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Russia forum to focus on economy Russia forum focuses on economy
(about 9 hours later)
Thousands of delegates from around the world are attending a big economic forum in St Petersburg, Russia.Thousands of delegates from around the world are attending a big economic forum in St Petersburg, Russia.
Politicians and businessmen are to discuss the prospects for Russia's economy as President Vladimir Putin prepares to leave office. They are discussing the prospects for Russia's economy as President Vladimir Putin prepares to leave office in 2008.
It comes after energy companies like BP and Shell have faced pressure to hand over assets to Russian state firms. Addressing the forum, a top Russian official warned that UK energy giant BP could lose a licence for developing a big gas field in Siberia.
Mr Putin and his Georgian counterpart, meanwhile, used the gathering to hold talks aimed at mending bilateral ties.
And in a separate development, Boeing and Aeroflot signed a multibillion-dollar contract for the Russian carrier to buy 22 Dreamliner jets from the US plane maker.
Opposition activists have also converged on the city to protest against Mr Putin's policies.Opposition activists have also converged on the city to protest against Mr Putin's policies.
President Putin is due to stand down early next year and there is much speculation about who his successor will be.President Putin is due to stand down early next year and there is much speculation about who his successor will be.
At the moment, Mr Putin seems to favour another former KGB intelligence officer, Sergei Ivanov, the first deputy prime minister.At the moment, Mr Putin seems to favour another former KGB intelligence officer, Sergei Ivanov, the first deputy prime minister.
But the opposition activists, led by chess legend Gary Kasparov, want to see a complete change in the Kremlin, says the BBC's Richard Galpin in St Petersburg.But the opposition activists, led by chess legend Gary Kasparov, want to see a complete change in the Kremlin, says the BBC's Richard Galpin in St Petersburg.
They accuse President Putin of dismantling democracy in the country and want to prevent his hand picked candidate from winning the presidential election in March, our correspondent says.They accuse President Putin of dismantling democracy in the country and want to prevent his hand picked candidate from winning the presidential election in March, our correspondent says.
The presidents of Ukraine, Azerbaijan, Kazakhstan and Armenia are also due to attend the Russian Economic Forum - alongside chief executives of some of the biggest international companies. Kovykta warning
Energy pressures The presidents of several former Soviet republics are attending the Russian Economic Forum - alongside chief executives of some of the biggest international companies.
On Saturday business leaders will have an opportunity for private face to face talks with the Mr Putin. Addressing the gathering, Sergei Ivanov said he did not rule out withdrawing BP's licence for developing the $2bn (£1bn) Kovykta gas field in East Siberia for alleged licensing violations.
Russian authorities recently delayed a decision on whether to withdraw a licence for BP's joint venture in the Kovykta gas field in East Siberia. Russian authorities recently delayed a decision on whether to withdraw the licence for BP's joint venture in the Kovykta.
They say TNK-BP is not producing enough gas from the area, but the dispute is being seen as the Kremlin's latest attempt to gain greater control of Russia's energy supplies.They say TNK-BP is not producing enough gas from the area, but the dispute is being seen as the Kremlin's latest attempt to gain greater control of Russia's energy supplies.
Reports at the time suggested that Moscow might postpone its decision until after the G8 summit and the Russian Economic Forum. Last year, Russian energy giant Gazprom secured a majority stake in a similarly large Russian oil and gas field formerly led by Royal Dutch Shell.
Last year Russian energy giant Gazprom secured a majority stake in a similarly large Russian oil and gas field formerly led by Royal Dutch Shell. Shell and its partners granted Gazprom control of the Sakhalin-2 project after authorities refused to grant them the necessary environmental certificates.
Shell and its partners granted Gazprom control of the Sakhalin 2 project after authorities refused to grant them the necessary environmental certificates. Russia-Georgia talks
Meanwhile, President Putin met his Georgian counterpart Mikhail Saakashvili to try to defuse a bitter row that sent uneasy ties between the two neighbours to all-time lows last year.
The two leaders discussed the lifting of Russian sanctions at the "friendly and frank" talks, Kremlin spokesman Alexei Gromov said.
The row began after Georgia deported four Russian soldiers it accused of spying.
In response, Russia imposed economic sanctions against its southern neighbour and deported hundreds of Georgians.
Relations between the two countries have been strained since Georgia's pro-Western government came to power in 2004.