Putin gives first interview after his inauguration

President says he is ready to cooperate with Mitt Romney, despite his criticism of Russia. by Inna Soboleva In his first interview since taking office, Russian President Vladimir Putin spoke about his expectations for the summit of APEC (Asia Pacific Economic Cooperation) in Vladivostok and gave his opinion on the most current issues of domestic and foreign policies, including the Syrian conflict, the U.S. presidential elections and the conviction of the punk group singers Pussy Riot. Putin said that Russian authorities continue to follow the course of democratization of the country. The head of state also countered criticism of a possible curtailment of the opposition after his return to the Kremlin. "If that means requiring that everyone, including opposition representatives, comply with the law, then yes, this requirement will be put into practice regularly." The president also said the action of the members of the punk group Pussy Riot at the Cathedral of Christ the Saviour, had great impact, both internal and external. He said he knows everything that is going on but "does not intrude." Putin called the "punk prayer" sung in the country's main cathedral a "coven of witches." The Russian President assured that Moscow has no intention of reconsidering the Kremlin's position regarding Syria. "Should our partners in the negotiation process not reassess their own position? When I remember what happened in recent years, it is clear that the initiatives of our partners have not ended the way they themselves wanted," he said. According to him, Russia understands very well that Syria needs change, but that does not mean it should come with bloodshed. "In my opinion, the first thing to be done is to stop the supply of weapons to the conflict zone, but it has continued," he said. In assessing the events in the Middle East, Putin said that the "Arab Spring" was dictated by the delay of the leaders of the Arab countries to undertake reforms. "The leaders of these nations did not notice the trends drawn in their own countries and in the world, and did not promote the necessary reforms at the right time," declared Putin. Putin also talked about the development plans of global missile defense and in particular in the European sector (EvroPRO). The issue has been an obstacle in negotiations between Russia and the U.S.A. "Will this problem be solved with the current president, Obama, if he is elected to a second term in the United States? In principle, yes. But the issue is not limited to President Obama," said Putin. "There is also the military lobby, the U.S. State Department and his machine is very conservative." "To solve the problem of the missile defense system, it is necessary to reach an agreement internally and recognize that we are allies and trusted partners" Still on the same topic, Putin called the anti-Russia rhetoric "a mistake" of Republican Party candidate for president of the U.S., Mitt Romney, who announced that he considers Russia "geopolitical enemy number one" of Americans. Still, the Russian president assured that Moscow will work with Romney if he comes out victorious in the elections. "We will work with whoever is chosen by the American people," he concluded.

Man slaughters his own family of five and then self in Russia

The police of the republic of Khakassia investigate the circumstances of the massacre that took place in one of the houses in the village of Podsineye, the Altai region. Six bodies with gunshot wounds were found in the house. According to preliminary information, the mass murder was committed by 43-year-old resident of Belarus, writes Life News. After the divorce, the suspect's wife came to live with her parents, and the man decided to take revenge. Having murdered his wife, children, his mother-in-law and her husband, the man committed suicide. The bodies of two children (aged four and nine) and two married couples (two of the killed were in their retirement age) were found on Monday in one of the houses of the village of Podsineye, officials said. According to investigators, the suspect, named as Pyotr Ivanshin, shot dead his 38-year-old wife, Tatiana Ivanshin, and their children from a 12-mm caliber rifle. Afterwards, he shot the 67-year-old father-in-law and 66-year old mother-in-law. The elderly man died at the scene, whereas his wife died a few hours later at hospital. "After that, the suspect threw $5,000 and 40,000 rubles ($1,500), as well as a suicide note over the fence to his neighbor. In the note, he asked his neighbors to bury everyone with that money," - said a press release. Then, the man entered the children's room and shot himself. According to preliminary data, the offender made six shots in total. The killed pensioners Nina and Anatoly Gusev had been living in the village for a long time. A few years ago, their daughter Tatiana Ivanshin with her two sons - Maxim and Vladislav - returned to them from Belarus, where she lived with her husband. A criminal case was opened under Part 2 of Article 105 of the Criminal Code (murder of two or more persons, including minors, known to be in a helpless state).

Man slaughters his own family of five and then self in Russia

The police of the republic of Khakassia investigate the circumstances of the massacre that took place in one of the houses in the village of Podsineye, the Altai region. Six bodies with gunshot wounds were found in the house. According to preliminary information, the mass murder was committed by 43-year-old resident of Belarus, writes Life News. After the divorce, the suspect's wife came to live with her parents, and the man decided to take revenge. Having murdered his wife, children, his mother-in-law and her husband, the man committed suicide. The bodies of two children (aged four and nine) and two married couples (two of the killed were in their retirement age) were found on Monday in one of the houses of the village of Podsineye, officials said. According to investigators, the suspect, named as Pyotr Ivanshin, shot dead his 38-year-old wife, Tatiana Ivanshin, and their children from a 12-mm caliber rifle. Afterwards, he shot the 67-year-old father-in-law and 66-year old mother-in-law. The elderly man died at the scene, whereas his wife died a few hours later at hospital. "After that, the suspect threw $5,000 and 40,000 rubles ($1,500), as well as a suicide note over the fence to his neighbor. In the note, he asked his neighbors to bury everyone with that money," - said a press release. Then, the man entered the children's room and shot himself. According to preliminary data, the offender made six shots in total. The killed pensioners Nina and Anatoly Gusev had been living in the village for a long time. A few years ago, their daughter Tatiana Ivanshin with her two sons - Maxim and Vladislav - returned to them from Belarus, where she lived with her husband. A criminal case was opened under Part 2 of Article 105 of the Criminal Code (murder of two or more persons, including minors, known to be in a helpless state).

Ukrainian Press Freedom In The Spotlight

KIEV, Ukraine -- Freedom of the press is restricted in Ukraine. But the World Newspaper Conference begins there next weekend. Can Ukrainian media gain more rights through the event? From Michael Golden, vice chairman of the New York Times Company, to Rainer Esser, managing director of German newspaper "Die Zeit," the list of speakers at this year's World Newspaper Congress and World Editor's Forum in Kiev, Ukraine is a who's who of global media players. But one name on the list, Ukrainian President Viktor Yanukovych, has come under growing criticism for his government's restrictions on the media. Growing pressure on journalists Since taking office, Yanukovych has stated on a number of occasions that press freedom is something he cares for and protects. But the reality looks somewhat different. In 2010, Yanukovych declared Kiev's media union itself "the number one enemy of the press." ON these grounds, the president's bodyguards repeatedly hindered journalists' work. Further, television reports critcial of the president were prevented from being aired. International rights organization Reporters Without Borders (RWB) has reported a dramatic decrease in press freedom in Ukraine. RWB's executive director Christian Mihr said pressure on journalists has been mounting in the lead up to October general elections in the country. In RWB's latest press freedom ranking, Ukraine came in at spot 116 out of 179 countries. That was much better than their 2010 spot, but significantly worse than 2009. Under former President Viktor Yushchenko, Ukraine was in spot 89 on the list. Impetus to boycott Kiev Against this backdrop, the question arises whether the World Newspaper Congress should even be hosted in a country like Ukraine. Wouldn't it make more sense to boycott the event? In spring 2012, a boycott by leaders including German President Joachim Gauck forced Ukrainian leaders to cancel a summit of central European countries in Yalta. The Euro 2012 soccer tournament in Ukraine in June also saw top European politicians refusing to attend in protest of Ukraine's dismantling of democracy. Several days before the World Newspaper Congress, the general director of Ukrainian broadcaster TVi discussed a possible boycott. Mykola Knyaschyzki said holding the event in Ukraine gave the false appearance that the country has a free press. "The Ukrainian regime is somewhat legitimized by participating in the form," he told DW. TVi is one of the few stations in the Ukraine that airs reports critical of Yanukovych. For several months, it has come under significant pressure from the authorities. Several weeks ago, an investigation into alleged tax dodging by TVi was halted. But Knyaschyzki fears the case could be picked up again. He suspects those in power in Ukraine want to silence the station. Critical issues to address However, organizers of the World Newspaper Congress as well as Ukrainian and international participants are against a boycott. Larry Kilman, chief spokesperson for the World Association of Newspapers and News Publishers said calls for a boycott seem rooted in "a misunderstanding." "We are coming to Ukraine in solidarity with the local independent press,” he told DW. He insisted the forum would not legitimize the Ukrainian government's treatment of its media. Rather, Kilman said, the presence of publishers and editors from around the world will draw attention to Ukraine's problems. Ukrainian experts share a similar point of view. Ruslan Kabatschinskyj, an expert the Kiev Institute of Mass Media said "a boycott would have minimal effect." He added that not politicians, but journalists are planning to come, and that it's important for them to see things first hand. Valery Ivanov, head of the Ukrainian Press Academy, said local journalists should try to make contacts with colleagues from abroad at the World Newspaper Congress. He added that western media representatives should "see for themselves what is happening with Ukrainian media, and report about it instead of learning about it third-hand." Ukraine in the spotlight German participants have also spoken out against a boycott. "We see the democracy deficit in Ukraine very clearly," said Christoph Keese, head of public affairs at the Axel Springer media outlet, which owns German newspapers "Bild" and "Die Welt." Springer added it would be wrong to "turn a blind eye to these problems and avoid Ukraine." "We believe the better path is pointing out the meaning of press freedom and holding our yearly conference in Ukraine," he concluded. Uwe Ralf Heer, editor-in-chief of the daily "Heilbronner Stimme" had a similar point of view. "It's important for representatives at the World Newspaper Congress in Ukraine to show their true colors and stand up for press freedom," he said. That's exactly what he intends to do with counterparts from about 70 countries who have already arrived in Kiev.

Ukraine's Hryvnia Plummets Amid Fear Of Govt Moves

KIEV, Ukraine -- Ukraine’s currency, the hryvnia, fell to its lowest level in 30 months on Wednesday on weakening exports and amid speculation the government may start printing money to cover the budget deficit. Government officials strongly denied any plans for monetary emission ahead of October 28 parliamentary elections, but bankers said large amount of hryvnias had flooded the forex market on Wednesday. “A lot of hryvnias have just emerged on the market,” a currency dealer with a commercial bank said Wednesday. “Demand for hard currency has accelerated.” The hryvnia closed at 8.11 to the dollar in trading between commercial banks on Wednesday compared with 8.02/dollar on Tuesday, dealers said. The developments come amid speculations the government, which is facing lack of borrowing options, may ask the National Bank of Ukraine to print hryvnias to cover budget deficit to meet social payment obligations ahead of the elections. Former President Viktor Yushchenko, who was the country’s longest serving central bank governor, said on Tuesday Ukraine may be heading towards default on massive debts payments next year. He said the government’s failure to resume borrowing from the International Monetary Fund over the past two years may force the central bank to start printing hryvnias to cover budget deficit. Economy Minister Petro Poroshenko on Wednesday denied the speculations. “I do not accept an idea that money printing may be the source of revenue for the budget,” Poroshenko said. “My principle position is that the exchange rate must be market based,” Poroshenko said. “Any preconditions for any sharp depreciation of the national currency do not exist.” The IMF suspended its $15 billion loan to Ukraine two years ago after the government had failed to stick to energy sector reform by hiking domestic natural gas prices. National Bank of Ukraine Governor Serhiy Arbuzov has repeatedly called for resuming cooperation with the IMF, while Prime Minister Mykola Azarov had been more cautious. Azarov on Tuesday also denied speculations the hryvnias has been facing downward pressure, but admitted that Ukraine’s traditional exports, steel, has been weakening, brining in less hard currency to the country. “Now, we have big problems with exports of steel, and the steel is the backbone of our economy,” Azarov said. Without the borrowing from the IMF other financial institutions, such as the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank, also withhold their lending programs. “There is no reason to expect any financial assistance from these institutions,” Yushchenko said. “Only one option remains on the table: it’s the money printing tool, and this is very bad.” An IMF team arrived in Ukraine on Wednesday on a seven-day mission to check whether the government is line with its economic and fiscal policy projections.

Azarov Dismisses Talk Of Ukraine Default

KIEV, Ukraine -- Prime Minister Mykola Azarov on Thursday rejected speculation Ukraine may be heading towards default and suggested the government will continue a budget policy that challenges recommendations of the International Monetary Fund. The IMF, which suspended $15.2 billion loan to Ukraine two years ago, had demanded the government hike domestic natural gas prices and narrow its budget deficit to 1.7%-2% of GDP. But Azarov said the best the government could do was to cut the deficit to below 3% of the GDP in 2013, and said further cuts may jeopardize economic growth. “We have our own view of the situation,” Azarov said in an interview with Channel 5. “We are doing just fine without the IMF loan.” An IMF team is currently in Ukraine for talks with the government to assess its economic and fiscal policies and to provide recommendations on how to approve the situation and to avoid financial aggravation. “If recommendations support economic growth, we are in their favor,” Azarov said. “But if they work for economic contraction and for making our people poorer, we are against them.” The comments come as Azarov has earlier this month rejected another important demand from the IMF on hiking its domestic gas prices, making it less likely for the IMF to unlock the loan. The failure to win resumption of the loan was recently cited by former President Viktor Yushchenko as a reason that may lead the government to default on massive debt payments early next year. These speculations and fears the government may be resorting to money printing to cover its budget deficit has put downward pressure on the hryvnia. It fell to 30-month low against the dollar on Wednesday and continued its slide on Thursday. The hryvnia closed at 8.12 to the U.S. dollar in trading between commercial banks on Thursday, compared with 8.11/dollar on Tuesday, dealers said. The hryvnia was hit by reports the budget deficit had risen sharply in July, perhaps explaining the government’s recent borrowing frenzy when it had issued up to $3 billion in two issues of Eurobonds, borrowing money at high interest rates. The budget deficit expanded to 16.9 billion hryvnias ($2.1 billion) in January-July, up from 10.2 billion hryvnias ($1.3 billion) in January-June, according to figures released by the Finance Ministry. But Azarov denied the speculations the government may be heading towards default, and said it had always maintained the debt payment schedule. “They predicted defaults for us ever since we have started to work in the government,” Azarov said. “Did we run out of forex reserves? Did we delay at least one debt payment? We have been making timely debt payments.” Yushchenko said the National Bank of Ukraine’s forex reserves have dwindled to a level that may not cover the country’s total debt, which includes government and corporate debts.

Ukraine Taps China For Cash To Duck Vote-Damaging Deal Terms

KIEV, Ukraine -- Ukraine is broadening its business ties with China as President Viktor Yanukovych sidesteps the conditions traditional partners such as Russia and the European Union are demanding to provide loans and investment. Currency-swap and loan deals agreed since June may reach as much as $9 billion, raising China’s standing in Europe’s biggest iron-ore and corn exporter as the fastest-growing major global economy seeks to secure materials and food supplies. Ukraine wants foreign cash to buoy growth and ease debt payments as Yanukovych’s ruling party gears up for parliamentary elections in October. The former Soviet republic has so far rejected International Monetary Fund terms to unlock a $15.2 billion bailout, as well as conditions to spur European energy- industry investment and lower Russian fuel-import costs. “The Chinese have always been willing particularly in the former Soviet space and also in Africa and elsewhere to provide no-strings-attached funding to advance their economic interests,” Alexander Kliment, senior analyst at Eurasia Group in New York, said by phone. “Russia’s intentions are economic but also first of all political.” Currency Swap After similar agreements to boost trade with countries such as Argentina and Mongolia, China signed a three-year 15 billion- yuan ($2.4 billion) currency-swap accord with Ukraine in June. Bilateral trade was $8.5 billion in 2011, with China the second- biggest importer into Ukraine behind Russia in the first half of 2012 with an 8.2 percent share, official data show. Germany was third with 8.1 percent. In addition, Ukraine said July 2 that it will get a $3 billion Chinese loan for as-yet undetermined agricultural projects. It may borrow a further $3.7 billion to help build coal gasification plants that would trim its reliance on natural-gas imports from Russia, according to Ukraine’s Energy and Coal Industry Ministry. The 15-year agriculture loan has a five-year grace period and carries a 6 percent interest rate, less than the 9.25 percent coupon on $2 billion of Eurobonds Ukraine sold last month. It will also improve the balance of payments, central bank Governor Serhiy Arbuzov said in a July 18 interview. ‘Key’ Partner The hryvnia, whose exchange rate the central bank keeps within a range to the dollar, has declined 1.2 percent in 2012, data compiled by Bloomberg show. The current-account gap may widen to 6.5 percent of gross domestic product this year from 5.5 percent in 2011, the IMF predicted May 28. China is becoming a “key” economic partner and can help Ukraine reduce its dependence on Russian energy supplies, Foreign Minister Kostyantyn Gryshchenko wrote Aug. 21 in Ukraine’s Den newspaper. “The traditional EU-Russia-U.S. triangle has become too narrow for Ukraine, which must accelerate modernization,” he wrote. “Despite the unparalleled importance of EU integration, we’re getting more and more resources thanks to partnerships with the new world’s economic leaders such as Turkey, Israel, Brazil, India, Vietnam and, primarily, China.” Ukraine will begin to benefit from its deals with the Asian nation this year, Economy Minister Petro Poroshenko said Aug. 1. China upgraded its relationship with Ukraine to strategic status when President Hu Jintao visited Kiev last June. The two countries should become “trustworthy friends and reliable partners,” Deputy Foreign Minister Cheng Guoping said in November at the opening of the Chinese consulate in the Black Sea resort of Odessa, the country’s first diplomatic representation in Ukraine outside the capital. China’s political, economic and cultural ties with Ukraine are “in the best shape ever,” Li Jiping, vice president of China Development Bank Corp., the state bank in helping Chinese businesses venturing abroad, said Aug. 7 in Kiev, the Ukrainian capital. He said his bank “has the capabilities and willingness” to help boost cooperation in energy, infrastructure and agriculture. China has expanded investments and economic ties in other parts of the former Soviet Union. The Asian nation has granted state-controlled Russian energy companies OAO Rosneft (ROSN) and OAO Transneft $25 billion in loans to aid exploration and export-capacity construction in exchange for a $1.50-per-barrel discount on crude sales for 20 years. It has also pledged $1 billion to a Kremlin-backed private-equity fund to spur investment in extracting the energy supplies it needs to grow. Elsewhere in the region, Turkmen state energy company Turkmengaz has won more than $8 billion of loans from China since 2009 in exchange for energy shipments, while Kazakh miner Kazakhmys Plc (KAZ) agreed to borrow $1.5 billion from China Development Bank to develop a copper project. China may bid for Belarus’s state fertilizer company Belaruskali, which produces 15 percent of the world’s potash, President Aleksandr Lukashenko said last year. The company is worth as much as $32 billion, according to Lukashenko. Belarusian companies are considering holding share sales in China, Interfax cited the former Soviet republic’s ambassador in Beijing, Viktor Burya, as saying July 10. China will want economic benefits from its loans to Ukraine, possibly through access to its natural resources, according to Alexander Valchyshen, head of research at Investment Capital Ukraine in Kiev. “China will definitely befriend countries that are global leaders in agriculture and Ukraine is one of them,” he said by phone. “If Ukraine’s government shows Chinese money won’t flow into a hole and will be used to boost China’s economy, then those funds will come.” Still, such conditions may be more palatable than others on offer as Yanukovych prepares for parliamentary elections on Oct. 28 at which his Party of Regions is neck and neck with jailed opposition leader Yulia Tymoshenko’s, according to a July 27- Aug. 9 poll by the Kiev-based Razumkov Center for Economic and Political Studies. The survey of 10,979 has a margin of error of 1 percentage point. As the ballot nears, Ukraine has rejected EU allegations that Tymoshenko, a former prime minister, imprisonment for abuse of office is aimed at keeping her at bay. Her sentence has torpedoed a planned Association Agreement that would create a free-trade zone with the 27-member bloc. Other deals have also veered off course. An EU proposal to help fund a revamp of Ukraine’s gas pipelines has yet to proceed as demands to unbundle sales and transmission at state energy company NAK Naftogaz Ukrainy haven’t been met. Ukraine’s IMF bailout has been frozen since last March as the government won’t raise household fuel tariffs to narrow the budget deficit. The government has also struggled to find common ground with Russia, which has sought a stake in Naftogaz’s pipeline network and Ukraine’s membership in a customs union with Belarus and Kazakhstan in return for lowering energy price for its neighbor. That makes China a more attractive partner for the time being, according to Tomas Valasek, foreign-policy and defense director at the Centre for European Reform in London. “Ukraine is trying to avoid the conditionality that comes with EU, IMF or Russian money,” he said by phone. “Europe wants reform and transparency in the energy sector and Russia wants control of key industries. That creates political difficulties before the elections.”