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Press Review

IZVESTIA (9/2/2005)

The State Duma today is expected to consider the no-confidence in the gvt motion. According to results of the latest VTSIOM opinion poll, the Mikhail Fradkov gvt works 4 times worse than was expected (see the diagram) . But the parliament majority is unwilling to sack the gvt, which looks enraged for the S. D. 's rating that is twice worse than that of the gvt. The story comments on the issue, reflecting on how to save the parliament' s face and the gvt' s general line on conducting its social reform. All central papers reflects on a possible outcome of today' s discussion in the State Duma. (1, 2, Kommersant, 1, 3, Rossiiskaya Gazeta, 1, 3, Vremya Novostei, 1, 4, Noviye Izvestia, 2, Gazeta, 2, Trud, 1, 3, Krasnaya Zvezda, 1, 3, Nezavisimaya Gazeta, 2, Komsomolskaya Pravda, 6, MK, 1, 2)

In an interview Oleg Rybachuk, Ukraine' s Vice-Premier in charge of European integration, talks about his first moves aimed at Ukraine' s rapprochement with the West, which is a priority in his foreign policy. He also talks about Russia' s place in it. ((1, 4, 5)

In an interview Alexander Kalyagin, Chairman of the Union of Theatrical Workers, talks about a serious conflict between his union and the Economic Development Ministry over theatrical reform. He says in part that a package of bills drafted by the ministry will be the downfall of the theater. (1, 15)

Chechen terrorist Samil Basayev stated on Tuesday that he is alive and does not have any health problems. The story examines sources of rumours about his death. (1, 2, Kommersant, 4, Rossiiskaya Gazeta, 2, Gazeta, 11, Noviye Izvestia, 6, Vrenya Novostei, 3, Russky Kuryer, 2, Krasnaya Zvezda, 1, 2, Trud, 1, Komsomolskaya Pravda, 5, MK, 1, 3)

A new special service may be created in Russia with the aim of cracking down on economic crime. No definite decisions have been made so far, but its' clear now that the FSB' s Economic Security Service (SEB) will be abolished. The FSB' personnel department has been ordered to work out a procedure of liquidating SEB. The story comments on the decision. (1, 2)

The Obninsk City Court on Tuesday ruled that the cancellation of the direct mayoral elections in the city was illegal. The story comments on the court' s ruling. (2)

The Central Elections Commission (CEC) on Tuesday decided to increase the ceiling of expenses from the State Duma candidates' election funds up to 7, 128, 000 rubles and of political parties and blocs -- up to 297 million rubles. CEC Chairman Alexander Veshnyakov explained why this measure was necessary. (2)

Avto Transport Workers' Labour Union leader Viktor Mokhnachev at a news conference on Tuesday told journalists about a national act of protest against soaring fuel prices scheduled for Feb. 10 and 12. The protest with over 500, 000 participants will take place in all regions. The story describes this s planned act and protesters' demands. (3)

The expenses of the State Duma and the Federation Council on the maintenance of their deputies will be soon by 10 percent The corresponding draft bill was presented in the Media-Center on Tuesday by Oleg Kovalyov, head of the S. D. Regulation Committee. The story examines the draft. (3, Gazeta, 4)

Alexei Pankin, editor of the Izvestia section " Commentaries" , reflects on what Russian-Ukrainian relations should be in the interests of both nations. His idea is their possible merger into Kievan Rus rather than Moscow Rus, which was once a historical reality. 4)

The story compares results of the second round (on Jan. 23) of the last gubernatorial elections in the Nenets Autonomous Area with the results of the first round. The comparative results were commented on on Tuesday by local Election Commission head Zaur Tlyabichev. (4)

UPI senior analyst on Russia Peter Lavel (Sp. ?) comments on positive results of the recent negotiations in Ankara between Foreign Minister Sergei Lavrov and US Secretary of State Condoleezza Rice, who, fortunately, understand that American-Russian relations should not suffer from the verbal war declared in the recent months by the Western and part of the Russian press to the Russian state and President Putin. The media have the impression that Russia has been turned into an authoritarian regime governed by the despot. The author says why he disagrees with this impression. (4)

Sheremetyevo law-enforcers in Airport Sheremetyevo on Tuesday evening detained Yekateriana Guryanova, wife of Pavel Ivlev, a lawyer of the ALM-Feldmans company, that services Yukos. She with two children intended to fly to New York. The story details the case, saying why she was detained. (6)

The Nizhny Novgorod Regional Court has given a 4-year suspended sentence to energy specialist Vitaly Matveyenkov, chief of the LEP service of the Kotovskiye Elektroseti " company, part of Nizhnovenergo. The local Nature Conservation Prosecutor' Office managed to prove that Matveyenkov failed to protect a nest of rare butterflies. The story describes this unprecedented criminal case. (6)

The story examines results of the negotiations in Lithuania on Tuesday between Yukos head Steven Theede and Lithuanian authorities on the fate of Mazeikiu Nafta, a leading oil concern in the Baltics. (9, Kommersant, 13, 16, Vremya Novostei, 8, Gazeta, 20)

With the purchase of Yuganskneftegaz Rosneft has obtained all its problems. Thus, the Arbitration Court on Tuesday left Yuganskneftegaz' s property frozen. The story comments on the court' s ruling, saying that Rosneft is ready for long negotiations with authorities and do not hope that the problem will be resolved earlier than in a year. (9, Gazeta, 18)

The State Duma today is expected to consider a reworked variant of the anti-beer bill. The story examines its corrected draft. (10)

The experiment with the single social tax has failed. State Duma deputies are willing to return the previous tax system when the employer paid out dues to three non-budget funds (they are mentioned) . This was stated on Tuesday by State Duma Labour and Social Policy Committee Andrei Isayev. The story reveals the essence of his statement. (10)

IBM, Sony and Toshina engineers in San Francisco on Tuesday presented their new project -- the processor Cell-- that will appear on the market already this year. The story describes this super-processor. (10)

Presidential economic adviser Andrei Illarionov on Tuesday stated about the cooling of the investment climate in Russia. He said that the capital outflow from Russia last year amounted to $27 billion. Illarionov believes that the stagnation of the domestic production sector this year will continue. The story comments on his statement, focusing on what he said about Yuganskneftegaz. (11, Kommersant, 14, Rossiiskaya Gazeta, 5, Noviye Izvestia, 3, Vremya Novostei, 4, Nezavisimaya Gazeta, 1, 3)

Industry and Energy Minister Viktor Khristenko on Tuesday reported to President Putin about the completion of drafting the " Strategy of Boosting the Aviation Industry for a Period of up to 2015" . The story examines the document' s major provisions. (11)

An unprecedented sanitary -environmental scandal may break out in Moscow. The fact is that residents in Yuzhnoye Butovo last week filed a suit in the City Meshchansky District Court against the Moscow metro. In their opinion, city authorities have built a line of light metro too close to residential apartment blocks. The story details the case. (13)

Mayor Yury Luzhkov on Tuesday signed a directive concerning the creation of an open joint stock company " Moscow Gas Company. The story looks at its aim. (13, Kommersant, 13, 16)

Moscow authorities will allocate money for the construction of a Jewish cemetery that will be built in the west of the city. This was stated by the City Consumer Market and Services Department. Brief. (13)

KOMMERSANT (9/2/2005)

Boris Alyoshin, head of the Federal Industry Agency, part of the Industry and Energy Ministry, has sent a letter to Prime Minister Mikhail Fradkov with a recommendation to reject German Siemens' planned purchase of Siloviye Mashiny. Fradkov, by the president' s order, asked the ministry to make the situation with the deal clear. The story reports on how the ministry has explained it. (1, 13)

Deputy Prime Minister Alexander Zhukov at a session in the Kremlin on Tuesday revealed to the president a scenario of reforming tax administration. The story examines Zhukov' s plan. (1, 2)

Rosoboronexport Director-General Sergei Chemezov at his meeting with President Putin on Tuesday told him about his company' s good results in arms exports. The story gives figures to illustrate the point. (2)

President Putin in the Kremlin on Tuesday received Yury Osipov, President of the Academy of Sciences. The story describes Osipov' s requests, saying how Putin reacted to them. (2)

The Sverdlovsk Regional Duma on Tuesday refused to pass (in a first reading) amendments to the region' s charter changing the system of gubernatorial elections. Duma deputies in opposition to regional authorities did not agree with the proposed procedure of passing the motion on the vote of no-confidence in the regional head. Nizhny Novgorod deputies have the same problems. (4)

The Russian Orthodox Church on Tuesday announced its intention to create a federal Orthodox television channel. Vsevolod Chaplin, deputy chief of the Foreign Affairs Department of the Moscow Patriarchate, stated that the channel will appear very soon. Federal Press Agency head Mikhail Seslavinsky, however, stated that the propaganda of Orthodoxy should not become part of state policy. The story focuses on how the idea of such a channel originated. (8)

Ukraine' s President Viktor Yushchenko on Tuesday made several statements of principle concerning the future role and place of the Ukrainian special services. The story comments on his statements evidencing that from now on these services' influence in Ukraine will considerably decrease. (10)

Specialists from the American FBI arrived in Tbilisi on Tuesday to help local law-enforcers investigate the circumstances of the death of Prime Minister Zurab Zhvania. The story examines how the American specialists will do their investigation. (10)

The dollar on the world market on Tuesday upgraded to the two-month maximum in relation to the yen and stopped on the 3-month level in relation to the euro. The story looks at the dollar' s behaviour, focusing on the experts' view. (14)

Ukraine' s President Viktor Yushchenko stated his willingness to conduct an amnesty of capital. In his opinion, the aim of this move is to lead the economy out of the shade. Brief. (14)

The Aero India 2005 air show is expected to open today in Bengalor. About 300 foreign firms from 30 countries will present their products. The story describes the event, focusing on a Russian delegation. (15)

The deal to sell the controlling interest of Lucchini Spa to Severstal Group was completed on Tuesday. The story examines the deal, saying what the Russian metals holding will benefit from it. (16)

TNK-BP Holding has become the owner of 96. 14 percent of shares of the Tyumen Oil Company (TNK) and 82. 41 percent of shares of SIDANKO. This was stated in both companies' press releases Brief. (16)

VEDOMOSTI (9/2/2005)

A serious blow to a big foreign project has been dealt in Russia The Audit Chamber believes that the investors in the Sakhalin-2 project -- Shell, Mitsui and Mitsubishi -- have inflicted $2. 5 billion damage to the Russian budget and demands compensation. (A1)

Highly-regarded Serbian filmmaker Emir Kusturica (Sp. ?) has taken up the advertising business. Thus, he started with an advertising clip of ketch-up for the company Baltimore, a leading juice producer in Russia. The company will spend about 150, 000 euros on the clip, and experts think that the project is worth the money. (A1)

Tax inspections soon will stop to be an instrument of extorting money from companies. Inspectors before making many-billion claims will have to consult with the management. And tax-payers will be able to complain to special tax controllers. Such revolutionary proposals were approved on Tuesday by the president. (A1)

Increased housing and utility bills spoil the mood both of tenants and state bureaucrats: the first have to pay more and the other--write lengthy reports on inflation. (A1)

The Economic Development Ministry intends to boost the domestic economy not only with the help of structural reforms and an improvement of the investment climate. Its new medium-term economic program includes a point on the creation of public television. The story comments on this point. (A3)

The sale of Yuganskneftegaz has ensured a record high January surplus to the federal budget-- 190 billion rubles. The story examines how this money will be distributed. (A3)

The ruling bureaucrats are trying to find those guilty of catastrophic social and political consequences of the monetarization of welfare benefits. An essential trend in this official propaganda is the accusation of protesting benefits-recipients of all grave sins, including soaring inflation. Mikhail Delyagin, science director at the Institute of Globalization Problems, says that they are not guilty. (A4)

In a far-ranging interview Anatoly Arzimanov, Director-General of the Yaroslavl Brewery (now YarPivo Group) talks about the origin of his company that today a profit-making enterprise. He also speaks about his hobby. (A5)

EDOMOSTI. COMPANIES & MARKETS SUPPLEMENT

Transneft asks to grant it benefits on the majority of major taxes for the period of the construction of the Eastern Siberia-Pacific Ocean, costing approximately $11. 5 billion Brief. (B1)

Deputy Minister of the Economic Development Ministry Andrei Sharonov reported on Tuesday that state officials had agreed to privatize the whole state-owned 75 percent minus 1 share package of Svyazinvest. (B1)

Ukraine' s Anti-Monopoly Committee has allowed Komstar- United TeleSystems company (part of AFK Sistema) to buy more than 5- percent of shares of the Kiev Farlep-Invest. This company manages the assets of Group Farlep that includes 10 regional Ukrainian operators. (B1)

The Overseeing Council of Renaissance Bank decided to place ordinary shares to the tune of 20 million rubles. The additional issuance is released with the aim of exchange of all convertible privileged shares of the bank into the ordinary ones. (B1)

Severstal today can sign an agreement on the purchase of the controlling stake of the Italian metals holding Lucchini. Experts believe that the purchase of Lucchini allows Severstal to enter the European market of quality rolled metals. (B2)

Ukrainian authorities have made the first move to the nationalization of Krivorozhstal. The Prosecutor General' s Office has lodged a complaint in the Supreme Court on declaring results of the combine' s privatization illegal. (B2)

SIBUR former President Dmitry Mazepin has again become a co-owner of the Kirovo- Chepetsky chemical combine, a leading producer of mineral fertilizers. (B2)

Rosneft has decided to sell gas in Moscow and is creating a gas company with Moscow city authorities. The new trader promises to sell gas of independent producers. (B2)

ROSNO former Director-General Yevgeny Kurgin has sold his 3. 44 percent of shares to an insuring company for $5. 6 million. According to this deal, ROSNO costs $163 million. (B3)

The Brunswick Capital has sold the managing Brunswick Asset Management company to its colleagues from Kazimir Partners for $5 million. The story describes the deal, focusing on experts' views. (B3)

NEZAVISIMAYA GAZETA (9/2/2005)

Presidential representative in the Volga Federal District Sergei Kiriyenko will soon quit his post. This was stated by several state officials in the Kremlin and in Kiriyenko' s office. The story reflects on his fate. (1, 2)

Defense Minister Sergei Ivanov today will make a report in the Federation Council to describe a difficult financial situation in the army and navy. The minister has no idea where to find money (all in all, $2 billion) to increase wages for the military. This is what is worrying even the president. (1, 2)

NOVIYE IZVESTIA (9/2/2005)

The story offers concrete facts of looting ferrous metals, which has acquired dimensions of national calamity. The Orel Regional Council has officially applied to the president, the gvt and the State Duma with a request to legislatively step up control over the turnover of metal scrap. (1, 7)

State Duma deputies intend to give up part of their benefits. Indicatively, they did it after NI ' s publication (Feb. 2) , saying that deputies when snatching benefits from people, did not forget about privileges for themselves. And here something extraordinary has happened : Deputy Oleg Kovalyov, head of the S. D. Regulation Committee, stated on Tuesday that the deputies decided to give up part of their benefits and thus save 90 million rubles. The story, however, singles out one interesting detail: this money will not go to the budget, but it will come back to the deputies as bonuses. (1, 2)

Kyrgyzstan' s Foreign Minister Askar Aitmatov is arriving in Moscow today to discuss with the Russian leadership economic relations, including problems of labour migration. The minister will ask Russian authorities to ease the passport regime for migrants. The story explains why this issue has become urgent. (1, 4 )

Stanislav Belkovsky, head of the Institute of National Strategy, on Tuesday presented his own concept of the new Fundamental Law (Constitution) . He believes that there are no real strategists left in the Kremlin now, and, therefore, his draft should be endorsed. The story examines its major provisions. (2, Nezavisimaya Gazeta, 1, 2)

KOMSOMOLSKAYA PRAVDA (9/2/2005)

A group of Kremlin analysts is drafting measures aimed at leading the country out of the so-called benefit crisis. The story looks at some of them. In an interview Sergei Markov, Director of the Institute of Political Studies share his view on the Kremlin project. (3)

The new system of providing the benefit-recipients with medicines will help decrease the number of the fake ones. Boris Shpigel, deputy head of the Federation Council Science, Culture, Education, Health Care and Ecology Committee, comments on the issue. (5)

First Deputy Mayor Vladimir Resin at a news conference on Tuesday told journalists what was built in Moscow last year. He focused on construction plans for this year. (5)

Spin doctor Alexander Tsypko presents his analysis of the present economic and political situation in Russia, in which the KPRF with Gennady Zyuganov as its leader is encouraging people to voice their protest against the Putin regime. All these sentiments are used in the project " Rossiya" that has been already launched and that is financed by Soros, Berezovsky and Gusinsky and that is aimed at removing Putin from power. (6)

The story describes a tragedy that happened in Vologda on Saturday when 4-year-old Artyom died in a dentist' s surgery. (7)

Sergei Kruglik, Director of the Industry and Energy Ministry' s Construction and Housing-Utility Sector Department, answers numerous questions from Keaders about the new Housing Code that will take effect on March 1. (8. 9)

MOSKOVSKY KOMSOMOLETS (9/2/2005)

The story describes an interesting entertainment event that will be held on Vasilyevsky Spusk (near the Kremlin) on March 10, the fourth day of the Shrove-tide. (1)

Activists from nature protection groups in Moscow State University' s Biology Department not long before the Valentine' s Day Feb. 14 and Women' s Day March 8 will explain to people -- traders and buyers -- that they should not pick up and buy forbidden flowers from the Red Book. . The story describes this act. (1)

Chief Children' s Physician of Russia Leonid Roshal at the 10th National Congress of Pediatricians that opened in Moscow on Tuesday accused the Finance Ministry of allocating miserable funds for medical needs. He cited several figures. (2)

Can Chechen rebels possess a small nuclear bomb? Professor Igor Ostretsov, Deputy Director of the All-Russian Research Institute of Nuclear Machine-Building, comments on the current rumours. (2, Komsomolskaya Pravda, 5)

President Putin in the Kremlin today will give medals and orders of the former Soviet Union to a small group of World War II veterans, who failed to receive their decorations on time. (2)

In an interview Emergency Situations Minister Sergei Shoigu talks about a special system of emergency forecasting that exists in his ministry. He also speaks about possible emergency situations this spring and about the salvation telephone service (112) . (2)

At Moscow' s initiative, Chechen President Alu Alkhanov will change his guards, who will be replaced by special forces officers (OMON) . The story explains why there is such a need. (3)