Russia 100414 Basic Political Developments

Bloomberg: U.S.-Russian Ties Tested in Kyrgyzstan Revolution (Update1)

http://www.businessweek.com/news/2010-04-14/u-s-russian-ties-tested-in-kyrgyzstan-revolution-update1-.html
April 14, 2010, 1:38 AM EDT

(Adds Medvedev comments in second, ninth and 10th paragraphs.)

By Lucian Kim

April 14 (Bloomberg) -- Kyrgyzstan’s provisional government holds talks in Moscow today as the tremors of the former Soviet republic’s violent uprising create a “test case” that may lead to a realignment of U.S.-Russian relations.

Interim leader Roza Otunbayeva is sending her deputy to a second round of meetings with Russian officials since she came to power a week ago. President Dmitry Medvedev, speaking in Washington late yesterday, said Kyrgyzstan is on the verge civil war, and Russia’s task is to help the country out of its political crisis.

Russia and the U.S., which both have air bases in the Central Asian nation, are reaching out to Otunbayeva, even as ousted President Kurmanbek Bakiyev holds out in the country’s south. Russian Prime Minister Vladimir Putin was the first foreign leader to call Otunbayeva, while U.S. Secretary of State Hillary Clinton followed suit two days later.

“Kyrgyzstan is much more important for U.S.-Russian relations than arms control, which is an agenda of the past,” said Fyodor Lukyanov, editor of Russia in Global Affairs magazine. “Kyrgyzstan is a tiny test case whether the U.S. and Russia can find a way to coordinate interests in Eurasia. There could be a new deal.”

The U.S. depends on its Manas air base near the capital Bishkek to supply its troops in Afghanistan. The U.S. embassy said on April 12 operations resumed at the base after being suspended during unrest that left at least 80 people dead.

Russia initially consented to the U.S. opening bases in former Soviet republics to support operations against Al Qaeda after the Sept. 11, 2001, terrorist attacks.

‘Wink and Nod’

When the war dragged on and the Bush administration actively supported membership in the North Atlantic Treaty Organization for Ukraine and Georgia, Putin felt “betrayed,” Lukyanov said. Russia opened its own base in Kyrgyzstan in 2003.

“Russia isn’t categorically against a U.S. presence,” Lukyanov said. “It just wants the future to be discussed with Putin and Medvedev -- not with Bakiyev or Otunbayeva.” Medvedev succeeded Putin as president in 2008.

Kyrgyzstan risks becoming a “second Afghanistan,” Medvedev said in reply to questions at the Brookings Institution in Washington yesterday.

Disintegrate

“There is a real risk that Kyrgyzstan may disintegrate into two parts, northern and southern,” Medvedev said.

Bakiyev, who himself came to power during a popular uprising in 2005, dubbed the Tulip Revolution, threatened to close Manas more than once. Last year he decided to evict the U.S. Air Force after receiving a $2 billion Russian aid package. He later reversed that decision when the U.S. agreed to pay more rent.

“My instinct is that Bakiyev couldn’t have negotiated the Manas deal without at least a wink and a nod from Moscow,” said Cliff Kupchan of New York-based Eurasia Group. “The Obama administration realizes that to hold on to Manas without consulting Moscow would be asking for trouble.”

The U.S. military presence was not the cause of Russia’s rising frustration with Bakiyev, said Stanislav Belkovsky, head of the Institute for National Strategy in Moscow. The Kremlin withdrew support from Bakiyev after he tried to bring China into an energy deal and reneged on an agreement to increase Russian interest in a Soviet-era defense plant, according to Belkovsky.

Aid Package

“Bakiyev didn’t prove himself a reliable partner,” Belkovsky said. “Russia hasn’t been very happy for the last six months, but it doesn’t have the capacity to influence the internal situation.”

Ninety percent of the Kyrgyz elite, including many former Bakiyev allies like Otunbayeva, went over to the opposition as the president consolidated power, Belkovsky said. Otunbayeva, a former foreign minister and ambassador to the U.S., can be considered pro-western, he said.

Almazbek Atambayev, Otunbayeva’s deputy, will make his second visit to Moscow since last week’s unrest. Atambayev told the Kabar news service after the first round of talks that Russia had promised a “solid” aid package.

Putin spokesman Dmitry Peskov declined to name the officials Atambayev will meet today and said only that “humanitarian aid” will be discussed.

The U.S. is dispatching Robert Blake, assistant secretary of state for South and Central Asian Affairs, to Kyrgyzstan. The U.S. “recognizes there is a transitional administration that has taken control,” State Department spokesman Philip J. Crowley said on April 12.

“Real geopolitical issues are at stake here: namely does Russia care more about Afghanistan and Islamic extremism or is its priority the elimination of the U.S. presence,” Kupchan said. “This crisis will serve as a crucible.”

--With assistance from James Rupert in New Delhi, Nariman Gizitdinov in Almaty and Lyubov Pronina in Moscow. Editors: Tasneem Brogger, Chris Kirkham.

To contact the reporter on this story: Lucian Kim in Moscow at [e-mail]

To contact the editor responsible for this story: Chris Kirkham at [e-mail]

RUVR: Russian, U.S. navies conduct joint anti-piracy drill

http://english.ruvr.ru/2010/04/14/6394494.html
Apr 14, 2010 09:42 Moscow Time

The Russian and U.S. navies have conducted joint exercises in the Gulf of Aden to rehearse anti-piracy rescue efforts. The drill involved ships of the Russian Pacific Fleet, including a large anti-submarine vessel and a U.S. destroyer ship. Both countries have been taking an active part in international anti-piracy missions.

Reuters: UPDATE 2-US has new approach to Russia poultry spat-USAPEEC

http://in.reuters.com/article/governmentFilingsNews/idINN1325279520100413
Wed Apr 14, 2010 3:12am IST

* U.S. approach could lead to quick end to Russia ban

* USAPEEC declined to provide details

* Russian official: US willing to stop using chlorine

* USTR spokeswoman: work continues to find a deal

* CME lean hog futures hit 19-1/2 month highs on the news (Updates with USTR comment, market reaction)

By Aleksandras Budrys and Roberta Rampton

MOSCOW/WASHINGTON, April 13 (Reuters) - The U.S. government has briefed poultry industry officials on a new approach that could lead to a quick resolution of a trade dispute with Russia that has blocked U.S. chicken exports to its top market, an industry official said on Tuesday.

"It appears that our government now understands our industry's willingness to meet the demands of the Russians and has come up with a unique approach to allow our industry to comply (with) their requirements," said Jim Sumner, president of the USA Poultry and Egg Export Council, in an email.

Russia banned the imports on Jan. 19 after saying a chlorine wash used routinely in U.S. processing plants was in violation of its food safety standards. Washington says its poultry is safe.

Russian news agency Interfax reported on Tuesday that U.S. poultry producers have agreed to stop using chlorine in processing products for exports to Russia, quoting a Russian consumer protection watchdog.

"We have been informed that American producers are switching to poultry meat production without using chlorine and that they want to restart exports to Russia as soon as possible," said Gennady Onishchenko, head of consumer protection agency Rospotrebnadzor.

A spokeswoman for the U.S. Trade Representative said government officials "continue to work with Russia to find a mutually acceptable outcome that will permit the resumption of U.S. poultry exports to Russia" but did not elaborate.

Sumner said he was briefed on the U.S. strategy but could not provide details.

"I think this will give Dr. Onishchenko everything he is seeking and, therefore, will allow trade to resume quite quickly," Sumner said.

Chicago Mercantile Exchange lean hog futures 2LHM0 surged to 19-1/2 month highs after the news. Increasing poultry exports would reduce competition from poultry in cash meat markets, traders said.

"Lifting of the poultry ban by Russia can clear the way and make it easier for these pork prices to continue moving up," said James Burns, independent hog trader at the CME.

The ban has roiled exports from major producers such as Tyson Foods Inc (TSN.N) and Sanderson Farms Inc (SAFM.O). [ID:nN2311280] [ID:nN01113200]

Onishchenko said imports could resume after Moscow gets an official confirmation of U.S. producers' consent to stop using chlorine.

Two rounds of talks, both held under tight secrecy in Moscow, have failed to yield an agreement. Onishchenko, who has said little about the negotiations, said in the middle of March: "progress is evident and stunning." He did not elaborate. (Additional reporting by Jerry Bieszk in Chicago; Editing by Lisa Shumaker)

Tuesday, April 13, 2010, 3:51pm CDT

St. Louis Business Journal: Russian leaders to visit St. Louis to examine government

http://stlouis.bizjournals.com/stlouis/stories/2010/04/12/daily36.html

More than two dozen Russian civic and political leaders plan to visit St. Louis from April 24 through May 1 to examine how local government in the United States works with businesses and nonprofits.

The 27 Russian officials will meet with St. Louis County Executive Charlie Dooley, St. Louis Board of Alderman President Lewis Reed, Civic Progress Executive Director Tom Irwin, as well as representatives from city, county and regional public policy agencies, the media, local businesses, nonprofits, former Missouri state legislators and University of Missouri-St. Louis faculty and students.

UMSL said it received backing for the trip from Supporters of Civil Society in Russia, a nonprofit organization committed to promoting the development of a free and open society in Russia, and its Russian program partner, the Moscow School of Political Studies.

This will be the fifth visit of Russian leaders to St. Louis in partnership with SCSR and UMSL.