it's. dot com. a historic moment on industry leaders rosneft and b.p. stocks worth billions of dollars. to explore the untapped natural reserve only out the bad stuff that exist in. the service of the lavish mansions and gourmet restaurant to washington d.c. but not for everyone it's government workers enjoy the bonuses and pay rises it's the private sector that is bearing the brunt of the recession. and schoolchildren in india run. the winter break for classes defiance of separatist.

news from russia and from around the world this is r.t. here in moscow good to have you with us this hour two of the world's oil giants russia's rosneft and b.p. joining forces to explore the potential energy trenches of the arctic seabed the companies have sealed a multi-billion dollar stock swap and are now planning to unearth the reserves thought to be buried off russia's arctic continental shelf what. it reports now from london where the historic deal was signed. this is a deal they've been discussing for months you have to b.p. all calling this a groundbreaking strategic global alliance and it's the first major equity linked partnership between a national oil company rosneft and an international oil company like b.p. and what's happened is that they've done a share swap ross nast has got five percent of b.p. in exchange for nine and a half percent. it's very important that the governments are on the side as well

and in fact as meeting was held with prime minister putin before this deal was signed let's hear what he had to say about the support that he's going to give this particular deal. i would like to let you know that the government of the russian federation supports this joint operation this is a project that could become global and have a significant influence on the world's oil and gas industry. reserves are estimated to be five billion tons of oil and ten trillion cubic meters of. such a project may require tens of billions of dollars of investment and state of the art technology and we are fully aware of the risks and they've agreed together to develop and explore three separate areas on the russian arctic self and that covers an area of one hundred twenty five thousand square kilometers b.p. has been working in russia for twenty years it was really the natural choice and there's a strong belief in russia in the competency of b.p. to carry out

a project like this in spite of the disaster that we saw in the gulf of mexico last year and i spoke to. him who's the chairman of ross now one of russia's deputy prime ministers here's what he had to say about why they chose b.p. for this. is working on a new strategy transforming the company into an international energy holding model our deal with b.p. is of course part of the strategy they've gained a great deal. experience including the gulf of mexico oil spill cleanup operation b.p. has learned from this experience and our joint venture will be carried out with the greatest level of measures aimed at protecting the environment we've been working with b.p. for many years they are competent and have strong experience of russian companies so there is a strong relationship already in place between b.p. and rosneft before this deals even been signed and of course this is a large area this hundred twenty five thousand square kilometers is going to

benefit both sides and the extra expertise technology and cash of course will be needed to be to be brought in so that's where b.p. comes in the piece incredibly contrite now about the gulf of mexico oil spill the new c.e.o. bob dudley was brought into specifically to rehabilitate the reputation of the company if you like following that disaster and he's certainly going a long way towards doing that he talks a lot about it talks about how much they've learned and the chairman of ross snifter actually said to me expression which basically translates as once bitten twice shy he thinks that specifically because he suffered this disaster and was blamed for it particularly by the americans they will think twice about what they're doing next time so a company like that will have been versed in what to do when an environmental disaster like this happens so they're not they're not green in any way dudley and

it talks about how contrite they were and what they're going to do to make sure of another disaster doesn't happen let's hear what he had to say it's been working with ross now for twelve years now and we've been working on the york to for us since two thousand and five with ross stuff working with charcoal and you know our capabilities our exploration capabilities and i think to be honest we learned a lot about what happened in the gulf of mexico shaken the company to the core we're going to renewed focus on safety risk management and the technology that's new for. environmental care what we do this is a project that they're looking at looking at over about fifty year is so these reserves are still unproven in the oil and gas reserves in the arctic so one of the first things that they'll be doing doing is looking to see just how much oil and gas is down there and it's not clear when we're going to see them actually drilling a hole in the ground and bringing out so well and so we just have to wait and see. in london and the deal boosts the already long standing ties between b.p.

and russia's energy industry than ours from the business magazine says it's equally beneficial to both partners. i think it's in everybody's interests and both sides are very happy to to do this deal on the one side. needs help they're not very good at deepwater exploration and b.p. has a pity and on the other side b.p. pressure is already the most important source of a quarter of b.p.'s total reserves russia securing oil supplies going forward is key for the company the world is changing in the in the past the big oil companies to b.p. the others have been taking the lead but going forward increasingly it's national companies going to states that are increasingly claiming control over the resources of their countries and so the international companies are having to change their game i mean it's no longer that they would go into a poor country and take and take the profits they have to share with governments

and of course that's a very tricky relationship to manage but having said that b.p. has been working in russia pretty much since the beginning i mean this is their joint venture and they become experts at making these managing these relationships although there could be problems there probably will be arguments nevertheless both sides are committed to making it work. in crisis in america it seems not everyone is down on their knees particularly government workers in washington d.c. that dining out exclusive gome a restaurant and living in million dollar mansions all while their private sector colleagues suffer from job cuts and unemployment takes a look at the fat cats daily menu. across the united states unemployment lines and lines at food pantries and homeless shelters has marked what's been called one of the worst recessions in u.s. history but there is one special place that remains untouched welcome to washington d.c. the city full of power players pundits and politicians outpace nearly every other

city in the country when it came to job growth this past year one thing is sure about this recession is that the. public sector employees have been relatively sheltered compared to the private sector so just how well are federal employees doing according to the latest census numbers the average federal employee made a whopping one hundred twenty three thousand dollars last year in compensation and benefits a private sector employee cashed in at almost half that sixty one thousand dollars public employees i mean is are a powerful you know voter base for pro-government dish and so of course they're they're very unlikely to go after them we to second it wasn't on wall street that you saw greedy fat cats sucking away america's cash at the expense of everyone else remember what president obama said about those guys i did not run for office to be helping out

a bunch of their fat cat bankers on wall street while politicians in the media seemed obsessive lee focused on the lavish payouts on wall street who knew that at the peak of the recession last year federal workers in washington got an average raise of four percent more than double the national average they have more vacation they have job security lots of things that the private sector doesn't have in the first year and a half of the recession private sector jobs shrank by almost seven percent however here in washington federal civilian employment grew by almost ten percent the divide between washington and the rest of america is even more evident if you take a ride to the sprawling suburbs just outside the city home to d.c.'s influential lobbyists and lawyers with the potomac fairfax virginia if there is one man who knows the montra location location location it's eric stewart one of d.c.'s luxury realtors seven and a half million dollars over ten thousand square feet it's in one of the best

locations of all the potomac feeds a great school district very desirable for the average american. consumer stewart isn't worried about sales. jobs in the washington d.c. area which is causing prices to actually have stability and it's not just stylish digs that d.c.'s fat cats can afford. this upscale restaurant in georgetown the reservation list for a weekday dinner is fall release the right side of the same table mrs clinton you know who is now secretary of state came many times just a lot of people come from the hill and big big while one in seven americans rely on food stamps at me shalvey shard citron now an average couple isn't shy to shell out what most couples make in a month on a meal or the tax and interpret some six hundred dollar range or whatever it may be and some nights we do as many as forty fifty. people love it at a time when most are struggling to survive it seems like the lucky in washington

are living it up. there are t. washington d.c. . still ahead for you this teaching the separatists a lesson schools in going administered kashmir warnings to close to make up. stories on this new hope capable of speedy travel whatever the. story still to come but first the top of iran's nuclear sites is going ahead despite many key powers including russia declining to iran's invitation moscow refused along with experts from the e.u. china and other members of the un's nuclear watchdog. to brazil also taking part while the u.s. was invited russian foreign minister sergey lavrov said such a visit should not be substitutes for official inspections or the six party talks i suspect building

a nuclear bomb iran insists it's only working on peaceful atomic energy crucial six party talks on his program iran's been accused of trying to create a. with in the members by inviting some tourist facilities while clearly snubbing others out of experts believe any such attempts are doomed to failure they do so from ever there has been a start in negotiations or talks or whatever and it never worked out certainly there may be some people who thought that they could create the fish are already if but for now they never managed to really break up. five plus one formula. the behavior of russia and china just shows once again that it doesn't work i think it's half expected such a reaction however the iranians wanted to show two things to their own domestic public that this we are ready to negotiate you have to see it but a second step the iranians did it again to which their own public namely the blast

about their own newly achieved technological progress which is not true but again it sends a message to do also of course inside iran who are highly critical of any engagement with the international community that both things iran can be solved confident and it wants to negotiate are important in indian administered kashmir schools are doing without the traditional four month winter break they decided to play catch up after separate is fun and fees force them to close in the summer because artie's can sing reports the move is also the beginning of a backlash against separatist demands which they claim a paralyzing daily life. in srinagar this is all that remains of a school bus it was gored by a whopping forcing a general strike called by separatists in the capital of a needed minister meet luckily the only child on the bus six year old. was rescued by first they poured petrol under the bus then they smashed the windows the

bus driver picked me up and took me out of the bus then those people so far that this attack was meant as a warning to schools which remain open during the frequent strike school by separatists who want independence afternoon spread of the bus attack many schools shut down for the day but not the issue of school i wanted to show the dead we are not. those miscreants maybe every feel if you. had to live difficult to survive separatist leaders have condemned the attack which is at the center of a public backlash separatist independence focus we need which has been administered by india since british rule in india with most parents ignoring this prank calls any separatists are we considering that meant hurts it should not be counterproductive i mean we are giving a strike call because we believe that we do present apartment present people in it

and i think if people are giving you a response that you need to think something else you need to have an order that means other four hundred dollars than just strikes you need to come out with something else that's where we need to sit together and farm out a threat of during the widespread violence of the summer children what i'm equal to a school for four months and last year. i just. have to wonder then that with the violence easing you know parents are adamant that you attend school with the militants like it or not we should be proud of finding that the people in kashmir. very serious about educating that unit. and especially the girl children the girl. has four children. fifteen and spends most of her day looked at last in extra tuition.

polities meanwhile have decided to keep school during the meeting so that students can recover the last. one is happy with this decision education infrastructure in question is so poor and it's so pathetic that schools that even don't have windows and doors how can you how can you how can you hit them how can you want them it's going to be freezing and it's not i mean it's the have. to have a window because it's not i mean they wanted as id you know and they had but then we suffering if we had nothing to do with the view going to. go next the swedish who's clearly affecting people. with these children now being caught up in the political tussle if these cool head whether or not the academic future is going to be impacted life entirely in the hands of village of god and saying r.t. . by the way you can catch more on these and tell the stories on our website it's

on t.v. don't come here's some of what's online there for you right now a russian journalist cause a bit of a stir the white house press briefing after offering his condolences over the recent arizona shootings he asked a question that raised quite a few eyebrows find out exactly what he said and. what he's doing in the dark and nothing just the way that filings really played by falling for your russian spy something. superstar ice hockey player alexander ovechkin appears to be the latest russian to get involved in an espionage intrigue head to our website for more info on that or of course you can visit our you tube channel for more videos. it's.

news in brief now for you this has sworn in the parliament speak up for. as interim president who in turn has asked the prime minister to form a unity government it comes after weeks of widespread unrest across the country hundreds of security forces are patrolling the streets in an attempt to restore order on friday president ben ali fled to saudi arabia and officials say he won't return to office and actions are expected within to. brazil now the workers in the southeastern part of the country are still struggling to find people trapped under landslides because of renewed rains at least five hundred fifty people have been confirmed dead or thousands more have been left homeless after the worst flooding in the country in decades forecast to predict more heavy rain will hit the region over the next few days with officials saying the death toll is expected to

rise authorities have declared seven days of marriage. in sudan voting is finished in the weeklong referendum to decide whether the south of the country will seek independence from the north about four million people were registered to vote official say prelim results show a turnout of over sixty percent crossing the threshold needed for it to be valid so the voting will end a cycle of civil war with a chance of creating the world's newest state the results could be announced at the beginning of next month. a group of government of attacked a convoy in southwestern pakistan at least fourteen or tankers carrying fuel for nato troops in afghanistan were set on fire by the militants but rather was also injured during the attack more than half of the supplies for you. yes and nato forces in afghanistan pass through pakistan. russia may not be the easiest country to get around in in the depths of winter but a team of inventors believe they have the solution they've come up with a new hovercraft capable of travelling both on and off land at speeds of up to one

hundred fifty kilometers per hour or if an ocean or went to check it out. russia's snow drifts in the winter oh impossible slashing the screen can make life hard for many but this one can go just about everywhere that's. right. i think i think. i. was right. i think. the russian pond skate to can travel at speeds of up to one hundred fifty kilometers kerala making it ideal as a snappy run round or a had turning how the emotion courts could get a siberian man bought one his house is on one side of the linda river his body out on the other would be he said i'm so lazy to travel overseas with cares it's so

easy you are part of the issue when mom called me and asked whether we can get a trailer with two beds and a hatch inside the cockpit for fishing on the ice. garry's was designed in the town of cough ski ham to russia's annual international asho and by former adaptation engineers not surprising than it has a lot in common with its wings and brothers some of them is patient it features a great handling an improved safety it's got a very strong roll cage even if you capsized only going to get is lots of adrenalin we're thinking about installing an airbag another bit of know how is the propellant it's mounted up front it's covered so there's no chance of a scarf getting into it and dragging its owner into the blades besides it's warm and dry in that. there are currently only four gary says in the world but soon its creators say it could become mass common as scooters and bicycles. there are plans

to start mass production next year now we're looking for sponsors and facilities and for those who want one they're queuing already so there's no problems with demand just like the script for. today it may only be two seats floating in a corruption affair but if you followed an upgrade idea past the engine years they're more than happy to listen that is of course his stump up the twenty thousand bucks price tag if the gary slice you know. if notion r t the region. they tell we reminisce about so it music art and culture as our moscow team takes you back to the u.s.s.r. . from propaganda to say there are many holes inside is in here a large part of the exhibition is on industrialization and many aspects of the cultural worlds were under government control but the art world still flourished in

the u.s.s.r. and today soviet suspecting the highest prices at various ass options around the world. what that trip back in time is in around five minutes first though it's the business news with dmitri. welcome to business r.t. good to have your company b.p. and rosneft have indeed agreed to jointly develop a number of projects notably on russia's arctic shelf the fields potential capacity is around free and a half percent of the world's proven oil reserves then roughly five percent of the world's gas reserves you all majors of also agreed to swap shares b.p. will provide five percent of its shares worth around eight billion dollars in exchange for nine and

a half percent in rosneft only we spoke to consenting seaman of the head of the national energy security fund and he says the deal will promote investment in russia. i think it's an excellent deal for both companies and not only for companies we can also mention the interests of russian federation us speaking about b.p. company of course we know where will the story in mexico gulf and after this be the easing the serious need in a good news if it's possible to say it's all so but is why for b.p. of course it's an excellent use because. you are in the last half of the year b.p. or satan satan salem it's that's it's very serious increase in possible increase of the role of b.p. in the russian business for it was nifty it's also good news why because. now it was from the really serious bottom in the west and we know that. he's preparing for . we can see these asian of this company i fusilli our government said assume in

the few years it's possible to sell more than fifty percent of the private investors think for the russian business climate having such a such a deal is is a good idea absolutely because you know that i said about last year because russian government during all two thousand and seven soon we will have the realization of. tax regime the british know how well war you were speaking about for the lesson because. he made themselves and eight president signed the floor about foreign investment into a strategic industries and there were huge discussion that now we see because in the russian market now we want to show it because and portal said yesterday that there will be a special tax regime all these are the project because of course we know the price of production we will be serious and first of all we know that there is a special taxes if we. i think that maybe there will be a special tax issue for spokesman project that there will be a special room for b.p.

of this new joint when she know what. project so i think it's a good move to use all that is why now russia will show that really. we want to change our tax and the reason for the worst one. welcome to us what do you think the most immediate investor reaction on the stock market on monday will be. the price on the. scalp in good company will be increasing so we're very very very very easy to focus. let's take a look now at how the russian markets closed on friday and there was a slight correction but overall the week was positive and it was positive for roll sniffed but on friday's session it was down point six percent before the news of course broke on the deal with the over the week the my six came three point four percent the r.t.s. five percent making russia the best performing emerging market of today. so the russian stock markets indeed came out strong in their first week of trade after the long new year holidays especially with one of its traditional drivers oil at

a two year high sales traded on highs all from citibank explains to the stocks that were the main drivers i would say this week were lukoil rosneft stocks a lot of the large energy names in two thousand and ten lagged the market in general this week both of those stocks traded above key resistance levels and were able to hold those levels which are quite a bit of demand of them one of the reasons why the russian market did so well this first week commodities were generally very strong crude oil held above the ninety dollars level. we've seen brant closing in on one hundred dollars level once again so that's obviously very supportive for the russian market also metals were quite strong. and so we have for now but you can always buy more stories on our website that dot com forward slash business headlines are next stay with us.

wealthy british style is not the best but on. the. markets why not. come to. find out what's really happening to the global economy with max cons or for a no holds barred look at the global financial headlines tune into kinds

a report on our hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers on. the book. the be. the book going to come in. this history still keeps its secrets but now it's time to reveal the hidden in the soviet files house on the embankment and on t.v. .