 |
Rates: USD: 1.35352  EUR: 1.95583  |
 |
Weather: Sofia: min 17°, max 31° Varna: min 18°, max 29° |
|
1 Sep 2011, Issue 3202
|
The Bulgarian citizens still located in Libya should stay and quietly wait for the situation to stabilize, the country's Foreign Minister, Nikolay Mladenov, has said. | read | |
The Sofia Administrative Court, SAC, postponed Wednesday for September 28 the trial of the Lukoil Bulgaria company for the revocation of its license to operate excise warehouses. | read | |
|||||
 | ||||||
| · Forum · Business · Finance · Energy · Industry · Diplomacy · Defense · Bulgaria in EU · Domestic · Presidental & Local Elections 2011 · Society · Environment · Sports · Crime · World · Sofia Speaking | ||||||
| ||||||
|
RUSSIA'S STATE BANK VTB APPROVED AS BUYER OF BULGARIA TOBACCO MONOPOLY
The Governing Board of Bulgaria's Privatization Agency approved Wednesday the sale of the State-owned tobacco monopoly Bulgartabac Holding to the Austria-registered BT Invest, owned by Russian state bank VTB. On Monday, the buyer offered EUR 101.1 M for the Holding. The offer further binds the Austrian-registered company to buy 5 000 metric tons of Bulgarian tobacco a year in the next 5 years. The company has also slated BGN 7 M in its investment program for 2012 and 2013. The contract with BT Invest is to be prepared by the Agency with a 15-day deadline, after which the document would be submitted for approval with the Governing Board. The latter has a 2-week deadline to announce its decision; then there are another 15 days for the two sides to sign the contract if the decision is favorable for the buyer. The funds from the sale are to be deposited in the retirement system, not the state budget. Bulgaria's tobacco industry syndicates have already announced a protest against the sale of Bulgartabac to VTB, scheduled to take place on Friday. Immediately after it announced its decision to approve the sale, the Privatization Agency was vigorously slammed by key MPs from the opposition Bulgarian Socialist Party. Dimcho Mihalevski, a Socialist MP and ex Deputy Regional Development Minister, said the cigarette-maker cost at least EUR 160 M, and described the deal as "scandalous." Rumen Ovcharov, former Economy Minister in the Stanishev Cabinet, claimed that powerful economic circles in Bulgaria featuring the participation of Prime Minister Boyko Borisov were behind the privatization of cigarette maker Bulgartabac. He and former CEO of Bulgartabac, Soclialist MP Korneliya Ninova, stated that the Russian bank VTB was being used only as a cover by the "circles" in Bulgaria, and rejected the allegations that the Russian government was behind the purchase. In its Tuesday edition, the Russian Vedomosti daily published an article, according to which the initiator of the Bulgartabac purchase is Atanas Bostandzhiev, who has been working in the bank's London office since May as strategic planner. He had been previously employed by Goldman Sachs and Merrill Lynch. The sale of Bulgartabac to BT Invest has been defended energetically by the head of the Privatization Agency Emil Karanikolov who described the deal as favorable to Bulgaria. BT Invest remained the only bidder for the Bulgarian tobacco monopoly after British American Tobacco and Austria-based CB Family Office Service dumped the sale. British American Tobacco, the only top-notch investor among three companies, which were expected to bid for Bulgaria's majority stake in cigarette maker Bulgartabac, withdrew from the tender on August 1. The news came a week after Austria-based CB Family Office Service abandoned the sale, leaving BT Invest the only bidder for Bulgarian tobacco monopoly. The move also confirmed rumors, which said British American Tobacco bought documents for the tender just with the aim of collecting information and had no plans to bid. Even though only one bidder remained, Bulgaria's privatization agency said it will not scrap the tender and expect the company to submit its binding bid. As analysts expected, the offer is low and not profitable for the State. They have earlier advised the government to nix the bidding procedure and open a new tender on new terms, which will be Bulgaria's sixth attempt to sell its former tobacco monopoly. Two of the less profitable plants of Bulgartabac holding - in the cities of Plovdiv and Stara Zagora - were sold in 2009 through the Sofia Stock Exchange - for BGN 31 M and BGN 18 M respectively. The holding currently owns the two larger and more consolidated factories in Sofia and Blagoevgrad as well as a number of commercial brands. When asked in the beginning of August to comment reports, according to which Ivan Savvidi, a Russian tycoon and member of parliament on the ticket of Putin's party, stands behind the sole and veiled in mystery bidder for Bulgaria's state-owned tobacco giant Bulgartabac, the Privatization Agency director Emil Karanikolov refused to elaborate on the speculations. "The documents we have show that this is a major Russian financial group. I would not comment speculations and reports." Russian authorities confirmed earlier this month that the country's second-biggest bank VTB plans the acquisition of a majority stake in Bulgartabac, but nobody in Bulgaria believes the bank is acting on its own behalf and on its own terms. The real buyer behind the bid remains unknown and unnamed. According to Russian media reports the bank will most probably resell the holding after winning the tender, which is the reason why it is not clear exactly who the bank represents. The draft contract, however, includes a clause banning the resell in the next 5 years, the Privatization Agency informs. Insiders to the deal, however, are quoted by the Bulgarian Dnevnik daily saying the resell can easily happen through the sale of the BT Invest company. Meanwhile, Bulgaria's tobacco industry syndicates announced they have decided to stage on Friday a protest rally against the sale of state-owned cigarette-maker Bulgartabac to Russian-owned bank VTB. 
BULGARIAN GOVT: ECONOMY RECOVERS, STATE FINANCES STABILIZE IN H1 2011 Bulgaria's Cabinet has adopted the report for the consolidated state fiscal program for the first half of 2011, stressing the stabilization of the country's macroeconomic indicators. "The stabilization and gradual recovery of the Bulgarian economy which started in the second half of 2010 are continuing in the first half of this year," the announcement of the Borisov Cabinet. It contains latest data from the Finance Ministry showing that in the first quarter Bulgaria's economy grew by 3.4% year-on-year, followed by a 1.9% y/y growth in the second quarter – compared with the average EU y/y growth of 2.5% and 1.7%. At the same time, however, the government statement omits to mention the slowdown in Bulgaria's economy on a quarterly basis as the emerging economy expanded a slim 0.1% from April through June 2011 compared with the previous quarter. "The main driver of Bulgaria's economic growth in the first half of 2011 is export but a recovery of the domestic consumption and investments is also observed," the government says. It stresses that in the first half of 2011, Bulgaria's current account arrived at a surplus of 1.4% of the GDP, up from a current account deficit of 2.4% of the GDP in the first half of 2010. "The positive dynamics of the trade balance – which was a major source of increasing imbalances in the previous periods of high economic growth – has a major contribution to the positive change," according to the government statement. Latest government data confirm that as of June 30, 2011, Bulgaria's state fiscal reserve amounted to BGN 5.2 B. Bulgaria's fiscal reserve has grown by some BGN 200 M since May, amounting to BGN 5.2 B as of end June. As of April 30, 2011, Bulgaria's fiscal reserve stood at BGN 4.7 B, a decline of BGN 400 M in just two months, and its lowest point since the pre-crisis years. Bulgaria's fiscal reserve amounted to BGN 5.1 B as of February 28, 2011, a decline of BGN 300 M. Bulgaria's fiscal reserve stood at BGN 5.4 B at the end of January compared with BGN 6 B at the end of December 2010. The government's fiscal report adopted Wednesday indicates Bulgaria's budget deficit on cash basis under the government's Consolidated Fiscal Program in the first half of the year was BGN 650.7 M, or 0.8% of the projected GDP. This is a correction of the preliminary data announced in July, which said the budget deficit was 0.9%, or BGN 652.1 M. The deficit in Bulgaria's national budget in H1 2011 is BGN 454.3 M , whereas the deficit in Bulgaria's EU transactions (i.e. the absorbed EU funds minus Bulgaria's contribution to the Union) is BGN 196.4 M. Thus, Bulgaria's H1 2011 budget deficit is BGN 864.7 M (1.3 percentage points) smaller than it was in the same period of 2010. The government says that the major parameters of the state income and spending in the first half of the year "developed as planned." At the end of June 2011, Bulgaria's state income amounted to BGN 12.042 B, or 45.9% of the 2011 projection. Compared to the same period of 2010, proceeds report a growth by BGN 853 M or 7.6%. This is mostly due to higher indirect tax revenue, which increased by BGN 638.1 M (15.8 %) year-on-year Revenues from direct taxes and from other taxes under the Corporate Income Tax Law also report some growth compared to the data reported in the same period of 2010, the Cabinet notes. Bulgaria's total tax revenues, including health insurance fees, amounted to BGN 9.837, or 81.7% of the total state income. The income from direct taxes was BGN 2.035 B, or 53.6% of the projected amount for 2011. Income from indirect taxes came to BGN 4.683 B, or 45% of the annual projection, while income from VAT was BGN 2.912 B, or 44.9% of the projected amount. Excise tax revenues were BGN 1.707 B, which too is 44.9% of the project of the 2011 State Budget Act. Revenues raised from customs duties were BGN 54.2 M, or 54.2% of the projection. Property taxes and other taxes brought the Bulgarian state budget BGN 433.4 M in the first half of the year, which is 56.5% of the expected annual amount. The state income from health insurance and social security payments amounted to BGN 2.686 B at the end of June, or 46.8% of the annual projection. Bulgaria's non-tax revenues and foreign aid arrived at BGN 2.2 B, or 40% of the projected amount, at the end of June 2011. Bulgaria's state spending in the first half of 2011 was BGN 12.692 B, or 45.1% of the projection for the entire year. In structural terms, compared to the June 2010, wage bill, social security expenditures and capital expenditures are lower, while health insurance payments are higher. Bulgaria's current non-interest spending amounted to BGN 10.972 B, or 48.8% of the projection; the capital spending including the net increase of the fiscal reserve reached BGN 1.020 B, or 27.6% of the projection for the entire year; the interest payments amounted to BGN 333 M, or 50.4% of the project amount. Bulgaria's contribution to the common EU budget in H1 2011 amounted to BGN 367.5 M in accordance with Regulation 1150/2000 of the EU Council. NEW ROADS TO LINK BULGARIA'S RUSE TO SOFIA-VARNA HIGHWAY BY 2020 Two brand new "high-speed" roads will link the Bulgarian Danube city of Ruse with the future Hemus Highway connecting Sofia and Varna through Northern Bulgaria, Ruse's District Governor Plamen Stoilov announced. Stoilov gave a report Wednesday on his activities in his first two years in office. Back in July 2011, Bulgaria's Road Infrastructure Agency formally said several of the so called "high-speed roads" would be added to the list of highways under construction as priority infrastructure projects of the Bulgarian government, according to Road Infrastructure Agency. The so called "high-speed roads" will have two lanes in each direction; however, they do not meet all requirements for being qualified as highways such as an emergency lane. The future four-lane roads Ruse-Veliko Tarnovo and Ruse-Shumen will be brand new, and will circumvent the existing routes such as the Ruse-Byala-Veliko Tarnovo road, which is a major spot of traffic accidents. The new Ruse-Veliko Tarnovo road will be designed by 2013, and will be completed by 2020, Ruse's District Governor explained Wednesday, as cited by BGNES. It will start at the so called Danube Bridge linking Bulgaria and Romania. Currently, only 34% of the Hemus Highway have been constructed – that is, 145 km out of a total of 423 km. The Hemus Highway is supposed to connect Sofia and Varna on the Black Sea through a shorter route than the southern Trakiya Highway (443 km), passing by several major northern cities – Pleven, Veliko Tarnovo, and Shumen. At present, however, only the start section from Sofia to Yablanitsa and the end section from Shumen to Varna have been completed. Governor Stoilov promised that in addition to the infrastructure projects, in the next two years of his term (Bulgarian District Governors are appointed by the central government so their terms coincide with its term in office – editor's note) he would focus also on attracting strategic investors, absorption of EU funds, and work on the EU Danube Region Strategy. BULGARIAN GOVT PLEDGES WAGE HIKES FOR NEXT YEAR AS ELECTIONS NEAR Bulgaria's government will be able to up the salaries it pays in 2012 because the country is already enjoying economic stability, Finance Minister Simoen Djankov promised. Djankov's pledge – made in the southern city of Smolyan Wednesday night – comes less than two months before Bulgaria's presidential and local elections on October 23, 2011, leading to suspicions that it is an election campaign move (even though the ruling party GERB has not even announced its presidential candidate yet). Earlier on Wednesday, the Finance Minister opened a new waste depot in the town of Dospat, and visited Devin, another town in the Western Rhodope Mountains, Smolyan Dnes, a local paper reported. "At the end of September, the government will be able to make it clear what its policies on people's incomes will be. We are working actively on the forecast for the Bulgarian and the European economy as a whole because the summer was a period of greater uncertainty in Europe. Our forecasts for 2012 will be ready at the end of September. After that we will be able to announce what our policies will be but there will definitely be opportunities to increase people's income. We just need a bit more time," Djankov stated in Smolyan. His announcement comes just as earlier on Wednesday the government issued a statement on the adoption of the macroeconomic report of the Finance Ministry for the first half of the year, which says that the Bulgarian economy is stabilizing. As of September 2011, the GERB party Cabinet has planned an increase of the minimum monthly wage in the country from BGN 240 to BGN 270 plus a modest upping of the retirement allowances of widows. In the recent weeks, Syndicates have insisted that the minimum salary should be increased to at least BGN 290-300, and have also voiced demands for a 10% wage hike for all government employees. Djankov, however, has retorted he would not bow to their pressure, and would play it cool over proposing potential wage hikes. Labor Minister Totyu Mladenov, with whom Djankov is often caught to be at odds, has suggested that the minimum wage could be increased again in the spring of 2012. AVERAGE BULGARIAN HOUSEHOLD'S INCOME UP 4% Q2 2011 Y/Y The average quarterly total income per household member during the second quarter of 2011 was BGN 940. This is 3.8% more compared to the same quarter of 2010. The data was released Wednesday by the Bulgarian National Statistics Institute, NSI. The main part of this income (82.5%) came from wages, salaries and pensions with wages and salaries continuing to be the main source of household income. During the second quarter of 2011 they were BGN 494 per capita or by 8.4% more compared to the second quarter of 2010. The relative share of wages and salaries within the total income increased from 50.3% to 52.5% or by 2.2 percentage points more compared to the second quarter of 2010. The second important source of household income was the income from retirement pensions. Their relative share within the total income decreased by 1.3 percentage point and became 30.0%. During the second quarter of 2011 the income from pensions was BGN 282 per capita. The income from entrepreneurship increased during the second quarter of 2011 and became BGN 75 per capita. Its share within the total income increased slowly by 1.2 percentage point and reached 8.0%. The weight of other social income during the second quarter of 2011 was relatively insignificant in the total household income. During the period this income increased by 8.3% and became BGN 32 per capita; its relative share increased by the mere 0.1 percentage point and became 3.3%. The relative share of monetary income into the total income during the second quarter of 2011 was similar in comparison with the same quarter of 2010 and it was 98.2%. The total expenditure per household member during the second quarter of 2011 was BGN 870 and it increased by 8.2% in relation to the same quarter of 2010. Expenditures on food and housing (energy, fuel and water) had the greatest share in forming the total expenditure and constituted 49.5% of total expenditure. The most significant part in the household budget was expenditures on food and non-alcoholic beverages. As absolute values they were BGN 316 on average per household member during the second quarter of the year and increased by 1.9% in comparison with the same quarter last year. Their relative share decreased by 2.2 percentage points and was 36.4% from total expenditures. The expenditures on water, electricity, heating and furnishing for the compared quarters decreased from BGN137 to BGN 135 per capita; the relative share also decreased - by 1.5 percentage points and was 15.6% from the total expenditures. The expenditures on health increased by 11.5% during the second quarter of 2011 in comparison with the second quarter of 2010 and reached BGN 51 per capita, which represents 5.8% from the total expenditures. It increased imperceptibly by 0.1 percentage point in comparison with the second quarter of 2010. The expenditures on transport and communication increased by 6.0% to BGN 97 per capita during the second quarter of 2011; their relative share decreased from 11.4% to 11.1%. The expenditures on alcoholic beverages and tobacco increased by 2.2% and were BGN 39 per capita during the second quarter of 2011. Their relative share of the total expenditures was 4.5% or 0.2 percentage point less compared to the second quarter of 2010. The expenditures on clothing and footwear increased by 18.5% and were BGN 27 per capita during the second quarter of 2011. Compared to the second quarter of 2010 the relative share of these expenditures increased by 0.3 percentage points and reached 3.1% of the total expenditures in the same quarter of 2011. The average consumption of main food staples per household member didn't change during the second quarter of 2011 compared to the second quarter of 2010. BULGARIAN FINMIN REJECTS IDEA OF BUDGET 2011 UPDATE The State budget will not in any way need to be updated, Bulgaria's Deputy Prime Minister and Finance Minister, Simeon Djankov, declared Wednesday. In an interview for the Bulgarian National Radio, BNR, Djankov said there is enough money in the budget and this is not the right moment to make updates at the time when most of the finances of European countries are shacking. The Minister's comments came on the heels of reports that during the regular meeting of the cabinet last week, Prime Minister, Boyko Borisov, had asked for a budget update by BGN 25 M so that the State can fulfill its obligations in the construction of the so-called "Water Mirror" project in the southern city of Kardzhali. The shorthand notes from the meeting showed that Djankov had initially supported the request, but the Finance Ministry's press center issued a statement later that there would be no need of an update after all. "We will pay money owed to construction companies in the Kardzhali project by savings in the 2011 budget and the rest from the 2012 budget. There would definitely be no update," the Finance Minister assured. Meanwhile, the speaker of the Parliament, Tsetska Tsacheva, indirectly backed the other Deputy PM and Interior Minister, Tsvetan Tsvetanov, in his dispute with Djankov regarding funds for the Security sector. The Finance Minister recently said the State must redirect part of the budget of the Interior Ministry and of the State Agency for National Security (DANS) to education and science research, prompting Tsvetanov to declare this was not a decision Djankov can make. The two stated, however, there were no controversy and fighting between them, but this had been just the matter of different opinions. "Funds from one sector should not be used to deprive another one. This is the skill, the essence of team work in any government. Yes, definitely more funding for education, healthcare, science, social activities, but through balance, not to the expense of the Security, Defense, and Justice System sectors. This can be achieved by continuing reforms in all these sectors," Tsacheva said Wednesday in an interview for the Bulgarian National Television, BNT. She spoke in the eve of the first meeting of the Parliament after the summer break, which began on July 30. It was reported meanwhile that the Parliament had postponed debates on the transfer of BGN 1.4 B from the National Health Insurance Fund (NZOK) to the fiscal reserve because Djankov is still on vacation leave. The debates were to be held Friday, during the regular Parliamentary control session, under the request of the opposition fractions – the Bulgarian Socialist Party, BSP, and the ethnic Turkish Movement for Rights and Freedoms, DPS. LUKOIL BULGARIA LICENSE CASE POSTPONED FOR END OF SEPTEMBER The Sofia Administrative Court, SAC, postponed Wednesday for September 28 the trial of the Lukoil Bulgaria company for the revocation of its license to operate excise warehouses. The warehouses are located at the company's refinery in the Black Sea city of Burgas, which is the only one in the country, and the oil terminal Rosenets. If the expert report is not ready by then, the Court will reconvene in October. At the end of the session, the Head of the Bulgarian Oil and Gas Association, Andrey Delchev, acting as Lukoil's attorney asked the matter to be referred to the European Union Court in Luxemburg. Judge, Kameliya Stoyanova, replied she needs time to decide on considering such move. The arguments of the two sides – Lukoil and the Customs Agency became known in the courtroom along with the fact the latter want to have a speedy trial while the oil company would use any opportunity for delays, the Bulgarian Dnevnik daily writes. The main thesis of the company is that the deadline to install the devices is too short for the scale of their production. The Customs counter that all other owners of excise fuel warehouses had complied with it. The Agency's lawyers insist Lukoil failed to undertake any measures to obey the law until the last minute and acted only after Customs Director, Vanyo Tanov, ordered the revocation of the license. The Customs lawyer, Stansislava Yordanova, explained that the refinery could have obtained an extension if they reacted in March 2010, when the law on the devices became effective. Delchev argued that Lukoil had been complying with the law since its passing and in March it already had a project for installing the devices. He pointed out this is sophisticated equipment, manufactured only by several companies in the world, and years, not months are needed for the planning, the production and the delivery of such equipment. The attorney further explained the company had informed about the possible problem the highest echelons of the administration and the CEO of the Russian Lukoil, Vagit Alekperov even met with Prime Minister, Boyko Borisov. Another Lukoil argument was that they could not install devices at the Rosenets tanker oil terminal since it had been a public-State property until July 30th when it was given on concession to Lukoil – one week after Tanov ordered the revocation of the license. The company's representation asked the Judge to order an expert report to address scores of issues. Stoyanova approved only two of them and requested a BGN 6 000 deposit for the experts from Lukoil. One of the rejected issues included the cost of mounting the devices, which the company says is a huge investment required by an "unstable administrative Act." Per the Court rule, the experts are to only assess where in the refinery and the terminal devices must be placed and are not; the locations where there are already such devices; the time frame for their mounting and the cost. The refinery's lawyers insist there are mounted devices which already measure 26% of gas and 76% of diesel in the country. Before ordering the expert report, the Judge rejected Lukoil's request to stop the license case until the Supreme Administrative Court, VAS, rules on the legality of the measuring devices order. Until now the Court has only ruled that the refinery and the terminal can continue work while Lukoil is appealing Tanov's order to revoke the license. The decisions of SAC will not bring the dispute to an end since they can be appealed with VAS. The Lukoil saga emerged at the end of July when the Customs Head, Vanyo Tanov, issued the order to revoke Lukoil's license to operate excise warehouses over the company's failure to install the required devices within the deadline. The Court, however, returned the license, and the refinery resumed fuel production. One the very next day, the Commission for Protection of Competition announced they are beginning a probe to find out if there is a fuel cartel on the Bulgarian market. Last week, US Ambassador in Sofia, James Warlick, toured the refinery in the company of the Lukoil CEO, Valentin Zlatev, who announced the devices will be mounted at the terminal within 3 years while those at the refinery will be installed by the end of 2011. 
BULGARIA'S PRIVATIZATION HEAD UP IN DEFENSE OF BULGARTABAC'S SALE The sale of the Bulgarian state-owned tobacco company Bulgartabac to Russian state bank VTB is favorable for Bulgaria, according to the head of Bulgaria's Privatization Agency Emil Karanikolov. Karanikolov has defended in Parliament the decision made by his institution to approve the sale of Bulgartabac for EUR 100.1 M to BT Invest, a firm registered in Austria by the bank owned by the Russian government. On Monday it became clear that BT Invest – the only entity to make it to the final stage of the privatization tender – offered a price of EUR 100.1 M for the purchase of 5 881 380 shares, which are 79.83% of Bulgartabac's capita or EUR 100 000 above the minimum asking price set by the Privatization and Post-privatization Control Agency. The Russian-owned bidder – which was the only company that reached the final stage of the privatization procedure after British American Tobacco and Austria-based CB Family Office Service dumped the sale earlier in August – has also pledged in its offer that it will be buying a minimum amount of 5000 metric tons of Bulgarian-produced tobacco in the first five years after the sale. The amount in question is about 15% of Bulgaria's 2010 tobacco production. "We spoke to our consultant (i.e. Citigroup – editor's note) today. The price that has been offered corresponds to the value of the company. With Bulgartabac we are selling a business with commitments, not assets. And we are not selling all 100% of it. If we were selling the ownership or the assets, then we would not be requiring commitments, and we would be focusing on the price only," Karanikolov declared, as cited by BGNES. He said the Privatization Agency would go ahead with the respective procedure. The contract with BT Invest is to be prepared by the Agency with a 15-day deadline, after which the document would be submitted for approval with the Governing Board. The latter has a 2-week deadline to announce its decision; then there are another 15 days for the two sides to sign the contract if the decision is favorable for the buyer. Bulgaria's tobacco industry syndicates have already announced a protest against the sale of Bulgartabac to VTB, scheduled to take place on Friday. "The syndicates in Bulgartabac demonstrated as soon as we announced the tender that they would oppose the privatization of the company till the very end. I understand their position. But I think that the Agency and the Supervisory Council have done their job – to preserve and develop the work of the company," Karanikolov stressed, adding, "The most important thing for the unions is that we are preserving the business activity of both the parent company and its subsidiaries for the next 10 years. And the employees who are between 2 400 and 3000 are protected for a period of three years. The guarantee for preserving the business activity of the company is secured with its assets – properties and equipment." The head of the Bulgarian Privatization Agency further rejected criticism that the privatization procedure had been drafted in a way excluding strategic investors. He believes that the pledge of BT Invest for buying a minimum annual quantity of Bulgarian-produced tobacco provides for quantities that are not insignificant. At present, Bulgaria's former cigarette monopoly Bulgartabac has a market share of 34% in the country. The consultant for the Bulgartabac sale, Citigroup Global Markets Ltd, was picked by the Bulgarian government in February 2010. Two of the less profitable plants of Bulgartabac holding - in the cities of Plovdiv and Stara Zagora - were sold in 2009 through the Sofia Stock Exchange - for BGN 31 M and BGN 18 M respectively. The holding currently owns the two larger and more consolidated factories in Sofia and Blagoevgrad and a processing factory in Yasen near Pleven, as well as a number of commercial brands. The Bulgarian government has set a goal of raising BGN 450 M from privatization before the end of 2011 but has raised only about BGN 13 M so far, making it likely that the government could opt for the sale of Bulgartabac even at a price slightly above the asking one. Bulgaria's governments have been toying with Bulgartabac's privatization for the past 13 years; a procedure was first started in 1998 by the Kostov Cabinet. A privatization strategy for the holding was approved by Parliament in 2002 but what followed were two unsuccessful attempts to complete its sale to Tobacco Capital Partners and British American Tobacco. Until January 2007, the Russian government held a 99.9% stake in VTB. Thereupon, at the World Economic Forum in Davos, its CEO announced that the government would retain a 50% + 1 share and privatize the rest of company shares. At present the Russian government owns 75.5% of the bank via the Federal Property Agency, which has been repeatedly laying claims to assets of tobacco monopoly Bulgartabac Holding during the previous procedures for its privatization. British American Tobacco, the only top-notch investor among the companies, which were expected to bid for Bulgaria's majority stake in cigarette maker Bulgartabac in 2011, withdrew from the tender once again, on August 1. The news came a week after Austria-based CB Family Office Service abandoned the sale, leaving Austria-registered BT Invest, behind which stands Russia's second-biggest bank VTB, the only bidder for Bulgarian tobacco monopoly. The move also confirmed rumors, which said British American Tobacco bought documents for the tender just with the aim of collecting information and had no plans to bid. EX ECONOMY MINISTER ACCUSES BULGARIAN PM OF ORCHESTRATING BULGARTABAC'S SALE Powerful economic circles in Bulgaria featuring the participation of Prime Minister Boyko Borisov are behind the privatization deal of cigarette maker Bulgartabac, according to Rumen Ovcharov, a Socialist MP and former Economy Minister. Ovcharov, who was the Economy and Energy Minister between 2005 and 2007 in the Stanishev Cabinet (2005-2009), criticized Wednesday in Parliament the decision of the Bulgarian Privatization and Post-Privatization Control Agency to approve the sale of Bulgartabac for EUR 100.1 M to BT Invest, a firm registered in Austria by the bank owned by the Russian government.In his words, the privatization procedure was drafted in a way that scared away foreign strategic investors on purpose. "This is one of the most brutal deceptions in the Bulgarian economy in the past 20 years," Ovcharov declared in Parliament Wednesday, demanding together with the rest of the MPs of the Bulgarian Socialist Party that the deal be immediately terminated. Ovcharov, who was largely discredited in 2007 when he had to resign his Cabinet seat over corruption suspicions, now claims that PM Borisov is involved with a circle that "was supposed to" get Bulgartabac for a minimum price. On Monday it became clear that BT Invest – the only entity to make it to the final stage of the privatization tender – offered a price of EUR 100.1 M for the purchase of 5 881 380 shares, which are 79.83% of Bulgartabac's capita or EUR 100 000 above the minimum asking price set by the Privatization and Post-privatization Control Agency. According to the former Economy Minister, neither the Bulgarian tobacco growers, nor the workers of Bulgartabac have any reason to rejoice over the parameters of the deal. He pointed out that BT Invest's commitment to buy 5000 metric tons of tobacco per year is actually smaller than the current annual quantities of tobacco that the state company buys since in 2011 it bought over 6 000 metric tons of tobacco. Ovcharov further slammed the investor's promise to put in about BGN 7 M for the next few years saying that Bulgartabac's annual investments amount to about BGN 25 M. The one ones who stand to benefit from Bulgartabac's sale, according to the Socialist MP, are the new buyers who "are hiding their names below the umbrella of one of the large Russian banks." Ovcharov has cited Russian reports rejecting the claims that the Russian state is behind the purchase of Bulgaria's cigarette maker by VTB, a bank owned by the Russian government, which is the second largest in Russia. "Certain economic circles in Bulgaria are behind the privatization of Bulgartabac," he declared. Another Socialist MP, Korneliya Ninova, who was the CEO of Bulgartabac back in 2008, said the best way to find out if the Russian state was actually about to acquire the Bulgarian cigarette maker was to check the status of the Russian claims for the company dating back to the communist period. She asked if the Russian Presidency had filed a suit against Bulgartabac with the Sofia City Court. Her logic is that if the Russian government was to acquire the company through the state-owned bank VTB, it would have no motivation to claim compensations; on the other hand, if a suit had been filed, this would be taken to mean that somebody else is moving to take over Bulgartabac via the Russian bank. BULGARIA'S BULGARTABAC COSTS AT LEAST EUR 160 M - EX DEPUTY MINISTER Bulgaria will be providing a grant of EUR 60 M to Russian state bank VTB if it sells its cigarette maker Bulgartabac to VTB's subsidiary BT Invest, according to Dimcho Mihalevski, a Socialist MP. Mihalevski, who a Deputy Minister of Regional Development in the Stanishev Cabinet (2005-2009), slammed Wednesday in Parliament the decision of the Bulgarian Privatization and Post-Privatization Control Agency to approve the sale of Bulgartabac for EUR 100.1 M to BT Invest, a firm registered in Austria by the bank owned by the Russian government. On Monday it became clear that BT Invest – the only entity to make it to the final stage of the privatization tender – offered a price of EUR 100.1 M for the purchase of 5 881 380 shares, which are 79.83% of Bulgartabac's capita or EUR 100 000 above the minimum asking price set by the Privatization and Post-privatization Control Agency. "The deal for Bulgartabac has been manipulated, it encroaches upon the strategic financial interest of the state," Mihalevski said in Parliament. In his words, Bulgartabac has available assets worth BGN 167 M, and total assets that are BGN 320 M (roughly EUR 160 M) greater than the company's debts. This is how Bulgaria will be bestowing a grant of at least EUR 60 M upon the Russian state bank, he believes. "We are going to treat the buyer over EUR 60 M, figuratively speaking, and this is scandalous," Mihalevski said, adding, "Ask the government of the GERB party how they are doing it with their Privatization Agency and their employees. This is a robbery! This is corruption! The first big privatization deal of GERB shows that they cannot do carry out a deal honestly." Mihalevski further slammed the Borisov Cabinet for failing a state enterprise in a time of an investment crunch, and sending a bad signal to foreign investors. "The real solution would be the immediate termination of this procedure, changing the rules, and you can be sure that more serious and responsible bidders will show up. This is a test for GERB and personally for Prime Minister Boyko Borisov. Let's see their reaction," the MP from the Bulgarian Socialist Party stated. BULGARIAN FM TO COMPATRIOTS IN LIBYA: WAIT QUIETLY! The Bulgarian citizens still located in Libya should stay and quietly wait for the situation to stabilize, the country's Foreign Minister, Nikolay Mladenov, has said. Currently, Bulgarians do not have many chances to escape from Libya, Mladenov told journalists Wednesday, pointing out it was their own choice to stay there. There are some 50 Bulgarians currently in Tripoli, as well as around 20-30 Bulgarians employed in Benghazi hospitals, the Minister revealed Wednesday, as cited by the Dnevnik daily. According to Mladenov, the main issues the Bulgarians in Libya are facing are the lack of payments during the last 6 months, as well as the problems in the police and healthcare systems. Bulgaria's Prime Minister Boyko Borisov will attend the "Fiends of Libya" meeting in Paris on Thursday, Mladenov has also revealed. On Wednesday, the oppositional Libyan Transitional National Council rejected the idea of deploying any kind of international military and/or peacekeeping force. Meanwhile, rebel fighters approached the pro-Gaddafi stronghold of Sirte from east and west. The town's defenders have been given until Saturday to surrender. BULGARIA TO WELCOME TOP DIPLOMATS OF MACEDONIA, BRAZIL, SOUTH AFRICA WITHIN 2 DAYS Three countries' top diplomats – the Foreign Ministers of Macedonia, Brazil, and South Africa – will pay visits to Bulgaria's capital Sofia in just two days, Bulgaria's Foreign Ministry announced. Macedonia's Foreign Minister Nikola Poposki is arriving in Sofia Wednesday night for his official visit on September 1. He will have talks with Bulgarian Prime Minister Boyko Borisov and Foreign Minister Nikolay Mladenov that will focus on Macedonia's EU integration and joint infrastructure projects. The two countries top diplomats are scheduled to sign memorandum of cooperation on Macedonia's EU integration. The following day, Friday, September 2, Bulgaria will be visited by the Foreign Minister of Brazil Antonio Patriota, a key member of the administration of Bulgaria-descended Brazilian President Dilma Rousseff. Friday will be an extremely busy day for Bulgaria's Foreign Minister Nikolay Mladenov, as he will also welcome Maite Nkoana-Mashabane, the Minister of International Relations and Cooperation of the Republic of South Africa. South Africa's Foreign Minister will remain in Bulgaria from September 2 till September 4; the talks in Sofia will focus on Africa's security situation and the EU-South Africa relations. After the high profile diplomatic visits in Sofia, Bulgaria's Foreign Minister Nikolay Mladenov is heading abroad. On September 2-3, he will take part in the "Gymnich" format (i.e. informal, named after German castle Gymnich) meeting of the EU Foreign Ministers in Sopot, Poland. On September 7-8, Bulgaria's Foreign Minister will visit Turkey's Ankara for talks with his counterpart Ahmet Davutoglu. BULGARIAN MILITARY TO PURCHASE MODERN WEAPONS The Bulgarian Defense Ministry is announcing in the very near future a public tender for the purchase of new handguns and sniper rifles. The information was announced by Defense Minister, Anyu Angelov, cited Wednesday by the Bulgarian Monitor daily. The winning bidder will sign a frame agreement meaning the army can make purchase orders when it has needs and funding. The contract also allows buying more weapons, in addition to those for the special task teams. Angelov further says the military can purchase, if there are funds, several armored Mercedes SUVs in the next two years for the first mobile battalion group which is now in the process of being established. According to Bulgaria's White Book of Defense, the army must have two mobile groups with 1 000 servicemen each to have a full range of experts and equipment so that they can be send on missions abroad ASAP. Until now, the rangers for contingents were recruited from different units and underwent a 6-month specialized training. GREECE EYES CASH COLLATERAL WITH FINLAND Finland may be provided with collateral in exchange for providing fresh aid for Greece, Greek Finance Minister Evangelos Venizelos revealed Wednesday. "We are only speaking about guarantees of a financial nature...and guarantees that do not include claims on property," Evangelos Venizelos said in a radio interview, as cited by The Wall Street Journal. In exchange for the Finnish contribution to Europe's temporary bailout facility, Greece would provide several hundred million Euro worth of cash collateral to the Nordic country. At least EUR 20 billion of approximately EUR 109 B assistance package for Greece is earmarked for Greek banks, according to the German paper Handelsblatt. In return, the banks would be partially nationalized, after which bank shares would be given to the Eurozone countries as collateral. BULGARIA 2ND IN EU UNEMPLOYMENT RISE JULY 2011 Bulgaria has registered the second highest increase in its unemployment rate among the EU member states in July 2011 year on year, Eurostat reveals. Bulgaria's unemployment rate increased from 10.0% to 11.5% compared with the same period of 2010. The highest increase was registered in Greece (11.0% to 15.0% between the first quarters of 2010 and 2011 ), Slovenia is third (7.2% to 8.4%). Among the member states, the lowest unemployment rates were recorded in Austria (3.7%), the Netherlands (4.3%) and Luxembourg (4.6%), and the highest in Spain (21.2%), and Latvia (16.2% in the first quarter of 2011). The EU27 seasonally-adjusted unemployment rate was 9.5% in July 2011, unchanged compared with June. It was 9.7% in July 2010. Between July 2010 and July 2011, the unemployment rate for males fell from 10.0% to 9.6% in the euro area and from 9.6% to 9.3% in the EU27. The female unemployment rate remained unchanged at 10.4% in the euro area and at 9.7% in the EU27 BULGARIAN COMPENSATED 32 Y LATER THANKS TO EUROPEAN COURT The Bulgarian State must pay EUR 50 000 as compensations and expenses in nine cases it lost against the European Human Rights Court in Strasbourg. The most astonishing case is the one of a Bulgarian man, who won his case, but had not been compensated by the State in 32 years and counting. The Strasbourg Court ruled on his claim on July 20 2011, and the Council of Ministers will make a decision Wednesday to release the funds needed for the compensation. Tsvetan Dichev, now 76, had been finally successful in suing the Sofia City Hall and the Bulgarian State to recompense him after the record-breaking delay. Dichev's house and parking garage in Sofia were expropriated in 1979 and he was to receive another garage and an apartment for it. He received the apartment in 1984, but was told he won't get a parking garage since the apartment building did not have any. He then asked to be reimbursed by a garage at another location or be given money. There had been an appraisal done at the time, but the City Hall failed to undertake any move despite several Court instances ruling in Dichev's favor for many years. The European Court bases its rule on the grounds a delay of 32 years is unacceptable and it stems from the authorities' passive approach and their lack of desire to resolve the issue. The European magistrates ruled that Dichev obtains ownership of the garage owed to him within three months. If he still does not have one upon expiration of the deadline, he must be paid EUR 12 000 along with an additional compensation of EUR 4 000 for material damage and EUR 2 000 for non-material damages. BULGARIAN PARLIAMENT RECONVENES AFTER VACATION The Members of the Bulgarian Parliament are reconvening Wednesday for their first meeting after the summer break, which began on July 30. As the tradition calls, at the beginning of the new political season, all parliamentary groups will present their priorities for the new session. The major opposition party, the Bulgarian Socialist Party, BSP, already announced that accents in their work will continue to be topics directly affecting lives of Bulgarians – the economic situation in the country, unemployment, lack of anti-crisis policies on the part of the cabinet and pressure on business. The left wing further raises alarm about the serious issue with petty and household crimes, which Interior Minister, Tsvetan Tsvetanov, and his institution are destitute in resolving. Problems in the healthcare sector and conditions in municipal hospitals, which are facing bankruptcy, are also in the opposition's focus. BSP leader and former Prime Minister, Sergey Stanishev, announced Tuesday that his party intents to submit a BGN 1 B+ claim with the Constitutional Court, saying this amount has been robbed from Bulgarians' health insurance contributions because they are not used properly. Left-wing MPs are further going to continue to work on the problems of local administrations. The Socialists will back the initiative of their presidential candidate and former Foreign Affairs Minister, Ivaylo Kalfin, against possible shale gas extraction in the country. The Tuesday legislative agenda of the Parliament, tabled by the ruling Citizens for European Development of Bulgaria, GERB, party includes amendments to the Natural Disasters Act, involving the merger of firefighter and civil defense services at the Interior Ministry. ALEXANDER MASLARSKI HEADS BULGARIAN CONSUMER PROTECTION WATCHDOG Alexander Maslarski is the new head of Bulgaria's State Commission on Consumer Protection, the cabinet's press center announced Wednesday. The decision was made by the Council of Ministers during their regularly scheduled meeting. Maslarski is already a member of the consumer protection watchdog. On Tuesday, the watchdog's head, Damyan Lazarov, resigned on the request of PM Boyko Borisov, in order to achieve "a better harmonization and stronger results in the area of consumer protection." Alexander Maslarski was born in 1969 in Sofia. He had graduated from the Technical University with a Master's Degree in Microelectronics and Electronic Technologies. From 1997 until 2003, he worked as an IT manager at the Foundation for Development of Small and Medium Business where he was part of the preparation and the realization of a number of EU projects. From 2007 to 2010, Maslarski is employed by the administration of the State Commission on Consumer Protection where he had been head of the Information Security and Protection of Internet Users department. In April 2010, with a decision of the Council of Minister, he was appointed member of the Consumer Protection watchdog. HIGH-RANKING BULGARIAN DEFENSE OFFICIAL REMOVED FROM OFFICE Maria Dimcheva has been released from the post Head of the Executive Agency Military Clubs and Army Recreation Activities. The news was reported by the Defense Ministry press center Wednesday. Dimcheva is being replaced, effective immediately, by her, until now, Deputy, Petar Manolov. "The replacement aims at achieving better efficiency and improvement of management practices and team work at the agency, along with interactions and coordination with other structures," the Defense Ministry statement reads. INCUMBENT MAYOR VOWS TO RID SOFIA OF HALF OF STRAY DOGS IN 2 YEARS Yordanka Fandakova, Sofia's incumbent Mayor runner, has promised to cut down in half the number of stray dogs in the Bulgarian capital the next two years is she gets reelected. "The stray dogs are the capital's most difficult issue," Fandakova admitted Wednesday, as cited by the Focus news agency. According to her, the stray dog problem concerns the citizens' health, as well as the implementation of European practices. A new neutering and shelter center is currently built in Sofia's Mladost district, as well as a large dog shelter in the Kremikovtsi district, the Mayor pointed out. Fandakova further reminded that has released from his duties the manager of the municipal Ecobalance company over findings of faulty execution of work related to stray dogs. There are about 10 000 officially registered stray dogs in Sofia. Some 70 000 dogs have been registered wandering the streets of Bulgaria as a whole. An average of 800-900 cases of tapeworm infection are registered in Bulgaria each year. This number constitutes as much as 54% of the total instances per year in the whole EU. Fandakova, whose two-year term as Sofia Mayor has been marked by intensified construction of the Sofia Metro and other infrastructure projects, has been criticized on the stray dogs issue, as well as her administration inefficient work on garbage collecting. Fandakova was officially nominated by Bulgaria's ruling party, center-right GERB, as its candidate for Sofia Mayor in the October 23 local elections. BULGARIAN MP PROPOSES PARLIAMENT SHUTDOWN UNTIL ELECTIONS ARE OVER Bulgaria's Parliament should extend the lawmakers' summer break until the end of October, when presidential and local elections are to take place in the country, according to Yane Yane, a controversial conservative MP. Yanev, who is the leader of the marginal conservative Law, Order and Justice party, has stated that the Bulgarian MPs will be preoccupied with their parties' election campaigns and will not do anything besides wasting taxpayers' money until October 23, when the presidential and local elections will take place. "Vast amounts of money will be spent on nothing, on empty political talk, and most of the listeners are sick of it," Yanev has explained, as cited by the Cross news agency. He has estimated that a total of BGN 11 M would be spared from the Bulgarian state budget if the country's Parliament is shut down for two more months. Yanev has also demanded that all Bulgarian lawmakers who are running for mayors should be deprived of their official vehicles until the elections are over. On Wednesday, the Members of the Bulgarian Parliament reconvened for their first meeting after the summer break, which began on July 30. The upcoming elections, as well as the adoption of the country's 2012 state budget, are expected to be among the key topics during the autumn parliamentary session. 1ST EUROPEAN ROMA PRIDE PARADE TO BE HELD OCTOBER 1 - NGO The first Roma pride parade in history will take place simultaneously in many European cities on October 1 2011, the Bulgarian Helsinki Committee has announced, citing a declaration sent to it by other NGOs. "A year after France declared its anti-Roma policy, days, months and years after the unbearable racist violence against the Roma people across Europe October 1 will be "The European Roma Stonewall! On this day, we, the leaders of the Roma and the anti-racist civil society in Europe, will carry out our duty and shout "Enough!" and "Stop!" with bravery and determination," the declaration says, as cited by the BGNES news agency. Since last summer, France has targeted Roma from Bulgaria and Romania as potential sources of crime, in some cases deporting them to their home countries. "Our demand is clear and simple: equal rights and equal opportunities for everyone who lives in Europe. To put in a single word: dignity," the declaration goes. BULGARIAN PROSTITUTES' LEGALIZATION RALLY ENDS IN FIASCO Only a handful of prostitutes showed up for a protest rally in Bulgaria's capital which was supposed to bring attention to their demands for legalization of their activity and complaints of police brutality. Some 7-8 women attended the rally before the Parliament building in Sofia, which was first announced last week. The prostitutes stated they had been harassed constantly by the police in the past month, and that the police would not let them work. They want their trade to be legalized so they can pay taxes and get health insurance as well as protection against police brutality as is the case with other professions. The prostitutes also complain about the conditions in the police detention facilities. "I agree to pay taxes and social security fees but not to be detained by the police," Ani, a 26-year-old prostitute who has been in the trade for four years, told BGNES at the failed rally. She said that she had been arrested by the police every other day since July, and that each time she got a new BGN 500 fine; she said she had no way of paying all of those fines. "I don't kill or rob anybody, why are they tacking us? We are no criminals. We want to find out where it all comes from," Ani explained. In her words, the police keep detaining only prostitutes who work in the street, not the ones in the so called massage parlors or escort clubs, euphemisms for the existing brothels in Sofia. She claims that most of the street prostitutes work on their own, and very few of them have pimps. Ani also revealed that there had been less work for the prostitutes in Sofia since the start of economic crisis. Ani further stated that she also worked as a prostitute in Germany where her “working conditions” were much better, and she was even allowed to pay taxes. According to data from Bulgaria's Interior Ministry as of October 2010, cited by the Trud Daily, there were only 1 326 prostitutes in Bulgaria, and 263 brothels were identified around the country. The largest number of prostitutes was said to be in Burgas where 151 girls “obeyed the commands of pimps”, in the Interior's language. More than 140 were registered in Varna and Plovdiv each, while the smallest number of “identified” prostitutes were in Yambol – 6, and Pernik – 2. The prostitutes who gathered to protest Wednesday with demands for the legalization of their profession spoke openly to the media but asked them not to show their faces because some of them have children who are not aware of their mothers' jobs. Prostitution is technically not illegal in Bulgaria, unlike the enticement into prostitution and the organization of prostitution rings. RECORD HEAT HITS BULGARIA'S BLACK SEA PORT VARNA Bulgaria's Black Sea city Varna suffered a temperature record on Wednesday, August 31, 2011. Bulgaria's National Institute of Meteorology and Hydrology measured a temperature of 33.2 degrees Celsius in Varna on 3 pm Wednesday, which is the highest temperature ever registered in the city on this date. The previous record for this day of the year was set in 2007 when the temperature was 31.6 degrees Celsius. However, Varna was not the warmest spot in Bulgaria on Wednesday. The Danube city of Ruse saw a temperature of 34 degrees Celsius. At the same time, the southwestern town of Gotse Delchev had the lowest temperature – 27 degrees. BRITISH COPS TO GUARD BULGARIA-ENGLAND CLASH IN SOFIA Bulgarian police officers will be assisted by their British counterparts at the Euro 2012 qualifier between England and Bulgaria on Friday, it has been announced. "We have established joint measures to prevent hooliganism on the margins of the Bulgaria-England match" on Friday, Biser Ivanov, head of the police unit dealing with football hooligans, has told the Bulgarian National Radio, as cited by The Times. Even though the British police officers will not have powers to arrest offenders themselves, they are expected to cooperate. A total of 12 "spotters," tasked with pinpointing known hooligans in a crowd, will travel to Bulgaria for Friday's game. Some 3000 British fans are expected to attend the clash, which is to take place at Sofia's Vasil Levski stadium. It was recently announced that Bulgaria's popular southern Black Sea resort of Sunny Beach demands British police officers to patrol it during the next tourist season. The British police officers' presence would create some respect in the British tourists who often create trouble, the chair of the Sunny Beach hotel owners' union explained. BULGARIAN NABBED IN GREECE FOR FEEDING FUNERAL GUESTS 'COCAINE-ENHANCED' COOKIES A Bulgarian man has been apprehended by police authorities in Athens after it turned out he prepared cocaine-sprinkled cookies for a funeral service. The man was working in a bakery that was asked to provide traditional Greek cookies for a dead man's funeral, Darik radio says, citing Greek media. A little after the mourners tasted the sweets, they started acting strangely, which led to a police call. Upon their arrival, the police officers were dumbstruck to found that the cakes were sprinkled with cocaine instead of ordinary powdered sugar. The bakery employee who prepared the strange cookies was a Bulgarian citizen involved in drug trafficking, investigating police officers later found out. It is believed that the cocaine-sprinkled cookies were initially designed to hide the drug, but ended up being sent to the funeral service by a mistake. The bizarre case has helped Greek police officers to detain the whole organized crime group the Bulgarian was participating in. A total of 60 kg of cocaine have been discovered during the operation. LIBYAN INTERIM LEADERSHIP REJECTS UN PEACEKEEPING FORCES The opposition Libyan Transitional National Council (NTC) has rejected the idea of deploying any kind of international military and/or peacekeeping force. The news was reported by BBC Wednesday, citing the UN envoy to the country, Ian Martin, who said his organization had considered the deployment of military observers. "We don't now expect military observers to be requested. It's very clear that the Libyans want to avoid any kind of military deployment of the UN or others," he said after a meeting of the UN Security Council. Martin pointed out that one of the greatest challenges for the UN would be helping the country prepare for democratic elections. "Let's remember... there's essentially no living memory of elections, there's no electoral machinery, there's no electoral commission, no history of political parties, no independent civil society, independent media are only beginning to emerge in the east in recent times. That's going to be quite a challenge, sort of organizationally, and it's clear that the NTC wish the UN to play a major role in that process," the envoy stressed In addition, Libya's deputy representative to the UN, Ibrahim Dabbashi, told the BBC that the situation in Libya was unique. "They [the UN] put the possibility of deploying peacekeepers on the ground but in fact the Libyan crisis is a special case. It is not a civil war, it is not a conflict between two parties, it is the people who are defending themselves against the dictatorship," he said. UN Secretary General Ban Ki-moon has further stated that growing humanitarian shortages in Libya demand urgent action and appealed to the Security Council to be "responsive" to requests from the transitional authority for funding. Though stockpiles of medical supplies and food stashed away by the government were found over the weekend, water supplies are short. Meanwhile, fighters loyal to NTC approached the pro-Gaddafi stronghold of Sirte from east and west. The town's defenders have been given until Saturday to surrender. Moussa Ibrahim, spokesman of fugitive ex-leader of Libya, dictator, Muammar Gaddafi's, rejected the ultimatum, pointing out that "no dignified, honorable nation would accept an ultimatum from armed gangs." He reiterated Gaddafi's offer to send his son Saadi to negotiate with rebels and form a transitional government. REBEL NON-RECOGNIZERS RUSSIA, CHINA SET FOR 'FRIENDS OF LIBYA' CONFERENCE Russia and China will participate in the international conference "Friends of Libya" even though they have not technically recognized the Transitional National Council of the Libyan rebels as a sovereign government. China and Russia will send its envoys to the international conference of "Friends of Libya" which will take place in Paris on September 1, the Chinese Foreign Ministry and Russian presidential envoy to Africa said on Wednesday, as cited by RIA Novosti. The forum will focus on Libya's future after the end of the regime of notorious dictator Muammar Gaddafi who is still surviving in the ongoing Libyan civil war. The conference was initiated by French President Nicolas Sarkozy and backed by British Prime Minister David Cameron will feature 60 foreign delegations of countries. "China supports the efforts ... of restoring peace and stability in Libya and contributing to the gradual change of political power in the country," Chinese Foreign Ministry spokeswoman Ma Zhaoxu said in a statement. China said Wednesday it was sending a vice-minister to "observe" a Paris conference on the future of Libya, whose rebel National Transitional Council (NTC) Beijing has not officially recognized, as cited by Al Jazeera. US Secretary General Ban Ki-moon, German Chancellor Angela Merkel and US Secretary of State Hillary Clinton have all said they will attend, while most other participants said they would send their foreign ministers. China said it would be represented by its Vice Foreign Minister Zhai Jun at the meeting, which will seek to address the reconstruction of Libya. China's foreign ministry said Jun would attend "as the representative and observer of the Chinese government". The head of the Russian upper house's international affairs committee, Mikhail Margelov, confirmed that Moscow had received an invitation to the Paris talks. Margelov said the conference is aimed at setting up grounds for "the new international assistance for Libyan citizens" and restoration of the country. The UN Security Council must play the key role in Libya's peace talks, though "it does not prohibit our country from participating in international forums on Libyan peace restoration," the Russian diplomat said, as cited by RIA Novosti. Sarkozy said last week that among the countries invited to the talks are the Contact Group on Libya member states, including participants in the NATO-led military operation and representatives of the United Nations, the Arab League and the African Union, as well as China, Russia, India and Brazil that have expressed concerns over the operation. Ahead of the Paris meeting, France proposed renaming the Contact Group into the Group of Friends of Libya. The talks in Paris will take place amid dramatic developments in Libya, where rebels have established control over most of the capital, Tripoli. Gaddafi himself has fled his compound in Tripoli and his whereabouts remain unknown. EXPLOSION KILLS 4 IN LIBYA'S TRIPOLI, GADDAFI LOYALISTS BLAMED At least four Libyan rebel fighters have perished in Tripoli in an explosion that went off as locals were celebrating Eid-al-Fitr. It remains unclear what caused the blast even though some residents said it was a car bomb and the blast was carried out by Gaddafi loyalists, as cited by Al Jazeera. At the same time, according to a group of rebels, a car full of fuel was hit by celebratory gun fire as locals were rejoicing about their first Eid-al-Fitr after 42 years of rule by dictator Muammar Gaddafi. Another reports says that children had picked up grenades left on the road after the recent fighting, and that they were killed in the grenade explosions. As the civil war in Libya between the rebels and the elusive dictator continues, Tripoli is reported to be returning to normal social life even if the city does not feel completely secure. SARKOZY: IRAN'S NUCLEAR PROGRAM MAY INVITE PREEMPTIVE STRIKE France's President Nicolas Sarkozy has warned Iran that its alleged pursuit of nuclear weapons and ballistic missiles could invite a preemptive strike. "Its military nuclear and ballistic ambitions constitute a growing threat that may lead to a preventive attack against Iranian sites that would provoke a major crisis that France wants to avoid at all costs," Sarkozy said Wednesday, as cited by Defense News. Sarkozy did not specify will countries could be involved in a potential preemptive strike on Iran's nuclear facilities, a major issue in Iran's relations with the West, with the USA and EU seeing its nuclear program as a violation of the Nuclear Non-Proliferation Treaty and the ensuing international regime. Both the USA and Israel are usually mentioned either separately, or together as candidates for launching a strike on Iran over its nuclear program, which according to President Mahmoud Ahmadinejad is designed solely for peaceful purposes. France's President Nicolas Sazkory, however, blamed Iran for the tension generated by its nuclear program. "Iran refuses to negotiate seriously," he told an annual meeting of French diplomats. "Iran is carrying out new provocations in response to the challenge from the international community for it to provide a credible response." Sarkozy said France would work with its allies to build support for tougher international sanctions against Tehran's Islamist regime, in a bid to force it to back down over its enrichment program. DEADLY BLASTS ROCK CHECHNYA CAPITAL Two suicide bomb attacks in Chechnya's capital Grozny have resulted in the death of seven police officers and an emergency services worker late on Tuesday. The attacks took place during celebrations at the end of the Muslim festival of Ramadan, a police official told the Interfax news agency. "Today is the most sacred day for all Muslims. On that day a trained and zombified bandit attempted to carry out a terrorist attack. The bandits have shown their real face, which only proves that this evil should be eradicated." Ramzan Kadyrov, the Moscow-backed provincial leader, has said, as cited by RIA Novosti. No organizations have claimed responsibility for the attacks, but they are believed to be the work of Chechen separatists WIKILEAKS CRIES FOUL OVER CYBERATTACK The WikiLeaks anti-secrecy group has said that its main site was brought down by a cyberattack. "WikiLeaks.org is presently under attack," the group claimed on its Twitter feed Tuesday. The site and the diplomatic cables posted there were inaccessible an hour later. However, the website directed visitors to a mirror site, cablegatesearch.net, during the alleged attack. The group's main site is currently working. The Wall Street Journal points out that the reported hacking occurred just hours after WikiLeaks was criticized by the US State Department over its recent massive release of leaked diplomatic cables. The leak was perceived as a serious threat to individuals named in the documents and to US national security. "We continue to carefully monitor what becomes public and to take steps to mitigate the damage to national security and to assist those who may be harmed by these illegal disclosures to the extent that we can," State Department spokeswoman Victoria Nuland has told reporters. BULGARIA'S PARLIAMENT - SHUT DOWN FOR 2 MORE MONTHS? After a cold, lonely summer, Bulgaria's Members of Parliament are back to work. Wednesday marked the first Parliamentary meeting in Bulgaria after the summer break, which began at the end of July. The Bulgarian lawmakers have been enjoying nice long vacations for a while now, the voters are used to seeing their MP rest as much as only the country's schoolchildren can afford. But the 2011 autumn parliamentary session may take even more than usual to kick off. With parliamentary and local elections just around the corner, Bulgarians fear the lawmakers from all political formations may be occupied exclusively with campaigning over the next two months. Will Bulgaria's Parliament start actually working after October 23, the date for which the elections are scheduled, is the question on everyone's mind. |
see photo
