By John Helmer, Moscow

When the Russian delegation arrives in Peru next week for a fresh session of the United Nations Framework Convention on Climate Change (UNFCCC), it is proposing several initiatives for debate and vote. None of them proposes to cut greenhouse gas emissions below the target set a year ago by President Vladimir Putin. But according to a report issued this week in Moscow, that target has already been achieved. For further cuts there is next to no enthusiasm from state or business officials.
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by Editor - Friday, November 28th, 2014
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By John Helmer, Moscow

Interpol has issued a Wanted Notice for Sergei Pugachev, making him the first Russian oligarch to have Russian charges of fraud endorsed by the international police organization – and to make a money-launderer of the Financial Times. If Pugachev crosses the border between his homes in England and France, the policemen on either side will see his name flashing on their computer screens, and they will be under standing orders to arrest him.
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by Editor - Thursday, November 27th, 2014
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By John Helmer, Moscow

When an elephant means to put his foot down on something with the objective of crushing it, a German speaker uses the same word as in English – trample (trampeln). When the intention and the outcome are emphatic, an English-speaker can say trample underfoot.

When German Chancellor Angela Merkel (lead image) expressed the idea in a speech on November 17 that she objects to the legality of Russian actions in Crimea and Ukraine, she used a different expression — mit Füßen getreten wird. Literally, that means “with feet is kicked”. To the customary German ear, it means “kicked aside”, “ignored”.

To the New York Times and The Economist, the expression was a signal from Merkel of an angry change in German strategy. But comparing the English interpretation with the German original, this was incompetent translating and unprofessional reporting.
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by Editor - Wednesday, November 26th, 2014
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By John Helmer, Moscow

The war against Russia outside Russia is being lost inside Russia. If the Allied strategic bombing campaign against Germany’s cities failed seventy years ago, and since then every US attempt to topple Middle Eastern and South American regimes, what reason or reward do the bow-and-arrow brigade have for thinking otherwise?

The latest Russian opinion polls reveal that President Vladimir Putin enjoys a greater reserve of domestic political support than his western attackers, President Barack Obama and Prime Minister David Cameron, anticipated for Putin — or enjoy for themselves. In the war of attrition Russians believe to have been imposed on them, Putin has more time to spare than Obama or Cameron – and not less than Chancellor Angela Merkel.
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by Editor - Monday, November 24th, 2014
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By John Helmer, Moscow

If you think Russia’s food supply is crashing under the impact of international sanctions because that’s what the Obama Administration is telling its media, think again. This week’s reported panic over the staple buckwheat (Fagopyrum esculentum, groats, grits, гречневая крупа) is a figment.
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by Editor - Thursday, November 20th, 2014
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By John Helmer, Moscow

When Alfred Sloan ran General Motors in Detroit, he supplied Nazi Germany with engine technology, assembly lines, and working capital for Messerschmidt and Junker warplanes, Panzer tanks, troop and gun transports, along with land mines and torpedo detonators. The Germans said they couldn’t have invaded Poland, Belgium, Holland, Norway, France, or Russia without him. Sloan was breaking US law at the time, so he destroyed the company records of his collaboration with Berlin. He also supplied the US war effort with comparable military technology, if a bit slower in the air.

World War II was a good business for Sloan. “The business of business is business” is a motto attributed to Sloan. He may not have said it. There’s no doubt he thought it.

Since March of this year the US Treasury has declared war on Russia, and through the Office of Foreign Assets Control (OFAC) it has ordered US businesses and banks not to collaborate. The European Union (EU) and other US allies, like Switzerland, Japan, Norway, Canada, and Australia, have been asked by Washington to implement the same measures. But the country sanctions lists aren’t quite the same. In the gaps and differences, a model of Russian business is emerging into plain light. A theory of the political succession in Russia, too.
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by Editor - Wednesday, November 19th, 2014
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By John Helmer, Moscow

Petropavlovsk Plc has almost run out of tricks.

Advertisements placed at the start of this month in the London papers that the goldminer may be on the receiving end of a Russian-funded bailout lifted the London Stock Exchange share price for less than 24 hours. The market capitalization has since continued on its trajectory towards worthlessness. Kirill Androsov of Altera Capital, the door-opener for a fresh Sberbank financing, is refusing to say which way the door is swinging. According to a leading London mine financier, “Petropavlovsk’s assets just don’t have any value. Low grade and tough metallurgy. Gentle euthanasia is the best option.”
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by Editor - Tuesday, November 18th, 2014
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By John Helmer, Moscow

United Company Rusal, the state aluminium monopoly run by Oleg Deripaska (lead image), has announced a third-quarter profit of $25 million, its first bottom-line in the black for three years. The company’s report explains the result by pointing to production cuts, the decline in costs of production, and a rise in the market price of aluminium.

In theory, the reason for the profit is that demand for Rusal metal is growing, and supply falling. “Healthy consumption growth,” Deripaska said on the company website last week, “coupled with production curtailments, have led to a deficit in the global market, ex-China, of 0.9 million tonnes of aluminium in the first nine months of the year. This, together with falling LME inventories, which have dropped below 4.5 million tonnes, means the deficit is continuing to widen. These positive market developments and our continued focus on cost controls and increasing margins through value added production have enabled UC RUSAL to report significantly improved third quarter results.”

In fact, Zug, London, and New York traders report, demand for physical metal is uncertain, especially inside China, while supply outside China is being restricted in warehouse by producers like Rusal, and traders allied with them. It remains more profitable to finance aluminium in storage than to sell to metal users and consumers. This is market manipulation, the traders say, pointing to Glencore, a minority shareholder in Rusal and Rusal’s principal trader. The fix isn’t stable and the revenue benefit for Rusal is neither certain nor predictable, the traders warn.
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by Editor - Sunday, November 16th, 2014
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By John Helmer, Moscow

It can be no surprise, not even to Russian dunces, that Suleiman Kerimov, the only Russian oligarch and senator of the Russian parliament who has never answered a question in public, has been trying to cash out of Polyus Gold, and can find no takers. Especially not at the current price of gold.

Why then would Polyus Gold report this week that it has discovered that Natalka, in Magadan, the largest new goldmining project in Russia, has vastly less gold in reserve and resource than it has revealed to shareholders before? Why reveal that the loss of future gold sale revenues just announced would be worth $52 billion at the current gold price?

Answer: having no alternative to recover his capital from Polyus Gold by selling out, Kerimov is sacrificing market capitalization of his company stake, and by halting the expenditure of cash on the Natalka mine, Kerimov has decided to put the money into his own pocket as dividends.
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by Editor - Friday, November 14th, 2014
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By John Helmer, Moscow

There is no word in the language of Australian soldiers or sailors for tit-for-tat.

American military strategists, the uniform and the armchair types, are much better acquainted. The latter understand exactly why a squadron of the Russian Pacific Fleet has sailed to a position within helicopter (and nuclear-armed missile) range of Brisbane, ahead of President Vladimir Putin’s visit to the G20 state summit over the weekend.
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by Editor - Thursday, November 13th, 2014
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