holiday to think about retirement will basically voluntary resignation and of course we know that luzhkov said that he was not going to quit now according to russian law there are two ways that is that a federal official of a region could lose his poses either seeking dismissal or of course an order from the head of state and we know that in this incident in this case it is an order from russian president dmitri medvedev it's a very highly anticipated decision not just in political circles but muscovites as well that the president is all the way in the shanghai and this is what he had to say about the decision. i decided to dismiss the mayor of moscow the decree i signed states that i as president have lost trust in europe. and it is a legal reason for his dismissal it's happened for the first time but i do not rule out that such cases might happen again i cannot work with officials i can't trust the eighteen year ten year. mayor of moscow has been filled with both praise and criticism and now it has come to one of the next step for the united russia party

would be to hold a consultation on the nomination of a new mayor and so this is expected to be happening quite soon now to just have a bit more background on why it's such a controversial person let's look at the story father my colleague because. the constant feature of the mosque he's a legendary cab has been the subject of amusement throughout his eighteen years in power selling his custom made silver camp it's an auction of kindly granted nursery home the one million u.s. dollars. he's mayorship meanwhile he needs more than just one cap to cover the bull spots of his career he started making his fortune on the economic crisis of the late ninety's rumors of money laundering have haunted many of his multi-million dollar construction projects across the capital there's lots of problems in the city namely there is no affordable housing. there is a problem of people to. by the construction pyramids these two and others have to

be dealt with before any question about future employment of them to be discussed where the country was losing money during the recent economic downturn in two thousand and nine income increased however the mayor claims it's not his money but he's wife's and about doing that he's russia's only female billionaire she was a property development company and many claim its list of political clout that lands her the deals both in wash and abroad coffees known very strong anti-gay stands never authorizing and even cracking down on gay pride parades. parts of our society with healthy morals do not accept most they just don't except. for the last summer may blame him for mishandling the severe smoke situation in moscow the city of short on toxic smoke for almost a month as wildfires rage while he was on vacation out of the city because of this

one of course every specialist should be responsible for what they are interested with if for example the mayor of moscow comes back from holidays for the next day after the smog over that hurdle has dissolved which was the case this time and i think it is unacceptable he should have been here half an hour after the small looks like has been concentrating a lot on his house rather than that of this city's residence. i don't drink maybe i'm missing out on something but for more than thirty years i haven't had a drop in the money that the russian government and. infrastructure rarely make it to the ramshackle roads of moscow he's also been criticised over the deconstruction of the city's historical and architectural heritage after his long gone cost footprint will say on the streets of the russian capital and then i go artsy moscow . all that discuss this story more i'm now joined from london by michael binyon.

leader writer for the london times that newspaper and a former moscow correspondent has been on many thanks for joining us well this is the first time that the president has someone citing a lack of trust rumors of corruption of dogged call for three years so what exactly has led to this so-called lack of trust and why now well i think it's a combination of things i think the lack of trust as you say has been growing i think it's also that it was pretty clear that if they were going to get rid of luzhkov it would have to be by sacking he wasn't going to be removed quietly he wasn't going to go without a fight and this could became a test of the president's credibility it's all the more dramatic sacking him directly from shanghai when he's far away overseas i think also it's a recognition that luzhkov has lost the confidence of the people of moscow as we heard in the report the city smoke the fires the smoke that has lain over the city like a terrible cloud for a month or more has really angered people and the fact that the city wasn't seemed

to be doing anything and then indeed there was the other question of repairs on the road to. port which led to traffic jams and a feeling that this was mishandled i think in the end there's a general feeling he's been there too long he's too overconfident he's time for a fresh change for a new face and that this is really the time to get rid. of has indeed been the mayor of moscow for a very long time eighteen. he's been a state official for most of his life even before that with no real experience of working in the private sector so looking to the future now what do you think it holds off. well it's difficult to say i mean i think one shouldn't underestimate his achievements particularly in the early years in office when he really got things going when he came to power it was really chaotic mess had very little renewal of its infrastructure the city council particular and soviet days had

simply been a rubber stamp and a done very little he cleaned up the buildings admittedly he knocked down a lot of the historic ones which should have been preserved but those that were preserved were wonderfully cleaned up and he presided over a real boom in the city's infrastructure and in its new residences and capitol building so i think many people still feel he did a good job to start with but of course the taint of corruption lingered so long now the question is whether in fact the corruption charges will stick whether he actually will be accused of corruption i think it would be a messy trial if it came to that and it probably would be very unfortunate he may be lucky he'll be just left in peace as long as he doesn't know interfere and try and get his job back on focusing on the taint of corruption media reports basically from august and september i referred to the activities of the former and indeed his wife is being. best do you think that we're going to see for his wife facing some sort of legal action under russian or. possibly yes i think it's

a bit ironic should a corruption charge been leveled now because these stories have been around for a very long time and as long as luzhkov was seen to be ally of mr putin when he was president or indeed of president medvedev in the first year or two then nothing was done about it and officials turned a blind eye no investigation of these corruption stories it's only when the ruling decided that he was expendable that i think these corruption stories started surfacing on state television they could have come out earlier it's clearly more political than simply a question of corruption possibly a response to the growing public mood that corruption has got out of hand in the country generally and it's time something was done about it is being made a very high profile example well let's look to the now you mentioned earlier that you thought things could get a bit messy if he says that he does want to remain in politics and indeed that how that is exactly what he has intimated but he's also been full soundness of the

united russia party so what sort of political role could he actually play within moscow what sort of party would take him on or equally do you think that he could somehow forge a role for himself in the private sector which doesn't really have much experience . well i think the main thing is that he is not young i believe seventy four it's not the time really to start a new party at that age he couldn't remain in any way associated with the government that sacked him so if you went into politics he would have to go into opposition i don't think many opposition groups would welcome his support he would be seen as a divisive figure it would look like opportunism and i don't think it would be seen as genuinely political differences it would simply be seen as him trying to get revenge on those who sacked him so i really think that isn't an option if he tries it i think he'll come to a rather sticky end. many thanks to his thoughts michael bell speaking to us from

london many thanks. now a boat carrying it jewish activists attempting to reach blockaded gaza has been forced to not only to the port of ashdod in israel by israeli warships among those on board is a holocaust survivor and an israeli man who lost his daughter and a palestinian suicide bombing a spokesman for the group that all denies the jet he says many jews do you support the israeli government's behavior towards palestinians. we've heard that there are work boarded we understand international waters crew and up into it from the brokers being taken to our stores we hope they will be released. immediately. it will create written. very authoritative we believe the blockade will be illegal and illegitimate and we want any of them to make them balik bateman.

again a collective punishment for the people of god and good political challenge for the blockade of gaza and to the come can you talk to you live in a group of women that we have. a good number of but many do that the israeli government the future the public for documentation are not being conducted with the court or in our name and are not in our interest and we do not believe they are in the interest of the very good it's very calm. when almost four months ago nine friday palestinian activists died in his raiding raid on. launched from turkey a un report described the forces disproportionate and brutal this time in london a big screen produced for justice for palestinians organize the voyage air raviv the founder of the non-governmental organization peace dot org says government should show the same courage as the people taking policy and the tenets. it's hard

to know what to expect especially after one. but months ago with the marmora but it is true though that this is a jewish this is a jewish ship and this is a jewish ship made every effort to to reach the real story is in the message of solidarity sent by jews on this ship with their muslim brothers in gaza we all know what's happened to bring us to this point and the israelis and the palestinians disagree what we need real right now is real leadership and between me and you if the leaders of the palestinians and of the israelis can show the same courage of the people on this boat and others around the world i think we have a chance to break the impasse. now from a strictly controlled communist ideology to an era of innovation and a new generation of minded people perhaps the rosses president described china to he visit the world's biggest technology china high exposed twenty ten

friends and future innovations what better place to come together than the shanghai expo where russia and china are the stars of tomorrow let me go to the main message your brochures are exposed. we're establishing your freely relationship with china for decades to come. president medvedev opened russia today and met with seed thing ping deputy chair to hu jintao and the man seen as china's most possible future leader rang the ground for what could be a partnership that shifts and shocks global power. of those seats is the most likely future leader of china it's likely they discussed concrete plans for the future but they probably talked about mutual approach to russia china relations and global issues that is about most of the day together and took a good look of what china and russia have to offer. process brazilian is a favorite this time around with its top talking energy companies putting on their

best show so it was up at the start of the year at this expose we're demonstrating the latest results in science and high tech and showcasing cooperation with our chinese colleagues but it's all part of a bigger picture russia's push for rapid modernization and when you go to nations this exhibition is a unique chance to speed up the modernization of our economies in institutes and of its development is certainly the choice of our country who are following this path and will do everything for economy to modernize change and to modern life. and russia understands china is a great way to start made in china had a significantly different connotation just some few years back that's right take a closer look at the backs of your i pads and i pods they were most likely assembled here rushdie's china is the friend with whom to solidify a partnership bringing them into the future and past reporting from shanghai and

you see now a r.t. . north korean leader kim jong il has promoted his youngest son kim jong un to the rank of general and what's seen as the first step of a power transition it came before the country's ruling workers policy gathered for its biggest convention in decades now official announcements were made. and the atheistic fashion has been shrouded in mystery but he's cutting us out of our reports that practice is going on common in north korea. in the twenty first century everything is global and all kinds of information is available online but there remains a lot of mystery in the world wide web and that is north korea that many are privy trade secrets like ross like holly galaxy that chesapeake was one of you to visit the place and hopefully will share his impressions a alex so tell me you were in my gang what's it like what's your biggest impression be honest with you when i was going there i felt a little nervous having read all the stories about north korea in the west media

that it's a scary place it's all to different sort of scary things when i arrived there i thought it was nothing like that but the one thing which rescue the most of the first days and first hours things going on i saw a building on the other side of the world from my hotel and had no curtains on the windows and i asked one of those on our systems why is that like i said well if you have curtains in north korea it means you have something to hide so i got the impression that this society is open to its own government whilst its government is closed to the rest of the world it is the societies close to the world as well world attention is turned on north korea for the first workers party meeting in thirty years there are rumors of a man change but that according to those in the know is premature for those of the two of you i don't think we should expect any dramatic changes right away because power north korea is built on the principles of succession and continuity kim jong il became a leader first and foremost thanks to his image of a true follower of his father's legacy ideas and not as some destroyer of the

foundations or as the person to lead the country's policy into a sharp turn so obviously the same is going to apply to kim jong il's successor. north korea's nuclear ambitions troubled the west and the secretive states tightlipped policies and everything has been successfully used as a tool by countries such as the united states. the united states in particular need a bad guy in the region to justify their military presence in the southern part of the korean peninsula and japan and for deploying their missile defense systems there which they've done somewhat more actively than in europe until now the us and allied military presence in the region was justified by the soviet threat but it's been twenty years without a soviet threat however the united states is not going to give up military alliances a stablish during the cold war and now it is very convenient to have a bad guy in pyongyang that can be used as a scapegoat for everything. to north korea the soviet union was the very opposite

of a threat especially in the korean war of the early one nine hundred fifty s. the u.s.s.r. came to see as many socialist states in largest possible was happy to aid its fellow communist regime against u.n. troops. but the veterans of those battles only recently got the chance to talk about their memories for them it was yet another war that didn't exist for. i was there for a year and a half and when we came back we couldn't talk about it couldn't even hear. those that died were buried and the notes to their families would read killed in the course of duty where when how that was not open for discussion it was hard but it was top of their of course seventy seven out of seventy eight green cities were destroyed almost completely and yet everywhere i went by saw people trying to rebuild homes roads everything we'd see women on the road carrying their kids and their belongings to a new town and would give them lifts we weren't allowed to but we did. when the

eastern european communist bloc fell apart its influx into the north korean economy plummeted despite the fact a close relationship is maintained by moscow n.p.r. the village of secrecy is not helping to boost economic development north korea remains one of only five communist states in the world and by far the most mysterious country on the map gas units are r t moscow the nuclear arsenals of the world's major powers are generally considered to be ultra secure and well guarded even so zone claim they can be protected from extraterrestrial meddling a group of former american officers. have been showing interest in the us and russia's nukes but decades now such a meeting investigates. perhaps few things say normal or routine more than a daily dose of coffee and

a cup of calm in what can on any day be out of the ordinary. out of the ordinary like a nuclear holocaust out of the ordinary. let's say there is an attack from where doesn't matter. if that were to happen if nuclear payback wouldn't happen. but. that's a claim made by the men in this room are missiles began going into what's called a no go condition or on launchable essentially they were disabled detailed in this report full of court sanction sworn affidavits the witnesses have described these craft s. disc shaped or cylindrical shape or spherical if you think what's being said inside this building is completely ridiculous you might want to consider something my name's robert hastings thank you for coming these are men who might know what may

have gone on their former air force missile launch officers missile base officers who say u.f.o. spaceships flying saucers make nuclear weapon systems go haywire in one thousand nine hundred sixty six according to a launch officer david shore his missiles were temporarily activated just as his security guard was reporting a bright object moving from missile to missile to missile. a and it's not just in the united states also. in russia the idea like in one thousand nine hundred eighty two incident that happened in then soviet ukraine given the fact that these incidents have gone on over there including one incident of their missiles being temporarily activated when a u.f.o. was hovering above the missile base identical to. what occurred here i think we can rule out that who will whoever our pilots in these craft are either american or russian. maybe they're right maybe they're wrong. maybe there is no way

to ever know but if they are right and then out of the ordinary day is about to unfold. remember the saucer. moon r. t. washington d.c. all the latest business things on the way now with that. hello and welcome to the business bulletin as we've been reporting in the main news them out of moscow yuri luzhkov has been fired by president medvedev this cough has ruled the city for eighteen years onset the panic conditions for construction business r.t. spoke to the head of penny lane real estate about the impact of his departure almost goes where the same market. we expect a very long period of time when everybody is frozen nobody is approving giving any permits everybody is stuck waiting for new orders from the new

czar they are all worried if they could do something wrong there will be worried whose orders to follow as they do know really know who will be on top tomorrow before everybody is stuck with no job going on. i believe that this would be a huge home to the industry but russia's top banks have reached twenty percent of their loan portfolio that's the highest level since the beginning of the crisis the international finance corporation part of the world bank says flush it needs to develop a market for bad debts so banks can clear them from their balance sheets timothy crouse from the i.f.c. says the company proposes to jumpstart the system with a two hundred million dollar fund. i think that some of the banks here that are trying too hard to collect their loans are not paying attention to their core business and their market share will shrink and they'll be left holding paper

that's not worth anything i think the thing is to create a market so you have a market you need buyers and you need sellers so we have plenty of buyers here capitols not the question i see provides financing we also try to match the buyers and the sellers right now we don't have enough sellers there are not enough banks that want to sell their corporate loans so there's loans to small businesses they'll sell retail loans credit card loans things like this but they won't sell corporate loans yet there's too big of a gap between the price banks think that they should get thirty forty cents on the dollar but buyers that are coming into the market they're not willing to pay that yet there is no track record yet we need a precedent we need a first sale to occur and then prices will go up after that when people see that you can actually collect on bad loans in russia why hasn't the bad that markets in russia emerged naturally off its own accord it's a little bit of a cycle psychological issue i think no one wants to admit that they've made bad

loans it takes a while to get prepared for this and i think once banks think it through once they see that they're not making progress and restructuring corporate loans once they understand that they're not going to make much progress it makes sense for someone else to give it a try someone that specializes in this business liquidity has long to go up to being the bank's main problem do you really think that clean up balance so how banks lending i think it will because banks don't have to allocate capital to the bad loans that are sitting on their books if their management doesn't have to devote time to the bad assets that are sitting in their bank they can spend time doing what they do best which is to originate new loans there people can go out and figure out which corporate lenders are the ones that are most credit worthy which can be their best clients allocate capital to that that's what they need to do. the russian markets finished in the red on tuesday v.t. b. was the worst performing blue chip on the my sex having one point nine percent into

the close banks also suffered energy majors dragged with wassef down a one point three percent. in economic news russia's central bank has kept its key interest rate on hold at seven am three quarters percent for the fourth month in a row bank officials say the risk of inflation is at an acceptable level they have also previously stated that the possibility of a rate hike this year is very small. russian oil major new coil intends to buy back the rest of its shares held by conoco phillips the company recently bought almost five percent of its stock from the american firm and now says it will buy the remaining six percent separately lou corps says it intends to challenge an official decision to prevent it from bidding for the tribes tipped off oil fields the fields are among the largest yet to be distributed in russia. german engineering and electronics firm siemens plans to invest five hundred and forty

million dollars in its projects in russia over the next two to three years the company intends to build a number of plants to produce electronics equipment across russia and also plans to build a wind farm in the country's far east it will build all the generating a quick man from start to finish in a joint venture with the us hydro and state corp russian technologies. and that's all the business news for now but you can always find more stories if you log on to our web site that's r t dot com slash business.

every month we give you the future we do understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around

the world your knowledge on r.g.p. . this is the mayor of moscow was eighteen years in power the president says he too because no longer had confidence in the capital's top it's. a group of international activists and a jewish organization mission to pick a did is forced to end its journey by israeli warships. the russian president ends a trip to china by the man widely predicted to be the next new deal the people's republic. with the north korean leader expects to name his successor anytime now walty talks to an expert on the region but a ship and he met kim jong il. in

the twenty first century everything has become globalized there is practically nothing that a person can find on the internet on the phone or from known sources but north korea remains one of the very few enigmas in the twenty first century and to talk a little more about this a fact where our team got the chance to talk to the director of the far east studies of the russian cademy of science alexander should have been there seven thank you so much for joining us north korea remains one of the few mysteries today everything is known information about everything can be found easily but north korea maintains that shroud of secrecy why we're focused. it happened sold it for centuries korea was detached from the rest of the outside world this has to do with the fact that bach.