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Dmitry Medvedev and Mahmoud Abbas discussed the deteriorating situation in Gaza, which has led to many victims among civilians and a difficult humanitarian situation.

Both sides emphasized the need for an immediate ceasefire.

The head of the PNA thanked Russia for its humanitarian aid. In Response to Mr Abbas, Mr Medvedev remarked that Russia will continue to provide this type of aid.

There was also emphasis on the value of efforts undertaken by the international community, in particular by the UN Security Council, and international and regional mediators, in dealing with the situation.

The conversation was initiated by the Palestinian side.

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Mr Medvedev and Mr Olmert discussed the dramatic situation unfolding in the region as a result of military action in Gaza. President Medvedev expressed serious concern regarding the many civilian victims and the difficult humanitarian situation. The Russian president also emphasized the importance of reaching a ceasefire as rapidly as possible.

It was noted in the discussion that as a member of the UN’s Security Council and the Middle East Quartet, Russia will continue to provide help in the international community’s efforts to stabilize the situation in the region. Plans to have a meeting in Moscow to discuss the Middle East were also confirmed.

The conversation was initiated by the Israeli side.

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The heads of state exchanged New Years wishes, and good wishes to the Russian and Syrian peoples.

Their discussions focussed on the worsening situation in the Middle East. The Presidents of Russia and Syria expressed their serious concern about developments in the Gaza Strip. It was noted that the continuing military action there had already caused a large number of civilian casualties. This tragic figure continues to grow. The humanitarian situation in Gaza is deeply distressing. Accordingly the need for a quick end to the bloodshed was underlined.

Dmitry Medvedev and Bashir Asad expressed their determination to continue contact and consultation at various levels to contribute to ongoing international efforts to achieve a cease-fire and the normalisation of the situation in the Middle East.

The telephone conversation was initiated by the Syrian side.

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In his greetings to the President of the State Council and the Council of Ministers of the Republic of Cuba Raul Castro, the Russian head of state says, among other things:

“Today the tried and tested relationship of mutual understanding and co-operation between Russia and Cuba is newly reinvigorated. The deep tradition of friendship between our two peoples is one of the fundamental bases for the broadening of bilateral action and the co-ordination of our efforts on the international stage.”

In his felicitations to the first secretary of the Central Committee of the Communist party of Cuba Fidel Castro, Dmitry Medvedev said.

“The Cuban revolution – your life’s work – opened a new path to freedom for the Cuban people. It entered the history books as a legendary example of the struggle for the high ideals of social justice. I am convinced that the new momentum in Russian Cuban co-operation will henceforth work both to benefit the populations of Russia and Cuba, and also in the interests of ensuring a stable and multilateral world order.”

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Earlier the President sent a congratulatory telegram to Daniil Granin, which among other things, said the following:

“As a talented author whose work ranks among the classics of Russian literature, and as a prominent essay writer, you have written many outstanding and profound works, which are a spiritual asset not just to Russia but to the whole world. Your books, created by the hard work and great gift of a true master, raise difficult themes that are relevant to people’s lives, and that is why they are so dear to readers of all generations. You have become not just a recognised master of fiction, but also as an authoritative public figure. Your sense of social duty – the sincerity with which you have worked to restore the tradition of mercy and charity in Russia – is worthy of profound respect.”

The head of state decreed that Daniil Granin be awarded the order of Saint Andrew the Apostle in recognition of his overwhelming contribution to the development of national literature, his creative work which spans many years, and his social activity.

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The Prime Minister noted that Gazprom, bearing in mind the difficult position in which Ukraine currently finds itself, suggested that Ukraine purchases Russian gas at the price of $250 per 1000 cubic metres. 

Vladimir Putin noted that during recent years, Gazprom has been buying gas from its Central Asian partners, in Turkmenistan, Uzbekistan and Kazakhstan and essentially simply transporting it to Ukraine. Starting in 2009 the Central Asian countries will adopt world market prices for the gas they sell, and that Gazprom itself will be buying that gas at a price of no less than $340 per thousand cubic metre. Taking into account the transit costs, the end price for Ukraine would be in the order of $380 dollars per cubic thousand metre.

In spite of this fact, the Ukrainian partners rejected Gazprom’s proposals and issued official statements saying that in the event of no gas supply contract being signed, Ukraine would obstruct the transit of Russian gas to consumers in Western Europe.

Vladimir Putin also noted that the transit contract for Russian gas to consumers in Europe (at a cost of 1.6 dollars per thousand cubic metre per 100 km) which was signed back in 2007 remains current and active to the 31st December 2010.

Dmitry Medvedev expressed his hope that consequently there would be a change in the position of Ukraine, and that the Ukrainian partners will be able to make a sensible decision relating to the signing of the gas contract with Russia for 2009, and thus avoid condemning their own citizens to serious difficulties.

The Beginning of the Meeting with Prime Minister Vladimir Putin

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The heads of state exchanged festive greetings and wished their peoples a very happy New Year. 

During the conversation there was an exchange of views on matters of bilateral and regional cooperation, and on preparations for the EuroAsian Economic Community and the Collective Security Treaty Organization summits scheduled for early 2009.

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The heads of state exchanged warm New Years greetings, and wished the peoples of Russia and Tajikistan all the best.

Dmitry Medvedev and Emomali Rahmon issues questions relating to the high level bilateral and multilateral meetings planned for early 2009.

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One of the laws introduces changes to the law “On the Federal Budget for 2009 and the Period 2010–2011” and makes provision for additional measures which aim to improve the situation in the finance sector and other areas of the economy, in particular a streamlining of the procedures by which state guarantees are given and financial measures taken to ensure the stability of the labour market. At the same time it does not change the parameters for income and expenditure in the federal budget.

The second law specifies the separate norms for the Russian Federation’s budget to allow the timely implementation of measures to support the financial market and related areas of the economy. In particular in relation to changes in the tax law it covers compensation for shortfall in incomes of  the Russian Federation regions, lays out the how oil and gas companies contribute to the state budget, as well as the process by which state guarantees and subsidies are issued.

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The changes are introduced to strengthen control over the use by banking companies of financial resources allocated to them to support Russia’s financial system. 

The law gives the Bank of Russia the right to appoint a representative to any of the following: a bank that receives such credits, one which holds federal budget resources, one which has made an agreement with the Bank of Russia about the receipt of unsecured loans, any which is a participant in the obligatory insurance of individual accounts who have given notice of bankruptcy.

According to the law signed by the President, the Bank of Russia representative can not interfere with the activity of the bank, but exists to oversee its activity and inform the Bank of Russia about business and operations that are taking place.

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The amendments assign to the State Duma (lower house of parliament) supervisory powers in relation to the Government, in particular the presentation of annual governmental reports of the results of their activity for the consideration of the deputies, including matters assigned by the State Duma.

It also sets the Presidential term as being six years, and the State Duma as five years (previously both the Presidential and Duma terms in office were four years). These changes affect any President and State Duma elected after the law is in force.

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The Russian head of state sent his New Years greetings to foreign heads of state including: President of Abkhazia Sergey Bagapsh, President of Armenia Serzh Sargsyan, President of Azerbaijan Ilkham Aliev, President of Belarus Aleksander Lukashenko, Prime Minister of Canada Steven Harper, Governor General of Canada Mikael Jan, Chairman of the People’s Republic of China Hu Jintao, President of France Nicolas Sarkozy, Her Royal Highness Queen Elizabeth the Second and Prime Minister of Great Britain Gordon Brown, President of Germany Horst Koehler, Federal chancellor of Germany Angela Merkel, President of India Pratihbe Patil, Prime Minister of India Manhoman Singh, President of Italy Giorgio Napolitano, Prime Minister of Italy Silvio Berlusconi, Emperor Akihito of Japan, Prime Minister Taro Aso of Japan, President of Kazakhstan Nursultan Nazarbayev, President of the Kyrgyz Republic Kurmanbek Bakiev, President of Moldavia Vladimir Voronin, President of South Ossetia Edouard Kokoity, President of Tajikistan Emomali Rahmon, President of Turkmenistan Gurbanguli Berdymukhamedov, President of Ukraine Victor Yushenko, President of the USA George Bush, President elect of the USA Barak Obama, President of Uzbekistan Islam Karimov.

On the congratulation of heads of state and foreign governments with the New Year

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Opportunities for cooperation and the strengthening of coordination with countries of the Commonwealth of Independent States were discussed.

The Commission for Military Technical Cooperation with Foreign States is an advisory and consultative body which develops proposals in key areas of this branch of government policy for the head of state.

Opening address at the meeting of the Commission for Military-Technical Cooperation with Foreign States

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The heads of state exchanged warm wishes for the New Year. In discussing the development of relations between Russia and Finland, which the President of Finland rated as “excellent,” Dmitry Medvedev expressed certainty that in the future, they will also be marked by close, constructive interaction. In this context, the presidents discussed plans for communication between Russia and Finland in 2009 at various levels, including at the highest level.

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The current state of Russian-Ukrainian relations was discussed.

The President of Russia expressed concern regarding a present deceleration of momentum in relations between Russia and the Ukraine, as well as a range of problems that have accumulated in connection with that slowdown, particularly concerning payments for supplies of Russian gas. Dmitry Medvedev expressed the hope that this situation would improve in the upcoming year.

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In his assessment of the past year, the President noted that the targets set as part of the 2020 Strategy, and those of the medium term, had been met. 

Dmitry Medvedev said that in the coming year social services will be a key priority for the country’s leadership. 

Opening remarks at the Cabinet Meeting

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At the end of last week, Russian diplomats began preparing the evacuation of Russian citizens from the Gaza strip, where the situation had sharply deteriorated following Israeli military action against HAMAS fighters.

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