Wednesday, September 3, 2008

New Orleans storm fails to dent metal market

As the rain and furious winds which have hit New Orleans subside, its residents can breathe a cautious sigh of relief.
Among them, the owners of London Metal Exchange approved warehouses who shared fears that Hurricane Gustav could wreak similar levels of damage as 2005's devastating Katrina. Nearly 40% of the LME's zinc stocks, which currently stand at 61,000 mt, are currently warehoused in New Orleans.
Pacorini Metals USA -- which owns three LME approved warehouses in New Orleans housing aluminium, lead, copper, North American aluminium alloy, tin and zinc -- has not yet resumed business since the storm.
Pacorini commercial manager Mario Casciano spoke to Platts and said that the Italian-based company's New Orleans warehouses were currently closed due to electricity issues, but that he believed that they would be up and running by Wednesday. Two other companies with LME approved warehouses in New Orleans, Henry Bath LLC and C.Steinweg, declined to comment on the state of stocks housed in their premises.
Investors had feared that Hurricane Gustav, which had originally been given grade four status before being downgraded to a category two storm on Sunday ahead of hitting the US coast, would have a similar impact on LME warehouse stocks to Katrina.
In the wake of the 2005 hurricane, the LME suspended as good delivery against LME contracts all LME warrants for zinc, copper and primary aluminium stored in New Orleans on September 6, 2005, after flooding caused damage to stocks. At the time 248,575 mt of zinc, over half of the LME's stocks of 558,225 mt were warehoused in the city.
"There were people out there selling the rumour that the same thing could happen again this time," commented Calyon analyst Robin Bahr. "There was an outside chance that it could affect the zinc stocks but it's a lot less touch and go this week and prices seem to have settled. However, we can't be completely sure that stocks haven't been affected until people get back and see for themselves."
Zinc's rally on the LME base metals complex ahead of the weekend was driven for the most part by fears that New Orleans LME stock would be affected. The white metal weakened Tuesday and dipped down to $1,755/mt at the end of the third ring, down from highs earlier in the month of $1,880/mt.
"The city is still pretty much shut down, however, as far as we know the warehouses are fine," said LME spokesman Tom Lant, adding that owners of LME warehouses he had spoken to had said that they had not yet been back to their warehouses, but did not think stocks had been affected.
While power issues caused by the hurricane were yet to be resolved, and many of the city's residents remain evacuated, the relatively moderate impact of the storm did little to bolster LME metal prices, which continued to weaken Tuesday in the face of a strengthening dollar.
--Michelle Madsen, michelle_madsen@platts.com

Thursday, July 31, 2008

Russian oligarchs look to ex-KGB man in battle for Norilsk

UC Rusal has denied merger talks are being carried about between its chief executive Oleg Deripaska and Norilsk majority shareholder Vladimir Potanin, as the nickel giant eyes former KGB-officer Vladimir Strzhalkovsky as its new chief executive.
Aluminum giant Rusal said in a statement Wednesday that Deripaska was not carrying out "any talks with Vladimir Potanin about a possible merger of UC RUSAL and Norilsk Nickel", adding that no confidentiality agreement had been discussed or signed by the two men.
Rusal said that it considered its 25% stake in Norilsk as a "strategic investment" and that it still intended to pursue "all legal remedies" to protect its interests.
Potanin has been locked in an ongoing battle with Rusal over the control of Norilsk, the world's third-largest nickel producer since Deripaska's company bought a 25% stake in Norilsk in April.
At the company's annual shareholder meeting last month four Interros representatives were voted to Norilsk's board, including Potanin, while only two Rusal representatives, including Deripaska, won seats. The appointment of Strzhalkovsky, a close ally of Russian prime minister Vladimir Putin, would strengthen Interros' hold over the company.
A spokesman for Potanin's investment vehicle Interros spoke to Platts regarding Strzhalkovsky's possible appointment and said: "These negotiations have begun and are ongoing. The final discussion will take place when the board of directors meet on August 8. He is the only candidate that we are putting forward."
The Russian government has previously expressed its wish to create a Russian metals and mining company on the same scale as Anglo Australian mining giant BHP Billiton. Strzhalkovsky, currently head of Russia's state tourism agency, would take over the role of chief executive from Sergei Batekhin who has held the position for less than a month.
The Interros spokesman said that if Strzhalkovsky takes the role of chief executive, Batekhin would become his deputy and look after the day-to-day running of the company.
--Michelle Madsen, michelle_madsen@platts.com

Tuesday, July 8, 2008

On the hippy trail

Looking under the surface in Goa for Time Out

Think of Goa, think of palm fronds, tie dye and a distinctly unwestern pace of life. But be warned, the former alternative-lifestyle havens Baga and Calangute might not quite match your expectations. Once the province of the patchouli-doused teenagers of the ‘60’s, these towns are now bustling resorts and see a constant influx of sun-seeking tourists lured to the east by the promise of exoticism and cheap package deals. Take a stroll along the beach of any town south of Vagator and, try as you might, you cannot deny that the sweaty, pullulating vibe is more Costa del Sol than karmically sound. But travel to Goa’s northernmost tip, up to the villages which line the route to the border with Maharashtra and you’ll find pockets of a wholesome paradise which have not yet been lost.

To get to India’s smallest state, you can take the easy option and fly directly to the small airport in Vasco De Gama, hop into a taxi and drive straight to the tourist packed beaches of Calangute, or take the budget backpacker option, hit the rails and take the overnight train to Goa from the North. Arriving in Thimvim, Mapusa’s tiny outpost station which is little more than a scruffy-looking waiting room and a couple of sullen guards, is something of a refreshing experience after the relentless pounding of human traffic of Mumbai. After 13 hours on a sweaty, two-foot bunk the idea of further travel is unappealing, but Anjuna, the first of the more undeveloped beach towns after the heaving southern resorts, despite being a mere 12 kilometers distant takes a further 45 minutes in a sweltering taxi.

Anjuna was to the late ’90’s rave generation what Carnaby Street was to swinging London. The scene has significantly quietened since residents’ complaints put an end to the all night trance-fuelled revels which used to be held regularly on the beach. Nonetheless, Anjuna still has something of the party vibe about it. As you approach the cliffside walk which leads you down past a hotchpotch gaggle of stalls, bars and meditation centres, the distinctive sound of Goan trance fills the air. Day or night, hybridized thumping rhythms can be heard across the town, and if you visit the Wednesday flea market your ears will be ringing with the squelchy organic beats for days to come. Trance is not the only reason to hit Anjuna on a Wednesday. The flea market has been a meeting-point and trading spot for travellers, expats and canny locals since the late ’60s, when resident hippies set the market up to trade second hand goods with passing travellers. Since then it’s grown to encompass a much larger variety of trades, with multitudes of stalls selling tie-dyed cotton shirts, fisherman’s trousers and other items of trustafarian garb which are eagerly bought up in bulk by gap-year students. Despite the tat, it’s still retains much of its original flea market character and if you wander deep into the sun-baked maze you’ll be able find anything from a second-hand scooter to a haircut for no more than a handful of rupees. The atmosphere elevates Anjuna from a slightly seedy, somewhat forgotten backwater with a decent beach and a few bars, to a vibrant, colourful and electric hub. Once the stallholders have packed up, Anjuna quietens down again, although if you are looking for a party, head to Paradisos at the town-end of the beach strip where the market vibe continues late into the night.

Anjuna has a number of slightly shabby guesthouses, both along the shoreline and, for those who prefer to be closer to civilization, along the main drag of the roads leading towards Mapusa. We stayed at the basic but clean Poonam Guesthouse which is one of the closest spots to the beach and has rooms for 900 rupees, looking out onto a rambling garden and courtyard. There are a number of yoga retreats and basic guesthouses on the backstreets off the road to Vagator, but your best bet if you are after aesthetic and creature comforts is the beautiful Hotel Bougainvilla which combines the principles of a new-age resort with the rambling architecture of the region. Next door the Purple Emerald Yoga Centre offers courses for the actively inclined. Eating in Anjuna is a little limited, with many of the beachside restaurants offering curries and snacks of dubious quality. Oasis, on the Vagator road, has a very decent German bakery and offers a tranquil spot to start the day. Across the road there are a couple of friendly, family run curry houses which offer the ubiquitous Goan prawn curry as well as less piquant dishes for a handful of rupees.

Heading north through Mapusa, Goa’s sprawling commercial hub and an hour on one of the region’s colourful clapped-out buses takes you over a wide creek to the Morjim-Arambol strip. Access to these relatively remote villages has increased significantly since the opening of a bridge across the creek (previously you had to take a ferry) and tourism is gradually making its mark on this previously untouched corner of India.

Mandrem, a collection of huts and yoga centres which spread lackadaisically from a freshwater creek to the lapping shores of the sea, is a sleepy sort of place where tourism has yet to leave a dirty mark. Rising in an imposingly colonial fashion from the verdant shores of the river is the decidedly idyllic Villa Rivercat. This majestic edifice is the dream child of Rinoo Seghal who has invited like-minded guests into his home for the past 17 years. With a delicious garden which looks like a cross between a raver’s chill out zone and a haberdasher’s multicoloured fantasy, Rivercat is very much a place to rest, reflect and recuperate. Airy, comfortable rooms and a chilled out, sleepy air characterise the villa, which, fittingly is decorated with an eclectic range of cat paraphernalia as well as being home to several stray felines and much loved family dogs which have run of the house. A rapid clamber over a dune and you are on the wide shores of the Arabian Sea; no clamouring package tourists from the shires here, Mandrem’s lack of facilities and relative remoteness precludes holiday-makers looking for bright lights and a pumping club-scene. Most of the village’s guesthouses are tucked away beyond the dunes and aside from a few rickety bamboo huts perched picturesquely alongside a wooden bridge belonging to Merrylands, the beach is an untainted stretch of virgin sand home only to crabs and the odd beachcomber. If you are very lucky or time your trip carefully, you can even head out to the beach under the full moon to watch turtles hatch their young.

Even the most ardent peace seeker may wish for a little more action than Mandrem can offer, and for a mere 150 rupees you can hire a scooter for the day and head north to Arambol, the determinedly more lively enclave on the northernmost tip of Goa. Perched on a hill and surrounded by forest, Arambol is still home to a number of fishermen who reap the fruits of the sea whilst tapping the tourist dollar which bolsters the small town’s economy. Arambol’s a friendly sort of place and, if you stay for more than a couple of days, stallholders and restaurateurs smile and greet you as you pass by on your way to the beach to catch some rays, read a book or simply lie back and watch the gentle traffic of dread-locked Europeans meander along the sands.

The roadside market here, if smaller than the weekly market in Anjuna, is much less frenetic and you are free to browse hemp jumpers and flowery skirts at your leisure without too much attention from aggressive hawkers. Arambol is credited by many a well-wandered traveller as being home to some of the best budget food in Goa. If you’re hungry, head down to the beach for excellent Italian on the sand at Relax Inn, eye-wateringly hot spicy seafood at Blue Pearl or possibly the best nan and massala we’ve ever tasted at Om Shankar’s Beer Bar and Restaurant. Alternatively head back up the hill to Pane e Pomodoro, a Ligurian restaurant run by the charming and pally Franceso and Federica. But even Arambol, as basic as it is, feels at times as if it wears its hippy hangout status with a certain weariness, as if there hangs in the air the faintly perceptible ghost of a thousand parties, filling the casual passer-by with a certain nostalgia and longing for somewhere which is not, and has never been, part of a scene.

To really escape you need to forgo the beats, the parties, the beachside restaurants and the broadband and travel even further north, beyond Tiracol with its Portuguese fort cum heritage hotel and marvellous, tantilisingly fresh food, on to Shiroda and Vengurla where the pearly white sands and the clear blue skies are vast, uninterrupted expanses which lie, as yet, untouched.

State of mind
Venture away from the leafy mangroves and deserted beaches of the northernmost tip of Goa, and you ears will be assailed with the unmistakable thump of Goa trance. This organic, squelchy sounding music emerged in the late ’90’s and is closely related to psychedelic trance, its more metallic sounding cousin. With its roots in the early hippy history of Goa, there’s a slightly more spiritual element behind those heavy heady beats which boom from the terraces of every restaurant, hotel and bar in Anjuna. Regrettably for some, the parties which spawned the music have largely stopped due to more stringent laws being enforced in the area with regards to late night noise and drugs. Faster than mainstream trance, the beats you’ll hear pounding through the Goan night are designed to enhance an already enhanced frame of mind, making them somewhat unpalatable to those in an unaltered state of being. Goan trance has not lost any of its popularity, although strangely enough, the pseudonymous state is no longer the greatest exponent of the sound; Israel now takes that title, soldiers visiting Goa having taken the sound to their hearts and the rich organic sounds of west-Indian trance beats out the rhythm of many a rave in Tel Aviv.

By Michelle Madsen, July 2006

The road less travelled

An interview with the Observer's chief correspondent

Generalisations irk Jason Burke. After recklessly throwing in his lot with the Kurdish Peshmerga at the tender age of 19, his interest in militancy has seen him irrepressibly progress from an enthusiastic graduate newshound, to chief reporter at The Observer, one of Britain’s best respected weekly broadsheets. To make a sweeping statement about the Muslim world is to invoke his ire.

From brutal bloodshed to animistic shrines in Islamabad, saying that Burke has seen a lot is something of an understatement. Recollections of his encounters with Islamic cultures along the path from Algeria to Indonesia confirm to him that the much-touted Western perception of a monolithic Islam simply does not exist. But how does this reconcile with Burke’s message of a common humanity?

‘This was the point I got stuck at when writing the book; its purpose is to show that we are all the same whatever broad faith or non faith box we are dropped into. I was writing about Islamic communities, which obviously poses considerable problems when you are writing a book saying that the world cannot simply be divided into Islamic and non-Islamic. Human beings across the planet are 95 per cent the same, there is only a very small element of our make up which is variable, and only a very small percentage of that which is religiously variable. I had to break up the stereotype that there is one Islamic world populated exclusively by mad, gun-toting Muslims, and show that 99 per cent of Muslims are the same as people from anywhere else.’

It’s a point which has persistently been underplayed by Western newspapers who rarely, if ever, print stories of genuine human interest from the Islamic world, preferring instead to dwell on the atrocities committed by warmongering extremists and oppressive regimes. Burke has often complained about the unfair amount of column inches given to news from conflicted areas in the Islamic world, claiming that the unremitting rhetoric of suicide bombing and Al Qaedism has stretched global empathy to breaking point.

‘Most of the time these voices, the voices of the vast silent majority, are not heard. Because they are not heard, the people in the West increasingly think that Muslim equals terrorist madman. Muslims, like anyone else, just want to get food on the table at the end of the day – they want to go home to their wives or their husbands, they want healthcare for grandma and they want their kids to get some kind of education. There is a preconception embedded in the question ‘where are the most devout Muslims?’ and that is one which equates devout with extreme. What do we in the West mean when we talk about Islamic countries? Do we mean countries in which the majority of the population are practicing Muslims? Fine, but you get into hot water when you ask what it means to be a Muslim. Take Iraq as an example: I met many people in Iraq who you could not call classically devout or practicing Muslims – they may fast during Ramadan but they don’t pray five times a day, they drink, they eat pork and few make the pilgrimage to Mecca, yet they are fiercely proud of being Muslim. Near where I lived in Islamabad there was a shrine to a local saint called Bari Imam where hundreds of people went to pray. They were the poor, the uneducated, the sick: peasants who go to ask for divine intercession or to be healed by putting out regular offerings or tying favours to trees. Effectively worshipping a saint, these practices are forbidden in classic Islam – to me these people were devout Muslims practicing a practical, functioning variety of their religion. They believe in the shrine, the saint and the power of God and they believe that they are Muslims. It is not for me to say whether they are or they are not, but then, I am not a Muslim or a Christian or a believing person. Equally there are people who I spoke with several times from northwest Afghanistan who believe in a wide range of things which are classically described as being fundamentalist. But who is the more devout Muslim? You tell me.’

Travelling up and down the Islamic world, revisiting old acquaintances and meeting new faces on each trip, Burke’s voice is one which lets the events he witnesses and people he encounters speak for themselves. It’s not easy to give a positive spin to the much-maligned members of the Taliban, a regime which has been at the heart of so much furious invective from the Western press. Burke’s impression of the fighters he meets in Kandahar, however, is forgiving – he finds he cannot accept the label of ‘mad mullahs’ which the West so rapidly gave to the members of this distant regime. ‘The Taliban always seemed to me like abused children trying, in their own damaged way, to make the world better and in doing so visiting the abuse they had suffered on others. I felt sorry for them. They were part of the tragedy that was Afghanistan, not its cause.’

The fiercely emotive power of language to demarcate and condemn in sweeping generalisations is an issue which Burke doesn’t dwell on, although he’s ready to admit that the future of accurate reporting will be dictated by public interest. ‘I’ve been a working journalist on British national papers for the last 15 years – I don’t expect miracles. We have to accept that there are serious constraints on journalists throughout the world. Increasingly, papers don’t invest in hard news, preferring to focus on fashion and lifestyle and fair enough, nobody wants to read about Al Qaeda on every page of every newspaper. I’ve been in a position where I have been given the resources to go beyond the easy headline, which is something that most journalists never have the chance to do.

Many web-based forums which discuss Islam would agree that Western media-speak has portrayed Islam, particularly over the last five years, in an ill-informed and bigoted fashion. Islamonline.com argues that the British media in particular has been at worst propagandist and, at best, selective and partisan in its reporting of the Muslim world since the London bombings of July 7 2005. It’s a valid point to raise when so much of the criticism levelled at Islamic countries is focused upon the democratic issues of press-censorship and a lack of free speech. If Western papers cannot report unbiased accounts of events, how can they level such criticisms at their eastern counterparts?

‘Journalists need to know that with freedoms come responsibilities – even if you are not being censored, there is no excuse for printing rubbish. In fact, a free press means you have to take more care because you have to print the truth. I am a firm believer in free speech, free conversation and the power of reason. Particularly the latter as well written, truthful reporting will carry an argument and win the day every time. The truth will always be the strongest news you can print. One of the great problems for the press in the Middle East is that the culture of fact is so debased that no one believes anything. The result is that abhorrent, morally repulsive conspiracy theories emerge. It’s just rubbish, it belittles anyone who thinks like that and makes reasonable debate impossible. We need responsible press freedom – it’s a fundamental tenet of democracy. It’s rubbish to say that a free press is not compatible with Islam. Why not? Pakistan has a fairly free press, as does Indonesia. Even Algeria has a remarkably free press for what is essentially a quasi-military state. But you cannot just stop with press freedoms, we also need freedoms of religion association and speech as well.’

Burke’s mood is certainly more reflective than in his last book Al Qaeda: The True Story of Radical Islam which focused solely on the terrorist group and its many misinterpretations in the West. On the Road to Kandahar turns the spotlight from the radical elements and focuses on ordinary people, the crowds in the streets and the children in the schoolroom. It’s the infinitely recognisable human traits of kindness, weakness and determination which shine through the bearded surface of his interviewees. It’s these local touches, the wider view of the paths which he has travelled, which cause Burke so much trouble in reaching a resolution. Returning to Pakistan in late 2005 to revisit an extremist acquaintance he once felt nothing but amicable disdain for, he realises that his sympathies have been sharply realigned by recent events. ‘The London bombings had made it abundantly clear that in the first decade of the 21st century the world was too small a place for ideas and acts anywhere to be safely ignored. It was no longer possible to be just an observer.’

So it seems we are all participants in this global conflict which is growing to embrace every creed of humanity with alarming speed. Burke, however, views the emergent issues of the 21st century with more optimism: ‘The problem is one which is very much at the heart of the Middle Eastern situation – how do we reconcile identity with globalisation? How, when there is increasingly a single vision of how we are meant to live our lives, do we reconcile this homogenous vision with local traditions, religions values and societies? How do we combine the potential economic and political benefits of globalisation with that very human craving to feel at home and master of ones self and ones destiny? You see these questions asked everywhere, in Europe in America – it might be at the root of both religious nationalisms and political fundamentalisms, which all lead to frustrations, and sometimes, violence. This is the great challenge of the 21st century and watching how it develops will be an extremely interesting experience.’

On the Road to Kandahar: Travels Through Conflict in the Islamic World is published by Allen Lane and is available from Penguin Books online. www.penguin.com


By Michelle Madsen, July 2006 (Time Out)

Warring Russian oligarchs pick up pace of boardroom tussle

UC Rusal hits back against Interros dominance of Norilsk board

London (Platts)--8Jul2008
Russian mining major UC Rusal has hit back against Interros chief
Vladimir Potanin's election to the chair of Norilsk Nickel's board, voicing
"deep concern" over the independence of the nickel giant's board and
threatening legal action.

In a statement released Tuesday, UC Rusal, the world's largest aluminium
and alumina producer, said that the appointment of Potanin as chair showed
poor corporate governance and was responsible for Norilsk's share price
dipping 2.5% over the course of the day.

US Rusal said: "As a major investor in Norilsk we prefer to reach our
goal of a transparent and properly governed Norilsk via shareholder dialogue,
but in view of our large investment in Norilsk we reserve our rights to pursue
all legal remedies against the company and its board of directors."

Potanin was voted chairman of the company's board of directors at the
meeting on Monday, firming his hold over the world's largest nickel miner at
the new board's first meeting, which Rusal claims was held at too short notice
for shareholders to be present.

The board also appointed Interros' deputy general director, Sergey
Batekhin, as chief executive, replacing current incumbent Denis Morozov.
Batekhin will take up his new role on July 21.

Morozov said in a statement that he had achieved the primary goals set
when he became general director a year ago: "I requested the new board to
confirm my authority as chief executive of Norilsk since my continued ability
to lead the company at the time of competing interests of major shareholders
required the full support and cooperation of the entire board of directors."

Morozov, who joined Norilsk 10 years ago, said in an interview with a
Russian newspaper in June that the battle for control over the company had
distracted attention from production at Norilsk.

A spokeswoman for Norilsk told Platts that Morozov would step down on
July 18, but could not comment on his next move.

Potanin's appointment as chair of the company's new board on Monday comes
a week after Norilsk's shareholders voted four Interros members to the
company's board, alongside three independent directors and three
representatives from UC Rusal, which bought a 25% stake from former Norilsk
owner Mikhail Prokhorov in April.

UC Rusal, owned by oligarch Oleg Deripaska, has expressed an interest in
a full merger with Norilsk which would see the two companies combine to form a
diversified mining giant worth an estimated $100 billion.

Potanin has resisted any tie-up with Rusal by pursuing a merger with iron
ore and steel group Metalloinvest.

Rusal said that it planned to consult with Norilsk's minority
shareholders over the coming days and push for the election of independent
directors to an enlarged board of thirteen, adding that Interros' boardroom
conduct was "unsuitable."
--Michelle Madsen, michelle_madsen@platts.com

Monday, July 7, 2008

What's in a blog?

How blogging became the darling of the Middle East's expressive intelligensia

Welcome to the world of the new media where anyone can publish their own thoughts for free, to be read by anyone around the globe with access to the internet. ‘Blog’ is yet another wonderful pan-linguistic term to slip into common usage from web-speak, short for weblog and is essentially a journal (or newsletter) that is frequently updated and intended for general public consumption.

Blogs usually represent the personality of the author and take the form of online diaries, forums or discussion panels; topics covered are multifarious and range from the amusing, to the inane trivialities (www.stuffonmycat.com) to breaking news and opinion. Anyone with an idea, political agenda, experiences or images to share now has a handy electronic vehicle for their voice. If you have the internet-acumen to navigate your way to a search engine, setting up your own blog is a breeze; with your own online virtual diary in place anyone is free to vent into the virtual-void of the net on his or her topic of choice and sit back and wait for praise, comment or abuse. Admittedly a large proportion of the material you’ll encounter on your travels through cyberspace is just noisy invective from ranting individuals unleashing their ire, but persevere and you’ll chance across writings not only bizarre and newsworthy but thoughtful, touching and unremittingly human.

For the bulk of the millions of bloggers across the globe, monetary gain is not yet a consideration. Whilst traditional forms of media have agendas which may be informed by corporate interests and the like, bloggers, for the most part, are not in it for the money which makes the diverse range of news and opinion you’ll come across on the web edgier and more up-to-date than almost anything you’ll see in the conventional press. Blogging in Abu Dhabi may still be in its infancy with the relatively small number of blogs registered to the city taking the form of online journals rather than forums for debate, but there are a number of blogs which provide a unique insight not only into the life of the author but into the life of the city.

Further afield, the controversial Dubai based expat-authored blog Secret Dubai Diary (http://secretdubai.blogspot.com/) has ruffled feathers in the past years, and rose to further notoriety after surviving a short-lived block imposed upon the site by Etisalat who deemed its contents unsuitable for public consumption. Its author’s sharp and at times sardonic commentary on life in the city through the eyes of an expat covers everything from news stories to the demise of tea culture at the roadside subcontinental cafes around the city.

The cream of Abu Dhabi-based blogspots you’ll encounter when you search through www.globeofblogs.com or any of the multitude of blog specific search engines on the net are personal diaries rather than satirical commentaries. Don’t expect contentious political baiting of the government or UAE society but blogging delights such as the plaintive listing of ailments and wry comments on It’s Not Always Pink (www.fizzamehdi.com) or the musings and literary efforts of Waldo (http://waldoblogo.blogspot.com/) writer, student and self-confessed Friends fanatic.

While weblogs or online diaries have been around for over a decade, their status as an active method for disseminating information as well as opinion has come into its own throughout the world in the past two years. Blogging is slowly having a powerful effect on mainstream media throughout the world with politicians, corporates and other public figures regularly posting rebuttals to accusations made at them through online posts. Blogs are also being read, and in some cases, written, by journalists; some blogs are considered as informative, if not more so, as news published by legitimate media outlets due to the breath and contemporaneity of their content.

It looks as if blogging is here to stay and it is gaining recognition as a literary medium in its own right. Last month Baghdad Burning, the acclaimed Iraqi blog which has provided a frank and eloquent voice describing conditions in the country after the war, was short listed for the Samuel Johnson prize, the prestigious British non-fiction award. It is one of the first blogs ever to be nominated for a major book prize and indicates the commercial recognition that the best blogs can expect to receive in the future. Although the press in the UAE has yet to attribute as much importance to the medium as its counterparts in Britain or the States, online communities like Orb UAE have already seen fit to reward inspirational bloggers in the country with their own awards. Emerging from the excellent UAE community blog (http://uaecommunity.blogspot.com) other blog based initiatives like the writers forum (http://writersblockuae.blogspot.com/), dedicated to creative literary output for writers in the UAE are paving the way for virtual communities to form and thrive.


By Michelle Madsen, May 2006 (Time Out)

Black gold- caviar hustling on the gulf

Looking into Abu Dhabi's illegal caviar-smuggling industry

‘We are unable to approve the export quotas for this year’ was the reason given by CITES spokesperson Juan Carlos Vaquez, for imposing a worldwide ban on the export of wild caviar. Although CITES (the Convention of International Trade in Endangered Species) has been known to flex its muscle on the matter of illegal caviar trading in past years, up until now only brief trade embargoes have been imposed. Last time a crackdown was enforced on the trade in the UAE was in November 2001 when, after months of investigation, CITES found that much of the Dhs90 million of caviar which left the UAE was from unlawful origin. This time the suspension of the export of unfertilised sturgeon eggs looks set to last significantly longer. The only authentic imported Caspian caviar which will be legally available to roe-obsessive and social climbers worldwide will be tiny quantities produced by sturgeon farms.

The endangered sturgeon is a real-life aquatic dinosaur, which has been splashing about in reasonably abundant numbers in the cold waters of the Caspian sea for millions of years. Persistent over-fishing by generations of fishermen eager to sell on their catch to the caviar greedy epicures of the Western world has crippled the sturgeon population in the Caspian sea and left stocks of the prehistoric fish at an all time low.

Although the world of the caviar import/export business may appear to have a prestigious gloss, it is hard to find a single dealer or author or caviar expert who has not been linked with a scandal or scam. Tensions between former member states of the USSR and the world’s biggest single importer of the roe, the USA, have long given the caviar trade a mysterious and dangerous edge. A number of the most eminent caviar tzars in the USA have been prosecuted for using stooges to bring in millions of dirhams worth of the highly-prized roe in suitcases; this is an industry which has been rife with black market dealings for a number of decades. Europe also has a thriving illegal caviar business, with almost 12,000 kg (12 tons) of illegal caviar seized by European authorities during 2005, most originating in Iran and Russia.

The main exporting nations have repeatedly been urged (by wealthier nations) to take steps to protect the species, and although CITES have previously imposed export bans this one will not be lifted until the ‘countries wishing to export sturgeon products from shared stocks have amply demonstrated that their export quotas are sustainable’. And that includes making allowance for the amount of fish caught illegally.

There are a number of towns on the coat of the Caspian sea which have become notorious hubs of the illegal caviar trade. At Siyezen, halfway between the Azerbaijani Capital Baku, and the border with Daghestan the caviar is sold at almost half the official price with a kilo of unsalted caviar exchanging hands for about Dhs1,285. It’s not the fisherman who are making money out of this illegal enterprise however, it is the authorities. Both boat owners and dealers have to bribe the police. For many of the fishermen whose families livelihoods have been dependent on the caviar trade for generations, poaching is a way to make up for the restrictive quotas. The number of state-employed caviar fishermen who operate along Iran’s Caspian coastline has fallen by 50 per cent over the past ten years as a result of a government job-cutting scheme designed to tackle dwindling fish stocks and quiet the concerned voices of the international community who recognize the potential fate of the sturgeon as an environmental crisis.

Given Iran’s proximity to UAE and the thin channel of the Persian gulf which separates the two countries, it’ll come as no surprise that the ports of Abu Dhabi, Jebel Ali and Dubai have garnered a reputation as prime spots on the caviar laundering circuit. The UAE has long been home to a flourishing trade in protected animals and animal products, although the industry has come under close scrutiny since the 2001 ban. Since the lifting on the embargo in 2002 CITES units in both Dubai and Abu Dhabi have been making a concerted effort to halt caviar laundering in the area.

The luxury market in the UAE, although not as established as those in Europe and the US, nonetheless demands large quantities of the roe to supply many of Dubai and Abu Dhabi’s five-star hotels where the indisputable status of caviar holds particular kudos with aspirational guests. A raid in June of last year yielded a whopping Dhs35,000 worth of the black stuff which was being sold illegally in the capital’s supermarkets without CITES documentation. The free-trade ports of the country have long made both Abu Dhabi and Dubai hot-beds of activity for caviar launderers in the area. Occupying a crucial political and geographic position as one of the most stable countries between the Caspian sea and the Western world, it’s not surprising that so much of the illegal caviar which gets sold on to Europe and the States, makes a pit stop en route to its destination in the UAE. Demand for caviar has increased throughout the past century as rising living standards encourage changing lifestyle expectations. A sterling example of this egalitarian approach to caviar consumption is the opening of the Emperor’s Roe Gourmet Emporium in Harlem, one of New York’s most economically depressed neighbourhoods in an attempt to make luxury affordable. Bringing black gold to the masses, Mills’ shop proudly stocks tins of banned wild beluga roe, although the website does urge shoppers to get stocks while they can, acknowledging the effect that the ban is likely to have on availability of this commodity. America is the world’s biggest consumer of caviar and CITES officials believe that over 90 per cent of the caviar which is smuggled illegally through Abu Dhabi and Dubai is destined for the US.

Abu Rab, a scientist with the CITES outfit in Abu Dhabi explained that the problem faced by the UAE did not simply begin and end with caviar. ‘We are trying to educate the people in the country that certain goods cannot be traded freely. We are in the process of training customs officials to distinguish between different varieties of caviar by the texture and smell of the grains, but it cannot be done overnight’.

Although customs officials in the UAE are now being trained to identify the different grades of caviar by touch and scent, there have been no plans made as yet to train any animals in an effort to sniff out the smugglers. However, the fate of Russia’s first and only sniffer cat may deter customs officials from relying on the whiskers and feline nasal expertise; Rusik, an orphaned kitten was trained by his keepers, Stavropol policemen to sniff out the tell-tale stench of fish eggs. Ruski’s untimely end in a hit and run incident, has been blamed on disgruntled smugglers whose contraband goods were sniffed out and confiscated. Amusing anecdotes aside, the matter of preventing caviar smuggling through the UAE remains an issue. The effect in prices that the temporary trade ban will have is as yet unclear. As the illegal trade encompasses lone traders selling individual jars, to intricately organized smuggling outfits whose couriers bring in hundreds of suitcases pre-packed with black market roe – judging the amount of caviar passing through UAE ports is extremely difficult. And as long as a demand remains for caviar, the sturgeon will remain endangered.


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Caviar laid bare
Of the 24 species of sturgeon existing worldwide today, only three types supply caviar: the beluga, the oscetra, and the sevruga.
The beluga is the largest of the sturgeon family and averages four meters in length and weighs over 1,000kg. It is very rare, and only 120 or fewer fish are caught annually. The roe in a beluga sturgeon can equal 15 percent of its body weight, and varies in color from light grey to dark grey. The largest of the three types, beluga roe has fine, delicate skin, considerable texture, and a visible 'eye' in the middle of each egg or 'berry.'
The oscetra caviar is more common than beluga and comes from a medium sized sturgeon measuring two meters long and weighing up to 200kg. Oscetra roe ranges in colour from dark brown to gray. The roe have a unique taste of hazel nuts and a fine layer on the surface.
The sevruga is the smallest of the sturgeon family. Sevruga caviar have a fine surface and ranges in colour from ranges from light to dark grey. The roes are small and they are popular for their characteristic taste and smell. As the least rare of the three types of sturgeon and the least expensive of the three major types of caviar, the sevruga is also the most popular variety.
The sterlet is the rarest of the caviar sturgeon and was once extremely popular with the caviar-guzzling Russian tzars. Its small-grained golden roe was considered the very finest available. However, this variety of fish is now very close to extinction, and the sterlet sturgeon and sterlet caviar are almost never seen.


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History of caviar
The consumption of fish eggs is not a modern phenomenon. Roe have been salted and pickled and used as a handy source of sustenance during times of famine and war for several millennia.
The first written record of caviar was allegedly authored by Batu Khan (grandson of Ghengis Khan) in the 1240s.
Caviar did not become an internationally recognized delicacy until the latter part of the 1800s when the French started importing it from Russia.
Previous to the break up of the Soviet Union, the government of Russia held strict control on sturge on harvest limits and caviar production. The loss of spawning grounds prompted the development of sturgeon hatcheries on the Caspian to support the populations. Mature male and female sturgeon were caught in the wild and spawned in the hatchery to produce fingerlings for release. (All Beluga caviar and most of the Osetra and Sevruga caviar now comes from fish that were released from the hatcheries) Due to high pollution levels, most of the eggs in mature female sturgeon from the Caspian are non-fertile due to genetic malformation.
With the decimation of the Soviet Union the strict controls on sturgeon harvest and caviar production has been diminished. The new free states found that caviar was a rapid way to generate cash. With a distinct lack of heavy-handed law enforcement in the region, poaching is going uncontrolled and the caviar mafia has taken over much of the processing and distribution of the roe.
Iran has been able to maintain close control of the caviar industry on the southern end of the Caspian, but the recent ban on all wild caviar does not take this into consideration.
Commercial caviar production normally involves stunning the fish (usually with a club to the head) and extracting the ovaries, although a number of farmers are experimenting with surgical removal of the roe from live sturgeon, allowing the females to produce more eggs during their lifespans.
In a gesture which boslters the truth of Dwight Eisenhower's statement 'Some people want champagne and caviar when they should have beer and hot dog', decadent epicure Elton John is rumoured to have served up wild beluga caviar with chips at his birthday party last year.


By Michelle Madsen, April 2006 (Time Out)