Russian passenger jet reported missing in Indonesia

An image of Russian Sukhoi Superjet

A Russian Sukhoi Superjet 100 passenger plane with 46 people aboard has gone missing on a demonstration flight in Indonesia, reports say.

The plane disappeared from radar screens during a flight from Jakarta meant to last 30 minutes, a blogger with the Sukhoi delegation said.

A helicopter was dispatched to look for the jet, thought to have been flying near a mountain, Sergey Dolya said.

Emergency services confirmed a Sukhoi plane was missing.

The plane, which took off at 07:00 GMT, is believed to have had about four hours' fuel aboard, the BBC's Karishma Vaswani reports from Jakarta.

Gagah Prakoso, spokesman for Indonesia's national search and rescue agency, said 46 people had been aboard the plane, which vanished from radar near Bogor, a city in West Java province.

He told BBC News it was unclear who was on board because they were people invited by Sukhoi, but they were "likely to be reps of Indonesian airlines".

Eight of those are Russians, Dolya tweeted.

As darkness fell, the helicopter search was called off but rescuers continued looking for the plane on the ground, he said.

'Guests aboard'

The plane took off from east Jakarta's Halim Perdanakusuma airport, which is used for some commercial and military flights, at 14:00 (07:00 GMT), the Indonesian search and rescue agency spokesman said.

"At 14:50 it dropped from 10,000ft [3,000m] to 6,000ft," the agency told AFP.

Herry Bakti, head of the transport ministry's aviation division, said the aircraft had been on the second of two demonstration flights, and those on board were invited guests.

The Russian embassy in Jakarta said in a statement earlier this week that a Sukhoi Superjet 100 demonstration would take place in Jakarta on Wednesday, AFP added.

The embassy could not be immediately reached for comment.

The Superjet, a mid-range airliner that can carry up to 100 people, is military plane-maker Sukhoi's first commercial aviation plane.

It was created by a joint venture, majority-owned by Sukhoi, with Italy's Finmeccanica and a number of other foreign and Russian firms also involved.

Gagah Prakoso told the BBC that Sukhoi had been offering the Superjet to Indonesian airlines.

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China's ZTE planned U.S. computer sale to Iran

ZTE Corporation

(Reuters) - China's ZTE Corp, which recently sold Iran's largest telecommunications firm a powerful surveillance system, later agreed to ship to Iran millions of dollars worth of embargoed U.S. computer equipment, documents show.

The American components were part of an 8 million euro ($10.5 million) equipment-supply contract, dated June 30, 2011, between ZTE, a Chinese trading firm and a unit of the consortium that controls the Iranian telecom, Telecommunication Co. of Iran, according to documents reviewed by Reuters. ZTE is China's second-largest telecommunications equipment maker.

The documents shed further light on how Iran obtains sophisticated American tech products despite U.S. sanctions on Iran. China is a major conduit. Reuters in March revealed an earlier deal between ZTE and TCI, which centered on non-American surveillance equipment but also included some U.S. tech goods. The latest deal, though smaller in scale, was much more reliant on U.S. products.

Beijing and Moscow have vetoed Western attempts to strengthen sanctions against Iran over its nuclear-development program. ZTE, based in the city of Shenzhen, is publicly traded but its largest shareholder is a Chinese state-owned enterprise.

According to the contract's parts list, the equipment to be delivered from China included IBM servers; switches made by Cisco Systems Inc and Brocade Communications Systems Inc; database software from Oracle Corp and a unit of EMC Corp; Symantec back-up and ant-virus software; and a Juniper Networks firewall. The parts were intended for business-support services, including a ZTE billing system.

A spokesman for ZTE said last week in an email that "as far as we know" the company had not yet shipped any of the products. Asked if ZTE intended to do so, he emailed a new statement Monday that said: "We have no intention to implement this contract or ship the products."

He also said ZTE decided "to abandon" the agreement after "we realized that the contract involved some U.S. embargoed products."

The contract had made clear the American provenance of the goods: Its accompanying parts list, signed by ZTE, lists more than 20 different computer products from U.S. companies. Washington has banned the sale of such goods to Iran for years.

U.S. companies that responded to requests for comment said they were not aware of the Iranian contract; several said they were investigating the matter.

A spokesman for IBM said: "Our agreements with ZTE specifically prohibit ZTE from the transfer of IBM products to Iran. If any of IBM's business partners are breaching our export compliance agreements, then IBM will take appropriate actions."

A Brocade spokesman said the company doesn't sell any products to Iran "and we certainly have not shipped these products to" ZTE. A spokesman for Greenplum, the EMC unit, said: "We have no knowledge of the contract described, but are actively researching this matter." A Cisco spokesman said: "We continue to investigate this matter, as any violation of U.S. export controls is a very serious matter."

According to the U.S. Treasury Dept., a U.S. company would violate sanctions if it shipped products requiring an export license to a third party knowing the goods would end up in Iran.

The United States, Europe and the United Nations have been imposing increasingly tough economic sanctions on Iran to pressure it to refrain from developing nuclear weapons, which Iran denies it is doing. The five permanent members of the U.N. Security Council - the U.S., China, Russia, Britain and France - plus Germany are scheduled to hold talks with Iran Saturday in Istanbul over its nuclear program, which it maintains is peaceful.

Reuters reported on March 22 that ZTE had sold Iran's TCI a surveillance system capable of monitoring landline, mobile and internet communications. The system was part of a 98.6 million euro ($128.9 million) contract for networking equipment signed in December 2010.

The article reported that despite a longtime U.S. sales ban on tech products to Iran, ZTE's "Packing List" for the contract, dated July 24, 2011, also included numerous American hardware and software products, although they were not part of the surveillance system.

The U.S. product makers - which included Microsoft Corp, Hewlett-Packard Co and Dell Inc, among others - all said they were not aware of the Iranian contract, and several said they were investigating the matter.

The day after the article was published, a ZTE spokesman said the company would "curtail" its business in Iran. The company later issued a statement saying, "ZTE no longer seeks new customers in Iran and limits business activities with existing customers."

Three other telecommunications equipment makers - Ericsson, Nokia Siemens Networks and China-based Huawei Technologies - previously have said they would reduce their business in Iran. Huawei and ZTE have emerged as the largest equipment suppliers to Iran, according to people involved with the country's telecom industry.

The parts list for the June 2011 contract was much more dominated by U.S. products than the earlier equipment contract. The earlier pact was between TCI, ZTE and a Chinese trading company called Beijing 8-Star International Co. The latest contract was between ZTE, Beijing 8-Star and an Iranian company called Aryacell.

Aryacell is a unit of Iran Mobin Electronic Development Co., part of a consortium that controls TCI along with the Iranian government. According to the contract, Beijing 8-Star was required to provide "third-party equipments," while ZTE was responsible for supplying equipment and collecting payment. The contract was to last until December 31, 2015.

Officials at Aryacell and TCI did not respond to requests for comment. A representative of Beijing 8-Star, reached in China, declined to answer questions, saying: "Concerning my business matters, it's not necessary for me to tell you anything."

The contract's parts list included products made by manufacturers from several countries. But most were from the U.S., with IBM items accounting for the bulk of them. The IBM parts included 30 servers and other computer equipment with a total cost of more than 6.8 million euros ($8.9 million), minus about a 30 percent discount.

Several of the IBM server models, though new, were discontinued shortly before the contract was signed. It called for a 12-month warranty on all equipment.

It is not clear how ZTE will get out of the contract. According to the terms, the contract only can be terminated if Aryacell breaches it, becomes bankrupt or can't pay its debts.

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The giraffe hunters who pay £10,000 to shoot the gentle giants with guns and bows for sport

Dead Giraffe

Tourist trophy hunters are paying thousands of pounds to go and shoot giraffes with high-powered guns and bows.

The gentle giants are loved around the world for their comical appearance and gentle nature.

Just like character 'Melman' played by Friend's-star David Schwimmer in Disney's Madagascar, they are a hit with kids who love their long necks and eyelashes.

But shocking images show how scores of big-spending men and women - and even families - travel from across the globe, some even from Britain, to kill them for sport.

Hunters pay up to a whopping £10,000 for the the chance to slay them - preferring bulls because they are the biggest.

Safari clubs and game reserves ask for a £1,500 trophy fee, and then add on rates for guides and trackers costing around £1,000 per day.

The hunts typically last three-to-five days and see tourists using .458 Winchester Magnum rifles to kill the animals.

With most hunters flying to Africa from their homes in Europe or America, the costs stretch into five figures.

The hunting continues even though numbers of the animals are plummeting.

But the world's leading giraffe expert said populations in the countries where it is legal - South Africa, Namibia and Zimbabwe - can cope with the killings.

The latest statistic show the number of giraffes in the world have nearly halved since 1988 from over 140,000 to less than 80,000.

Dr. Julian Fennessy produced the report for the International Union for the Conservation of Nature (IUCN) Red List.

Another recent IUCN report suggests the giraffe may already need to be listed as a threatened species - because some populations are being decimated in places like West Africa and DR Congo.

They are already thought to be extinct in Angola, Mali and Nigeria.

Dr. Fennessy also founded Giraffe Conservation Foundation - the only dedicated giraffe conservation group in the world.

He said: 'I'm not interested in hunting giraffe, but hunters obviously get a kick out of it like others enjoy a game of squash or cooking. It's a complicated argument. There are lots of factors.

'The loss of habitat and breaking up of populations by man-made constructions are the main factors threatening their numbers.

'In the countries where you can hunt legally, the populations are increasing but across Africa the overall numbers are dropping alarmingly.

'It shows that if properly managed with proper policy and controls, the hunting can be sustainable.'

In some African countries legal hunting can actually help local communities by bringing in money and making meat available to them.

'Many hunting staff like guides, trackers and skinners who assist the tourists are paid in meat from the kills,' added Dr. Fennessy.

'If the tourist has paid the fee for the trophy, the carcass is theirs. Some just like to have photo taken next to the dead giraffe, but others pay taxidermists to mount the head a neck so they can take them home as a souvenir.

'Or they might want to take the skin home.'

He added: 'Some hunters come from Britain but the big majority are from North America, Germany, Russia and Scandinavia.

'The worst part of trophy hunting is the fact that the hunters can miss their target and fail to kill the giraffe quickly.

'If they don't hit the right spot then it can lead to suffering for the animal.

'They might have a 'second gun' in the party whose job it is to take the animal down quickly if the tourist misses.

'But hunting guides need to asses the ability of the hunter and stop the hunt if they do not have the skills to do it humanely.'

Another factors decimating the giraffe population is poaching.

'Poaching is illegal and is not licensed,' said Dr. Fennessy.

'They set wire snares at giraffe-height in the trees to snare their necks, or to trap their feet and kill them when they return.

'It leads to huge suffering for the animals, sometimes for days.'

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Iran calls for Israel to be "punished"

(Reuters) - Major powers signaled on Friday their willingness to reopen talks about curbing Iran's suspected pursuit of nuclear weapons but said Tehran must show it is serious about any negotiations.

The focus on diplomacy follows weeks of rising tensions between the West, which is seeking to cut Iran's oil sales, and Tehran, which has threatened to close the Strait of Hormuz through which almost one-fifth of oil traded worldwide flows.

Alarmed Arab neighbors made a plea to avoid escalating the dispute over Iran's nuclear program while an ally of Iran's supreme leader called for Israel to be "punished" for allegedly killing an Iranian nuclear scientist.

The West suspects Iran is using its civilian nuclear program as a cover to develop atomic weapons and has pursued a two-track approach of sanctions and diplomacy to try to rein it in. Iran says its nuclear program is solely to produce electricity.

While major powers stressed their openness to renewed talks,

diplomats said they remain divided on their approach, notably on whether to let Iran keep enriching uranium at some level.

The group, known as the P5+1 and as the EU3+3, includes Britain, China, France, Germany, Russia and the United States.

EU foreign policy chief Catherine Ashton, who represents the group, issued a statement making clear that a diplomatic path remains open to Iran despite tougher sanctions and fresh speculation of a military strike on its nuclear facilities.

"The EU3+3 has always been clear about the validity of the dual track approach," Ashton's spokesperson said in a statement that included her October 21 letter to the Iranians laying out the possibility of talks. "We are waiting for the Iranian reaction."

The release of the statement and letter appeared to reflect frustration at Iran's statements hinting at a willingness to resume talks but Tehran's failure to formally respond to the letter and commit to discussing the nuclear program in earnest.

CONCILIATORY TONE FROM CLINTON

U.S. Secretary of State Hillary Clinton struck a decidedly conciliatory tone at a news conference with German Foreign Minister Guido Westerwelle in Washington.

"We do not seek conflict. We strongly believe the people of Iran deserve a better future," she said. "They can have that future, the country can be reintegrated into the global community ... when their government definitively turns away from pursuing nuclear weapons.

"We have to see a seriousness and sincerity of purpose coming from them."

Westerwelle said, "One thing is clear: the door for serious dialogue remains open but the option of nuclear weapons in Iran is not acceptable."

Diplomats said major powers are divided over what incentives to offer Iran if talks were to resume.

A central issue is whether the group might ask Iran to cease enriching uranium to the higher level of 20 percent but allow it, at least for a time, to continue enriching at lower levels -

a stance partly at odds with the group's past positions.

Uranium enrichment is a process that at low levels can yield fuel for nuclear power plants or, if carried out to much higher levels of purity, can generate fissile material for bombs.

To let Iran enrich at lower levels would be something of a concession by the P5+1, although it has previously offered a temporary "freeze-for-freeze" in which Iran would not expand its nuclear program and the powers would not pursue more sanctions.


IRANIAN CALLS FOR PUNISHING ISRAEL

After Supreme Leader Ayatollah Ali Khamenei paid his respects to the families of two scientists assassinated on what Tehran believes were Israel's orders, one of them just last week, a close ally demanded retribution.

"Terrorism has a long history in some countries like the Zionist regime," Ali Larijani, speaker of Iran's parliament and a former nuclear negotiator, said Israel, which views an atomic bomb in Iran's hands as a threat to its survival.

"The Zionist regime should be punished in a way that it can not play such games with our country again."

Such threats have been made before in Tehran and it is unclear how or when they might be carried out. Israel, widely assumed to have the only nuclear arsenal in the Middle East, is on guard against attacks on its borders and within, notably by Lebanon's Hezbollah movement, which is supported by Iran.

Obama's top military official, chairman of the Joint Chiefs of Staff General Martin Dempsey, briefly visited Israel and was quoted by its Defense Ministry as telling officials there that Washington was keen to coordinate on strategy.

"We have many interests in common in the region in this very dynamic time and the more we can continue to engage each other, the better off we'll all be," Dempsey was quoted as saying in a statement issued by the Israeli Defense Ministry.

The comments may reflect U.S. concerns about the possibility that Israel, which has previously bombed nuclear facilities in Iraq and in Syria, might launch an attack on Iran.

French President Nicolas Sarkozy said on Friday that time was running out to avoid a military intervention and appealed to China and Russia, veto-wielding U.N. powers who have been reluctant to tighten sanctions, to support new sanctions.

"Time is running out. France will do everything to avoid a military intervention," Sarkozy told ambassadors gathered in Paris. "A military intervention will not solve the problem, but it will unleash war and chaos in the Middle East."

"We need stronger, more decisive sanctions that stop the purchase of Iranian oil and freezes the assets of the central bank, and those who don't want that will be responsible for the risks of a military conflict," Sarkozy warned.

"We really need you," he said in an appeal to Moscow and Beijing.

With tensions, including mutual threats of disrupting the oil trade, creating worries across the region, the foreign minister of the United Arab Emirates, the wealthy, U.S.-allied state sitting across the Gulf from Iran, offered a warm welcome to a call for calm on Thursday by his Iranian counterpart.

"It's important to get far away from any escalation and we stress the stability of the region," Sheikh Abdullah bin Zayed al-Nahayan was quoted as saying by state news agency WAM.

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Iran releases video of downed U.S. spy drone–looking intact

Downed U.S. spy plane

Iran's Press TV on Thursday broadcast an extended video tour of the U.S. spy drone that went down in the country--and it indeed appeared to look mostly intact.

American officials have acknowledged that an unmanned U.S. reconnaissance plane was lost on a mission late last week, but have insisted that there is no evidence the drone was downed by hostile acts by Iran. Rather, they said, the drone likely went down because of a malfunction, and they implied the advanced stealth reconnaissance plane would likely have fallen from such a high altitude--the RQ-170 Sentinel can fly as high as 50,000 feet--that it wouldn't be in good shape.

But Iranian military officials have claimed since Sunday that they brought down an American spy drone that was little damaged. And now they have provided the first visual images of what looks to be a drone that at least outwardly appears to be in decent condition, in what is surely another humiliating poke in the eye for U.S. national security agencies.

The Pentagon declined to comment on the released images Thursday, a Defense Department spokesman told Yahoo News. But military analysts said it appeared to them to be the American drone in question.

"I have been doing this for thirty years, and it sure looks like" a stealthy U.S. drone to me," Loren Thompson, a military analyst with the Lexington Institute and consultant to the RQ-170's manufacturer, Lockheed Martin, told Yahoo News in a telephone interview Thursday. "I think we are going to face the high likelihood that Iran has an intact version of one of our most important intelligence gathering tools."

Still, Thompson went on, the intelligence "windfall" to Iran from obtaining the advanced U.S. stealthy drone may be mitigated.

"I don't think the Iranians get as much out of it as they might hope," he said. "It probably came into their hands as a result of a technical malfunction. What that means is they still don't have a real defense against the U.S. flying other vehicles that have similar capabilities, without much fear of interception."

Analysts also noted that the video of the drone released by Iran did not show the drone's underside. "Pretty intact," the Center for Strategic and International Studies' James Lewis said by email. "Interesting that they covered the underside."

The New York Times reported Thursday that--unsurprisingly--the RQ-170 was lost while making the latest foray over Iran during an extended CIA surveillance effort of Iran's nuclear and ballistic weapons program.

"The overflights by the bat-winged RQ-170 Sentinel, built by Lockheed Martin and first glimpsed on an airfield in Kandahar, Afghanistan, in 2009, are part of an increasingly aggressive intelligence collection program aimed at Iran, current and former officials say," the Times' Scott Shane and David Sanger wrote. "The urgency of the effort has been underscored by a recent public debate in Israel about whether time is running out for a military strike to slow Iran's progress toward a nuclear weapon."

Iran in turn has complained that the drone overflights represent an act of aggression and violation of its sovereignty, and summoned the Swiss envoy--who represents U.S. interests in Iran--on Thursday to lodge a protest.

However, while the images of the U.S. drone surely allowed Iran to score another public relations blow against Washington, Iran may find it tough to generate much in the way of international sympathy for being the target of U.S. surveillance.

Last week, Iranian hardliners ransacked the British embassy in Tehran, prompting the United Kingdom to recall its diplomatic staff from Tehran and order Iran's embassy in London closed. Last month, the UN atomic watchdog agency issued a report raising concerns about research Iran is suspected by some nations to have conducted before 2003 on military aspects of its nuclear program. Iran has insisted its nuclear program is for peaceful energy purposes. In October, the United States accused elements of Iran's Qods force of plotting to assassinate the Saudi envoy to the United States. The United Nations General Assembly voted last month in favor of a resolution condemning the Iranian plot.

Amid its growing international isolation, Iran, unsurprisingly, seemed intent to play up the drone incident for all it could.

"China, Russia want to inspect downed U.S. drone," proclaimed a headline from Iran's Mehr news agency Thursday.

The RQ-170 Sentinel, however, reportedly did not use the latest U.S. surveillance technology on board, in part because as a single-engine aircraft, it was thought more likely to occasionally go down.

"The basic principles of stealthy aircraft are fairly well known," Thompson said. "In terms of [the drone's] on-board electronics and information systems, it is fairly routine in combat to require authentication codes to make them hard to unlock."

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Russian police crack down on anti-Putin protests

Russian Police

(Reuters) - Hundreds of people took to the streets of Moscow for a second successive day on Tuesday to demand an end to Vladimir Putin's 12-year rule, defying a crackdown by tens of thousands of police reinforced by crack Interior Ministry troops.

Police said they had detained about 250 people in central Moscow when they tried to stage an unapproved rally and held about 200 more in St Petersburg, where opposition forces have also been emboldened by the prime minister's worst election setback since he took power in 1999.

After permitting the biggest opposition rally in Moscow for years on Monday evening, the police were out in large numbers. The Interior ministry said about 2,000 special troops were supporting almost 50,000 police, and some moved through the city centre in armored vehicles in a show of force.

Hundreds of pro-Putin youths also tried to spoil the rally, shouting "The people! Putin" and beating drums to drown out the opposition protesters' chants of "Russia without Putin" and "We want free elections!" A few minor scuffles broke out.

Boris Nemtsov, a liberal opposition leader, told Reuters he had been detained. Two opposition figures, blogger Alexei Navalny and Ilya Yashin, were jailed for 15 days for their role in Monday's opposition protest, the biggest in Moscow for years.

"We are not going to stop our struggle," Yashin said.

The protests are a further sign of pressure on Putin to make changes after his United Russia lost ground in a parliamentary election on Sunday, even though it was criticized by Washington and European monitors and the opposition say it was slanted in the ruling party's favor.

The election outcome highlighted growing unease with the 59-year-old leader as he plans to reclaim the presidency next year and pointed to a mood shift after years of political domination by the former KGB spy who has brooked little dissent and marginalized the liberal opposition.

"We want fair elections. Look at what they have done to our country, our Russia," said a man who gave his name only as Alexei as he was pushed by riot police into a waiting bus.

The organizers used social media such as Twitter and Facebook to attract new support from people who no longer consider Putin to be invincible.

"I had to come out today because I can't stay quiet about how they just spit on us," said Mikhail Torupov, a Muscovite who said he had hardly ever protested before.

But Maxim Mishenko, 34, said he did not want Russia to follow the same violent path as Libya and Syria.

"I don't want the same thing to happen here as in Libya or Syria. There will be no Slavic spring here in Russia if I have anything to do with it," he said.

ARAB-STYLE REVOLT?

U.S. Republican Senator John McCain said Russia could now face a revolt. In a message to Putin on Twitter, he wrote: "Dear Vlad, The Arab Spring is coming to a neighborhood near you."

But many Russian political experts have dismissed suggestions that Putin could face an uprising in a country which has little tradition of major street protests, despite the 1917 Bolshevik Revolution, and where dissent has often been crushed.

Putin, meeting United Russia representatives, said he would reshuffle the government after the presidential election he is contesting next March but promised no immediate action.

It was not enough to appease opposition leaders angered by the widespread reports that the ruling party's vote count was inflated by ballot stuffing, even though it barely held on to a majority of seats in the State Duma lower house.

Putin has high popularity ratings but has upset many people by saying he wants to swap jobs with President Dmitry Medvedev after the presidential election, opening the way for him to rule until 2024. He was booed at a sports event last month.

"It's clear that on the whole the legitimacy of the authorities is on the decline," Mikhail Prokhorov, a metals tycoon who fell out with the Kremlin, wrote in his blog.

"If nothing changes, the whole (political) structure could collapse. This system will not last five years more.

Monday's rally in Moscow attracted about 5,000 people -- a large number in a country where many protests are not allowed and demonstrators are often quickly hauled away by police. Police detained about 300 people after Monday's protest.

Putin's spokesman, Dmitry Peskov, said approved rallies could continue but added: "The actions of those who hold unsanctioned demonstrations must be stopped in the appropriate way."

The political uncertainty has affected Russians stocks and the ruble. The ruble-denominated MICEX index fell by 3.8 percent, the dollar-based RTS index dropped by 4.7 percent and the ruble was 1.3 percent down against the U.S. dollar.

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Russians voted on Sunday in a parliamentary election

Vote in Russia

(Reuters) - Russians voted on Sunday in a parliamentary election seen as a test of Vladimir Putin's personal authority before his planned return to the presidency, and an electoral watchdog complained of 'massive cyber attacks' on a website alleging violations.

Putin remains by far the most popular politician in the vast country of more than 140 million people but there are some signs Russians may be wearying of his cultivated strong-man image.

The 59-year-old ex-spy looked stern and said only that he hoped for good results for his ruling United Russia party as he walked past supporters to vote in Moscow.

"I will vote for Putin. Everything he gets involved in, he manages well," said Father Vasily, 61, a white-bearded monk from a nearby monastery. "It's too early for a new generation. They will be in charge another 20 years. We are Russians, we are Asians, we need a strong leadership."

A Western-financed electoral watchdog and two liberal media outlets said their sites had been shut down by hackers intent on silencing allegations of violations. Sites belonging to the Ekho Moskvy radio station, online news portal Slon.ru and the watchdog Golos went down at around 8 a.m.

"Massive cyber attacks are taking place on the sites of Golos and the map showing violations," Golos said on Twitter.

Golos said it was excluded from several polling booths in the Siberian Tomsk region. Moscow prosecutors launched an investigation last week into Golos' activities after lawmakers objected to its Western financing.

On Saturday, customs officers held Golos's director for 12 hours at a Moscow airport and Washington said on Friday it was concerned by "a pattern of harassment" against the watchdog.

Ekho Moskvy editor-in-chief Alexei Venediktov wrote on Twitter: "It is obvious the election day attack on the (radio) site is part of an attempt to prevent publishing information about violations."

President Dmitry Medvedev, who is stepping aside next year so that Putin can return to the presidency, has dismissed talk of electoral fraud. Neither the general prosecutor's office nor the Central Election Commission could be reached for comment.

SOME RUSSIANS WEARY OF PUTIN

Some voters said they would vote for Just Russia, which calls itself 'new socialist', or the Communists, who retain support largely among poorer citizens 20 years after the fall of the Soviet Union and the advent of a free-market system.

"United Russia has lost touch with reality," said a 30-year-old history teacher in St Petersburg who gave his name only as Alexander. He was planning to switch his vote to the Communists.

Others in Russia's second city said they would vote for liberal, Western-leaning Yabloko.

The biggest liberal opposition group was barred from taking part. One of its co-leaders, former First Deputy Prime Minister Boris Nemtsov, put a big X across the ballot paper and wrote: "Give us back our elections, vermin."

About 30 opposition protesters gathered by the Kremlin screaming: "Your elections are a farce!" through loudspeakers. Twelve were detained by police, Reuters witnesses said.

Communist Party leader Gennady Zyuganov, voting at a cultural centre decked out with Soviet-style hammer and sickle flags, said there appeared to be election violations in several parts of the country spanning 9,000 km (5,600 miles).

"I just spoke to our people in Siberia and the Far East and the situation is very worrying," he said.

Opinion polls before the vote put Putin's party on course to win a majority but less than the 315 seats it now has in the 450-seat lower house of parliament, the State Duma.

If Putin's party gets less than two-thirds of seats, it would be stripped of its so called constitutional majority which allows it to change the constitution and even approve the impeachment of the president.

PUTIN'S PARTY

Supporters say Putin saved Russia during his 2000-2008 presidency, restoring Kremlin control over sprawling regions and reviving an economy mired in post-Soviet chaos.

His use of military force to crush a rebellion in the southern Muslim region of Chechnya also won him broad support, and security was tight there on election day.

Opposition parties say the election was unfair from the start because of authorities' support for United Russia with cash and television air time.

Putin has no serious personal rivals as Russia's leader. He remains the ultimate arbiter between the clans which control the world's biggest energy producer.

But his party has had to fight against opponents who have branded it a collection of "swindlers and thieves" and combat a growing sense of unease among voters at Putin's grip on power.

"I shall not vote. I shall cross out all the parties on the list and write: 'Down with the party of swindlers and thieves,'" said Nikolai Markovtsev, an independent deputy in the Vladivostok city legislature on the Pacific seaboard.

"These are not elections: this is sacrilege," he said.

Opponents say Putin has crafted a brittle political system which excludes independent voices and that Russians are growing tired of Putin's swaggering image.

Putin is almost certain to win the March 4 presidential election and could extend his rule until 2024 if he wins the maximum two more terms, but signs of disenchantment are worrying for the Kremlin's political managers.

Sports fans booed and whistled at Putin at a Moscow martial arts fight last month -- an exceptional event in a country inclined to show respect and restraint towards leaders..

($1 = 30.8947 Russian roubles)

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Top Gold Owning Countries of the World - 2011

Gold Bar

Central banks are contributing to world gold demand. The latest data from the World Gold Council indicate even more changes among the nations holding the most in gold reserves. Those are also some of nations whose creditworthiness is now under question during the debt crisis in Europe. 24/7 Wall St. looked at the 13 nations with the highest gold reserves, as well as two institutions, to see how each might affect future gold demand.

While investment demand was the key driver to increased gold demand during the past quarter, it is central bank gold buying and selling that is going to be a key factor for demand ahead. The council projected that central bank demand is expected to continue as creditworthiness woes of western governments has come front and center. In fact, the council also cited many new central bank entrants have emerged as they move to diversify reserves. Further, the council sees this increased central bank activity trend continuing into 2012.

24/7 Wall St. reviewed the top 13 nations that hold the lion’s share of the world’s gold reserves, according to the World Gold Council’s International Financial Statistics. Of course, many nations will have new gold reserve data in 2012. And some of the data remained unchanged from prior months. Our aim here is to show which nations probably are increasing or lowering their gold reserves into 2012 and why.

The European credit crisis and emerging market weakness are what is likely behind central banks’ demand. Total gold demand rose 6% in the third quarter from a year earlier to 1,053.9 tonnes. This equates to roughly $57.7 billion — an all-time high in value terms. Investment was the large driver for increased gold demand, while jewelry demand was soft.

These are The 13 Countries That own The World’s Gold.

13) Venezuela holds 365.8 tonnes.
Venezuela increased its gold reserves by nearly 5%. Hugo Chavez may be no friend to the United States, but oil sales and business nationalization (or seizure) has continued to add more wealth to the nation’s government. Venezuela’s population is only 27 million and it is the sole Latin American country among the top nations holding gold. In 2010, Venezuela bought 3.1 tonnes, according to the World Gold Council. That’s after buying 4.1 tonnes locally in 2009. Venezuela has continued adding gold, and if history is an indicator it is likely to keep adding gold.

12) Portugal holds 382.5 tonnes.
Surprisingly, one of the PIIGS nations (Portugal, Italy, Ireland, Greece, Spain), Portugal, is also a top holder of gold. The European nation has a population of almost 11 million people. Does this go back to the days of its empire building ambitions, or is it because the nation was able to remain neutral in World War II? If Portugal is really in such dire straights, perhaps the Europeans could start demanding that Portugal pledge some of its gold reserves to bolster its finances. Portugal has already been a part of the prior Central Bank Gold Agreement as a seller in recent years, so it seems logical that the nation would be selling to hold up on its debt and entitlement obligations.

11) Taiwan holds 423.6 tonnes.
Taiwan is another surprise as one of the world’s largest gold holders. It has a vast electronics sector, and maybe its high gold holdings help it stay financially relevant in its long ongoing confrontation with China. The nation is already considered wealthier than many neighboring countries on a per capita basis. The accumulation of gold by China makes it unlikely Taiwan would sell much gold now.

10) India holds 557.7 tonnes.
India’s gold holdings are still officially the same as they were at the beginning of the year, but it seems likely that it will increase its central bank holdings. The nation has about 1.2 billion people and its economy is growing — even though the government has fought inflation in 2011. Gold is entrenched in Indian culture that India is likely to continue accumulating more gold. Almost one-third of the world’s jewelry demand comes from India, and the country acquired 200 tonnes of the IMF gold sales in late-2010. India would seem to be a buyer of gold not just in 2012, but in the years ahead.

9) The Netherlands holds 612.5 tonnes.
Another fairly small nation with only 16.6 million people is ranked as a top holder of gold. The nation used to hold even more gold but it was a seller of gold from at least 2003 to 2008 under the Central Bank Gold Agreement in Europe. Maybe Holland could help to create a Dutch-led bailout for the PIIGS in Europe. The country’s gold holdings seem unlikely to change very much in 2012.

8 ) Japan holds 765.2 tonnes.
Japan has had to deal with two decades of a sluggish economy and its currency is currently considered a safe-haven for international investors. The Japanese people are known for keeping cash under their mattresses. The yen feels inflated with its huge debt-to-GDP and no growth. Prices for Japanese goods are getting too expensive for foreigners due to the strength of the Yen. The country is also still recovering from its tsunami and nuclear incident from earlier in 2011. Perhaps Japan will have proven to be a seller in 2011 rather than trying to bolster its foreign currency reserves. If not, it should be.

7) Russia holds 851.5 tonnes.
Russia has been gobbling up gold to bolster the ruble in the past and this appears to be the case this year as well. The new figure of 851.5 tonnes of gold compares to a previous figure earlier this year of 784.1 tonnes. The council had also noted earlier that Russia accumulated some 120 tonnes during the first 10 months of 2010, and that was after adding over 100 tonnes in 2009 and almost 70 tonnes in 2007. The new figure was due to increased purchases after the prior cut-off date. With Russia having vast oil and commodity reserves and with Russia aiming to increase its clout in the world as a financial powerhouse, it seems a shoe-in that it will have proven itself as a buyer of gold into 2012.

6) Switzerland holds 1,040.1 tonnes.
Switzerland already had to take measures earlier this year to halt the appreciation of the Swiss franc. It is hard to imagine that the nation would be buying gold to prop up its currency even after considering reports in recent years that it ran out of places to securely store gold. Switzerland sold gold under the Central Bank Gold Agreement from 2003 to 2008 before the great gold rush. With a mere 7.6 million people, how much gold does the nation really need? This country could easily lighten up on its gold reserves without its benchmark currency status being challenged.

5) China holds 1,054.1 tonnes.
China has added and added to its gold reserves. There is no reason to expect that to abate, particularly after Barron’s pointed that China is seeking a reserve currency status in the generation ahead. China has a population of 1.3 billion people and a fast-growing economy. The country also bought more than 450 tonnes of gold from 2003 to 2009 and 200 tonnes or more during 2010. With the pressure to get away from the dollar peg, assuring the value of the yuan only leaves the purchase of gold or other hard assets.

4) France holds 2,435.4 tonnes.
The French are not in the same boat as Italy and the rest of the PIIGS, but predicting what will happen with France’s gold reserves is very difficult. With a debt rating downgrade possibly coming down the pipe, France is the second largest foundation of the euro and of the European Union. The nation was part of the Central Bank Gold Agreement as a seller, but this was all before the major run-up in gold and before its own finances have come under question during the European debt crisis. It seems that more light selling is expected, although maybe the nation needs more hard assets as a reserve.

3) Italy holds 2,451.8 tonnes.
Italy was in the Central Bank Gold Agreements as a seller, but now it is the largest concern of Europe and of the PIIGS. It would seem that the Italians are unlikely to sell off their gold reserves. However, it is also likely that to fend off weakness some would argue for asset pledges. The nation has a new government and its economic growth is expected to be limited at best. Releasing gold might address some of Italy’s budget gaps and economic problems. Because Italy’s debt problems are quite large, it is likely that it would be a gold seller into 2012. If not, perhaps pledging those holdings is a runner-up scenario.

2) Germany holds 3,401.8 tonnes.
Germany remains the foundation of the European Union and of the euro. The nation was a seller of gold for coins under the Central Bank Gold Agreements from at least 2003 to 2008, but the sales were not really enough to put a serious dent in its gold reserves. It is hard to see Germany being a buyer of gold, but it likely cannot be a large seller either because it is the largest foundation of the euro. Selling too much gold could further pressure the troubled euro. Still, euro bailout funds have to come from somewhere and Germany could sell some additional gold without challenging its No.2 position among the nations holding gold reserves.

1) United States holds 8,133.5 tonnes.
The U.S. has already lost its prized AAA credit rating and it has magically created a vast amount of dollars to support the bailouts and stimulus packages. The U.S. could always try unloading some gold to fight future commodity price pressures, but the U.S. has now reached the point of leverage and deficits that it has to hold hard assets to fend off another challenge to the dollar as the world’s top reserve currency. Any gold sales today would likely have to be countered by large gold purchases in the future.

Looking from 2011 to 2012, Central Banks, Investment and More
The International Financial Statistics on the World Gold Council’s November report shows that the IMF holds 2,814 tonnes of gold. This technically puts the IMF somewhere between Germany and Italy. If the IMF is going to support bailouts and stabilization efforts, it is easy to consider where that money will come from. After all, the IMF cannot exactly print currency. The IMF’s Executive Board approved the sale of 403.3 tonnes in September 2009, which came to about one-eighth of its total gold holdings at the time.

The European Central Bank had some 502.1 tonnes of gold, according to the same November report. This is more than Taiwan, but less than India.

There are some key statistics to consider as 2011 comes to an end. Investment demand rose 33% from a year ago to 468.1 tonnes in the third quarter, worth about $25.6 billion. Central bank demand in the third quarter added 148.4 tonnes, an obvious effort to support currencies and credit ratings.

The world gold supply was up only 2% to 1,034.4 tonnes in the third quarter over a year earlier. Mine production was up 5% to 746.2 tonnes, while recycling activity was up 13% to 379.1 tonnes.

The investment segment showed that ETFs and investments accounted for 77.6 tonnes, but this was dwarfed by actual gold bars at 294.2 tonnes. Official coins came in a close third place at 76.2 tonnes and another 20 tonnes were for medals and imitation coins. European investment demand reached a record quarterly value of 4.6 billion Euros for 118.1 tonnes, a gain of 13%.

Also, watch Chindia. Chinese jewellery demand was 13% higher year-on-year at 131.0 tonnes; China’s investment demand for gold bars and coins rose 24% to 60.2 tonnes. Indian jewellery demand was down 26% in its seasonally slow quarter and it was compounded by high inflation and gold price volatility, although yearly demand at the end of September was called “very close to the record levels seen in 2010.”

If you tally up the top 15 entities here, the total is close to 26,000 tonnes of gold before counting any of the ETF products. The total tonnes of gold reserves from the International Financial Statistics cited by the World Gold Council is 30,708.3 tonnes. The SPDR Gold Trust (NYSE: GLD) lists some 1,277.36 tonnes worth over $71.5 billion today, but that is live data rather than just third quarter data released by the World Gold Council.

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