Andy Potts

Gas, cars and tall towers

New Year warmth

The winter chill won't be so severe this year, with Prime Minister Vladimir Putin and his Ukrainian counterpart, Yulia Tymoshenko, pledging to keep the gas flowing.

After a meeting between the pair in Yalta, the two sides reached a new agreement over gas transit and payment rates, with new delivery volumes agreed in an effort to avoid penalties for Ukraine's Naftogaz.

"We sincerely hope that all recent agreements [in the gas sphere] will be fulfilled...We would not want to have any surprises during New Year celebrations," Putin said.

Meanwhile Europe will receive 116 billion cubic metres of Russian gas via Ukraine in 2010, according to the Russian government.

Tower wobble

Speculation is growing that Putin is set to chop Gazprom's controversial tower in St. Petersburg down to size.

The gargantuan skyscraper is planned to thrust into the city's historic skyline, outraging conservationists but delighting Gazprom CEO Alexei Miller.

And although the city mayor has approved the 403-metre structure, reports last week suggest that Putin's initial enthusiasm for the plan is wavering in the face of public outcry.

"It is very likely that it will be Putin who will draw a line under the project," Maxim Reznik, leader of opposition party Yabloko in St. Petersburg, told Reuters. Reznik is suing the city administration in court in an effort to get the project dropped.

In addition to local protests, United Nations heritage group UNESCO has weighed in, threatening to downgrade the northern capital's status if the tower goes ahead.

Trucker on Avtovaz board

Avtovaz has welcomed Sergei Kogogin, the chief of truckmaker Kamaz, onto its board of directors - but insists there are no plans to merge the two Russian auto giants.

Sergei Chemezov, head of Avtovaz's parent company Russian Technologies, was adamant that the two firms would remain separate, RIA Novosti reported.

And he explained that it was merely a technical issue of transferring shares in existing companies rather than creating a new one.

Chemezov added that the government had agreed to increase the share capital of Avtovaz, though precise figures had not been worked out.

Avtovaz has been brought to the brink of bankruptcy by the recession, running up a net loss of 14.2 billion roubles in the first half of 2009 as car sales more than halved.

Toll roads blocked

Plans to double all road tolls have stalled after they were voted down by the Federation Council, Russia's upper house of parliament, last week.

When the State Duma backed the bill a week earlier, motorists across Russia protested at the sharp rise.

And RIA Novosti reported that the transport tax had been sent back to the Duma for a rethink.

"In the current conditions it would be wrong to double tax rates, and we suggest that the Duma discusses the law again," said Federation Council budget committee chairman Yevgeny Bushmin.

Norway holds its nose

The Norwegian government has sold its shares in Norilsk Nickel over environmental concerns, RIA Novosti reported.

Oslo's state pension fund had been an investor in the world's largest nickel producer, but has ended its involvement with the company after a review of its ethical guidelines.

A statement from Norway's finance ministry blamed environmental degradation of the Taymyr peninsula, in the Russian Arctic, claiming the company's plants released "unacceptable" amounts of sulphur dioxide and heavy metals into the atmosphere.  N

Raging bulls

New TNK-BP boss

Maxim Barsky has been appointed the new CEO of Anglo-Russian oil venture TNK-BP, working alongside recently-nominated chief operating officer Bill Schrader, RIA Novosti reports. The two high-profile appointments may spell an end to long-running disputes between British and Russian shareholders. Barsky will formally take up his post on January 1, 2011, with interim CEO Mikhail Fridman serving until then.

Eastern tiger

Vladivostok's airport is set to be transformed into the Far East's major hub, under ambitious plans announced by the Sheremetyevo Airport group. A $175 million investment will aim to raise passenger numbers to 3.5 million a year, according to transport industry specialists passengerterminaltoday.com.

Toxic assets

Iranian uranium going nowhere

Iran has refused to send its uranium to Russia for processing, despite plans for 75 per cent of its enriched nuclear fuels to be sent across the border. The plan, which was brokered to appease Western fears that Tehran might use its nuclear program to make weapons, has been rejected by the Iranian government, Reuters reported.

Bootleg booze

Illicit vodka stills could be driven out of business if a new set of price regulations has the desired effect. A planned price floor of 89 roubles for a half-litre bottle is planned to curb drinking levels and push out the "grey" market of producers who offer bargain prices but do not pay taxes, according to media reports.

Foreigners back out

Foreign investment in the Russian economy fell 28 per cent to $55 billion over the first nine months of the year, according to the state statistics service. It added that direct investment almost halved in the same period, to under $10 billion. Russian investments abroad totalled $70 billion, the service said.