Rosneft Enters into Joint Venture with BP

Rosneft and BP have agreed to work together to explore the Russian Arctic continental shelf and to extract oil and natural gas from what BP's CEO, Bob Dudley (who was forced out of Russia in 2008 related to the TNK-BP debacle), called "one of the world's last remaining unexplored basins." The two companies have also agreed to an exchange of each other's shares with BP receiving 9.5% of Rosneft's shares, and Rosneft taking 5% of BP's shares, which are worth approximately $8bn.

http://www.bbc.co.uk/news/business-12195576

Poland Objects to Russia's Report on Air Crash

Poland's prime minister, Donald Tusk, said that a Russian-led investigation into the air crash near Smolensk, Russia that killed the Polish president and other top officials was "incomplete", and vowed that his government would not accept the "unilateral account of the crash." Among other things, the report said that General Andrzej Blasik, commander of the Polish Air Force, was mildly intoxicated when he entered the cockpit shortly before the crash, and his presence distracted the pilot. The report did not find that shortcomings by Russian air traffic controllers were a factor in the crash. Despite his criticism of the report, Tusk nevertheless stated that he hoped improved relations between the countries would continue -- a sentiment echoed by Russia's foreign minister, Sergey Lavrov.
http://www.nytimes.com/2011/01/14/world/europe/14crash.html?ref=russia

Kazakhstan Approves Third Decade of Rule for Nazarbayev

Kazakhstan's Parliament approved a referendum that would extend the rule of President Nursultan Nazarbayev until 2020.  More than half of Kazakhstan's nine million registered votes signed a petition in support of the referendum, leading one member of Parliament to declare that "[t]he will of our people is law."  The proposed referendum would avert potential challenges to President Nazabayev in elections scheduled for 2012 and 2017.
http://www.nytimes.com/2011/01/15/world/asia/15-briefs-Kazakhstan.html?ref=world

First Application of New Russian Mediation Law

Russia's new mediation law, which went into effect on January 1, was first applied to a corporate dispute in a case filed in the Omsk Arbitrazh Court over the validity of a decision by the general meeting of shareholders of a closed joint stock company. The case was referred to professional mediators at the court's suggestion during a preliminary hearing. The case also ushered in Russia's first use of video conferencing for a court hearing; the parties were from four different regions.

http://www.clj.ru/news/59006.html

http://www.clj.ru/news/59076.html

Russian Pyramid Scheme Founder Vows Comeback

Sergei Mavrodi, who in 2007 completed a four-year prison term for fraud in connection with his mid-1990s pyramid scheme MMM, is proposing to create an internet investment program through WebMoney that according to him will yield monthly returns of 20-30%. Several government agencies are investigating Mavrodi's activities and assert that current legislation is sufficient to prevent a repeat of the MMM fiasco.

http://www.vedomosti.ru/finance/print/2011/01/11/1186113

http://www.clj.ru/news/59064.html

Belarus Threatens Closure of Local Helsinki Committee

Authorities in Belarus have issued a written warning, accusing the prominent human rights group, the Helsinki Committee, of "unlawfully distorting information" about the situation in Belarus amid a crackdown of opposition to President Lukashenko. The group, which has operated in Belarus for 15 years, recently sent a letter to the United Nations detailing the intimidation of lawyers for opposition leaders arrested after protesting Lukashenko's election victory. More than 30 opposition leaders face a maximum of 15 years in prison for their roles in the protest. The European Union is considering the imposition of sanctions against top Belarussian officials, including Lukashenko, in connection with government actions following the opposition protest. According to Belarussian law, if two warnings are issued for the same offense in one year, the organization can be liquidated. In an effort to avoid closure, the Helsinki Committee plans to appeal the warning.
http://www.nytimes.com/2011/01/14/world/europe/14belarus.html?_r=1&ref=world

Dutch Court Hands Yukos US$ 1.2 billion; Rosneft Lodges ECHR claim

The Dutch Supreme Court has handed the shareholders of Yukos another victory by upholding an appeals court decision to unfreeze US$ 1.2 billion in assets held by Yukos Finance B.V., finding that Promneftstroy, a former subsidiary of Rosneft, did not have a legitimate claim to the funds.

Last year, the same court issued a controversial decision in an unrelated case, upholding a $400 million arbitration award in favor of Yukos Capital B.V. against Rosneft, even though that award had been annulled in Russia, where the arbitration took place. Rosneft has paid that award, but has now lodged a claim against the Netherlands for breaching the company's rights under the European Convention for Human Rights.

http://af.reuters.com/article/energyOilNews/idAFLDE7060NB20110107 Reuters, 7 January 2011 (reporting on unfreezing decision)

http://www.arbitrations.ru/?i=news/item&id=104 Arbitrations.ru, 29 December 2010 (reporting on ECHR claim)

Opposition Members Arrested In Moscow Following New Year's Eve Protests

Boris Nemtsov, a prominent Russian opposition leader, was among 70 people arrested in Moscow following New Year's Eve protests against restrictions on freedom of assembly.   Despite a Moscow City Hall decision to allow the protest rally, Nemtsov received a 15-day jail sentence, with other leaders receiving similar or lesser sentences.   Although it is unclear exactly what prompted the arrests, Olga Shorina, a spokesperson for Nemtsov and his political group, Solidarity, said that Nemtsov was ultimately charged with public swearing and resisting arrest.  According to the Solidarity website, opposition supporters were outraged by the arrests, and at least twenty were detained while picketing in support of Nemtsov. 

http://www.nytimes.com/2011/01/04/world/europe/04russia.html?_r=1&ref=world

Russia Begins Oil Shipments to China via East Siberian-Pacific Ocean Pipeline

On January 1st, Russia began shipments of crude oil to China via an East Siberian-Pacific Ocean (ESPO) pipeline.  According to Igor Dyomin, a spokesman for Russian oil monopoly Transneft, "[w]e plan to pump 1.3 million tons of oil [to China] in January."  Crude oil market participants expect the ESPO pipeline to double Russia's oil sales to China, which had totaled 12.8 million tons for the first ten months of 2010.  At a cost of $25 billion, the ESPO pipeline is the largest infrastructure project in post-Soviet Russia.  Its second stage is expected to be complete in 2013, and at 4,070 km, the ESPO pipeline will be the world's longest.

http://www.themoscowtimes.com/business/article/russia-china-open-milestone-pipeline/428061.html