What the Russian papers say

© Alex StefflerWhat the Russian papers say
What the Russian papers say - Sputnik International
Subscribe
Russian operating system to be launched in 2012/ Russian base would benefit Kyrgyzstan/ Economic security: An impossible objective/ Russian grain export ban sends prices soaring/ Mass privatization could begin this year

Vzglyad

Russian operating system to be launched in 2012

On Monday, Russian President Dmitry Medvedev was briefed on the development of a national operating system, which could be launched in 2012. Experts say it will have a number of advantages over Microsoft Windows.

Sergei Chemezov, CEO of Russian Technologies, a non-profit non-governmental organization, due to help fuel future technological breakthroughs in Russia, told Medvedev that the new operating system would be based on the traditional open source project Linux and developed in Samara, Veliky Novgorod and Tula.

The IT holding company Sirius, comprising a new free software developer responsible for creating a modern operating system, has already been established.

Medvedev explained that the development of a Russian operating system was largely motivated by national security considerations.

"Copyright holders often fail to receive codes together with some products of major software manufacturers. It is therefore impossible to adjust systems if problems arise. Speaking of more sophisticated systems, including defense systems, this is simply unsafe," Medvedev said.

The Russian operating system will be developed in 2011. The system will be 90% based on Linux because Russia lacks human resources, experience and potential for creating such a system from scratch. The funding for the entire program will annually total an estimated ten billion rubles ($325 million).

The operating system will first be used at ministries and state departments.

IT-sector analysts fully support the creation of a national operating system. Alexei Smirnov, CEO of operating systems manufacturer Alt Linux, explained that it would be cheaper to use than Windows.

"Legalization requires substantial expenses for license purchasing. It took 2.7 billion rubles ($88 million) to buy three-year licenses for schools. The price of licenses for municipal entities and state agencies is colossal. That's why it would be more prudent to use free software," Smirnov said.

The future operating system will have a number of advantages over Windows. "First, this open system facilitates audit checks. Second, this multi-task software is safe and reliable. Notably, it is more resistant to virus attacks. And, third, the system requires no license deductions," Smirnov noted.

Kommersant

Russian base would benefit Kyrgyzstan

Kyrgyzstan's Defense Minister Abibulla Kudaiberdiev arrived in Moscow on Monday to meet with Russian Defense Minister Anatoly Serdyukov. Kudaiberdiev suggested that Moscow sign an early agreement to integrate its five military facilities in Kyrgyzstan into one base. Bishkek is ready to give it a lease of 49 years, with the possibility of extension. In exchange, Kyrgyzstan expects to get free Russian arms - as rent payment.

Currently, different documents regulate the presence of the Russian military facilities in Kyrgyzstan. Among the five, the Airbase 999 at Kant plays the central role. In Soviet times, it was home to a training air regiment, which in 1992 was placed under Kyrgyzstan's jurisdiction. But in summer 2002, soon after a United States base appeared at Manas airport, Russia decided to set up its own base at Kant. The relevant inter-governmental agreement was signed on September 22, 2003 and came into force on August 11, 2005. The air group at Kant's mission is to control Central Asian air space. The base is staffed by 140 airmen and technical personnel and is allocated 130 million rubles a year for maintenance.

The status of two more facilities is regulated by an agreement concluded between Russia and Kyrgyzstan on July 5, 1993. These are the Russian Navy's telecommunications center No. 338 in the village of Kara-Balta and Koisary anti-submarine equipment test base No. 954 in Karakol on Lake Issyk Kul. These two facilities form part of a single automated seismic control system operated by the Seismic Service of the Russian Defense Ministry.

A Kommersant source in Kyrgyzstan's provisional government says former president Kurmanbek Bakiev discussed in Moscow the issue of combining these facilities into one base whose status and conditions could be covered by one document. The source notes that basic agreements were reached in August of last year during an informal summit of the Collective Security Treaty Organization (CSTO) in Cholpon Ata, Kyrgyzstan. Russian President Dmitry Medvedev persuaded Bakiev to approve a 49-year lease and agree to the deployment of a Russian training center for the CSTO Rapid Response Collective Force in southern Kyrgyzstan. But these intentions failed to be formalized in legal documents because Bishkek took too long to act and because of the Kyrgyz uprisings in April.

Now, the Kommersant source in Kyrgyzstan's defense ministry says, Bishkek is willing to agree to the key Russian terms: a 49-year lease on its base and the opening of a Russian training center in the south. In exchange, the Kyrgyz authorities are asking for arms to be supplied en lieu of rental payments and for the agreement to be concluded as soon as possible. Bishkek proposes not waiting for October's parliamentary elections when a new government will be formed. Bishkek's haste is easy to explain: because of the instability in the country, the government, unable to fully control its south, wants to reinforce the army and the interior ministry.

Vedomosti

Economic security: An impossible objective

Governments take a great many political and economic decisions for security reasons. Food security was cited as the reason for the Russian government's ban on grain exports this year. Energy security is its main argument for not letting foreigners get at strategic oil and gas deposits.

Security is the root cause behind many state secrets, military expenditures, the law limiting foreign investment in 40 sectors, and the need for military and financial assistance to other countries. The list goes on.

It is almost impossible to calculate spending on all forms of security, as the figures remain veiled. In fact, it is said that security must be ensured "at all costs." Seeking to ensure national security, Arab countries are trying to breed wheat that can grow in desert conditions, while China is buying into Sudan's oil producing companies.

The brightest example is North Korea with its official ideology, the Juche Idea, which is based on self-reliance, and stipulates that the country must not import anything.

But is this behavior economically justified? If not, what should the world do to stop resources being squandered?

Take the simplest example: oil. Some countries, such as Russia, prevent foreigners from developing their national oil reserves for security reasons, while other countries, for example China, are buying oil deposits abroad to protect its economy from price inflation.

Actually, neither action makes economic sense. By subsidizing domestic oil prices the authorities in fact encourage producers and consumers to squander energy. As a result, the economy loses out in competition against other countries.

The same happens when a country closes its market to foreign products "for security reasons" and encourages domestic production of all its commodities. The lack of competition deprives producers of the impetus to improve and eventually makes the economy technologically backward, which in turn undermines the country's economic security.

In short, measures intended to ensure economic security produce the opposite result.

Novaya Politika

Russian grain export ban sends prices soaring

The grain export embargo imposed by the Russian government starting on August 15 has so far been the only effective policy aimed at preventing a surge in domestic bread prices after the worst drought and crop failure in decades.

According to estimates by SovEcon agricultural analysts, grain exports from Russia in July reached 1.55 billion metric tons (including 1.35 million tons of wheat). Other sources confirmed these estimates. The record export figures were in fact the result of Russian suppliers' winning major state contracts in Egypt, Tunisia and Iraq to deliver in July a total of 750,000 tons of grain. In fact they won the contracts because they offered grain at dump prices, as Russian suppliers had lagged behind their western counterparts who had raised prices earlier.

The government embargo put an end to that. Moreover, it also sparked rumors that Russia will have to import grain. The volume of potential imports was put at 2 million tons.

Russia's moves, both actual and hypothetical, eventually sent global grain prices soaring. In this situation, Russian suppliers find it highly unprofitable to sell grain at home.

The result is sad: domestic suppliers want to hold their product as they dream of global prices, which are now more appealing than ever. The government's attempts to revive the grain market have so far been ineffective. On September 9, the Agriculture Ministry was forced to make a statement to fight off reporters: the ministry said they were not planning to begin surplus appropriation or to step up pressure on grain producers. However, grain market regulation policy options are limited. One option would be to arrest grain producers for failure to pay back loans. This could be effective because the threat would make it hard for producers to hold grain until next spring while waiting for the government to backtrack. However, the other side of the coin is that it is difficult to say how long the economy will last after a de-facto freeze in grain trade.

Another way to pressure farmers is with government market intervention. The government says its intervention inventory is 9.5 million tons of grain. However, at this point the government's vague position on the issue only adds to the general anxiety on the market.

Price tags in grocery stores are becoming scarier by the minute. The minimum food basket cost surged 8% in August, according to Public Chamber estimates.

The export embargo was largely an impulsive move, but its goal was met: all the grain produced remained inside the country. However, the potential harm may well exceed the benefits. Therefore, the government needs to decide on its next move as soon as possible. Indecisiveness will send prices soaring beyond reason, even with products that are not directly related to grain.

RBC Daily

Mass privatization could begin this year

At least two major privatization deals could close by the end of this year. Stocks in infrastructure, transport and financial companies may be on sale, the head of VTB Capital, Yury Solovyov says. Market analysts anticipate big demand for assets with part government ownership.

The preliminary list of assets for sale includes shares in Rosneft, Sberbank, Sovkomflot, the United Grain Company, RusHydro and others. It was reported earlier that the first moves to privatization of state property would take place only in 2011. However, Yury Solovyov recommends the government begin privatization as soon as possible to catch the upcoming wave of growth, news agencies report.

Major privatization will help decrease the budget deficit. "The Reserve Fund is almost empty and privatization is a way to refill the budget," Deutsche Bank's group chief economist Yaroslav Lissovolik says. "This is a good option because it does not lead to an increase in the country's foreign debt."

Andrei Dirgin, an analyst at BrokerCreditService, links privatization with the upcoming election cycle and the government's pressing need for additional funds. Another reason is the failure of state corporations. "Before the financial downturn, state corporations were set up in almost every economic sector which is an unhealthy trend," the analyst believes.

Foreign investors may be interested in these assets. "It is worth mentioning that most Russian companies have negative premiums and they are cheaper than their foreign counterparts," Troika Dialog's head for investment banking Andrei Sharonov says. "Foreign investors can reasonably hope for strong growth over the next few years."

Privatization will improve these companies' corporate governance and transparency, Andrei Sharonov hopes. Nikita Krichevsky, chief researcher at the National Strategy Institute, disagrees. Krichevsky says that the Russian economy will not see either positive or negative impact since it is, at best, only blocking stakes that will be put on sale.

RIA Novosti is not responsible for the content of outside sources.

MOSCOW, September 14 (RIA Novosti)

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала