current salary (15.2 percent of cases), while some candidates (6.2 percent) deceive their potential employers about the range of responsibilities they had at their previous jobs.
Candidates also conceal negative information about their previous work (5.2 percent), pretend that they have experience which in fact they do not (4.9 percent), list nonexistent skills and knowledge (2.5 percent) and lie about their real age (two percent).
“Unfortunately, the subject of self-presentation is very seldom taught, if at all, except that there are specific training courses one can attend to learn or enhance one’s presentation skills,” says Yury Mikhailov, Managing Partner at Consort Petersburg recruiting agency.
“Passing an interview with flying colors takes a lot of audacity and nerve and requires a certain amount of adventurism and bravery. Candidates must be aware that they can never have the perfect resume, as every employer or recruiter will see this resume from a different point of view,” Mikhailov says.
He suggested that candidates should “put themselves in the employer’s shoes” to predict how best to approach their presentation and be ready to adjust it during the interview.
“Interviewees must be tuned in to all the nuances of the interview, listen closely to how questions are phrased and provide short but meaningful and appropriate answers with plenty of reasoning and logic,” Mikhailov advises.
As for nerves, he suggested that only practice could help candidates to gain self-confidence.
Irina Babenko, consultant at Consort Petersburg, named some common mistakes that candidates make. “Candidates who misunderstand their role as interviewee sometimes keep silent, and the interviewer has to pump information out of them,” Babenko said.
Some candidates, on the contrary, talk too much. They overload their prospective employer with irrelevant facts, turning the interview into a monologue. “Do not begin lengthy speculations when you are asked a specific question,” Babenko warns.
When candidates suspect that a job offer may not turn out to be particularly attractive, they behave half-heartedly during interview, which is also a mistake. “A successful candidate always looks like a winner,” Babenko says.
Most candidates feel anxious about interviews, but only seven percent believe that interview skills would be of any help to them, according to Kelly Services. An even smaller proportion of candidates (three percent) expect potential employers to make use of psychological tests.
More frequently, candidates consider work experience to be the most important factor (46 percent) along with proactive behavior and appropriate personal qualities (31 percent). Around 10 percent of candidates expect recruiters to take recommendations from former employers into consideration.
Only four percent of Russians believe that education is a crucial factor in the selection of candidates, while recruiters do not entirely agree with such a view.
“Three times out of four an employer will look at candidates who meet the educational requirements for the job and forego those who don’t,” Mikhailov said.
“At the same time, those 25 percent stand a good chance of landing a job if they succeed in getting across the idea that their lack of the specified educational qualifications are in no way an obstacle to being considered for the position, and that other major qualities like work experience and proven track record greatly outweigh a seeming lack of a certain degree,” he said.
In the Kelly Services poll, about half of the respondents indicated waiting for a response from a potential employer after interview as the worst part of the recruitment procedure.
Among other unpleasant aspects, candidates listed searching for a vacancy (25 percent), attending interviews (20 percent), writing a CV (six percent) and filling in questionnaires (three percent).
Mikhailov indicated that unsuccessful candidates can expect feedback from an interviewer if the latter respects their efforts to come and present themselves and wants to project a good corporate image.
“If you are given a business card during the interview, you can always email or phone your interviewer to ask for feedback. You must be aware though that the interviewer could be quite busy at that moment and may not be prepared to provide feedback immediately,” Mikhailov said.
“Even if you are not successful in your application for one particular job, you should set yourself the goal of obtaining an honest assessment of what led to that outcome in order to improve your self-presentation and performance at future interviews,” he added.

TITLE: Salary Research Shows Wages Increasing
AUTHOR: By Yekaterina Dranitsyna
PUBLISHER: Staff Writer
TEXT: Most private companies in St. Petersburg — 95 percent — increased staff salaries in 2007, according to the latest salary and remuneration survey issued by Avanta Personnel recruiting company, and more than 90 percent of local companies plan to raise wages this year.
During the last year, the average salary increase in the city was 12-13 percent, while the maximum increase was reported at 30 percent. In 2008, private companies in St. Petersburg will increase salaries by 10-12 percent on average, while the maximum increase is again planned at 30 percent, Avanta Personnel reported.
“The gap between salary rates in Moscow and St. Petersburg is narrowing. In St. Petersburg the average salary is 84 percent of that in Moscow. In Vladivostok, which holds the third place in Russia, the salaries are just 55 percent of Moscow’s level,” said Anna Yegorova, head of Labour Market Research at Avanta Personnel.
Yegorova indicated that the main factors that influenced last year’s increase were the personal achievements of employees and the labor market situation, though company performance and inflation also affected salary levels.
In the survey, Avanta Personnel analyzed data concerning the HR policies of over 43,500 employers and salaries of over 27,400 employees from 92 international and Russian companies. Half of these companies were foreign, 40 percent Russian and 11 percent joint ventures.
By January 2008, the average monthly income was reported at 31,090 rubles ($1,261) for office managers, 21,520 rubles ($873) for secretaries, 11,375 rubles ($461) for office cleaners, 28,713 rubles ($1,165) for HR managers, 42,828 rubles ($1,738) for shift managers, 23,502 rubles ($953) for production operators, 26,782 rubles ($1,087) for mechanics and 25,506 rubles ($1,035) for forklift truck drivers.
Average salaries in other categories included:
Unskilled workers: 19,726 rubles 	($800)
Financial analysts: 32,280 rubles 	($1,310)
Accountants: 22,513 rubles 
($913)
Sales representatives: 33,322 rubles	($1,352)
Merchandisers: 18,610 rubles ($755)
Software engineers: 45,684 rubles ($1,854)
IT specialists: 29,290 rubles ($1,188)
Besides the basic salary, 66 percent of the survey participants paid performance-based bonuses (12-20 percent of the annual base salary), 47 percent paid bonuses on the occasion of the anniversary of the company or date an employee started to work there, or other one-off bonuses at the management’s discretion, and 37 percent paid guaranteed bonuses either monthly or once or twice a year.
In sales departments, average sales commissions amount to 40-50 percent of the base salary.
The most common benefits provided by employers in St. Petersburg include medical insurance (78 percent of companies) and lunch benefits (73 percent).
Depending on their position, employees could be awarded other privileges. Top-managers are provided with a company car in 57 percent of companies, managers in 29 percent, and sales personnel in 20-35 percent.
Over 90 percent of companies cover their employees’ cell phone expenses, over 80 percent cover business trip expenses and 95 percent provide training programs for employees.
The average annual turnover in personnel at St. Petersburg companies is 14 percent, according to Avanta Personnel.

TITLE: Stress Is Increasing
AUTHOR: By Yekaterina Dranitsyna
PUBLISHER: Staff Writer
TEXT: Most employees in Russia suffer from neurosis, which decreases their work efficiency, the Institute for Globalization and Social Movements (IGSO) said Monday in a statement.
Mass neurosis is a result of the aggressive psychological climate in Russian companies, lack of relaxation and constant overworking. IGSO analysts also indicated “hysterical management methods” as one of the sources of mental disorders.
“People endure depressive emotional conditions without even realizing that it’s not normal. Depression is considered a natural condition,” said Boris Kagarlitsky, director of the IGSO.
People in Russia are not used to going to psychoanalysts who, in their turn, are unable to help them since they are unfamiliar with office problems, the experts said.
In contradiction to the Labor Code, in many companies vacations are reduced to one-two weeks a year and employers have only one day off a week, IGSO reports.
Managers most often suffer from asthenia. Utterly fatigued and lacking in strength, they have to make enormous efforts to perform even the simplest tasks and often resort to long periods of rest.
Obsessive and hysterical neurosis is less widespread (about one third of cases). Such obsessions result from constant anxiety at work. 
The experts described a popular term, “to exercise management” which in some companies means shouting at employees in order to break their will and force them to perform the required job mechanically. In many companies employees are required to follow a standard behavior model, which can also lead to adverse psychological effects.
Neurosis often manifests itself in aggressive outbursts toward subordinates or members of the manager’s family, the experts said. Neurotic managers suffer from long periods of depression and often resort to antidepressant medication.

TITLE: How to Create the Perfect CV
AUTHOR: By Shura Collinson
PUBLISHER: Staff Writer
TEXT: Writing or updating a resume or curiculum vitae (CV) is a task that can be approached in many different ways. Some do it with loathing, irked by the need to recall anything in their past that might help them to get the job they want, while others see it as a creative writing exercise in which menial tasks performed in their previous jobs are transformed into crucial services carrying a vast burden of responsibility.
Some job hunters list every one of their achievements, from school certificates to musical grades, in the belief that one small detail could clinch the job for them. Others consider a CV to be a formality and maintain that their performance in a job interview is what really decides an employer’s choice of candidate, and consequently think a brief page will suffice. 
Whatever the approach, the quality of the CV often determines whether it is thrown straight into the trash or its author called for interview and its significance in the job application process should not be underestimated. So what is the best way to present a CV, and what pitfalls should candidates avoid?
LIFE STORY
Olga Petrovskaya, IT/Telecom team leader at Ancor recruiting company in St. Petersburg, says that a CV is one of the most effective instruments in searching for a new job. 
“Generally, the first round of the selection process is based on candidates’ CVs,” she says. “When a company receives dozens of resumes every day, the employer usually spends 1 or 2 minutes reading each one. 
“But when a job has been advertised on the Internet or in the media, the company might receive hundreds of resumes, reducing the attention span given to each one to 30-40 seconds. Therefore it’s very important to catch the employer’s attention and interest and make them want to interview you.”
Most experts are agreed that the length of a CV should not exceed two pages — any more information runs the risk of boring the reader with irrelevant detail — but be no less than one full page, if it includes all the necessary information. 
Petrovskaya says the most basic essential information on any CV, regardless of the job applied for, includes sections detailing the candidate’s contact information, career objectives, qualifications, work experience, education and additional skills. The last section, advises Petrovskaya, should indicate a candidate’s computer skills, knowledge of foreign languages and driving experience. 
One area that can cause confusion among candidates is the “Personal Information” section. 
Some recruitment experts consider such a section unnecessary, including Petrovskaya, though she says it can be useful for employers to include one’s date of birth and marital and parental status. 
Others suggest a more detailed “About Me” section which, according to the on-line journal HR Zone, “gives the CV more of a human face.” The journal suggests including information such as hobbies and extracurricular activities done at school or university, but warns candidates not to “go overbroad and write about absolutely everything” — it is better to focus on character aspects that are relevant to the job being applied for. 
Marina Goryayeva, senior consultant at Triza Exclusive Personnel Search Group in St. Petersburg, says that if a candidate sends the CV directly to a company, mentioning some hobbies is worthwhile. 
“If you’re a keen sportsman, why not write about it, especially if you know that the company regularly organizes sports events — this way the employer will understand you’re likely to accept the corporate culture of the company,” Goryayeva says.
NO PETS PLEASE
A much-debated issue is the question of whether or not to attach a photograph with your resume. 
While Petrovskaya advises against this, Goryayeva says, “A photo is of importance when the candidate applies for an administrative position implying certain requirements regarding appearance. However, it’s definitely not recommended to attach a file with an enormous picture of you wearing fancy dress and/or in a group of close friends and pets.” 
As many employers know from experience, this is far less unlikely than it may seem.
The experts’ advice also differs on the subject of salary expectations. 
According to Petrovskaya, there should be no mention of this on a CV. Goryayeva, on the other hand, says that minimum salary levels should be indicated,
“Always write your salary expectations,” she says. “There is always a minimal level you’re ready to discuss, and if you don’t state it, both sides will waste time discussing vacancies that don’t correspond to your current level of experience.”
However, both experts are agreed on the crucial elements of writing a good CV.
“A CV should be brief, well-structured and give the clear idea of the gist of one’s professional experience,” Goryayeva says. Petrovskaya agrees that a clear and logical structure, a concise format and clarity of expression are things to focus on when writing a resume.
As for references, both Ancor’s Petrovskaya and Triza Exclusive’s Goryayeva suggest that at the CV stage, they are not necessary. 
Petrovskaya recommends bringing the details of referees to the interview, when they could be required, while according to Goryayeva, referees are only usually contacted when the company is about to make a candidate a job offer. 
“When sending your CV to a company for the first time or posting it on the Internet, it is quite enough to write the names without the contact information,” she says. “The phrase ‘references are available upon request’ is also acceptable.”
SWITCHED ON
Petrovskaya advises candidates against writing headings such as “Resume” or “CV” — it should be obvious, she points out, what the document is. There should be no mention on a CV of a candidate’s weaknesses or of the reasons they left their previous jobs, she warns. She also says there is no need to write one’s entire work history on a resume.
“Your prospective employer is only interested in the last 3-5 places you have worked at during a period of no more than ten years,” she says.
Goryayeva has some advice for candidates putting their CV on the Internet. 
“Write your full name,” she urges. “A CV entitled ‘Accountant Natasha’ or ‘Director Andrei Nikolaevich’ does not look professional and worst of all, makes it seem like you have something to hide. Naturally, you may not wish to let your boss know you’re looking for a new job, but nowadays most job sites allow users to adjust the settings of the CV to make it visible only to a chosen group of employers.”
According to Goryayeva, it’s just as important to state the full names and profile of the companies you have worked for. 
“There are companies with similar or identical names, but totally different profiles, as well as ones that are not widely known and do not have an Internet site, so sometimes it takes ages to guess which one the candidate means.”
The experts have some final advice for candidates who have followed their tips and recommendations to create a successful CV. 
“Make sure your mobile phone is switched on after you’ve posted your CV on the Internet, or include additional contact information in the CV” Goryayeva says. “It’s always a pity to lose candidates with considerable work experience who are not available due to technical problems.”

TITLE: Interview Etiquette: Ensuring Success
AUTHOR: By Irina Titova
PUBLISHER: Staff Writer
TEXT: Experts say that the way a candidate behaves at a job interview can often be the deciding factor for those who decide whether or not the candidate is the right person for the job. Therefore, if you are really determined to get the job you want, it’s helpful to know certain rules and tips.

Svetlana Sokhatskaya, branch manager at Kelly Services recruiting company, said the very first thing needed for a successful job interview is “to prepare for it beforehand.”
“Firstly, you need to carefully study the information about the company to which you are applying. Use all possible information channels to do so — the Internet, personal connections, newspapers and reference books,” Sokhatskaya said.
Sokhatskaya said that candidates should be accurate and confident at interviews.
“It’s not an exam, but rather an opportunity to get a desired job,” she said. “Wear smart clothes, try to relax during the interview and calmly look your interlocutor in the eye. Answer the questions briefly and factually, without going into extra details,” she said.
Sokhatskaya said it’s very important to get a good night’s sleep before the interview and come to the meeting in a good mood. To engage the interest of one’s interlocutor, candidates should appear “positive and eager to work,” she said.
Another simple yet important piece of advice for interviewees is not to be late. Any potential employer will expect punctuality, so don’t fail on that. It’s better to get to the office five-ten minutes early so that you have time to prepare.
First impressions are the most important, so when you enter the office be polite and friendly. Don’t forget to smile when you enter the interview room, and don’t sit down before you’re invited to, experts advise.
“When a consultant comes to greet you, be ready to shake his hand with confidence, look him or her in the eye and smile. It will help to establish mutual communication,” Sokhatskaya said.
Experts at Ancor recruitment company in St. Petersburg recommend trying to remember the names of people to whom you are introduced. If you address your interlocutor by name, it will immediately make a good impression on him.
If you’re asked to fill in some forms, remember that everything is significant — your accuracy, handwriting and clarity of your answers.
Usually an interview begins with questions on a candidate’s professional experience, or a description of the job vacancy and the company itself. Listen attentively, and follow the line of discussion introduced by the interviewer. Before you answer a question, try to understand why it is being asked, and how to answer it while emphasizing your strong points.
Answers to the questions should be direct and precise. You should not digress from the discussed topic, but at the same time, you should include extra information that shows you in a positive light in your answer.
For instance, if they ask you about your former responsibilities in the advertising department where you used to work, you could not only give a short list of your responsibilities, but also add that during the six months you worked there, advertising in printed media became 25 percent more effective, experts say.
There are replies that people give time after time, such as “I like working with people.” Try to avoid such banal replies and give well-grounded answers, Ancor experts say.
Experts from recruiting companies also offer advice on how to answer certain questions.
For example, you may be asked about your biggest achievements over the last five years or what qualities you think a boss should have.
In order to be prepared for these questions, make a list of your achievements beforehand, and say that a boss should be a strong leader who you would enjoy learning from and would give you the opportunity to try methods yourself. 
The interviewer may also ask questions such as:
– Describe your regular working day.
– How do you prioritize the things you have to do during the day?
– What do you like most about your work?
– Why are you interested in this company and this position in particular?
– What do you see yourself doing in a year?
– What do you think will be the most complicated aspect of your work?
– What are your strong and weak points?
Another popular question is “Do you have any questions?” Be prepared to ask what you want to find out.
If you are asked about your weak points, never answer this question honestly — it’s better to name a minor drawback that is really part of your strengths.
Questions such as “Why would you like this job?” or “Why should we hire you?” imply that you already know something about the company’s activities. The absence of such knowledge is one of the main reasons candidates are unsuccessful.
Tell the truth. A good psychologist will easily notice you hesitate and have doubts about the reliability of your answers.
Sokhatskaya also said candidates should not be afraid “to sell themselves.”
“When you speak about your activities at your former place of work, say ‘I,’ not ‘we,’” she said.
Be prepared for the interviewer to check the information that you have mentioned on your CV. For instance, they could ask you to translate a business letter from English into Russian, or create an Excel spreadsheet on the computer.
Try to find out the expected length of the interview and don’t exceed that time. It will help you to decide how long to spend on answers and how much you need to go into detail.
Don’t discuss your personal and financial situation unless you are asked about it. You can name your desired salary, but not before the interviewer brings it up.
When the interview comes to an end, briefly reiterate the arguments in your favor, thank the interviewer for their time, and ask when you can expect to hear about the results of your interview.

What an Employer Expects
When employers interview potential employees, they usually ask themselves certain questions in order to make the right choice, Sokhatskaya said. Therefore it’s a good idea to know what these guiding questions are:

Personal opinion:
– Will this person be an effective representative of our company?
– Will he or she look professional and serious?
– Will he or she be able to communicate with people and make a good impression on clients so that they would be willing to work with us?

Competence:
– Will this person be able to perform the necessary work? Has he or she got the necessary experience and knowledge?

Communication Skills:
– Will I like working with this person?
– Will he or she fit in well with our team?

Motivation/Enthusiasm/Responsibility:
– How much does this person want the job?
– Is he or she as industrious as they are trying to show now?
– Will he or she work for us long enough for us to benefit from them?

Leader Qualities:
– Is this person able to take responsibility for our organization?
– Can he or she set an example to others?

Maturity/Stability:
– Is this person able to deal with stress?
– How would he or she behave in a difficult situation?
By planning in advance how to demonstrate the qualities sought by potential employers, candidates will also be more confident and therefore doubly likely to make a good impression on the interviewer, which could ultimately lead to them getting their dream job.

TITLE: The Attraction of Mother Russia
AUTHOR: By Olga Sharapova
PUBLISHER: Special to The St. Petersburg Times
TEXT: When Peter the Great started building St. Petersburg in 1703, his vision was of a new capital that would resemble a western city in both appearance and customs. With impressive energy and entrepreneurial skills, Peter I tried to bring the best European achievements to Russia, such as business knowledge, practicality, good organization and attention to education, arts and science.
But even today, few Russians identify their homeland as a completely European country. There are many historical, political and cultural reasons for this — not least that it needs more time to integrate the Russian economy into international business processes than the 16 years that have passed since the break-up of the Soviet Union.
Step by step however, Russia is becoming an increasingly open country. Foreigners come to live in Russia for various reasons, such as to do business, study or working in the diplomatic service. Naturally, they bring with them their own cultures, experiences and habits. Moscow and St. Petersburg, where most expatriates in Russia are based, now offer considerable resources for foreign communities, from newspapers to schools, art festivals to ethnic restaurants and much more. Successful westerners may also unintentionally enhance the very popular idea among Russians that life in the West is completely different and far easier than in Russia.
According to the Russian mentality — or rather the Soviet way of thinking that is still alive in most adult Russians — wealthy foreign countries seem to many Russians to be the best places in the world. In the words of Arjen Roodvoets, a Dutch citizen who teaches his native language to Russians at both St. Petersburg State University and the Netherlands Institute, “Russians often think that life in the West is much better than here, but it is often not true. There is also an understated self-appreciation in Russia. In my opinion, Russia is a really special and original country. Russians should just be who they are, be natural and maintain their native values, such as a strong education system and culture.” 
Roodvoets, who has lived and worked in Russia for nine years, has become deeply involved in Russian society and has adapted to Russian life. “I like many things in Russia, enjoy the Russian language and dealing with local people.  One of the best things is my job here, because I like communicating with Russians.” Roodvoets, who speaks fluent Russian, was baptized in Russia and his favorite place in St. Petersburg is Valaamskoe Podvorie church on Staropetergovski prospekt.
“I think it is Orthodoxy that distinguishes Russia from other European countries and has formed the national mentality,” he says.
The cultural exchange between Russians and ex-pats is a two-way process. It is generally accepted that many aspects of Russian life have been westernized in a positive way (primarily business and management), and it is also true that there are a number of foreigners who enjoy exploring the differences between their own lifestyle and life in Russia. 
Cobus van Rooijen, Group Sales and Distribution Director for Heineken Russia, says, “In my free time I usually explore cultural and natural attractions — recently, for example, I went hunting near Lake Baikal in temperatures of -35 degrees Celsius, and also attended a magnificent performance of “The Nutcracker” directed by Alexei Ratmansky at the Mariinsky theater.” 
Yury Mikhailov, Managing Partner at Consort Consulting Group, has considerable experience of interacting with westerners and says he even knows some ex-pats who have become more Russian than Russians themselves by studying its history, literature, politics and character traits. 
Generally, however, Mikhailov believes that “Most foreigners stay the same by going to their ex-pat bars, restaurants, clubs and consular events. This of course does not allow them to integrate and become familiar with local life.” 
As to the differences between Russians and westerners, in Mikhailov’s opinion, “Foreigners often seek to achieve more recognition in professional circles as well as in their personal relationships.” 
Walter Ragonese, who is from the U.S. and works in Russia as the Security and Business Continuity managing director of InterComp, concurs. “Most of the ex-pats I know have very fulfilling professional and social lives in Russia. Work is generally the focus of the professional/social life balance, but family and friendships are usually very significant factors in making the experience well rounded and personally satisfying.” 
Ragonese’s colleague, Daniel J. Hill, who is general manager of InterComp Outsourcing in Russia, explains, “After 14 years in Russia, I am still here because I still find it an exciting, vibrant and dynamic place in which to work and live. I think many westerners (myself included) try to find a balance between maintaining ties with their home culture and friends, and embracing all of the new and interesting aspects of developing Russian friends and experiencing Russian culture.”
Asked what inspires foreigners to come here, Ragonese says, “Moscow and St. Petersburg in particular are very cosmopolitan and attractive locations that rank alongside other cities around the world for expatriates looking to develop their careers.
“Russia has always been open to the employment of westerners who have the necessary skills required by an organization,” he adds. “This hasn’t changed from 16 years ago when I first arrived in Russia. Obviously the required skills have become more specific with every year as the Russian market for management talent has become more developed.”
A good investment climate and very good corporate career opportunities are among the most positive factors about working in Russia, according to Cobus van Rooijen, top sales manager of Heineken Russia. But he cited the common problem often complained about by foreigners — elements of bureaucracy. His words were echoed by Consort Consulting Group’s Mikhailov: “Of course there is a certain amount of legal issues and bureaucracy, and dealing with red tape has never been easy, but it is a much more achievable goal than it used to be.” He adds, “If you just think for a minute, it’s not that easy to settle and work in other parts of the world unless you are an EU citizen wanting to work in other EU countries.” 
From Mikhailov’s diverse professional experiences, he knows that many westerners who have entrepreneurial skills and an aptitude for business say that Russia became the land of opportunity several years ago. On the issue of why Russia has become a popular country in which to work, he says, “Profitability rates and sales turnover growth are much higher here than in the west, and this is what attracts businessmen seeking a faster return on their initial investments.”
Svetlana Sokhatskaya, branch manager of Kelly Services St. Petersburg, suggests that “Foreigners, in most cases, know how to count money and they realize that taxes in Russia are much lower. Many companies provide top managers from other countries with free apartments while they are working in Russia and it is, no doubt, a great advantage for westerners.” 
Now there is a general tendency among local firms to invite foreign managers in to make the business more efficient. “It just means,” continues Sokhatskaya, “that in comparison with Russian specialists, westerners possess more international experience in business and management.”  
The most popular and attractive segments of the local market for foreign investment are construction, real estate, the automotive industry, IT, the hospitality industry, publishing, food and the sale of different kinds of equipment. According to Mikhailov, “The number of companies is increasing every year. Since we work closely with Finnish companies, we know that there are more than 400 Finnish firms on the local market”.
InterComp’s Ragonese considers that “The most popular spheres of employment for ex-pats are auditing services, taxation consulting, and law firms. Real estate consultancy and management also employ a significant number of expatriates.”
One of the most dynamic industry segments is IT — virtually all the major brands are in St. Petersburg now, including Alcatel-Lucent, EMC, Motorola, Nokia, Microsoft, Google, Sun Microsystems and Intel. 
The latest International Technical Exhibition at Lenexpo illustrated the level of interest in the Russian market — there were more than 100 companies from India alone at the fair, which focused on metallurgy and mechanical engineering, illustrating the line of business cooperation that Indian companies are planning to take in the near future.  
The profitable hospitality industry, specifically the restaurant business and tourism, also tend to attract foreign managers. A myriad of different cuisines are on offer in the Northern capital — not just the usual Italian and French restaurants, but also Greek, Indian, Thai, Mexican, Korean, and many more. However, the active international presence on this business scene in turn spurs on Russians to increase their activity on the market and attract ex-pats and tourists to visit different Russian restaurants and clubs. 
The private and daily lives of ex-pats in Russia may not differ greatly in some respects from the experiences of ex-pats in other foreign countries. But every country has its customs and idiosyncrasies. Van Rooijen of Heineken Russia thinks that foreigners here have several dreams — to learn the Russian language, to understand local customs and traditions, and to enjoy support in their business initiatives. 
“What westerners lack in Russia,” says Mikhailov of Consort Consulting Group, “is the greater sense of security and stability that they have become so attached to back home — that’s why from time to time they tend to take off and head home for a couple of months to recharge their batteries, touch base with their friends and relatives, and share their Russian experiences.” 
InterComp’s Ragonese has a keen interest in outdoor activities, and therefore lives outside the city and commutes to work every day. The most negative aspects of Russia, in his opinion, are corruption among local officials (especially the traffic police) and the aggressive behavior that Russians can display in public, even with total strangers. 
But locals should not feel offended — it’s not so bad to know that westerners feel the same as Russians when the latter curse their country’s poor roads, corruption and impoliteness.

TITLE: Suffocated With Compliments
AUTHOR: By Yelena Mulyarova
PUBLISHER: Vedomosti
TEXT: On March 8, International Women’s Day, Andrei Chekanov, the director of a small design company, usually gives his deputy, Irina Alexeyeva, an extravagant bunch of roses and a bonus, essentially for being female. He accompanies this by complimenting her on how beautiful and wonderful etc. she is. Alexeyeva smiles with embarrassment. For the rest of the year, Chekanov has just one expression that he uses to attempt to compliment Alexeyeva: “A man!” At first, Irina couldn’t quite understand, then she quietly took offense. In her second year of work she expressed her discontent at such compliments. “How am I supposed to compliment you, then? By calling you a woman?!?” Chekanov, in all sincerity, asked in reply. If his female colleagues had accused him of discrimination, he wouldn’t have understood that either. The vast majority of men at Russian companies would react in the same way to such accusations. They are genuinely convinced that they in no way give any offense to their female colleagues. 
Concealing Grievances
“In business dealings, I sometimes sensed that men weren’t taking me seriously simply because I was a woman,” says the managing partner of the Verny Kurs PR agency, Anna Kuznetsova-Milenkova. 
“In the early years when I was working at the company, I used to be offended by the fact that my ideas and proposals wouldn’t get any support from my male colleagues and bosses. Even though those ideas, in time, would suddenly be put into practice,” says Natalia Milchakova, partner at PricewaterhouseCoopers. 
“A year ago I started working in crime detection. I hoped that I would be actively participating in solving crimes. But although I’ve got a second-class qualification in shooting, the men don’t let me prove myself, they see me first and foremost as a woman and they fence me off from direct responsibilities,” complains police major Olga D. 
“Once, I went to some negotiations with clients and they complained that their computer network wasn’t working. So I took my screwdriver out of my briefcase and fixed it. The clients refused to sign a contract — it seems they were offended by the fact that a woman had turned out to be more competent than them,” says a leading specialist at Alter Logo (the 1C franchises), Lyudmila Goncharova. 
Evergreen Jokes
“After university, I went to intern at a major Russian bank. I was given the task of writing a business letter to a partner bank,” recalls Olga Cherkasova, a financial analyst. “I wrote it. The head of the department, satisfied with the letter, showed it to the head of a sub-department with the words: ‘Look! She wrote it herself, I didn’t even have to correct anything!’ The latter read the text and said: ‘Well, I see you’ve got good prospects...’ And then he added: ‘A husband, stove, kids...’”
“One of my friends is very direct about it — he says ‘good-looking women shouldn’t be working in business, they should be looking after their kids and husband,” says Kuznetsova-Milenkova, shrugging her shoulders. 
“Jokes like that aren’t discrimination at all,” says stock market analyst Alexander Pomogayev. “They’re just a way to keep in shape, and women like them. Men who never have a joke with women are considered by their colleagues — above all, by women themselves — to be sexual minorities or downright bad people,” says Pomogayev. 
With their reputations on the line, men aren’t stingy with the compliments. “Almost all the deans of faculties here are men. But the daily educational process here is managed by women. And we, the men of the forestry institute, like evergreen trees, try to love and bring joy to our women all year round with compliments, signs of attention and chivalrous behavior toward the ladies,” says the rector of Moscow State Forestry University, Viktor Sanayev. 
“Men start by mixing compliments with jokes when talking to women. For the first two minutes it’s very pleasant,” says the strategic development director of Nakhodka Re, Ella Platonova — with a note of irony.
“Now I work in a company with western top management where you almost never meet anything of the kind,” says Cherkasova, not without a hint of satisfaction at this state of affairs. “With European clients you can’t have anything of the kind at all, they’re just as relaxed with men as with women. And they don’t allow themselves any snide looks or smiles,” says Kuznetsova-Milenkova. 
“Here, any gags of that sort would be either entirely incomprehensible or they would be seen as very rude,” comments a senior software engineer at the American firm IA Reiter, Boris Pitel. “You can’t say that kind of thing out loud. And on top of that, at large corporations if a woman’s been hired, that means she’s a fully-fledged colleague on an equal footing. That’s why you won’t hear any compliments regarding appearance or clothing.”
What’s the Problem?
“Why do men fail to see or, in fact, even deny the fact that there is discrimination against women? Because often they’re operating subconsciously,” believes psychologist and independent business trainer Rodion Chepalov. “When a man was a boy his father used to say to him: ‘All women, including your stupid mother, are idiots,’ and his mother would agree with him. The boy receives a preconception which, on reaching maturity, he puts into action.  “Personally, I think that discrimination against women is a fiction in the same way as the Jewish question,” says businessman Dmitry Kartavenko. “But as I’m neither a Jew nor a woman, I can’t assess the real seriousness of the problem.”

TITLE: Maternal Matters
AUTHOR: By Anastasiya Amosova
TEXT: Female employees in Russia have the following legal rights regarding maternity leave and compensation.

Maternity leave is guaranteed by Maternity Protection Convention No. 103 adopted by the International Labor Organization. In accordance with the international obligations of the Russian Federation, article 225 of the Labor Code gives women the right to a minimum of 70 calendar days leave before the birth, and 70 days afterwards.  In some cases the entitlement may be increased: if a woman is expecting twins or triplets for example, the entitlement is increased to 84 days before the birth, and in the event of complications during the birth, the post-natal leave is extended to 86 days, or up to 110 days if the woman gives birth to two or more children.  Maternity leave is calculated as an overall period of time, therefore if the woman gives birth earlier or later than expected, the number of days she is entitled to take as leave remains unchanged.

Maternity leave after the birth
Women are entitled to take leave to look after their children until the child turns three.  During this time women have the right to work part-time or from home, and are also entitled to receive state subsidiaries.
During maternity leave and time taken off work to look after the child, the law stipulates several state payments for women. 
The first is a maternity benefit.  The current law stipulates that a woman should receive 100 percent of her average salary while on maternity leave, although the amount should not exceed the maximum maternity benefit set by the federal budget law at the start of each financial year.  It is interesting to note that the issue of the maximum benefit amount was scrutinized by the Constitutional Court of the Russian Federation to decide whether it violated the rights of women whose average salary significantly exceeds the set benefit amount.  The Constitutional Court concluded the setting of a limit in itself did not violate the constitutional rights of women to health benefits and provision for motherhood, but ordered legislators to make the amounts paid out from the Social Security Fund to women correspond more closely to their actual salaries.  The federal law No. 266-FZ from 23 Nov. 2007 increased the maximum amount of compensation payable to women on maternity leave to 23,400 rubles.
Upon the birth of the child, the parents receive a one-off payment of 8000 rubles.
While the woman is on leave looking after her child, she is entitled to receive subsidiaries until the child is 18 months old.  The payments should represent 40 percent of her average salary, but cannot exceed 6000 rubles.

Anastasiya Amosova is a lawyer at Beiten Burkhardt in St. Petersburg.

TITLE: Ask the Boss:
AUTHOR: Teri Lindeberg, CEO, Staffwell
TEXT: The general reservation people have about taking a job in Russia is the concern: ‘Could I be making a mistake?’ It is almost impossible to forecast one’s success and happiness, or lack of, in a move to Russia for career or personal reasons. Things can be complicated further when an entire family is considering making the move. 
People will question if a move to Russia will be good for their career, if they will be safe, have friends, enjoy their life here, maintain good health and be happy and successful. 
What puts people off is bad press, fear itself and fear of the unknown, and the location. They can be convinced to change their mind via good press, PR and personal accounts, and visiting the country prior to moving to Russia. 

Luc Jones, Partner, Antal International Russia 
The main reservations about taking a job here are purely due to the typical stereotypes and misconceptions that persist abroad, thanks largely to the negative way in which Russia is portrayed in the western media. 
Russia is rarely viewed as a place where an expatriate can advance his or her career, when, in fact, the opposite can be true for someone with the right mindset who is prepared to adapt and work hard. The perception is that the country is aggressive and unwelcoming to outsiders, but the majority of foreigners I talk to enjoy living here and are almost certainly earning more than they would back home. 
Foreign companies looking to relocate an expatriate would be wise to invest a little time and effort in assisting this person with advice on life in Russia through introduction trips that do not consist of five-star hotels and chauffeur-driven trips from the office to restaurants to the airport, but rather living in an apartment and perhaps a ride on the metro and a trip to a local supermarket. 

Alla Yeremeyeva, recruitment manager of ANCOR Energy Services, part of ANCOR Personnel Holding 
Many foreign specialists are attracted to Russia by the high salaries on offer and sizable compensation packages for travel, accommodation and insurance. 
The Russian market is dynamic and growing, and this attracts foreign specialists and managers because it gives them an opportunity to use their skills and knowledge while avoiding the routine of Western business, which is much more structured. Furthermore, many foreigners note that Russians are quick to adopt foreign methods of doing business and to react to changes. 
When a foreigner receives a job offer in Russia, the main reason for their doubts is information about the criminal situation in our country. HR specialists often organize detailed consultations and introductory training sessions to help a person from a different culture adapt and learn how to behave.

TITLE: Firms Cut Costs Using Migrant Labor
AUTHOR: By Anatoly Tyomkin and Nadezhda Zaitseva
PUBLISHER: Vedomosti
TEXT: In 2007, due to a tightening up of the rules regarding migrant workers, a number of companies decided to legalize their foreign personnel, leading to a 700-percent rise in the number of work permits issued to foreigners in comparison with the same figure for 2006, according to Daria Novikova, spokesperson for the St. Petersburg and Lenoblast Federal Migration Service Agency. 
Previously, firms risked paying fines of up to 500,000 rubles ($21,016) for hiring illegal immigrants. From Jan. 15 2007, when amendments to the Administrative Offenses Code came into force, firms became subject to a fine of up to 800,000 rubles ($33,623) for every illegal immigrant hired. Fines corresponding to the new tariffs have been issued to several firms, Novikova said, though she refused to name them. 
A total of 1,994 companies received work permits for foreigners in 2007, the majority of them working in the construction sector. Citizens from countries of the former USSR are attractive employees by virtue of their low wage demands, says the head of the personnel department at Stroimontazh, Valentin Ivanov. 
Arkady Genkin, personnel director at Etalon-LenspetsSMU holding, believes that average wages for laborers in St. Petersburg are 20,000-22,000 rubles ($840-$925) per month, while immigrants will only charge 10,000-12,000 rubles ($420-$504) per month. 
Foreigners working on building sites will typically earn 30 to 40 percent less than Russian passport-holders, said the director of a legal firm that registers immigrant workers. In his view, the number of illegal immigrants working in the region is roughly equal to the number of legal workers, while in an interview with Interfax, Konstantin Romodanovsky, the head of Russia’s Federal Migration Service, said that there are now more than 10 million illegal workers in Russia.
According to Romodanovsky, illegal migrant workers cost the federal budget more than 10 billion dollars each year, since unregistered migrants do not pay taxes and send money back to their home countries. 
A personnel director at one of St. Petersburg’s foodstuffs enterprises said that at his factory about 10 percent of the employees are foreigners, with their average wage being about 17,000 rubles ($714.50) per month. 
“We have to scrimp and save on every ruble in order to stay on the market. That’s why we hire foreigners,” complained the head of a bakery holding in the city. Wages account for 8-10 percent of the costs in this sector and with high levels of competition, being able to cut one’s costs by just one percent provides a major advantage, said Alexei Krivoshapko, an analyst at Deutsche Bank.
According to the deputy chief of the Soyuzpetrostroi construction firm, Yevgeny Kaplan, expenditure on wages for workers accounts for about 10 percent of total costs. Kaplan believes that foreigners are hired due to a shortage of available personnel. In his estimation, the shortage of workers in the region amounts to about 100,000.
Ivanova noted that the process of preparing work documents for a foreigner is complex, taking three to four months. The Federal Migration Service (FMS) can only process a certain number of applications. In order to submit documents, several lawyers must be on the staff, said the director of a legal firm that works on providing documentation for foreigners in St. Petersburg. The state tariff charged by the FMS amounts to 1,000 rubles ($42), though companies in total pay about 10,000 rubles ($420) for each foreign employee. 
In order to cut down on costs, companies often rely on outsourcing, said the HR director of a major producer of frozen foods. His factory subcontracted a company which already has foreign workers registered on its books. 
In many cases, employers use the services of foreigners for social reasons, said Maria Margulis, director of the leasing projects department at Avanta Personnel. Margulis said foreigners are far more reliable than local workers — they rarely drink or skip work because they are afraid of losing their jobs. But their presence risks conflicts and disagreements within the workforce, warned one recruiter — not all local employees welcome foreign colleagues. 
However, migrant labor is a key tactic in the government’s fight to reverse the trend of Russia’s workforce decline.  At a recent public meeting with journalists, the head of the St. Petersburg Department of Employment, Pavel Pankratov, announced what kinds of workers the city most needs.
Top of the list are builders, drivers, laborers, sales assistants, engineers, and hospital nurses. St. Petersburg had about 800,000 vacancies for these positions in 2007. But local residents are often reluctant to do such manual jobs, due to the fact that they are hard and underpaid. To fill such positions, Russia is set to welcome two million people from other countries to maintain the national economy, according to official plans.

— Olga Sharapova contributed to this report.

TITLE: The Career Ladder
AUTHOR: By Yekaterina Dranitsyna
PUBLISHER: Staff Writer
TEXT: Most employees in Russia believe that changing jobs from time to time is necessary to build a successful career. The time period considered optimum for spending in a particular company depends on individual preferences, but few employees are willing to sign up to Japanese-style lifelong loyalty.
In an Internet poll conducted by Avenir recruiting company, over half of the respondents indicated that a career oriented person should not stay in the same job for more than three years.
Less patient individuals believe that career-makers should change job every year (7.1 percent of respondents) or once every two years (8.1 percent).
A significant proportion of employees (28.7 percent) are prepared to work for the same company for up to five years, but only 5.1 percent of people are ready to stay with the same company for as long as ten years.
Recruiting experts warn against hasty career decisions. “Do not adhere to stereotypes blindly. Before swapping jobs, consider all the pros and cons,” said Maxim Stepanov, head of Avenir.
Stepanov recommends that employees analyze what makes their current job dissatisfying and ensure that all the means of getting a promotion in their current company have been tried before moving on.
“Ask yourself what the purpose is of changing your job. Would it really be easier to realize your professional ambitions in a new company?” Stepanov said.
Before making a decision, job-hunters should find out as much information as possible about the actual terms of work in the new company, its reputation, plans, corporate culture, style of management and psychological climate, Stepanov advised.
Other important issues to consider include the range of tasks and responsibilities that accompany the new position, as well as career and development opportunities.
Often, employees assume that by working for the same company for a long time they will limit their professional opportunities and become narrow-minded and less able to acquire new knowledge and master new technologies and skills. Young people also change jobs in search of higher salaries.
Stepanov said that the most satisfied employees are usually those who exercise job-hunting techniques thoughtfully — who look for the places most appropriate for them to develop their skills, fulfill obligations, set clear goals and know how to achieve them, have a vision for the long-term prospects of their career, and communicate effectively with colleagues and business partners.
“A specialist without these qualities in a new job could lose all the useful knowledge and skills acquired earlier. They would have to start from the beginning and in a totally unfamiliar environment. In this case, the stress caused by the new job would outweigh its probable advantages,” Stepanov said.
In reality, there is no such thing as “the ideal time period” to work in a company, Stepanov said.
In a recent poll, ANCOR recruiting company asked job applicants what made them change job. About 60 percent of candidates indicated an absence of career opportunities, while half the respondents cited a low salary.
In St. Petersburg, 55 percent of candidates expect to be promoted within 1-1.5 years of joining a company. 20 percent of candidates expect to be promoted within the first year, and 15 percent within 2-3 years.
“Career success criteria differ depending on personal priorities and needs. Some specialists prefer stability and stick to the same company throughout their professional growth; others look for career opportunities regardless of the company. Both approaches can bring positive results,” said Svetlana Lavrinenko, team leader of the industrial department at ANCOR.
According to statistics, the optimum period for performing the same job is two-three years. “It’s not a random figure. In a two-three-year period, employees can master their job skills and achieve some results so that they can move on to new and more complicated tasks and senior positions,” Lavrinenko said.
Employers are often suspicious of candidates who change jobs too frequently. “People who resign before working for a reasonable length of time in one job are less valuable as a specialist on the labor market. The more companies they abandon in a short time, the less employers will be interested in such candidates,” Lavrinenko said.
Employers assume that changing jobs rapidly doesn’t allow employees to acquire a positive experience of problem solving and deprives people of the opportunity to learn from their own mistakes, Lavrinenko indicated. Employers are also likely to suspect such people of being uncooperative and quarrelsome, she added.
In some cases, a short stint at one job results naturally from participating in a short-term project. However, “a good specialist would not build a career on temporary projects alone,” Lavrinenko warned.
On the other hand, a long period of working at the same company could become a career handicap if a person performs the same job for over five years.
“After dealing with the same tasks for a long time, the specialist loses the ability to react promptly to extraordinary situations and readiness to acquire new skills. People get used to a particular environment, people and management structure. An unfamiliar environment could be stressful for them and could decrease their efficiency,” Lavrinenko said.
Usually, good performers gradually increase their range of duties and responsibilities, even while staying in the same job, Lavrinenko indicated. If this does not happen, the employer may not think the employee capable of growth or may not provide opportunities for such growth, she said.
However, Lavrinenko indicated, even “veteran employees” have good chances of finding a new job. “Any employer is interested in reliable personnel. If a person who stayed in the same job for more than five years can prove they possess a good record of achievement and readiness for change, they can expect attractive job offers,” she said.
Lavrinenko emphasized that the value of any employee on the labor market depends mainly on their work experience and personal qualities.

TITLE: Relationships at Work
AUTHOR: By Olga Sharapova
PUBLISHER: Special to The St. Petersburg Times
TEXT: The Soviet-era box office hit “Sluzhebny Roman” (Office Romance) directed by Eldar Ryazanov portrays a comic yet touching story of the relationship between a female boss and one of her subordinates.
This highly popular 1977 film, still beloved today, could be a handbook for modern managers faced with the thorny issue of love in the workplace. 
Office etiquette and business ethics have a clear-cut stance on this subject: Office romances should be avoided by co-workers. The usual explanation, according to most foreign experts and human resources managers, is that office romances prevent employees from being focused at work. 
Die-hard fans of Ryazanov’s masterpiece are unlikely to agree. In the film, it was love and the attention of a colleague that vitalized the stagnant atmosphere of a dull statistics organization. The company director is transformed from a stern, drab dragon without any interests in life into a vivacious, attractive woman. 
However, “Sluzhebny Roman” also illustrates the potential for distractions caused by romance in the workplace through an aging male employee who cannot concentrate on his work because his desk is opposite a busy staircase, constantly traversed by girls in short skirts. 
According to Anna Silina, director of Ancor recruiting company in St. Petersburg, there is no universal opinion on the issue of office romance. 
“On the one hand, an employee who falls in love with someone at the office may become disorganized and absentminded and perform their professional duties badly because they are thinking about the object of their affections all the time. On the other hand, other research has shown that romantic feelings really stimulate people to look better, be friendly to their colleagues and do their work more effectively. ‘Clandestine office lovers’ often get an adrenalin rush that helps them to do their work more easily and better.”
“What is more,” she adds, “work duties may be associated with their chosen one, which makes them have a better attitude to work overall.”
In light of this argument, some managers even deliberately exploit this “love virus” in their companies. Often a team is selected to consist only of young and attractive people, which means that in 90 percent of cases, office romances are bound to happen. 
According to Silina, the number of registered and civil marriages is growing in companies with young and energetic employees.
“Thanks to computerization, the Internet and mobile phones, communication between men and women, especially at work, have become easier and faster,” says Silina. “Almost everyone has been on dating sites and tried to find a partner on the Internet. Modern offices, with their open plan layout, allow co-workers to watch each other and form their own opinions about colleagues. In addition, many companies have a ‘dress-down day’ on Fridays when all the girls can wear flattering clothes and show off their most attractive features.”
According to statistics, four out of every 10 people meet their spouse or partner at work. People spend more time at work than anywhere else but their homes, so this is not surprising. If companies cannot avoid amorous adventures at the office, they should have a specific policy to deal with the issue. There are some common unofficial rules on refraining from office romances or at least making them as subtle as possible.
The first rule is always “Never date your boss.” 
It is also wise to keep your relationship as professional as possible at the office, while romantic relationships should remain outside the workplace.
One of the least troublesome office-dating scenarios is when colleagues from different departments who have little professional contact are attracted to one another.
If it all goes wrong and you decide to end an office romance, do it on Friday, experts say — don’t wait until Monday.
Ancor’s Silina says that some western companies even support employees who have a serious relationship at work, and may offer them the opportunity to create a double career which could be useful for both the firm and the couple.
However, such thinking is still far from the norm. 
“Most companies have a strict prohibition on office romances,” says Silina. “If the activities of an organization involve confidential information, any romantic relationships are banned.”
Almost every work team includes men or women who are ready to mix business with pleasure. Often they are not looking for a long-term relationship, just for a fling. This could have a negative effect on the atmosphere in the office if someone is serious about a relationship with a colleague who is merely flirting to pass the time.
One thing is for certain amid the warnings, policies and advice. Office romances happen in the vast majority of workplaces all over the world, and most employees struck by Cupid’s arrow do not have the strength to follow their better judgment. It is only to be hoped that they will have as happy an ending as the heroes of “Sluzhebny Roman.”

TITLE: U.S. Needs a New Bargain With Big Oil
AUTHOR: By Joseph P. Kennedy II
TEXT: During the OPEC oil embargo more than 30 years ago, the price of crude oil rocketed to historic highs in the world market while the controlled domestic price hovered below $4 per barrel. A few years later, the oil industry and the U.S. government reached a bipartisan deal: Domestic oil prices would be allowed to float in exchange for a windfall-profits tax, with 25 percent of the bounty earmarked to help the poorest Americans who depended on hydrocarbons to keep warm. At the heart of the pact was the recognition that no one had a right to charge whatever they wanted for a commodity that the United States could not live without.
But federal fuel assistance never received the full funding committed under the deal.
Three decades later, we have reached another extraordinary moment. With crude oil prices tripling over the last five years — breaking through the $100-per-barrel mark in recent months — the top 10 domestic producers have generated an eye-popping $818 billion in pretax profits over the same period. In 2007 alone, the top 10 petro-giants operating in the United States generated $1.4 trillion in revenues and more than $200 billion in pretax profits. ExxonMobil is recognized as the most profitable company in the history of global commerce; its 2007 profits of $40.6 billion eclipsed its own 2006 record net income of $39.5 billion.
Meanwhile, extraction costs are still $15 to $20 per barrel, and demand for U.S. petroleum products is approaching 21 million barrels per day. The industry has harvested profits it didn’t sow — they have come primarily as a result of price run-ups, not innovation or efficiencies.
The surge in value has made oil executives and shareholders extremely happy, but at what price for the people? A congressional forum last fall in Boston produced riveting testimony from a mother, an Iraq War veteran, whose husband still serves in the Persian Gulf. Her second child was born sickly and frail, requiring extensive hospitalization and intensive aftercare. But one of the prescriptions — a warm home — proved unaffordable for the young mother, who had to move in with her mother to keep her children warm and healthy.
Record tax revenues and royalties from energy companies flow into federal coffers, and $15 billion in taxpayer subsidies (such as, for example, sales-tax breaks for petroleum products) continue to increase industry profitability. The time is long overdue for a 21st-century bargain with big oil — and not just to benefit the poor.
Energy purchases account for more than half the U.S. national trade deficit, sending hundreds of billions of U.S. dollars into the pockets of unstable and uncertain regimes in dangerous neighborhoods of the world. Investment in renewable energy as a percentage of capital investment amounted to less than 1 percent at ExxonMobil, BP, ConocoPhillips, Shell and Chevron in 2006.
What the United States needs now is a clear-eyed acknowledgement that, even as it moves toward a postpetroleum economy, it still needs oil. Investment in developing new oil sources is increasing, but not nearly as fast as compensation to shareholders, up an astounding 700 percent from 1996 to 2006 for the top seven domestic producers.
Reasonable trade-offs are possible. Political leaders need to make strategic concessions on domestic exploration or be willing to encourage multinational oil companies to develop supplies abroad, where production costs are much cheaper.
But concessions on expanded exploration and production must be linked to a commensurate industry investment in renewable energy and carbon sequestration. And policymakers should tie leasing and royalty rates on federal lands to oil prices, to ensure that as the value of the fossil fuels increases, so does the revenue to support the rapid development of alternative energy sources.
Political leaders also need better oversight of domestic oil trading markets. Speculation has exacerbated the run-up in the price of oil — as much as a $25-per-barrel premium, according to the U.S. Senate Subcommittee on Investigations. To reduce this impact and increase transparency in oil trading, Congress should subject over-the-counter electronic trades to increased federal reporting and oversight requirements.
Finally, U.S. political leaders should work with the oil companies to become better caretakers of those most harmed by rising energy prices. When we at Citizens Energy write to oil companies to ask that a small slice of their profits be used to help the poor — the same message sent by a bipartisan group of 10 U.S. senators to the industry in 2005 — the usual response is that the proper source of aid is the federal Low Income Home Energy Assistance Program.
That’s the same program that was shortchanged at its birth some three decades ago. If the oil industry marshaled its robust phalanx of Washington lobbyists to push as hard for increased federal fuel aid as they fight to retain their subsidies, the low-income program could expand beyond the 5 million families it currently serves — less than 20 percent of those eligible — and increase a benefit that today buys less energy than ever.
More than a century ago, U.S. President Theodore Roosevelt raised the wrath of his own class in taking down Standard Oil and the petroleum oligarchs for the good of the nation. The new social compact did not destroy the industry, it simply managed it for the good of the country.
Twice before in U.S. history, outsized profits by big oil prompted the government to step in to protect our nation by redrawing the corporate compact with petroleum barons. Such a moment has arrived again. 
The United States needs a new bargain with big oil that serves the interests of its economy, its environment and its most vulnerable citizens.

Joseph P. Kennedy II is president, CEO and founder of the nonprofit Citizens Energy Corporation, which for 30 years has provided energy assistance to the poor. He contributed this comment to The Wall Street Journal.

TITLE: Sympathy for the Devil
AUTHOR: By Alexei Bayer
TEXT: Josef Stalin, as historian Simon Montefiore wrote in a recent book, was a poet in his youth. Yury Andropov — besides heading the KGB in the 1970s, briefly leading the Soviet Union in the 1980s and acting as Vladimir Putin’s ultimate boss — also wrote poetry. Putin may lack talent for versifying, but in Dutch his last name is spelled Poetin.
Maybe this is why artists in Russia so yearn for a special bond with autocratic rulers. Last October, director Nikita Mikhalkov produced a television program for Putin’s 55th birthday. (It remains available on YouTube and should be watched for a good laugh.) Soon thereafter, Mikhalkov joined sculptor Zurab Tsereteli to sign an open letter to Putin pleading with him to stay in office for a third term.
Putin has been immortalized in some lovely paintings and sculpture. Some such art was on display last year in a show sponsored by United Russia and titled “Faith and Love.” And then there was that film about a young Putin, “Kiss Me Off the Record.” After a few decades of hiatus, the film taps into the rich tradition of hagiographical works about Stalin that used to come out regularly until the early 1950s.
Not all was hack writing. Mikhail Bulgakov wrote the play “Batum” about Stalin’s early days in the Caucasus. An aside in Montefiore’s biography of young Stalin mentions that Bulgakov even set out to do first-hand research, only to be called back on Stalin’s orders.
In fact, Bulgakov’s masterpiece, “Master and Margarita,” one of the most beloved novels in Russia, is a work of unabashed Stalinist flattery worthy even of the sycophantic Mikhalkov dynasty — only worse because it is brilliantly written and highly original. It also speaks volumes about the relationship between artists and power in Soviet culture.
This interpretation of the novel has been proposed by some critics. They see its two central characters, Master, the true writer, and Woland, the devil who rules the world, as a thinly veiled reference to Bulgakov and Stalin.
Official writers are portrayed as ignorant, illiterate and preoccupied with backbiting and the sharing of perks. They write awful tripe and serve the devil by committing various evil acts — including hounding the Master and his great novel. But they get no reward for their service. On the contrary, Woland’s first act upon arriving in Moscow is to decapitate the chairman of the writers’ organization.
The only true artist is the Master, and the function of literature is to write the truth about the universal good. The Master’s great masterpiece is a work about Jesus. This is why the Master is wary of the devil when they meet. Nevertheless, Woland accords a grudging respect to the Master.
The story comes uncomfortably close to real life. Stalin, though promoting mediocrity in Soviet art, seemed to single out Bulgakov, one of the great writers of his time. Stalin loved the stage adaptation of Bulgakov’s novel “The White Guard” and attended its performance several times. He even made personal calls to Bulgakov, and the writer reportedly hoped to be freed from widespread hounding by Soviet officials by Stalin’s intervention, much as described in “Master and Margarita.”
A few great writers miraculously survived Stalin’s terror. Bulgakov’s work was banned, but he was never arrested. The same was true of Boris Pasternak, Anna Akhmatova and a handful of others. Stalin’s admirers in modern Russia see this as a huge merit. The murder of hundreds of others and the stultification of Russian culture somehow go unmentioned.
The tyrant’s defense of artistic genius was an enduring Soviet myth. Andropov, in addition to writing verses, was a great fan of nonconformist theater director Yury Lyubimov, saving him from persecution. It seems that, as other Soviet aspects are revived in Russia, artists have returned to yearning for a sympathetic despot.

Alexei Bayer, a native Muscovite, is a New York-based economist.

TITLE: Tibetan Protesters Disrupt Torch Ritual
PUBLISHER: The Associated Press
TEXT: ANCIENT OLYMPIA, Greece — Three men from a free-press group ran onto the field of the stadium in Ancient Olympia during Monday’s flame-lighting ceremony for the Beijing Olympics, evading massive security aimed at preventing such disruptions in the wake of China’s crackdown in Tibet.
Three members of the Paris-based group Reporters Without Borders were detained after their protest, which occurred as Liu Qi, president of the Beijing Olympics organizing committee and Beijing Communist Party Secretary, was giving a speech. Police confirmed they had detained three French nationals.
One protester held a black banner showing the Olympic rings as handcuffs. The group said three members, including the group’s secretary general Robert Menard, managed to get into the ceremony without being stopped.
“If the Olympic flame is sacred, human rights are even more so,” the group said in a statement. “We cannot let the Chinese government seize the Olympic flame, a symbol of peace, without denouncing the dramatic situation of human rights in the country.”
The group has urged heads of state to boycott the games’ opening ceremony.
International Olympic Committee President Jacques Rogge attended the ceremony at the 2,800-year-old birthplace of the ancient games in southern Greece. The flame for the Aug. 8-24 games was lit using the sun’s rays.
Greek officials said politics have no place at the event ahead of expected protests by pro-Tibetan groups. More than 1,000 police were deployed around the site.
Meanwhile, China pledged strict security measures to ensure that the torch relay, which begins with the lighting ceremony, is not marred by protests.
China state TV cut away from the protest and showed a prerecorded scene, preventing Chinese viewers from seeing the incident. Chinese television commentators did not mention the demonstration.
China’s Communist leadership has faced a public relations disaster since demonstrations against Chinese rule turned violent March 14 in the Tibetan capital of Lhasa, sparking waves of unrest in surrounding provinces. People who sympathize with the Tibetan cause have also staged rallies in other countries.
The death toll from the violence has varied and been impossible to confirm independently. China’s reported death toll is 22, but Tibet’s exiled government says 80 Tibetans were killed. Another 19 died in subsequent violence in Gansu province, it said.
Rogge told The Associated Press on Monday that he was engaged in “silent diplomacy” with China on Tibet and other human rights issues. But he also said there was no credible momentum for a boycott and that while he was concerned by the violence in Tibet, the IOC could do no more than call for a peaceful resolution because it is a sports organization.
Among the groups planning to protest was Students for a Free Tibet. The group’s director Lhadon Tethong said officers detained one Tibetan campaigner and a Greek photographer with him in the village of Ancient Olympia, just outside the site. “One of our colleagues saw them being dragged by about 20 police through town,” Tethong said.
The ceremony was held an hour early — starting at 5 a.m. EDT — to avoid rain forecast for later Monday. An actress dressed as a high priestess lit the flame using a convex mirror to focus the sun’s rays on the Olympic torch.
From Olympia, the flame will embark on an 85,000-mile journey. The torch is to arrive March 31 in Beijing. It then will travel through 20 countries before returning to mainland China.
Chinese media reported that officials — who have blamed the unrest on the exiled Tibetan spiritual leader, the Dalai Lama — were prepared to prevent a disruption of the torch relay.
China’s plans to take the torch through Tibet and to the top of Mount Everest have upset Tibetan activist groups, which accuse Beijing of using the event to convey a false message of harmony in the troubled Himalayan region. Chinese Communist troops occupied Tibet in 1951 and Beijing continues to rule the region with a heavy hand.
“The more determined the Dalai clique is to ruin the torch relay and the Olympic Games, the more hard and good work we need to do on the preparation and the implementation of all aspects,” Yin Xunping, a Communist Party official, was quoted as saying by the Tibet Daily newspaper.
Yin is party secretary of the Tibet Mountain Climbing Team, which is participating in the Mount Everest segment of the torch relay. He spoke at a meeting organized last week by Tibet’s sports bureau, whose head, Dejizhuoga, urged “intense precautions and heightened security.”
The report, cited Monday by the official Xinhua News Agency, did not give any details of what measures would be taken. A receptionist at the Tibet sports bureau said no officials were available for comment Monday.
Mount Everest straddles the border between Nepal and Tibet. China has already begun denying mountaineers permission to climb the Tibetan side of the mountain — a move that reflects government concerns that activists may try to disrupt its torch plans.
The first torchbearer in the relay will be Greece’s Alexandros Nikolaidis, who won a silver medal in taekwondo at the 2004 Athens Games. He will hand the flame to Luo Xuejuan, who won China’s only swimming gold medal in Athens.

TITLE: Records Tumble at European Swim Meet
PUBLISHER: The Associated Press
TEXT: EINDHOVEN, Netherlands — Three days, three records.
Alain Bernard set a world record in the 50-meter freestyle Sunday, after twice lowering the 100 freestyle mark in the previous two days at the European swimming championships.
The muscular Frenchman finished in 21.50 seconds to beat the time of 21.56 set last month by Eamon Sullivan of Australia. Sullivan lowered Alexander Popov’s previous record of 21.64, set in Moscow on June 16, 2000.
“I had to stay calm for this semifinal,” Bernard said. “I had an excellent start, which is not that usual for me. Then I thought I had to exploit my fantastic shape here in Eindhoven. I put all my power on at 35 meters.”
Bernard set a world record of 47.50 seconds to win the 100 freestyle final on Saturday. That took one-tenth of a second off the record of 47.60 he swam Friday in the semifinals, to shatter Pieter van den Hoogenband’s old mark set at the 2000 Sydney Olympics.
On Sunday, 24-year-old Bernard easily beat Stefan Nystrand of Sweden, who finished in 22.12 in their second semifinal to be third fastest into the final.
Russian teenager Anastasia Zueva won her second gold of the championships in the 50 backstroke in a European record, adding to her victory in the 100 backstroke — also in a European record time — on Friday.
The 17-year-old Zueva’s time of 28.05 was well outside the world record set earlier in the day and on the other side of the world by Sophie Edington, who clocked 27.67 at the Australian Olympic trials in Sydney.
Nina Zhivanevskaya of Spain, the 2003 world champion and holder of the old European record, was second and Sanja Jovanovic of Croatia was third.
World record holder Oleg Lisogor of Ukraine took the European 50 breaststroke in 27.43 after sharing the title for the last two years with Alessandro Terrin of Italy following the pair’s tie at the last European championships. This time, Terrin had to settle for bronze as Alexander Dale Oen took silver.
With world champion Laure Manaudou not racing, Sara Isakovic of Slovenia won the women’s 200 freestyle in 1:57.45, touching just ahead of Olympic champion Camelia Potec of Romania and third-place Agnes Mutina of Hungary.
Yevgeny Korotyshkin of Russia won the men’s 100 butterfly in 51.89 and sealed a place at the Olympics after starting in lane eight because he had the slowest qualifying time. Peter Mankoc of Slovenia was second in 52.07 and Rafael Munoz Perez of Spain was third in 52.09.
In her last season of competitive swimming, continental record holder Flavia Rigamonti of Switzerland won the first ever European championship women’s 1500 final in 15:58.54. Erika Villaecija of Spain collected her second silver of the championships after placing second in the 800 freestyle, and Lotte Friis of Denmark was third.
Markus Rogan added the 200 backstroke title to the 100 backstroke gold he won earlier in the championships. The Austrian touched in 1:55.85, ahead of European record holder Arkady Vyatchanin of Russia and Razvan Florea of Romania.
In the evening’s final race, Filippo Magnini anchored Italy to its fifth straight 800 freestyle title in 7:09.94. Russia was second and Austria third.
In the diving competition, Yulia Pakhalina of Russia won the women’s 3-meter springboard with 347.40 points. The German pair of Sascha Klein and Patrick Hausding won the men’s 10-meter platform synchro.

TITLE: A Star is Born as Ivanovic Is Victorious Over Kuznetsova
PUBLISHER: Reuters
TEXT: INDIAN WELLS, California — Serbia’s Ana Ivanovic clinched her first WTA title of the year by hammering Svetlana Kuznetsova of Russia 6-4 6-3 in the Pacific Life Open final on Sunday.
The 20-year-old top seed from Belgrade broke St. Petersburg-born Kuznetsova, the second seed, three times in the second set to wrap up victory in one hour 21 minutes at Indian Wells Tennis Garden.
After dominating a first set of quality shot-making with sparkling forehands, Ivanovic held the edge in an error-prone second before sealing the title by hitting a service return winner.
It was the sixth WTA success of Ivanovic’s career and Kuznetsova’s third loss in a final this season.
“It’s a great victory for me,” a beaming Ivanovic told reporters, having squealed in delight after securing the first Masters Series title of the year and beating the Russian for a fifth time in six meetings.
“When I managed to break her at four-all in the first set, it gave me confidence and I went strong from that point on.
“I was most happy about my aggressiveness today,” added the Serb, who hit 30 winners to Kuznetsova’s 14.
“I was staying low and taking my opportunities, knowing that when she would hit the short ball I would try to attack and take away time from her.
“I’m really enjoying my time and I’m playing some good tennis. The hard work is paying off so I’m just happy to see that.”
Kuznetsova, the 2004 U.S. Open champion, conceded she had been totally outplayed in losing her eighth WTA final in her last nine.
“It’s always painful to lose, but I prefer to get to the final losing than to lose in second round,” the Russian said. “I think she played incredibly well in the first set, every important ball she hit a winner on the line.”
On a sun-drenched afternoon in the California desert, the opening set went with serve until the ninth game when a crunching forehand by Ivanovic forced an error off Kuznetsova’s backhand for the Serb to lead 30-40.
Ivanovic, Australian Open runner-up in January, coolly clinched the break point with a whipping top-spin forehand winner to edge ahead 5-4.
The elegant Serb then served out to take the opening set in 40 minutes, clinching the final point when the Russian hit a forehand long.
Ivanovic took early control in the second set but surprisingly failed to hold serve in the fourth, trailing 0-40 before being broken after a backhand flew wide.

TITLE: U.S. Dead In Iraq War Tops 4,000
PUBLISHER: The Associated Press
TEXT: BAGHDAD — The overall U.S. death toll in Iraq rose to 4,000 after four soldiers were killed in a roadside bombing in Baghdad, a grim milestone that is likely to fuel calls for the withdrawal of American forces as the war enters its sixth year.
The American deaths occurred Sunday, the same day rockets and mortars pounded the U.S.-protected Green Zone in Baghdad and a wave of attacks left at least 61 Iraqis dead nationwide.
An Iraqi military spokesman said Monday that troops had found rocket launching pads in different areas in predominantly Shiite eastern Baghdad that had been used by extremists to fire on the Green Zone, which houses the U.S. Embassy and the Iraqi government headquarters.
“We hope to deal with this issue professionally to avoid civilian casualties,” said spokesman Qassim al-Moussawi.
The four soldiers with Multi-National Division — Baghdad were on a patrol when their vehicle was struck at about 10 p.m. Sunday in southern Baghdad, the U.S. military said. Another soldier was wounded in the attack — less than a week after the fifth anniversary of the conflict.
Navy Lt. Patrick Evans, a military spokesman, expressed condolences to all the families of soldiers killed in Iraq, saying each death is “equally tragic.”
“There have been some significant gains. However, this enemy is resilient and will not give up, nor will we,” he said. “There’s still a lot of work to be done.”
Last year, U.S. military deaths spiked as U.S. troops sought to regain control of Baghdad and surrounding areas. The death toll has seesawed since, with 2007 ending as the deadliest year for American troops at 901 deaths. That was 51 more deaths than 2004, the second deadliest year for U.S. soldiers.
The Associated Press count of 4,000 deaths is based on U.S. military reports and includes eight civilians who worked for the Department of Defense.
Tens of thousands of Iraqi civilians also have been killed since the U.S.-led invasion on March 20, 2003, although estimates of a specific figure vary.

TITLE: Tiger Needs A Boost At Doral Event
PUBLISHER: The Associated Press
TEXT: DORAL, Florida — Entering the week, everything pointed to another Tiger Woods victory. His ridiculous rate of success in World Golf Championship events. His six-month undefeated streak. His history of Doral dominance.
But now, trailing by five shots with seven holes to play and in a tie for ninth at the CA Championship, Woods’ unbeaten run may not even last the day.
Geoff Ogilvy got to 17 under through nine holes and held a two-shot lead over Jim Furyk and Vijay Singh at the soggy CA Championship, which won’t finish until Monday because of a three-hour weather delay during the final round.
Furyk was 15 under through 10, while Singh played nine holes. Retief Goosen and Graeme Storm were three shots back and Steve Stricker made a huge charge, shooting a final-round 63 to finish at 13 under, four shots back of Ogilvy and tied with Adam Scott.
Play was to resume Monday at 8:30 a.m., when most attention will be pointed toward Woods-even though a win seems improbable.
“In his own mind, he probably still thinks he has a chance and I’m sure we’ve seen him to do crazy things before,” Ogilvy said. “But Jim and Vijay have won a fair few tournaments and Adam’s won a fair few tournaments. ... He doesn’t have to only catch me.”
World Golf Championship events are some of Woods’ favorites, given his 15 wins in 26 previous WGCs entering this week. But somehow, at Doral, he’s looked mortal.
Ogilvy’s last win was the 2006 U.S. Open. Woods missed the cut that summer at Winged Foot but has been on an absolute tear ever since, winning 16 of his last 26 official PGA Tour events and carrying winning streaks of seven straight appearances worldwide and five tournaments on tour into Doral, where he’s prevailed each of the past three years.
Unless he pulls off a stirring comeback, all those streaks will end, meaning he’ll be a winner in only nine of his past 11 events worldwide heading into the Masters.
Ogilvy’s bogey-free streak for the week ended after 60 holes, when he left a 35-foot par putt short on the seventh hole. He was forced to scramble at times and said he was exhausted after the long day, but he’s still in the best position entering Monday.
“It’s a good leaderboard,” Ogilvy said. “That’s what the whole point of these golf tournaments was, I guess, to get fields like this, get everyone playing each other. I guess the idea is to have everyone have a chance with nine holes to play or 18 holes to play.”
Woods’ chances took a serious hit in the third round, when every other contender seemed to go on birdie sprees while he remained stuck in the Doral mud. Singh and Storm shot 63s, Goosen and Furyk had 64s, while Woods could only manage a 72 when his third round finished Sunday morning.
He gave the omnipresent throng of fans who followed him in the gallery much hope when he opened the final round with two birdies.
But he followed those with consecutive bogeys, one before the weather delay, one after at the long par-3 fourth hole. At that point, he trailed Ogilvy by six, and was a decidedly un-Tigerlike even par over his past 25 holes.
Furyk opened his final round with a birdie, but two straight bogeys after that threatened to knock him out of contention. He rallied nicely, though, putting together four consecutive birdies later on the front side, giving him 13 birdies in a 26-hole stretch.
“If I want to win the golf tournament,” Furyk said, “I’m going to have to make a bunch of birdies again tomorrow.”
Third-round play was suspended Saturday after 3 inches of rain fell in a three-hour stretch of the afternoon, and the final round didn’t begin until shortly before noon Sunday. Final-round play was suspended for three hours because of lightning threats. By the time play resumed, there was only about 2 hours of daylight remaining, nowhere near enough time for everyone to finish.
“Still a lot of golf to go,” Singh said. “Just hung in there.”
Players had about a 2 1/2-hour break before starting the final round Sunday, and with more storms in the forecast, some wondered why they weren’t on the course earlier.
“I think we were all asking the same question, exactly,” Furyk said. “I don’t know. It seems as though that would have been the safest way.”

TITLE: In Brief
TEXT: <b>Bhutanese Vote</b>
THIMPU, Bhutan (Reuters) — Immaculately turned out in traditional dress, the people of Bhutan formed long queues at polling stations on Monday to vote in the first parliamentary elections in the isolated Himalayan kingdom’s history.
Many said they were heartbroken to leave behind a century of absolute royal rule, but others are warming to the idea of democracy in the Land of the Thunder Dragon.
“I am happy, excited and worried all at the same time,” said 24-year-old office worker Chimi Lam, dressed in a green silk jacket and ankle-length skirt at a polling station at Batesa primary school overlooking the pine-clad Thimpu valley.

<b>
Ex-First Lady Weds</b>
PARIS (Reuters) — The ex-wife of French President Nicolas Sarkozy has wed a public relations executive in a chic ceremony that the French media poked fun at on Monday.
Cecilia Ciganer-Albeniz, 50, wed Richard Attias, 48, on Sunday, less than two months after Sarkozy wed singer and former model Carla Bruni in Paris.
“Three Marriages and a Year of Erring,” was the headline in France’s Liberation newspaper.
“Knowing perfectly well that this is information which interests no one, let’s remark that this weekend in New York, Cecilia Isabel Ciganer-Albeniz married Richard Attias,” the opening paragraph read on a two-page spread in the left-leaning paper.

<b>Suicide Bombing Kills 13 </b>
BAGHDAD (AP) — A suicide car bomber killed at least 13 Iraqi soldiers and wounded dozens more on Sunday in Mosul, northern Iraq. Seven people also were killed in a suicide car bombing in the Shia area of Shula in the capital, Baghdad. Meanwhile, the U.S.-protected Green Zone in Baghdad came under fire from either mortars or rockets. 
In all, at least 41 violent deaths were reported in the country. In the Mosul attack, the bomber smashed past an armoured vehicle and detonated his bomb in the courtyard of a military base, according to an Iraqi army officer. At least 42 people were wounded.
India Tests Missile</b>
NEW DELHI (AP) — India successfully tested a short-range version of its most powerful nuclear-capable missile Sunday. 
The Agni-I missile, which can travel up to 435 miles, was test-fired over the Bay of Bengal from Wheeler’s Island off India’s east coast, a defense ministry statement said. The Agni-1 can carry both conventional and nuclear warheads. 
“The missile had a textbook performance,” the ministry said. 

<b>Passports Probe</b>
WASHINGTON (AP) — Senators from both parties are urging the Department of Justice to investigate the unauthorized searches of the passport files of three presidential candidates by State Department contract workers.
“That kind of a breach of privacy is just despicable,” said Senator Arlen Specter, the top Republican on the Senate Judiciary Committee. “I think that ought to be a very intense investigation.”
Senator Ron Wyden agreed, saying the incidents seem to point to a broader problem.

TITLE: Davids To Do Battle In France-England Friendly
PUBLISHER: Reuters
TEXT: PARIS — Wednesday’s high-profile friendly international between France and England could turn out to be a David versus David affair.
While David Beckham hopes to win his 100th cap for England on the Stade de France pitch, David Trezeguet could get an opportunity to convince France coach Raymond Domenech he deserves to make the trip to the Euro 2008 finals .
The Juventus marksman had ruled out his chances of playing the tournament in Austria and Switzerland in June after again being left out by Domenech.
Late on Sunday, however, the 30-year-old was called to the rescue after Karim Benzema hurt his ankle in his Olympique Lyon side’s 4-2 Ligue 1 win over Paris St. Germain.
Serie A’s top scorer with 17 goals, Trezeguet, who has scored 34 goals in 70 appearances, has not played for France since their 1-0 defeat by Scotland in a Euro 2008 qualifier last September in Paris.
A member of France’s 1998 World Cup and Euro 2000 winning teams, Trezeguet has a difficult relationship with Domenech and has suffered from the rise of talented young strikers such as the 20-year-old Benzema.
Trezeguet knows Wednesday’s match will be the last before Domenech unveils his 23-man Euro 2008 squad in May and scoring a goal or two would be an important statement.
Just as keen to appear will be David Beckham, back in the squad after missing the Switzerland game and expected to become only the fifth England player to win 100 caps for his country.

TITLE: Saftey Concerns Raised in F1
PUBLISHER: Reuters
TEXT: LONDON — Formula One’s governing body faced calls to modify qualifying procedures for safety reasons after McLaren’s Lewis Hamilton and Heikki Kovalainen were penalized in Malaysia at the weekend.
Championship leader Hamilton and his teammate were demoted five places on the starting grid at Sepang for impeding rivals when they slowed to save fuel after completing their final qualifying laps.
The rules have changed this season, preventing the 10 drivers who take part in the third and final session from refuelling between the end of Saturday’s qualifying and the race on Sunday.
The final session has also been shortened by five minutes, allowing enough time for each driver to do only two laps with new tires.
The revised format has raised safety concerns with drivers slowing to save fuel immediately they finish while some others are still at full speed.

TITLE: Man United Beat Liverpool 3-0
AUTHOR: By Pete Oliver
PUBLISHER: Reuters
TEXT: MANCHESTER, England — Manchester United beat 10-man Liverpool 3-0 at Old Trafford on Sunday to go five points clear in the Premier League with seven games to go.
Arsenal relinquished second place to Chelsea in a 2-1 defeat at Stamford Bridge.
A rare goal from unsettled defender Wes Brown in the 34th minute put United ahead and, after the dismissal just before halftime of Liverpool’s Javier Mascherano for dissent, Cristiano Ronaldo and Nani added late goals.
United extended their streak over fierce rivals Liverpool to seven wins in their last eight meetings.
Brown, who had previously scored only two goals in 10 years for his hometown club but may leave in the close season after rejecting a new contract offer, headed in a Wayne Rooney cross 11 minutes before halftime.
Ten minutes later, Liverpool were reduced to 10 men when midfielder Mascherano, who had been booked early on for a foul, was given a second yellow card by referee Steve Bennett.
The decision prompted a furious response from the Argentina international who had to be dragged away from the official by several team mates.
Liverpool manager Rafael Benitez was also incensed by the decision over Mascherano’s response to a booking for Fernando Torres, who could have been sent off himself in the second half as he allowed his frustration to show.
“[Mascherano] knows he made a mistake. But in this kind of game, just for asking [the referee for an explanation], to leave one team with 10 players is a difficult decision to understand,” Benitez told reporters.
United manager Alex Ferguson said: “I think with the thing that happened during the week with Ashley Cole there is a focus on dissent. We talk about dissent and I think that [Mascherano incident] was dissent.”
The incident summed up an unhappy afternoon for Liverpool, who have not beaten United since April 2004 and have now failed to score in their last seven league games against Ferguson’s side. The Merseyside club came into the game in decent form, having won their seven previous matches, but their key players, Torres and Steven Gerrard, made little impact.