Thursday 12 May 2011

May 12 (Reuters) - Here are news stories, press reports and events to watch which may affect Romanian financial markets on Thursday.


TURKMEN PRESIDENT IN ROMANIA

Turkmen President Gurbanguli Berdimuhamedov is on a two-day visit to Romania and is expected to meet President Traian Basescu and other Romanian officials.

PETROM Q1 NET PROFIT RISES ON OIL PRICE, COST CUTS

Romania's top oil and gas company Petrom (SNPP.BX), majority controlled by Austria's OMV (OMVV.VI), posted a 4.6 percent rise in first-quarter net profit on Wednesday, due to higher oil prices and cost cuts.

* Petrom had investments of 633 million lei ($223.1 million) in the first quarter, down 12 percent on the year. (Ziarul Financiar, Page 8)

* The company also said shareholders were not asked to renew an approval to hike Petrom's capital. (Adevarul, Page 20)

TRANSELECTRICA

Romania's economy minister appointed Horia Hahaianu as the new head of state-owned power grid operator Transelectrica (TSEL.BX), replacing former director Stelian Gal.

Since taking his post more than half a year ago, the economy minister has replaced several heads of state-owned energy companies, mirroring similar moves by his predecessors.

NO CONFIDENCE MOTION

Opposition Social Democrats and Liberals may file a new no confidence motion against the centrist coalition government in June. (Adevarul, Page 7)

NATO – Romania, Update


U.S. and Romania Move on Missile Plan

WASHINGTON, May 3 — The United States and Romania announced an agreement on Tuesday on the location for basing American antimissile interceptors in Romania as part of a program designed to link Washington and its NATO allies against an Iranian threat. The agreement immediately drew complaints from Russian officials.

Officials said the site selected for a key component of the missile-defense system was Deveselu Air Base, near the city of Caracal in southern Romania. The deployment of the SM-3 missiles is expected by 2015, officials said. About 200 American personnel are expected to help operate the system.

Russia immediately complained that the interceptors in Romania could undermine its nuclear deterrent, and said the step ignored commitments made by the United States that Russia would have a role in decision-making.

“We regret to say that practical steps on building the European segment of the U.S. global defense system are being made regardless of Russian-U.S. dialogue on missile-defense problems, which was started under a decision by President Dmitri Medvedev and President Barack Obama,” said a statement from Russia’s Foreign Ministry, according to the Interfax news service.

The statement expressed a Russian desire for legal guarantees from the United States that the missile defense system would not target Russian missiles.

American officials rejected the Russian complaints, and cited the invitation from the United States and NATO for Moscow’s participation in a common missile-defense system for Europe.

“Missile-defense cooperation with Russia is a key U.S. goal,” said a Defense Department official, speaking under standard ground rules of anonymity for discussing diplomatic matters.

“We believe cooperation on missile defense is in the security interest of both our countries,” the official said. “We are actively seeking cooperation with Russia in bilateral channels and through NATO. Cooperation is the best way to provide Russia transparency and reassurances that missile defense is not a threat to its security.”

Russia had vehemently opposed an antiballistic missile shield proposed under President George W. Bush. In September 2009, Mr. Obama announced a reconfiguration of his predecessor’s proposed antiballistic missile shield in Eastern Europe, one that would focus on short- and medium-range missiles, partly quieting Russian objections.

The administration’s new plan would deploy, in four phases, existing SM-3 interceptors using the sea-based Aegis system and an improved version in 2015 on ships and on land. Rather than the 10 bigger interceptors originally envisioned, there could be 40 to 50 of the smaller missiles on land and more on ships.

Russia revived its objections as Moscow and Washington were negotiating the New Start treaty in 2010. Russia tried, unsuccessfully, to include language in the treaty that would restrict the development of the missile shield.

The United States and NATO maintain that the reconfigured missile-defense system based in Europe could not diminish the deterrent power of Russia’s vast nuclear arsenal, and state that the system of antimissile interceptors and radars is designed to halt missiles from Iran.

Stratfor analyst : The Romanian-Russian relations could «suffer» due to the shield, Serbia would be favoured

May, 9 – The Romanian-Russian relations could « suffer » due to the decision to place in Romania some elements of the anti-missile shield, stated for Mediafax Marko Papic, senior analyst Eurasia with Stratfor who made an analogy with the Russian-Serbian relations, as Serbia would get closer to the NATO. « The relations between Russia and Romania could suffer due to this. For example, the Russian ambassador to the neighbouring country Serbia suggested that any attempt on the part of Belgrade to get closer to the NATO would force Russia to respond and such a move would lead to the deterioration of the relations between the two states. Thus, we suppose that a similar reasoning could be valid for Romania as well, especially we take into consideration Bucharest « willingness to confront Russia, in the case of Moldova» the senior analyst with Stratfor commented for Mediafax.

Papici said «Russia could respond to the challenge by building its own fleet in the Black Sea and by reconsolidating Crimea» He thinks that «Russia could start by improving its relations with Serbia, especially due to the building of the gaspipelines South Stream and bring money in the country, to counterbalance Romania’s decision to strengthen its relations with the west. » From the point of view of advantages and disadvantages brought about by the anti-missile shield on the Romanian territory, they should be dealt with interdepedently, another analysts of Stratfor Nathan Hughues said.

« As a whole, this is a more flexible and adaptable architecture than the system which was used for Poland. Any component would « get » into Romania would be connected and would be part of a system, a bigger one, with multiple radar placed at sea and spread all around several states, as well as interceptors at sea and in several states » the military analyst Nathan Hughes commented for Mediafax.
No country is considered essential, geographically speaking. But, as there are more countries in the region that take part in the system, the more equipment is gathered and the system becomes more complex » Hughes said.

The military analysts said that a more active participation on the part of Romania to the anti-missile shield could strengthen the military relations with the US but at the same time, it could « bring Moscow’s rage ». Romania’s CSAT approved on Tuesday as placement of the anti-missile system the former air base in Deveselu in the Olt county, president Basescu mentioning that the base will be under Romanian command.

Romanian soldier killed in Afghanistan, the Western military alliance says.


The International Security Assistance Force (ISAF) said Tuesday that two of its service members were killed on Monday in southern Afghanistan, Reuters reported (May, 10).

Both were killed by improvised bombs in separate incidents, the coalition added.

The exact location of the incidents and the soldiers' nationalities remain unknown.

However, most of the troops in south Afghanistan are purportedly American.

Also on Tuesday, an improvised bomb killed a NATO-led Romanian soldier in the southern region of Zabul.

28-year-old Catalin-Ionel Marinescu was killed during a patrol in the region, Romania's defense ministry said.

He is the 19th Romanian soldier to die in Afghanistan since 2003, when Bucharest joined the military intervention in that country.

There are a total of 1,770 Romanian troops currently deployed in Afghanistan.