News Summary: Kodak sells patents for $525 million

STEPPING STONE: Eastman Kodak is selling its digital imaging patents for about $525 million, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of 2013.
GROUP OF 12: Apple Inc., Google Inc., Samsung Electronics Co., Research In Motion Ltd., Microsoft Corp., China's Huawei Technologies and Facebook Inc. are among the 12 companies paying to license the 1,100 patents, according to court filings.
HISTORY: Founded in 1880, Kodak filed for Chapter 11 bankruptcy protection in January after a long struggle to stay relevant. First came competition from Japanese companies, then the shift from film to digital photography. Kodak failed to keep up.

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Best Buy exec leaves for COO post at Symantec

Best Buy's president of digital operations is leaving the struggling electronics chain to become chief operating officer at the computer security company Symantec.
Best Buy has been implementing a turnaround plan as it faces tough competition from discounters and online retailers. The Minneapolis company last week extended until after the holiday season the window for co-founder Richard Schulze to make a buyout offer.
Best Buy Co. announced Wednesday that Stephen Gillett's responsibilities will now be divvied up, with responsibilities going to Chief Financial Officer Sharon McCollam, Scott Durchslag, the president of online and global e-commerce and Shawn Score, senior vice president of U.S. retail.
Gillett also served as executive vice president. He will take on that role at Symantec Corp. in addition to his COO post.
Gillett, who starts at Symantec on Friday, will report to its Chairman and CEO Steve Bennett. He will work at the company's Mountain View, Calif. headquarters.
Shares of Best Buy added 9 cents to $11.99 in premarket trading on Thursday.

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SC Gov Haley unveils $6.3 billion budget proposal

COLUMBIA, S.C. (AP) -- Gov. Nikki Haley's budget plan she presented Thursday would spend more on computer security, law enforcement and health care. She also asked that not-yet-projected revenue go toward tax relief that saves the average filer less than $30.
Her $6.3 billion budget plan for the fiscal year that starts July 1 seeks $47 million for computer security following a massive breach at the state's tax collection agency. More than 40 percent of the money would pay back a loan approved last week by the Budget and Control Board to cover costs incurred so far.
The Department of Revenue is receiving a $20.2 million loan this fiscal year from the state's insurance reserves.
Haley wants $12.4 million to complete computer upgrades at the agency, plus $3 million for security consultants.
The Republican governor also wants to hire 25 agents to supervise parolees, 10 natural resources officers, 18 state troopers and 15 employees at the State Law Enforcement Division, to include agents and lab technicians. She also wants to provide all troopers wireless access in their vehicles and upgrade prison officers' safety.
The only salary increases Haley proposes are to officers that work in the state's eight maximum security prisons for violent offenders. She recommends giving them a 3 percent boost.
She noted that when she visited Lee Correctional in Bishopville, where inmates took officers hostage in June and September, 60 positions were open. Authorities could not fill them "because people are too scared to work there," she said
Her budget would spend $10 million to build two watch towers at Lee Correctional and buy cameras and metal detectors and wands at prisons statewide.
"We are sending them in there every day and not giving them the tools to protect themselves," Haley said. "You are not giving money to prisoners. You're giving money to people who keep prisoners from harming you."
Haley said the budget's top cost driver is health care, with state employee benefits costing nearly $80 million more. Haley adamantly opposes expanding Medicaid eligibility under the federal health care — a decision left to legislators next session. Still, Haley's budget allocates an additional $67 million to Medicaid just to cover already-eligible residents expected to sign up after the law takes effect.
Governors generally release their executive budgets in January before session starts. But Haley said she wanted to get her proposal to legislators sooner this year in hopes they'll use more of her recommendations as they craft the budget. Haley recognized that legislators largely ignored former Gov. Mark Sanford's budget plans.
"We don't do this for kicks and giggles," she said.
Haley's $6.3 billion plan represents a 3 percent increase in spending from the state's general fund, which doesn't include federal money and other sources such as fines and fees that agencies collect.
Haley's budget is based on the Board of Economic Advisors' current predictions for tax collections in 2013-14. The board revises their estimate in the spring, which usually gives legislators more money to work with, though 2008-09 and 2009-10 were exceptions. On average over the last eight years, legislators have had $100 million more to allocate in their final approved spending plan than the governor.
Haley said when the "money tree falls" this spring, legislators should use $26 million of it to cut income taxes. Eliminating the 6 percent tax bracket, would save the average filer $29, according to her report.
She wants the rest spent on roads and bridges, calling that tax relief.
"This is an option not to increase the gas tax," she said.
The state transportation department anticipates needing nearly $50 billion over the next 20 years for infrastructure but only receiving $19 billion under the current system. The state motor fuel tax, which has been 16 cents per gallon since 1987, is the agency's main funding source but is declining due to improved vehicle fuel efficiency and higher costs for gasoline and diesel fuel.
Haley said she will not tolerate any move to increase that tax and considers her plan a start toward addressing the multi-billion-dollar need.

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Samsung is replacing faulty Galaxy S IIIs that are suddenly dying for no reason

Samsung (005930) is reportedly quietly replacing faulty Galaxy S III devices according to many users on XDA Developers. The issue appears to be related to the NAND becoming corrupted and killing off the Galaxy S III’s mainboard, which causes the phone to essentially “brick” itself. Users have reported the issues have affected some devices after 150-200 days after purchase. Users on XDA Developers and Reddit are also saying Samsung is replacing affected smartphones (rooted or not) with new ones that could potentially be just as faulty in another 200 days. The Galaxy S III made headlines last week when an XDA forum member discovered that a security hole in its Exynos-4 processor was vulnerable to app-based malware attacks. Samsung has since said it will patch the hole as soon as possible.

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Insight: Security fears dogged Canada debate on China energy bid

In September, two months after China's state-owned CNOOC Ltd made an unexpected $15.1 billion bid for Canadian energy company Nexen Inc, Canada's spy agency told ministers that takeovers by Chinese companies may threaten national security.
The rare warning from the Canadian Security Intelligence Service (CSIS), which was disclosed to Reuters by intelligence sources, did not stop the takeover. That was approved by Canadian authorities earlier this month.
But the intervention and an influential U.S. lawmaker's warning in October that Canadian companies should be careful about doing business with Chinese telecom equipment companies Huawei Technologies Co and ZTE Corp made the approval process for the deal more difficult than initially expected.
"CSIS did not like the Nexen bid and thought it was a bad idea for Chinese firms to be investing in the oil sands. It all played into their greater fears about firms like Huawei," said one person familiar with the agency's concerns. "They do not want to wake up one day and realize a crucial sector of the economy is under the control of foreign interests."
And after listening to the spy service, which usually keeps a low profile, Canada drew up surprisingly tough foreign investment rules that were unveiled when approving the Nexen deal, China's biggest-ever successful foreign takeover. In a clampdown on companies it deems influenced by foreign governments, Canada will block similar purchases in the future.
CSIS has been silent about what it said to Ottawa on the Nexen transaction, and it declined to comment for this story. It didn't specifically recommend the CNOOC deal be blocked, but rather warned more generally about such deals with Chinese entities, the person said.
In reality, the government was unlikely to want to block the CNOOC bid, given a high-profile push by Prime Minister Stephen Harper earlier in the year to boost ties with China, and given that a lot of Nexen's assets are outside Canada, and it has underperformed other energy companies.
SPECIFIC WORRIES
By pushing back aggressively, CSIS ensured that it got foreign investment policy tightened significantly to deter similar such takeovers by companies under the sway of foreign governments.
"I think people at CSIS and elsewhere are going 'Good. That was a very good response by the government'," said Ray Boisvert, a former CSIS assistant director of intelligence, who retired this year after almost three decades at the agency.
"It did reflect some of those deep strategic concerns that practitioners have had about this kind of investment."
Specific worries include theft of Canadian intellectual property, espionage, computer hacking and foreign companies gaining too much influence over crucial sectors of the economy, said the person familiar with the agency's views.
The government could, in theory, nationalize assets if it thought foreign control was problematic. But the pro-business Conservatives would likely find it politically unpalatable to take such a step.
"To be blunt, Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead," Harper said as he announced the new investment rules.
In October, the U.S. House of Representatives' Intelligence Committee urged U.S. firms to stop doing business with Huawei and another Chinese telecom equipment company ZTE on the grounds that Beijing could use products made by the two companies to spy.
The House Intelligence Committee's chairman, Rep. Mike Rogers, a Michigan Republican, urged Canada to take a similar stance, and two days later, the Canadian government indicated it would not let Huawei help build a secure government communications network because of possible security risks.
"The Huawei business caused a lot of political complications for the CNOOC bid," another person familiar with the CNOOC deal said of the U.S. committee's report.
Both Huawei and ZTE have repeatedly denied the allegations in the report, and China's foreign ministry dismissed as "baseless" the idea that security concerns could impede commercial ties.
"We hope that the relevant party can objectively and justly treat Chinese companies' overseas investment and cooperation plans, and stop actions which harm Chinese companies' image and do more to benefit the promotion of bilateral trade and business cooperation," said ministry spokeswoman Hua Chunying.
CLANDESTINE SUPPORT
In its annual report, released in September, CSIS noted risks that included espionage and illegal technology transfers, and said some foreign state-owned enterprises had "pursued opaque agendas or received clandestine intelligence support for their pursuits" in Canada.
The agency did not give details, but added: "When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy, it can represent a threat to Canadian security interests."
CSIS, hit by controversy in 2010 after its head suggested China had too much influence over some Canadian provincial politicians, did not mention any country or firm in its report.
It is unclear how much, if any, influence the United States had on the Canadian authorities' foreign investment policy.
Fen Hampson, head of the global security program at the Centre for International Governance Innovation in Waterloo, Ontario, said he had learned that a U.S. official visited Ottawa in the last few months to discuss mutual concerns about foreign state-owned enterprises.
U.S. Ambassador David Jacobson told Reuters he was not aware of such a meeting, but he noted that officials from the two countries met constantly. "I would be surprised if almost any issue you could think of has not come up in one or more of those conversations," he said. "The United States has not sought to influence Canada's decision with respect to that (CNOOC's bid)... We respect that decision."
The Canadian government did not respond to a request for a comment.
Chinese companies have bought up smaller Canadian energy firms before, but the July 23 bid for Nexen was their first attempt to buy one of the larger players.
Nexen has assets in Canada, the North Sea, Nigeria and the Gulf of Mexico. Technology that Nexen and its partners use for deep sea drilling could interest CNOOC. [ID:nL4N09N3R5]
Asked about the CSIS concerns, a spokeswoman for Industry Minister Christian Paradis replied: "The government has the authority to take any measures it considers necessary to protect national security."
Yet two people close to the deal noted that the Canadian government did not exercise its option to do a separate review of the potential security risks of the CNOOC-Nexen bid, again signaling its concerns were tied to overall Chinese investment rather than to this particular deal.
Under the new rules, which Paradis is responsible for enforcing, foreign state-owned enterprises can no longer buy controlling stakes in assets in the oil sands, the biggest reserve of crude oil outside Saudi Arabia and Venezuela.
Such enterprises can buy minority stakes in the oil sands, or majority stakes in companies outside the oil sands. Companies deemed to have strong government links will be treated with particular caution wherever they propose to invest.
"When it comes to our security and intelligence services, they would rather pull up the drawbridge than let it down," said Hampson, co-author of a report on trade ties between Canada and emerging nations that he discussed with Harper in June.

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Malala asks Pakistan not to rename college for her

MINGORA, Pakistan (AP) — A 15-year-old Pakistani girl who was shot by the Taliban for promoting girls' education has urged Pakistan to reverse a decision to rename a college in her honor to avert militant attacks on students, an official said Friday.
Malala Yousufzai, who became a symbol of youth resistance to the Taliban, made the request after students broke into the school, tore down Malala's pictures and boycotted classes in her home town of Mingora. They said renaming the college endangered their lives.
Senior government official Kamran Rehman said Malala called him from London, where she was being treated for critical wounds from the attack on Oct. 9. The Taliban said it targeted her for promoting education for secular girls.
Malala's case won worldwide recognition for the struggle for women's rights in Pakistan and Taliban have vowed to target her again.
Pakistani Taliban have a strong presence in the country's tribal regions bordering Afghanistan.
A bomb ripped through the office of a local militant commander Maulvi Abbas in Wana, a main town in the South Waziristan tribal region in the northwest, killing him and three of his guards, two intelligence officials said Friday.
Abbas was an associate of Hakimullah Mehsud, the head of Tehrik-e-Taliban Pakistan militant group, they said, speaking on condition of anonymity because they were not authorized to brief reporters.
It was unclear who had planted the bomb. The attack came weeks after a suicide bomber in the same town attacked Maulvi Nazir, a prominent militant commander who is believed to have a nonaggression pact with the army.
Nazir was wounded in the attack, and seven of his men were killed.
Since then there has been tension between followers of Nazir and the Tehrik-e-Taliban Pakistan in the region.

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AP PHOTOS: A photo journey through North Korea

PYONGYANG, North Korea (AP) — My window on North Korea is sometimes, quite literally, a window — of a hotel room, the backseat of a car, a train. Fleeting moments of daily life present themselves suddenly, and they are opportunities to show a side of the country that is entirely at odds with the official portrait of marching troops and tightly coordinated pomp that the Pyongyang leadership presents to the world.
In April, I was part of a group of international journalists that traveled by train to the launch site for this year's first, failed rocket test. We traveled in a spotless train used by the Communist leadership, and I spent the five-hour journey inside my sleeper car looking out the large, clean window at a rural landscape seen by few foreign eyes. The tracks cut across fields where large groups of farmers were at work in clusters. Occasionally, there was a plow drawn by oxen or a brick-red tractor rolling along the gravel roads. On a rocky hilltop above the train tracks, a small boy sprinted and waved at the passing train. Every few hundred yards along the entire route, local officials in drab coats stood guard, their backs to the tracks, until its cargo of foreign reporters had safely passed.
I have made 17 trips into North Korea since 2000, including six since The Associated Press bureau in Pyongyang opened in January 2012. It is an endlessly fascinating and visually surreal place, but it is also one of the hardest countries I have ever photographed. As one of the few international photographers with regular access to the country, I consider it a huge responsibility to show life there as accurately as I can.
That can be a big challenge. Foreigners are almost always accompanied by a government guide — a "minder" in journalistic parlance — who helps facilitate our coverage requests but also monitors nearly everything we do. Despite the official oversight, we try to see and do as much as we can, push the limits, dig as deeply as possible, give an honest view of what we are able to see. Over time, there have been more and more opportunities to leave the showplace capital, Pyongyang, and mingle with the people. But they are usually wary of foreigners and aware that they too are being watched.
This has been a historic year for North Korea, with large-scale dramatic displays to mark important milestones, struggles with food shortages, crippling floods, drought and typhoons, as well as growing evidence that people's lives are changing in small but significant ways. But in a country that carefully choreographs what it shows to the outside world, separating what is real from what is part of the show is often very difficult.
Last spring, as North Korea was preparing for the 100th birthday of its late founder, Kim Il Sung, citizens practiced for weeks, even months, for the large-scale military parade and public folk dancing that was part of the celebration.
One morning, on our way through town, we saw small groups of performers walking home from an early rehearsal. They wore their brightly colored traditional clothing, but covered over with warm winter coats. In their hands were the red bunches of artificial flowers that they shake and wave in honor of country's leaders during mass rallies.
From the van window, I saw a woman standing alone, holding her bouquet as she waited for the bus. It was, to me, a more telling moment than the actual events we would cover a week later, a simple but provocative glimpse into one person's life.
For this project, I used a Hasselblad XPAN, a panoramic-view film camera that is no longer manufactured. Throughout the year, I wore it around my neck and shot several dozen rolls of color negative film in between my normal coverage of news and daily life with my AP-issued digital cameras.
The XPAN is quiet, discrete, manual and simple. Because it has a wide panoramic format, it literally gives me a different view of North Korea. The film also reflects how I feel when I'm in North Korea, wandering among the muted or gritty colors, and the fashions and styles that often seem to come from a past generation.
In my photography, I try to maintain a personal point of view, a critical eye, and shoot with a style that I think of as sometimes-whimsical and sometimes-melancholy. My aim is to open a window for the world on a place that is widely misunderstood and that would otherwise rarely be seen by outsiders.
I hope these images help people to develop their own understanding of the country, one that goes beyond the point-counterpoint presented by Pyongyang and Washington. And maybe they can help create some sort of bridge between the people of North Korea and the rest of the world.

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World stocks fall as US budget negotiations stall

BANGKOK (AP) — Heightened uncertainty about the outcome of budget negotiations in Washington among President Barack Obama, House Speaker John Boehner and other Republican lawmakers drove world stock markets lower Friday.
If a compromise is not in place by Jan. 1, the Bush-era tax cuts will expire and spending cuts will kick in automatically — a one-two punch to the economy that many experts fear will push the U.S. economy back into recession just as it begins to recover from the last one.
European stocks were lower in early trading. Britain's FTSE 100 fell 0.3 percent to 5,938.01. Germany's DAX lost 0.3 percent to 7,646.76. France's CAC-40 was 0.1 percent lower at 3,662.38.
In Asia, Japan's Nikkei 225 index fell 1 to close at 9,940.06. Hong Kong's Hang Seng lost 0.7 percent to 22,506.29. South Korea's Kospi shed 1 percent at 1,980.42. Australia's S&P/ASX 200 fell 0.2 percent to 4,623.60. Benchmarks in Singapore, Indonesia, Thailand and Taiwan also fell. Malaysia and the Philippines rose. Mainland Chinese stocks were mixed.
U.S. stock futures tumbled after rank-and-file Republican lawmakers failed to support an alternative tax plan by House Speaker John Boehner late Thursday in Washington. That plan would have allowed tax rates to rise on households earning $1 million and up. Obama wants the level to be $400,000.
"I think the Republicans will have to yield," said Francis Lun, managing director of Lyncean Holdings in Hong Kong. "Fighting for rich men does not endear you to voters. People earning more than $1 million are considered rich, so it doesn't do the Republican Party any good to really fight for the rights of rich people."
Ironically, the two leaders had significantly narrowed their differences toward a compromise. The latest setback, with Republicans bucking their leader, left precious little time for an agreement to be reached before the "fiscal cliff" of tax increases and spending cuts goes into effect.
Dow Jones industrial futures dropped 1.1 percent to 13,116 and S&P 500 futures lost 1.2 percent to 1,423.90. Analysts cautioned, however, that market swings would be exaggerated because of light trading volumes that typically accompany end-of-year holidays.
"Approaching the weekend and holiday, volumes will likely remain thin, with choppy trading sessions while the 'fiscal cliff' talks will stay in the spotlight," said Kintai Cheung of Credit Agricole CIB in Hong Kong in an email commentary.
Among individual stocks, Mitsubishi Motors Corp. fell 5.8 percent, days after Japan's Transport Ministry issued a warning to the carmaker over the handling of oil leaks in mini-vehicles. Australian surf wear maker Billabong International rose 3.1 percent a day after chief financial officer Craig White left the troubled retailer.
Among mainland Chinese shares, Inner Mongolia Baotou Steel Rare-Earth, China's top rare earth producer, lost 2.2 percent.
Benchmark crude for February delivery fell 86 cents to $89.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 15 cents to finish at $90.13 per barrel on the Nymex on Thursday.
In currencies, the euro fell to $1.3209 from $1.3241 late Thursday in New York. The dollar fell to 84.03 yen from 84.42 yen.

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Delhi police say they will protect women on buses

NEW DELHI (AP) — Indian officials announced Friday a broad campaign to protect women in New Delhi following the gang rape and brutal beating of a 23-year-old student on a moving bus in the capital.
Police arrested a boy Thursday night, the fifth person detained in connection with the crime, Delhi Police Commissioner Neeraj Kumar said. Authorities were hunting for the final assailant, he said. Those arrested were being charged with attempted murder in addition to kidnapping and rape.
The government is seeking life sentences for the assailants, Home Secretary R.K. Singh told reporters Friday.
"This is an incident which has shocked all of us," he said.
The attack sparked days of protests across the country from women demanding that authorities take tougher action to protect them against the daily threat of harassment and violence. The government said it is taking steps to address those concerns.
"There will not be any tolerance for crimes against women," Singh said.
Bus drivers in New Delhi will be required to display their identification prominently in the vehicles, buses are now required to remove tinting from their windows and plainclothes police are being placed on buses to protect female passengers, he said. In addition, chartered buses such as the one where the attack occurred will be impounded if they illegally ply for fares on the streets, he said.
Authorities are also cracking down on drunk driving and on loitering gangs of drunken youths, he said.
The victim and a companion were attacked after getting a ride on a chartered bus following a movie Sunday evening. Police said the men on the bus gang-raped her and beat her and her companion with iron rods as the bus drove through the city for hours, even passing through police checkpoints. The assailants eventually stripped the pair and dumped them on the side of a road.
Protesters marched Friday to the presidential mansion and toward Parliament, while theater troupes performed plays about women's safety in a park in central Delhi. A group blocked traffic near the hospital where the victim, who had severe internal injuries, was being treated.
Dr. B.D. Athani, the medical superintendent of Safdarjung Hospital, told reporters the victim was "stable, alert and conscious," but remained on a ventilator.
"We are ready to send the victim to anywhere in the world for treatment," Delhi Chief Minister Sheila Dikshit said. "I have given that assurance to the parents of the girl that we will give every kind of help, no matter what it costs."
Parliamentarian M. Venkaiah Naidu said a special legislative committee would meet next week to take action to protect women.
The government, Singh said, was proposing laws to make it easier for attacked women to come forward, to ensure rape cases are dealt with swiftly in the nation's notoriously slow court system and for increasing the punishment for the crime to a possible death sentence.
"(The) people of Delhi will feel safe moving through the streets of the city, at any point of time, day or night. That is our objective," Singh said.

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Russia's Gazprom to buy Kyrgyz state gas company

BISHKEK, Kyrgyzstan (AP) — Kyrgyzstan's state-owned natural gas company says it is to be sold to Russia's energy monopoly Gazprom, raising hopes of an end to debilitating energy shortages in the impoverished Central Asian nation.
Kyrgyzgaz general director Turgunbek Kulmurzayev said Friday that the sale of the company to the Russian gas giant would be completed by April 1.
Last week, gas and electricity supplies to thousands of Kyrgyz households were suspended.
The crisis was provoked by a shortage in natural gas deliveries from neighboring Kazakhstan, which had to hold onto its own reserves after failing to receive imports from Uzbekistan. Kyrgyzstan, a mountainous nation of 5 million on China's western border, also has substantial unpaid debts to Kazakhstan.
Residents in the capital, Bishkek, and nearby towns were hits by days of gas and power shortages just as temperatures dropped to around minus 20 Celsius (minus 4 Fahrenheit). Failure in gas deliveries pushes people into using more electricity for heating, which in turn leads to blackouts.
The inability of former President Kurmanbek Bakiyev to fulfill basic energy needs led to his violent overthrow in 2010.
The sale of a major national asset to a company owned by a foreign government is likely to raise concerns. Russia has made similar efforts to gain control over important energy infrastructure in other former Soviet republic, such as Ukraine and Belarus.
Kyrgyzgaz's Kulmurzayev traveled to Moscow this week to hold a new round of talks with Gazprom, which offered to buy up the entire company. Kyrgyzgaz is currently 87 percent owned by the state. Another 4.5 percent is held by social investment funds, with the remainder belonging to private investors.
"The Russians now want to buy the entire stock, even from private shareholders," Kulmurzayev said in Bishkek.
Kulmurzayev gave no figure for the sale, but the sum is expected to be nominal due to the company's outstanding debts of around $31 million. He added that Gazprom officials said they plan to invest $650 million over five years on modernizing Kyrgyzstan's gas pipeline network.
"The price for fuel will be substantially cheaper than what is paid to Kazakhstan — $224 per thousand cubic meters — or Uzbekistan — $290 per thousand cubic meters," Kulmurzayev said. "We hope Gazprom will solve the fuel delivery problem in 2013."

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