TODAY: US missile defense in Eastern Europe plans officially scrapped in favor of 'more efficient' new program.  A matter of concession or conviction on Obama's part; mixed reaction from former would-be host countries fearful of Russian dominance; is the US expecting Russian cooperation in Iran in return wonders media - and will it get it?  NATO to have increased involvement in new plans. Georgia and Russia to negotiate.  Gapzrom may get its tower. The US plans to build missile defense bases in Poland and the Czech Republic have been binned; the Moscow Times reprints President Obama's speech on the decision here.  'This is not about Russia',  White House spokesman Robert Gibbs has said.  According to the ...

TODAY: US to modify or jettison missile defense plans? NATO chief to meet with Russian envoy; Lukaschenko sends out mixed messages.  South Ossetia denies book burning; think tank leader says Putin could be heading for Brehznev-style decades in power; Medvedev finds inspiration on blogosphere.The Wall Street Journal reports that the White House may abandon the Bush-era missile defense plans which have caused consternation in Russia.  AP sources quoted on the Washington Post suggest a compromise measure, tempered to Russian concerns.  RFE/RL has an entertaining list of the 'dissidents' President Medvedev might like to meet on his upcoming US trip.  NATO Secretary General Anders Fogh Rasmussen and Russian envoy to the alliance Dmitry Rogozin will hold an ...

From the looks of it, neither Vladimir Putin nor Donald Tusk want the Poland-Russia summit in Gdansk tomorrow on the WWII anniversary to turn into a slugfest ... but seemingly everybody else does.  From Reuters:Polish media reacted angrily on Monday to claims made on an official Russian website at the weekend that Poland's foreign minister in 1939, Jozef Beck, was a Nazi German agent.A Russian military academic also recently outraged Poles by suggesting Poland was to blame for the outbreak of war in 1939 because it had refused Germany's 'modest' demands, which included annexing the free city of Gdansk (Danzig in German). Russia responded with fury when an arm of the ...

Emerging Europe investing is staging a comeback. In the past couple of months, stock markets in the region have posted big rallies. The index for Lithuania has shot up 58 percent since June 30, while the indexes for its Baltic neighbors Estonia and Latvia have climbed 33 percent and 27 percent, respectively. In Central Europe, the key stock indexes for the Czech Republic and Hungary are both up 26 percent in the third quarter through Friday, and Polandrsquo;s index has gained 20 percent. All of these stock markets suffered mightily in the global credit crisis as their overheated economies stalled, their currencies dropped, and the cost of loans denominated in dollars and euros skyrocketed. Now it appears that intervention by the International Monetary Fund, combined with a growing belief that the worst of the financial woes and global recession are behind us, may have mitigated the regionrsquo;s risk profile and lured investors back. Not that ...

Emerging Europe investing is staging a comeback. In the past couple of months, stock markets in the region have posted big rallies. The index for Lithuania has shot up 58 percent since June 30, while the indexes for its Baltic neighbors Estonia and Latvia have climbed 33 percent and 27 percent, respectively. In Central Europe, the key stock indexes for the Czech Republic and Hungary are both up 26 percent in the third quarter through Friday, and Polandrsquo;s index has gained 20 percent. All of these stock markets suffered mightily in the global credit crisis as their overheated economies stalled, their currencies dropped, and the cost of loans denominated in dollars and euros skyrocketed. Now it appears that intervention by the International Monetary Fund, combined with a growing belief that the worst of the financial woes and global recession are behind us, may have mitigated the regionrsquo;s risk profile and lured investors back. Not that ...

Following the deadly Sayano-Shushenskaya accident, Rusal could lose up to as much as 500,000 tons of aluminium production, which is equal to around 11% of 2008's output.  It is expected that energy tariffs will increase in winter for 'industrial users' meaning cost-cutting will be difficult for the indebted firm.  Alisher Usmanov's mining company Metalloinvest has procured a loan from VTB to refinance its debt to Sberbank.  At the MAKS air show Putin lambasted the aerospace industry for its 'lack of discipline', whilst a 'record sum' for orders was racked up in defense deals between Sukhoi and the Defense Ministry.  Iran has prohibited its airlines from using Russian-made aircraft after two crashes last month by Russian-built planes.  President Medvedev and Lithuanian President Dalia Grybauskaite emphasized the need for secure economic ties following a trade spat concerning dairy products.  ...

Following stalls in negotiations, Magna and Sberbank have modified the terms of their agreement to buy Opel, and are now apparently confident that GM Motors will be able to accept their offer.  To see a timeline of events in the Opel-Magna saga, check Reuters.  Russia and Lithuania have apparently settled their dispute over vehicle checks, after Russia banned the import of dairy produce from four Lithuanian companies.  Iceland has denied reports that it rejected a loan from Russia, and states that talks are 'still underway'.  VTB chief Andrei Kostin was granted permission by Vladimir Putin to take a week's holiday after the bank head said the company was on track to enlarge its loan portfolio by $3.14 billion in three months.  Automobile manufacturer IzhAvto has filed for bankruptcy, which leaves 5,000 employees uncertain of work.  The ...

A new state program will see car owners offered the chance to swap their old bangers for a $1,500 voucher they can use against the purchase of a domestically produced car.  Avtovaz says that its $1 billion of emergency loans has been almost entirely spent, primarily on paying off existing debt.  Truckmaker Kamaz has posted a $50 million loss in the first six months of the year.  The Moscow Arbitration Court has ordered Mikhail Prokhorov to pay $31 million to former business partner Vladimir Potanin.  Out of Reuters' 'five risks to watch east of the EU', three involve Russia - investment security, oil prices, and political tensions.  Chukotka back on its feet again: the Washington Post reports on how the billions of former governor Roman Abramovich revived the remote region.  Russia and Lithuania are in ...

TODAY: Medvedev pushes for cooperation in Afghanistan, Pakistan and Tajikistan.  Lavrov says no justification for Ukrainian expulsions; mortars rumble in South Ossetia as anniversary tensions brew; Russia puts the no in NATO.  Journalist denied entry to Lithuania. No smokes for soldiers.In his meeting with leaders of Afghanistan, Pakistan and Tajikistan President Medvedev spoke of their 'common space', 'which should be filled with all sorts of projects' emphasizing energy, trade and transport.  Will today's CSTO summit be hindered by differences?  In the capital of South Ossetia two loud explosions have been reported, serving an an early reminder of the imminent anniversary of last year's 5 day war.  South Ossetia apparently intends to demand the ...

Ever since Barack Obama's first relatively friendly state visit to Moscow, Washington and the Kremlin have engaged in a showdown of gestures over the elephant in the room:  the legitimacy of Russia's claim to a privileged sphere of influences.  Directly after meeting with Obama, Prime Minister Putin did some male bonding with a large motorcycle gang, before sending them off toward Crimea, Ukraine under the RF flag.  Medvedev proceeded directly from the G8 in Italy to visit South Ossetia and Abkhazia, but not before threatening to place Iskander missiles in Kaliningrad.  As for Washington, today VP Joseph Biden landed in Kiev, Ukraine, and will travel onward to visit some friends in Georgia.  These gestures on behalf of both sides say just as much as any summit speech.  On a related note, yesterday the Washington Post ran an editorial responding ...