Top stories from the Russian press on Wednesday, December 29th, prepared by TASS
RBC: Russian Deputy PM says absence of long-term contracts causes gas prices in EU to surge
The absence of investments and long-term contracts, a decrease in its own gas production, the cold winter of 2020-2021, as well as the possibility that it won’t be the last one, all caused the gas price hikes in the EU, Russian Deputy Prime Minister Alexander Novak told RBC.
According to him, the European Commission was rejecting long-term investments and contracts in favor of spot contracts, which work only in the short-term perspective. According to him, as a result, when in the summer of 2021, when it was necessary to pump gas to the underground storage facilities, liquefied natural gas (LNG) delivered by spot contracts that Europe was counting on went to other markets that were "more beneficial economically." LNG from the US, Qatar and Australia mostly went to the Asia-Pacific region which resulted in gas deficits and price hikes in Europe.
Another reason is the decrease of Europe’s own gas production. For example, since 2013 gas deliveries from the Netherlands have plunged by 70%, while overall the production of European companies has sunk by 22%. Old deposits are running dry while investments are needed to develop new ones. "Yet, what do we see? Banks are recommended not to finance traditional hydrocarbon projects, including those on gas and oil production. This will lead to even more deficits on the market," the deputy PM cautioned.
According to him, the cold winter of 2020-2021 has also contributed to the price surge. "Due to a longer winter period, the timeframe to pump gas in the underground storage facilities decreased by about three weeks. This did not enable the creation of the necessary supplies of gas in the needed volume over the summer period," the deputy PM explained, adding that the risks of another cold winter and continued gas deficits further influence the prices.
In his opinion, Europe should have a clear forecast for its fuel and energy balance and plan its medium-range and long-term prospective volumes of consumption and deliveries accordingly. "Spot [contracts] and LNG can remain but there should also be long-term contracts to guarantee the basic component of gas deliveries to Europe," he told RBC.
Rossiyskaya Gazeta: Supreme Court dissolves Memorial NGO
The Russian Supreme Court has satisfied a lawsuit by the Prosecutor General's office to shut down the International Memorial historical educational society (recognized as a foreign agent in Russia). Based on the court’s decision, all the divisions of the organization will be liquidated. According to TASS, the court announced only the resolutory part of the decision, though its motives remain unknown. The court’s decision has not yet become effective and may be appealed.
In court, a representative of the Prosecutor General's office noted that "International Memorial was created as an organization dedicated to commemorative work, yet by now it has practically completely focused on distorting historical memory, above all, of the Great Patriotic war." The Prosecutor General's office noted that the numerous breaches of the foreign agents law by the organization became the grounds for the lawsuit.
Commenting on the decision, Head of the Federation Council (upper house) Committee on Constitutional Legislation and State Building Olga Kovitidi told RIA Novosti that Western structures were worried that with Memorial’s closure the channels of financing related to this organization would be blocked.
Vasily Piskarev, who heads the State Duma’s Security and Corruption Control Committee in a conversation with TASS said the decision was expected. "This organization, created to restore the historical truth and preserve the memory of the victims of political repressions, was stubbornly ignoring the requirements of our laws and in its activity went far beyond the framework of its stated goals," he said. The lawmaker cited data from the Russian Ministry of Justice, according to which the organization was one of the main recipients of funds from abroad among foreign agent NGOs in Russia.
The organization itself disagrees with the verdict and accusations and is going to appeal.
Nezavisimaya Gazeta: Russia creating global Sputnik V network
The export of Russia’s Sputnik V vaccine has reached $1 bln according to data from the World Trade Organization (WTO), the International Monetary Fund (IMF) and the Russian Direct Investment Fund (RDIF). However, this is just a small share of what Russia really can earn on providing Sputnik V to other countries since the bulk of the vaccine for export is being produced abroad. As a result, Russia’s profits from the global expansion of Sputnik V’s production network may be several times higher.
In early December, RDIF chief Kirill Dmitriev told the Kommersant newspaper: "Our export sales of Sputnik now are more than double than the entire annual export of all Russian medicines." "So far, the relative share of export proceeds from vaccine deliveries, even despite the highest growth rates, can compete with the export of electrical energy, raw wood products, cellulose, ferroalloys and potentially can surpass the export volumes of gasoline and potassium fertilizers," Senior Lecturer at Plekhanov Russian University of Economics Olga Lebedinskaya notes. So vaccines are still far from such export items as oil and gas, and grain or weapons, Victor Shakhurin, CEO of Univer Savings said. "Of course, the vaccine is not as in demand abroad as the oil and gas sector but in the future a growth in its export may be expected," First Vice President of Opora Russia Pavel Sigal specified.
However, this is not the only benefit Russia can reap from providing its jab to other countries, since now, in addition to Sputnik V, the RDIF is ready to offer to its partners the one-component Sputnik Light shot and the Sputnik M jab for teenagers which means that the orders for their products will only increase.
The RDIF reported that the foundation had already concluded agreements on Sputnik V’s production with more than 20 leading manufacturers in 14 countries, including major companies in India, China, South Korea, Argentina, Mexico and a number of other countries, including the CIS. Thus, in addition to export, there is also another revenue item - "the transfer of vaccine manufacturing technology, and establishing production in other countries," Lebedinskaya says, noting that the income from these activities could also be rather significant.
Nezavisimaya Gazeta: Iran may pay for Russian aircraft with oil
In early 2022, Iranian President Ebrahim Raisi will visit Russia. So far, what sort of documents will be signed remains unknown. Chief of Staff for the Armed Forces of the Islamic Republic of Iran Mohammad Bagheri said that Moscow and Tehran are preparing an agreement which will include provisions on military cooperation and interaction in the security sphere, including the purchase of arms and the training of specialists, conducting military exercises and fighting terrorism in western Asia.
Earlier, Russian President Vladimir Putin said that Moscow would inform Iran in detail of the dialogue with Washington regarding the issue of the Joint Comprehensive Plan of Action (JCPOA) on Iran’s nuclear program. He also expected to discuss economic and military projects.
The expert community thinks that above all Iran wants to receive from Russia modern military aircraft and air defense means. According to Director of the Center for Analysis of Strategies and Technologies Ruslan Pukhov, Iran manufactures its own ground armaments while "the sea is not a priority for them since an attack on Iran may occur from air. So they see aircraft and air defense systems as important."
Russian military expert Yury Lyamin told the newspaper that it is possible that Iran may pay for Russian arms with oil. "Yet, this country can also pay Russia through barter, say, agricultural products, natural resources and so on. Apparently, talks between Tehran and Moscow among specialists are now precisely about this," he noted. The expert thinks that Russia and Iran will develop relations in the sphere of security and conduct joint drills. "With Moscow’s support, Iran is joining the Shanghai Cooperation Organization. Interaction between the two countries may be more effective in fighting terrorists in Syria. Afghanistan also presents a problem for both of our countries. Here, Moscow and Tehran may share intelligence," he noted.
Izvestia: How Russia’s epidemiological situation is changing in the run-up to New Year’s
With the advent of the winter holidays Russians shouldn’t forget about the dangers of COVID-19 and go for medical assistance at the first signs of the disease, Russian Prime Minister Mikhail Mishustin said at a meeting of the council on fighting the coronavirus infection on December 28. He instructed local authorities to carefully monitor the epidemiological situation in their regions. Meanwhile, the overall situation continues to stabilize.
According to Russia’s top sanitary doctor Anna Popova, the incidence figures last week decreased by 11.3%. However, according to the Russian PM, 547,000 Russians are still infected with COVID-19 while 17,000 of them are in severe condition.
According to the prime minister, the specialists of the Health Ministry and the sanitary watchdog have completely studied the new Omicron coronavirus strain. The experts are paying special attention to the genetic variability of the virus due to the emergence of new strains. That said, Russia is undertaking all measures to track the spread of COVID-19 extremely effectively. According to the chief sanitary doctor, the average daily coverage of the population with testing amounts to 331 per 100,000 residents. Some 3 mln express tests were sent to the regions.
Deputy Chairman of the State Duma Committee on Health Protection Alexey Kurinnyi told Izvestia that a sharp increase in cases during the winter holidays is unlikely. He thinks that the responsible attitude of residents plays an important role here.
According to him, by now many Russians have realized that it is better to spend time with family and friends instead of attending mass events.
In addition to protecting public health, it is necessary to highlight business losses. As Deputy Chairman of the Federation Council Committee on Economic Policy Ivan Abramov told the newspaper, fortunately, no serious restrictions were introduced nationwide for the holiday season. However, according to the senator, it is necessary to continue supporting small and micro-businesses.
