Actuality March 4, 2008

Dmitry Medvedev drummed up the support of the biggest Russian popul ation

part during the last elections.

And he has actually received carte blanche for those projects and tasks realization, which were set by the president Putin within the strategy framework of Russia development by 2020. The primary aim is investments into a man and Russia formation as the most attractive country for living. This aim becomes the new priority, and all main Russian projects

and programs are directed at it.

Authorities hope that the population is ready to work and to raise labor productivity substantially. It is one of the lowest in the world in Russia yet. But the t ask is to increase it 4 times for 12 years.

Social and economic achievements of Russia development are obvious in the previous years, but insufficient.

GDP double for 10 years (by the end of 2009) is not such unsolvable task as it has seemed several years ago.

The Russian economy has outstripped Italy and France by the volumes within the last years.

And it occupies the 7th place in

the world by GDP index. The country has all chances to outstrip Great Britain and Germany in the nearest years and to occupy the 5th place in the world. It is necessary to keep the high rates of GDP growth for this aim (at the level 7-8% a year). And it is also important to change the quality

of this growth cardinally, to make it investment one instead of inertia one to promote its efficiency.

Russia disposes the necessary financial reserves to achieve this aim. They include the enormous gold and currency reserves (more than $480 bln), the high investment economy attraction (the accumulated volume of foreign investments grew 7 times for the last 8 years), the constantly growing stock market capitalization (22 times growth as compared to 1999), and almost repaid the external state debt (which was one of the main problems of the Russian foreign policy at the end of the 1990th). The financial potential is supported by the considerable internal demand: the population increases goods' purchase by 15% a year (first of all durable goods). Lending develops, including the mortgage, and the population consumes services more actively.

Overcoming of the raw material dependence of the Russian economy by means of switching to the development innovative model is the economic strategy basis. And it will be solved through the priority national projects' realization directed to the scale investments into the human potential. These are the social projects first of all: health protection and education reformation. They presuppose the active activity of society and business in these reforms, including:

1.   Independent public estimation of all government decisions and actions in the area of social policy and national projects' realization. And that will provide the high-quality reforms' implementation. In the future takes place the independent quality audit of the provided social services in the health protection and education areas.

2.   Competition development in the social area, i.e. increase of the social services' providers several times. This will allow a man to have the real choice of either educational or medical institution.

3.   Implementation of the modern administrative approaches, attraction of the new skilled personnel which will work and earn several times more than now. This will allow any citizen, regardless his place of residence, to get the assured list of social services, including medical ones. The quality of these services will correspond to the international standards. Dmitry Medvedev has already mentioned that high quality specialists (for example, surgeons) should perform not one operation a day, like today, but more. And then both their labor productivity, fee and own qualification will rise.

The new approach to the budget policy, which should be realized in the nearest time, supposes the financing strengthening of the social area. But the volume of the received means will be strongly connected to the given services' volume and quality.

And the effective independent estimation systems of these services' quality should function. It means that the society and business task is to offer the new president the work mechanisms of these estimation systems, the audit.

For the short haul one could have offered the every Russian the possibility to get education and medical care or medical assessment in any state or private institution regardless of place of residence.

The state should pay for health care and education services in accord with the amount of these services' users. It is obvious that Russians will not go to the bad schools and hospitals. And, therefore, in-demand schools, kindergartens, hospitals and policlinics have the opportunity to receive budget facilities to expand their material basis, construct new buildings, and raise the employees' fee.

The national projects realization will allow raising the middle class stake in the total population number up to 60-70% by 2020 and also to solve the main demographic task – fight against the population “extinction”. For the last year the Russian population has decreased almost by 250 000 people.

But the first results of the demographic program (maternity capital creation) are already obvious.

In 2007 the birth rate grew by 8% and the death rate has decreased by 4% in Russia. These are the best indices for the last years.

Already in the nearest 3-4 years Dmitry Medvedev sets the task to reach the population quantity stabilization with its subsequent growth.

It is very important, that this task is solved not only by means of the birth rate increase, but also by means of death rate decrease, high-quality health care system reformation and lifespan increase. By 2020 is set the task to up the average lifespan in Russia to 75 years, i.e. to the world level (now the lifespan in Russia is 67 years). But even 75 years is not so many.

The average lifespan in the USA is 77,5 years, in the largest European countries – 79-80 years, in Japan – more than 82 years.

Actuality February 15, 2008

The prime minister

of Russia Zubkov called the minister of regional development Dmitriy Kozak to analyze the reasons which are the obstacle to approvement of schemes of territorial planning

at different levels. The head of the Cabinet reminded that actually federal, regional authorities and municipal unions disrupt the approvement of territorial planning documents.

Dmitriy Kozak did not to make excuses for his predecessor and explain, that he, as well as the whole cabinet of Zubkov, was given

not enough time to completely emerge from desolation the regional policy.

But the prime minister continued to set missions: transition to a new stage of regional policy and formation of new center of social and economic development have to be accomplished in the Volga region, Ural, the South of Russia, Siberia, and

in the Far East for the next years.

According to the prime minister, it should be aimed at guaranteeing of not formal, but the actual equality of subjects allowing each region to have necessary and sufficient resources for ensuring worthy conditions of life of Russians, complex development and diversification of territories' economy.

In any way, Kozak promised to finish the development of schemes of territorial planning

by 2010. Though, he noted that it will happen in that case if everybody works at the breaking point.

According to the Town-planning code that came into force in 2004, reservation and taking of lands for the state and municipal needs (for building of objects of the state infrastructure) is possible only if there are schemes of territorial planning.

The deadline of the approval of these schemes was postponed already twice.

Originally the Town-planning code assumed that they had to be approved by January 1, 2006, then this term was postponed

by 2008, and then by 2010.

“If today we do not assume additional measures, we won' t be able to do that by 2010. But those measures approved by the government today, allow to solve this problem at the breaking point”, said the minister.

“We simply have no right to leave this situation.

However, presently seven schemes of territorial planning of regions are approved at the regional level, 3 000 schemes of settlement planning

at municipal level. And only at federal level execution is still zero percent”, told Kozak, and noticed, that this work was not even started.

Kozak also disproved concerns that approvement of long-term schemes of territorial planning means the return to planned economy as it was in the USSR.

“Absolutely all countries with developed economy have done this work long time ago”, convinced the minister, and explained that the schemes of territorial planning represent the long-term plan for development of the state infrastructure.

“It is not the Soviet Union at all”, told Kozak. “We have to show to business, citizens, how we will develop that infrastructure that is in the zone of public authorities' responsibility. In general, business will get guidelines and tools for improvement of investment climate and formation of enterprising environment”.

Actuality January 17, 2008

   Russian Federation (RF) government seriously intends to c arry out

a breakout in nanotechnology development.

By 2015 the sales volume of the Russian nanotech products will total, probably, RUR 900 bln a year.

About this reported the source in the RF government.

   According to the source, "Russia possesses sufficient scientific and staff potential for accelerated development of works in nanotech field". Fundamental, searching researches and development of nanotechnology carry out more than 150 scientific organizations.

Thus, about 75 Russian organizations produce and realize nanotech products for more than RUR 7 bln a year.

   To give a powerful impulse to the development of nanotechnologies is called the Program of this industry development, which, according to the agency interlocutor, "is already developed and passed to the government". As the source hopes, it can be approved already at the end of 1Q 2008.

   The program realization is intended for two stages. Dur ing the first – by 2011 will be formed the sector of researches and effective system of commercialization of

intellectual property products

in the nanotechnology field. As expected, during these years will take place processes of enhancement of already existent industrial productions.

On the second stage – 2012-2015 years – will be created conditions "for the scale increase of productions and commercialization volumes, entrance to the world market". So, by 2015 the stake of the Russian nanotechnology products on the world high-tech market can already make 3% (now is less than 1%).

   Particular program realization of the nanotech development, according to the source, does not require additional financial facilities, as it is a "framework, coordinating and implies not a branch, but network principle of work". It goes about creation of associations of science and business organizations to decide particular projects.

   The Russian president Vladimir Putin warned the government that money, appropriated for nanotechnologies, should be spent for the purpose specified and the state will "strictly watch after it". Thus, the president expressed the opinion that for n anotechnologies development market mech

anisms are not enough, an administrative resource is needed.

   Nanotechnology financing is planned at the level of RUR 130 bln, and by 2015 the volume of financing only of production infrastructure of nanotechnology development attains RUR 180 bln.

What benefit to the Russian business brought the personal diplomacy of Vladimir Putin?

On a summit Russia-EC in Lisbon the colleagues reminded the Russian president that it is the last meeting for him in such capacity.

“I didn’t understand that much: was it said with joy or regret?” Putin replied with a joke. Soon he will have to withdraw from official visits. It would be not simple: in the period of work the president was absent almost year in Russia. The delegation of the Russian businessmen accompanies Putin in his trips regularly. It is time to sum up numerous business tours.

For almost eight years Putin paid 179 foreign visits in which he fully or partly spent 345 days. Putin was leaving the country three times more frequent than Boris Yeltsin and fourfold than Mikhail Gorbachev. In 2000 the contrast was especially obvious: for “late” Yeltsin every trip was an ordeal, during the visit to Uzbekistan he has nearly fallen down during the red welcome in the airport. The new president paid 26 visits for year, actively getting acquainted with neighbors and largest partners. But he also didn’t slack up the tempo: he was 24 times abroad during the last presidential year. For comparison: George Bush, who heads the country since 2001, crossed the country border 106 times – he has a chance to outstrip Bill Clinton, who, according to the data of protocol department of the White House, was the most traveling leader of the States (133 visits). And it is hard to keep up with Putin.

The thing is about ambitions, is sure Joseph Nay, the Harvard professor. “Putin tries to inspire Russian diplomacy and achieve that Russia was perceived seriously as world power”. Russians want that they were respected and were afraid abroad, and the image of the magnificent visits of Putin in the different ends of the world helps it, repeats Richard Pipes, the historian. It is needless to prove the Americans their leadership.

The routes of Bush and Putin were somewhat alike at the beginning. At first neighbors: one has Mexico and Canada, another – Ukraine with Byelorussia. Then Europe: Bush has chosen Spain, Poland and Great Britain, Putin – Great Britain, Italy, Spain and Germany. But statistics shows the difference of two political systems.

In 2004 there was the obvious slump in the schedule of Bush: only nine trips. The elections – a voter prefers that the president concentrates on internal problems. Putin was also re-elected on second term in March, 2004, but this in no way influenced the intensity of his trips in 2003-2004.

No doubt: the annual summits of the Group of Eight consolidated the prestige of the Russian president, and so much troubles to decoy the club leaders to St. Petersburg were spent not in vain.

Geopolitical subjects also called Vladimir Putin quite often, whether it was North Korea or Cuba. But still most putin conversations with foreign leaders necessarily contain a key phrase about mutual commodity turnover, which either “continues to grow” or “doesn’t correspond to potential of our relations yet”. Another usual turn of reports about visits is “the president was accompanied by large delegation of Russian business”. Putin thought nothing new out. “Gorbachev has been always taking with him directors of enterprises and secretaries of regional committees abroad, but there was nothing to lobby: everything was falling to pieces in the country”, recollects Evgeny Bazhanov, the former employee of international department of the Central Committee of the Communist Party of the Soviet Union. The present president has received better economic situation. And he took advantage of it.

Business on the board

“During the visits Putin always discusses the matters of our companies’ access to the local markets.

It wasn’t so in the 1990th”, says Alexander Gontcharuk, the president of Sistema Financial Corporation. Recently Sistema acquired control over the tiny Indian cellular operator Shyam Telelink Ltd. The sum of transaction ($58,1 mln) shouldn’t delude: the entrance ticket to the most dynamic markets is bought. The Indian company works only in one state, but waits for the license to provision of connection services throughout the country. The main owner of Sistema Vladimir Yevtushenkov took interest in India in December, 2002, when arrived there in Putin’s retinue. Since then multimillionaire has twice flew with the president to Delhi.

Not all have to wait so long.

When Putin arrived to Turkey in December, 2004 first, he at once began to speak about the desire of the Russian companies to participate in the development of the Turkish economy more active. The background was unfavorable: the court has just abolished the tender results on privatization of petrochemical concern Tupras, which has won Tatneft. The president couldn’t protect oil workers, but, when in spring 2005 Alfa Group declared about the interest to the largest in the country cellular operator Turkcell, Putin interfered again.

When he was accepting the Prime Minister Redzhep Erdogan in summer in Sochi, he reminded him about the Alfa project and invited Peter Aven, the corporation co-owner, to tell the details. The transaction was made in autumn: Alfa Group paid $3.3 bln and got 13,2% stocks of the Turkish operator. Aven, who in 1999 called the large business to support the new leader, is one of the businessmen, who most often accompanies the president. For example, in autumn 2006 he was with him in Vietnam, where were hold negotiations on access to the telecommunication market of this country. Quite recently Vympelkom, controlled by Alfa, declared about the joint venture setting-up in Vietnam and plans to invest up to $1 bln in its development.

It is unnecessarily to be a multimillionaire to go abroad with the president and get a profitable contract.  For the last two years Evgeny Goudzentchuk, the director general of Zarubezhvodstroy Company, flew with Putin 4 times: to Algeria, Morocco, India and Saudi Arabia. In these all countries is a shortage of drinking water and it means that they need dams, sluices and treatment facilities, which the company can build.

“When you are introduced to the presidential pool, you have the higher status and the guarantees of the tested company”, Goudzentchuk is sure. In Algeria Zarubezhvodstroy won a contract on building of Dzhar channels system for water transfer from one reservoir to another. Three large contracts on building of HEPP Tapovan and waterworks facilities for $650-700 mln are signed in India. Works are already conducted and will last from three to five years. In Saudi Arabia they confined themselves to the general agreement on collaboration.

The company could have signed these profitable contracts by itself, but support from the top saved much time, Goudzentchuk says. In soviet times Zarubezhvodstroy was in 50 countries of the world, and in 1997, when Goudzentchuk headed the company, it was on the verge of bankruptcy. The foreign market was lost. Visits on high delegations are the real possibility to remind about oneself. Especially in authoritarian countries, where the head of the state can decide the fate of a large transaction. “The support on high-level is the main for a project in North Africa”, says Evgeny Roshkov, the managing partner of Kesarev Consulting Company, which is engaged in foreign projects monitoring of the Russian business. In 2004 Roshkov participated in a struggle for the contract on construction of transalgerian motorway at the cost of $8 bln. The companies from Canada, EC, and Russia were struggling for the contract. “It was clear from the very start that it is useless to follow the ordinary way –

from subordinates to heads. The decision on the top was required”, says Roshkov. They hoped to influence Algerians by means of the presidential visit.

But Putin came to Algeria too late – in 2006.

The contract was awarded to other companies.

The president of the Russian Banks’ Association (RBA) Garegin Tosunyan was included to the Putin delegation only once: in May, 2007 he participated in the trip to Luxemburg. He was invited almost by chance. RBA was preparing an agreement with the bank association of Luxemburg.

The document was considered worth signing during the visit, besides the dukedom is one of the largest investors in the economy of Russia and fourth according to the results of 2006. Connections of Konstantin Mozel, RBA Vice President, who comes from Ministry of Foreign Affairs, helped. It is useful to any company to have the man on the president Airplane, where the schedule of visits is made. “I was informed that I would, probably, take part in the trip, and I agreed with pleasure”, Tosunyan recollects. In the noisy airport of Luxemburg Putin was personally introducing every member of delegation to the duke. Tosunyan liked informal relations inside delegation.

Pressure and Repulse

For seven years the business agenda of Putin visits changed beyond recognition. On the first meetings with the businessmen of Great Britain and Germany the president tried to explain that the economic growth in Russia is not a joke, and investments in the Russian market can be profitable. Then stability became usual, but most contracts of the first putin term are however customary transactions on military sales, like the agreement on sale of the license to the production of fighters Su-30MKI at the cost of $3 bln signed in October, 2000 in India. And in the last 2-3 years Putin travels round the world not with requests about investments, but with investors. Large projects, like construction of bauxite aluminous complex by Rusal for $1,5 bln in Indonesia or manganese mine and factory on the tapping of ferroalloys in Republic of South Africa by Renova Company for $1bln, are examples of the last year. Appetites and possibilities grow.

The simple scheme “visit-contract” works not everywhere. According to the data of M&A Intelligence research group, in 2006 the Russian companies acquired assets on $10,3 bln abroad, and got the heave-ho at an attempt to buy a property for $50,2 bln. Certainly, here played the part the suspiciousness of the developed countries concerning quickly developing ones. But not only. Command tone in relations with business within Russia leads to that in the world any Russian company, whether it is 100% private, is perceived as the state agent.

When Evraz Group was acquiring Oregon Steel in the USA, it was more important to prove the status of normal international company, but not closeness to the Russian power.

After VTB acquired 5% of the European aerospace corporation EADS in 2006, Putin did not exclude the possibility to add these stocks to the capital of the United Aircraft Corporation set up in Russia. But when the main corporation stockholders, France and Germany, gave a clear hint, that third is a crowd, the president had almost to excuse himself for VTB actions and underlined that this was just a financial investment.

Gazprom reputation as a political instrument of the Kremlin impeded it to acquire the British gas distribution company Centrica in 2006. In autumn that year in Germany Putin discussed with a Chancellor Angela Merkel possibility to add Sistema Financial Corporation to the capital of Deutsche Telekom, but suggestion was rejected by both authorities and management of DT.

The most famous European business project, an agreement about which was signed during the visit of Putin, only underlines the role of Russia as the raw material exporter. It goes about the North European gas pipeline; the agreement to lay

the pipeline on the seafloor of the Baltic Sea was signed in September, 2005 in Germany.

After a couple of months the Chancellor Gerhard Shreder, who vacated the post, headed the committee of the project stockholders that got the name of Nord Stream. That time Putin’s business diplomacy worked. Both party organizer Bazhanov and critic of putin Russia Pipes agree that advancement of business interests abroad is among the number of strong traits of the Russian president. “Maybe not in other aspects, but here Putin is a modern leader”, the American historian acknowledges.

Only Putin has been repeatedly making clear that he wouldn’t follow the example of the German friend and wouldn’t go into business after resignation from the Kremlin.

Nikolay Patrushev, FSB director, the day before the professional holiday, Security Worker’s Day, summed up the activity of his agency in 2007 on the meeting with the heads of some Russian mass media. Report about successes, as every head should, who holds his post for a long time, he gave in restraint optimistic tones.

FSB director began with the main task of state security agency – foreign intelligence fight. “Activity of 22 regular officers and 71 foreign special-service agents was repressed in the current year. 11 regular officers and agents were caught red-handed in the moment of offence activities’ implementation. Four foreign citizens, participating in foreign special-services’ activity, are deported form Russia”, Patrushev declared.

We will mark that FSB director reported a year ago, that in 2006 the activity of about 40 foreign special-services was fixed and the activity of 27 regular officers of the foreign special-services and 89 their agents towards Russia was repressed.

But unlike previous years, this time Nikolay Patrushev didn’t confine himself to bare statistics and exposed some details. He reported that in 2007 three Russian citizens were convicted of high treason. In particular, he said, Shabaturov was convicted for 12 years of imprisonment of information disclosing about activity of Russian military intelligence to the foreign special-service. Arsentyev, who passed defense information to the foreign intelligence, was convicted for nine years of imprisonment. Yurenya, who passed military information to the foreign special-services, was convicted for seven years of imprisonment. FSB director marked also, that in the Kaliningrad regional court is tried a criminal case against lieutenant colonel Khitryuk, officer of Federal Penitentiary Service Intelligence Agency in Kaliningrad region, who is convicted of high treason in form of espionage in favor of one of the Baltic countries’ special-services. According to the same section is brought a criminal case against two Russian citizens upon collection and reporting of secret information to the representatives of Asia-Pacific Region countries’ military intelligence. Moreover, Patrushev said that “on the crime basis, stated in section (276) (espionage) of the Criminal Code of the Russian Federation, is brought a criminal case in connection with recruitment of the Russian citizen Zharko by the SIS officers of Great Britain for different kind of information collection for their farther use to the detriment of external security of Russia”.

The next column of report was devoted to the data about economic work efficiency of the special-services. According to FSB director, in 2007 by the security agencies materials in the sphere of economy protection was prevented a damage cause to the state to the sum more than RUR13 bln.

The additional receipt of financial facilities over RUR3 bln is provided to the federal budget and budgets of Russian Federation subjects.

Patrushev added also, that “strategically important raw materials and other commodities to the sum more than RUR 300 mln, in regard to which are set special rules of crossing the customs frontier of Russian Federation, are withdrawn, and also currency and other valuables over RUR550 mln”. Thus for economic crimes and contraband are brought more than 2 000 criminal cases.

In the last year report it was stated that in 2006 FSB officers prevented economic damage to the state in the amount over RUR45 bln. To the state profit were then returned financial valuables, money facilities and securities to the sum of about RUR1,3 bln.

“The additional receipt of financial facilities is provided to the federal budget and budgets of Russian Federation subjects, and also to the country economy are attracted investments of about RUR12 bln”, FSB director marked a year ago and reported that for economic crimes and contraband are brought over 1 000 criminal cases and more than 300 persons are convicted.

Some embarrassment happened farther, however, it was not Nikolay Patrushev’s fault any way.

He began the talk about the fight against a corruption with repression of illegal activities of some employees of the Accounts Chamber (AC). That could be interpreted as sensation – because Sergey Stepashin, the AC head, headed the state security agencies in his day. FSB director didn’t confine himself to the Accounts Chamber and cited also the last names of officials of Rostekhnadzor, Ministry of Economic Development and Trade, Federal Tax Service, the Ministry of Defense, the State Duma and even FSB accused of bribes and other corruption crimes. The announcement of Nikolay Patrushev was later widespread, where it was stated that the Accounts Chamber management has always rendered and renders an active assistance to law-enforcement agencies in the corruption uncovering, including their department. “The Accounts Chamber management and Sergey Stepashin foremost take active part in the fight against corruption in his department”, said FSB director.

A year ago FSB director has also confined himself to statistics only. “70 criminal cases are investigated in regard to the corrupted officials, 35 leaders of local authorities and 17 officials of regional state authority entities are brought to responsibility”.

Next part of the report was devoted to successes in the suppression of the terrorism. “The number of committed terroristic acts was reduced more than 2,5 times: in 2005 – 257, in 2006 – 112, in 2007 – 41”, Patrushev reported and added that the number of registered crimes of terrorist character is almost 44% less as compared to the last year.

According to him, 35 persons were convicted on the section of the Criminal Code of the Russian Federation, providing responsibility for the terroristic acts, for the last year.

54 men are convicted of deliberately false messages about the terroristic act, on the section of the Criminal Code “infringement on life of state and public figure” – 5 persons, for organization of the illegal armed formation or participation in it – 59 persons.

A year ago FSB director reported about prevention of more than 300 terroristic acts in 2006, including disposal of more than 60 explosive devices prepared for destruct. In particular, according to him, “two cashes that were planted by order of Basaev with about 60 kg of explosives and plenty of weapon were found in Moscow”.

The names of bandit leaders, whose criminal activity was repressed, still say little to the most citizens – if a year ago they were Basaev, Saydulaev and al-Qaeda representative Jordanian Farid Yusef Umeyra, more known as Abu-Khavs, now they are Khalilov, Imurzaev, Bataev, Nabiev, Ionov, Odizhev and others. However, obscurity of bandit leaders doesn’t quite say about their lesser danger. “In cooperation with the federal executive agencies on the North Caucasian region territory was repressed the criminal activity of over 500 areas of bands formations”, Nikolay Patrushev declared.

Speaking about cases concerning divulgence of state secret, FSB director reported that the state security agencies have conducted about 7 000 controlling activities. By the uncovered facts of security violation on objects by the FSB employees were brought 30 criminal cases for the divulgence of state secret and loss of documents, containing a state secret, and more than 600 cases about administrative offences, 10 persons are convicted.

Besides, Patrushev marked that were suspended and canceled over 450 issued earlier licenses to the right for works conduct with information use comprising state secret.

Two years ago, in 2005, Nikolay Patrushev said that in the field of state secret defense were conducted about 4 000 verification activities. By the uncovered facts of security violation on the objects of verifications were brought more than 40 criminal cases and about 300 cases of administrative offences, were suspended or canceled over 550 issued earlier licenses to the right for works conduct with information use comprising state secret, more than 300 presentations were introduced addressed to the heads of the relevant organizations about reasons

and terms removal, contributing to realization of security hazard of Russian Federation and committing a crime.

FSB director told about collaboration with the special-services of friendly countries in details, about successes of border guards, about fight against crimes in the high-tech industry and about cadre personnel strengthening of state security agencies. And according to the tradition he concluded with words about increasing support of population in the tough fight of special-services.

According to him, in 2007 the hotline of FSB of RF received about 15 000 appeals among which almost 600 more or less concerned the competence of security agencies.

“Practice of hotline functioning since 1997 testifies to the amount increase of incoming calls”, stated Nikolay Patrushev with pride.

Last year FSB director also marked the growing trust of citizens to the special-service activity. According to him, in 2006 FSB hotline received more than 3 700 reports among which 336 were of operative interest.

Dmitry Medvedev heads Gazprom board of directors since 2000. He took a bre

ak only once.

In 2001 he resigned the honorable post to Rem Vyakhirev, the dismissed chairman of the company board, for the year.

Medvedev doesn’t interfere in the company activity straight, but always provides support on the most different questions: from liberalization of Gazprom stock market to MET freezing on gas and expansionisms in power industry.

Medvedev does not have friends, but he has partners.

The majority of respondents names Alisher Usmanov as the close businessman to Medvedev. His name emerges because he is the closest investor of Gazprom. “Why should one be friends with oligarchs, if you head Gazprom board of directors?” sets the rhetorical question the leader of one public company. But Usmanov, “Gazmetall” co-owner with the wealth of $5,5 bln as estimated by Forbes, is rather a business partner. He simultaneously occupies the post of the general director of Gazprom subsidiary – Gazprominvestholding.

Medvedev appointment is good for the Putin’s friend Yrij Kovalchuk, “Russia” Bank co-owner, whose business coalesces with Gazprom more and more.

In 2004 under “Russia” Bank control appeared Gazprom and Rosneft insurers – Sogaz and Neftepolis.

In 2006 Sogaz acquired Leader Company, managing pension plan of gas workers – Gazfond. Now Leader Company manages 49,9% stocks of Gazprombank.

It is possible to name Roman Abramovich, Alexandr Abramov, Ruben Vardanyan, Valery Zavadnikov, Leonid Mikhelson among the “convenient” businessmen for Medvedev, says the

former governmental official. They are all cofounders of the Moscow Skolkovo School of Management, which school board headed Medvedev.

Changes are not expected

Businessmen hope nothing will change after Medvedev rise to power. “Wait for Putin’s course continuation”, answers Vladimir Evtushenkov, the basic owner of Sistema Corporation.

“Medvedev will continue Putin’s undertakings. There will be economic and political stability, and it is good for business”, adds Alexander Ponomarenko, the chairman of

board of directors and co-owner of NCSP (Novorossiysk Commercial Sea Port).

The one is good – he

is not KGB serviceman, is pleased the large Russian investment banker.

The most important, he continues, is not to use force structures in the business matters’ solution. Election of Medvedev is good for business on the whole – there won’ t be persecu

tions. In the end of 2003 Medvedev doubted the “legaljuridical efficacy” of YUKOS stocks arrest and appealed to the law-enforcement authorities for caution: “The consequences of thoroughly thought over actions will immediately affect the economy”, he warned t

hen.

Hardly anything will change for Surgutneftegas, if Medvedev will become a president, is sure Nickolay Zakharchenko, the chairman of the oil company board of directors.

However, Zakharchenko is sure that quite another successor candidate appears close to the elections.

Lately discussions about strengthening of the state role in the economy became more frequent, but Medvedev nomination will put the end to the talks about “velvet re-privatization”, says Alexander Shokhin, the head of RSPP (the Russian Union of Industrialists and Enterpreneurs).

“Medvedev is considered the most liberal, technocratic and friendly to business among the Putin’s successor candidates”, sums up Edvard Parker, department head of the international ratings agency of the developing European countries Fitch Ratings.