Russia

German minister hits out at critics of Georgia peace plan

Berlin - German Foreign Minister Frank-Walter Steinmeier hit out Wednesday the critics of the six-point European Union peace plan for the Georgia-Russia conflict.

"I find it a bit shabby the way it is being disparaged," said Steinmeier during a debate in the Bundestag parliament.

He praised France's President Nicolas Sarkozy, who had negotiated the plan in "difficult" talks in Moscow and Tbilisi.

"This conflict and people's deaths in the southern Caucasus ended because the European Union took up the case," said the minister.

Russian markets halt trading after dive

Moscow - Russia's two leading stock exchanges halted trading for the second day Wednesday as banks appealed to the finance ministry for emergency loans amid global market turmoil.

Russia's Micex market and RTS suspended trading indefinitely at 12:10 pm Moscow time at the request of Russia's financial watchdog, both indexes said in statements.

The ruble-denominated Micex fell 3.09 per cent before trading was halted, a spokeswoman was quoted by news agency Interfax as saying, and the dollar-denominated RTS plunged 6.39 per cent in its first two hours of trading.

The RTS index lost 57 per cent since soaring to record heights in May.

Police: 10 gunmen killed in Russian Caucasus sting

Police: 10 gunmen killed in Russian Caucasus sting Moscow - Russia's FSB intelligence agency said Wednesday 10 rebel gunmen were killed in an early morning shoot-out in the Caucasus republic of Dagestan.

One security agent died and another was injured in the police assault, Dagestan's Interior Ministry said.

"The armed gang got caught in an ambush led by a special task force of the FSB," a spokesman for the agency was quoted by Interfax news agency as saying.

Venezuela, Russia forge even closer ties

Caracas - Venezuela and Russia plan to deepen bilateral ties, expanding economic, technological and military cooperation, Russia's Deputy Prime Minister Igor Sechin said Tuesday.

The South American country was one of Russia's most trusted partners, Sechin said after a meeting with Venezuelan Vice President Ramon Carrizales.

Both countries plan to sign several agreements in a high-level meeting scheduled for October 15-18 in Caracas.

In Tuesday's meeting, a range of bilateral cooperation agreements, including in the fields of energy, trade, education, technology and military affairs were discussed, Carrizales said. Relations to Russia were important to establish a multi-polar world as envisaged by Venezuela's leader Hugo Chavez, he added.

Putin: Defence spending will grow 27 per cent

Vladimir PutinMoscow  - Russia's defence spending will increase 27 per cent in 2009, news agency Interfax quoted Prime Minister Vladimir Putin as saying on Tuesday.

"Nearly 2.4 trillion rubles (94.23 billion dollars) will be allocated for the needs of national defence and security," Putin was quoted as saying. "This is an increase of 27 per cent."

The announcement comes on the heels of Russia's crushing defeat of Georgian forces on the former Soviet satellite's soil last month.

We'll continue our expansion, NATO chief says in Georgia

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