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Press Review

IZVESTIA (18/8/2005)

The Israeli military on Wednesday launched a historic operation to evict settlers from Gaza, who have refused to do so on a voluntary basis. The story details this painful operation. (1, 4, Kommersant, 10, Rossiiskaya Gazeta, 1, 8, Krasnaya Zvezda, 3, Novaya Gazeta, No. 60, p. 2, 3, Vremya Novostei, 1, 2, Gazeta, 6, Nezavisimaya Gazeta, 6, MK, 3)

Gazprom if it decides to buy Sibneft may borrow $10 billion from the syndicate of Western banks to make this purchase. This was reported by Bloomberg, referring to anonymous sources in banks. The story comments on this information, saying that no one in Russia has ever made such a huge borrowing. (1, 7, Kommersant, 5, Vremya Novostei, 7, Gazeta, 14)

Governor of the Novgorod region Mikhail Prusak supports the idea of extending the president' s term of office. In his opinion, this may take place in case of certain " territorial changes" . In an interview Prusak reveals the essence of his idea. (1, 2)

Spending on the upkeep of the Kremlin administration next year will go up by 40 percent and will amount to 5 billion 835 million 20, 000 rubles (over $200 million) -- such figures are contained in the draft budget -2006 that the gvt will discuss today. Spending on the upkeep of other structures will also increase. The story examines several expenditure articles of the draft. (2, Rossiiskaya Gazeta, 1, 4, Vremya Novostei, 2, Gazeta, 2, Nezavisimaya Gazeta, 3)

President Putin on Tuesday evening made an unexpected decision -- to propose to the Regional State Council to confirm the candidacy of the present head of Chuvashia, Nikolai Fyodorov, to this post for the fourth term of office. The story comments on the President' s decision. (2, Kommersant, 3, Rossiiskaya Gazeta, 3, Noviye Izvestia, 2)

The story comments on results of presidential envoy to the Far Eastern Federal District Konstantin Pulikovsky' s official visit to North Korea, who stressed that its President Kim Jong Il would like to visit Russia again. (2)

President Putin aboard the warship " Pyotr Veliky" on Wednesday watched a successful launch of a ballistic missile from a submarine. The president also explained how he regarded personnel reshuffles, promising no staff changes in the gvt. The story describes Putin' s good impressions about what he saw during the Northern Fleet' s military exercises in the Barents Sea on Wednesday. (3, Kommersant, 1, 3, Rossiiskaya Gazeta, 1, 2, Krasnaya Zvezda, 1, Vremya Novostei, 1, 2, Gazeta, 1, 3, Noviye Izvestia, 6, Nezavisimaya Gazeta, 1, 2, Komsomolskaya Pravda, 2, MK, 1, 2)

United Russia officials and young musicians at a joint news conference on Wednesday told journalists about an upcoming rock concert " Glory to Russia" that will take place in Moscow' s suburb Kuzminki on Aug. 27 under the aegis of the Moscow branch of United Russia. The story describes the aim of the concert and its program. (1, 3, 5)

American mother Ingrid Sanders (Sp. ?) has been bewildered when her one- year child was not allowed to board a plane. The story details the incident. (4) `

Andrei Subbotin, President of the Fund for Research, Studies and Global Development, examines globalization as a process of re-distribution of economic and political functions between the state, the transnational companies and international organizations. (5)

Valery Kuzin, Deputy Chairman of the Kovrov (Vladimir Region) City Parliament, went on trial on Wednesday on charges of power abuse. He is the eighth out of the 21 deputies from the city parliament, who has been jailed over the past 3. 5 years. The story details his case. (6)

The Moscow City Court on Wednesday delivered a verdict in the case of 11 defendants on the case of the Orekhovo-Medvedkovo criminal group that committed grave crimes in the ' 90s. The story examines their crimes and severe prison sentences. (6, Kommersant, 4, Rossiiskaya Gazeta, 7, Gazeta, 8)

Prosecutors within the framework of the so-called Kasyanov case on Tuesday questioned Konstantin Merzlikin, former head of the gvt administration and one of the closest associates of Mikhail Kasyanov. The story examines what he told the prosecutors. (6, Kommersant, 3, Vremya Novostei, 3, Nezavisimaya Gazeta, 1, 7)

The Moscow Lyublinsky District Court on Wednesday launched a repeat consideration of the criminal case of Alexandra Ivannikova accused of killing 23-year-old Sergei Bagdasaryan, who tried to rape her. The story examines her case. (6)

The St. Petersburg City Court on Wednesday returned the high -profile Starovoiteva case to the City Prosecutor' s Office. The story says why. (6, Kommersant, 4, Vremya Novostei, 3, Gazeta, 9)

Economic Development Minister German Gref has proposed how to increase budget revenues through narrowing the gap between prices of Urals and Brent oil. The story examines his proposal. (7, Rossiiskaya Gazeta, 4)

Whatever federal authorities efforts to persuade foreign businessmen that nothing threatens to their investments in Russia, they still believe the Yukos case can repeat. Foreign investors so far dislike Russia. According to Rosstat, only $16 billion 503 million was invested in the Russian economy by foreigners in the first six months of 2005, which is by 13. 1 percent less than the figure for the first 6 months of 2004. The story examines how this happened. A graph. (1, 7, Kommersant, 6, Gazeta, 4, Nezavisimaya Gazeta, 3)

The gvt today will hold the most important session this year : it is expected to endorse documents that will determine the country' s whole economic life next year. The gvt will consider the draft budget, the three-year economic forecast, the drafts of budgets of three non-budget funds and the fiscal document submitted by the Central Bank. The story focuses on the structure of the federal budget-2006. a graph. (7, Kommersant, 1, 2, Vremya Novostei, 2)

The first session of the newly-elected Board of Directors of the Russian Railways company on Wednesday introduced changes in its leadership. The story examines them in detail. (7, Kommersant, 5, 7, Vremya Novostei, 7)

Moscow police have confiscated a huge batch of illegally imported cellular telephones worth over $10 million. The story describes the operation. (8)

Specialists from the Biznes Analitika agency believe that vodka prices this fall will grow considerably more rapidly than the inflation pace. The story explains this forecast. (8)

The machine-building holding created on the basis of the Gorky auto plant (GAZ) will change its name. The story explains the reason behind such a decision. (8)

The Zotob computer virus has hit over 100 American companies. The story examines its concrete victims, saying that Russian experts do not view it as very dangerous. (8, Kommersant, 7, Rossiiskaya Gazeta, 2, Vremya Novostei, 2)

The all-Russian Islamic organization " Al-Khak" on Wednesday applied to Mayor Yury Luzhkov with a request not to place computer games near the mosques and on Ulitsa Akhmata Kadyrova. The story explains the reason behind this request. (9)

Mayor Yury Luzhkov has signed a decree featuring a program of preventive measures against upcoming possible energy crises. Thew story examines several measures stated in the document. (9)

The story examines a program of city events devoted to the City Day on Sept. 3 and 4. Since the holiday coincides with the Beslan tragedy there will not be large-scale celebrations. (9)

KOMMERSANT (18/8/2005)

The Aviation Holding Company Sukhoi, Civil Planes of Sukhoi and the Financial Leasing Company at the air show MAX-2005 on Wednesday signed an agreement of purchase-sale of 10 planes " Russian Regional Jet" (PRJ) . The delivery is scheduled for 2008-2009. The story examines the deal. (1, 7)

The story examines a gvt decree published on Wednesday concerning a new method of calculating the consumer basket that includes products necessary for the average man' s survival. The story comments on the gvt document. (2)

President Putin today is expected to submit to the Altai Regional Council a candidacy of a new governor. Among the possible candidates are Alexander Karlin, head of the presidential State Service Board, and Nikolai Shuba, Chief Federal Inspector for the Moscow Region. The story reflects on which of the will win. (3)

The KPRF and 17 other left-wing parties and public organizations have applied to the country' s leadership with a letter describing negative consequences of current social reforms. Brief. (3, Nezavisimaya Gazeta, 3)

Deputy Interior Minister Alexandr Chekalin stated on Wednesday that special police rooms will be appear in all schools to guard school pupils. The story comments on the measure, saying that Education Minister Andrei Fursenko has approved it. (4)

Norilsk Nickel on Wednesday announced that its subsidiary Polyus had bought gold deposits in Siberia for about $285 million. The story examines the deal. (5)

The Obnovleniye Arbata company, 100 percent belonging to the Moscow gvt, has launched a major renovation project of a highrise on 21, Novy Arbat. The brief looks at the project. (5)

Dutch Heineken NV has officially announced its purchase of the Ivan Taranov brewery (PIT) . Brief. (5)

The Prodimex company, a leading player on the domestic sugar market, has begun to sell its assets. Thus, on Wednesday the company officially put up for sale its Timashevsky sugar plant in the Samara region. The story describes the general situation in the sugar industry, focusing on Prodimex' sales. (6)

Stroitransgaz, an affiliate of Gazprom, has put up for sale 61. 1 percent of shares of Trubodetal in Chelyabinsk. The story examines companies that have shown their interest in the package. (6)

The Moscow Arbitration Court on Wednesday made a decision on a compulsory liquidation of the New Russian Bank, from which the Central Bank several days ago recalled a license. The story comments on the court' s ruling. (7)

Former head of Mobile Telesystems and MGTS Mikhail Smirnov has become head of the American Moscow Cablecom (MCC) company that owns the Moscow operator of cable television Komkor-TV. In the experts' opinion, this appointment means the beginning of a new stage of the development of the cable TV market. Smirnov will manage not only the local cable network, but also the telebroadcasting holding, the creation of which is planned by SUAL owner and TNK-BP co-owner Viktor Vekselberg. (7)

The chiefs of the general staffs of the armed forces of Russia and China -- Yury Baluyevsky and Lyan Guanle (Sp. ?) in Vladivostok today are expected to announce the beginning of the first Russian-Chinese military exercises Peace Mission -2005. They will last for seven days. The story examines their program. (9)

The Chinese leadership is seriously concerned over the threat of " colour" revolution. Beijing has worked out special measures aimed at stepping up party control in the society and cutting short Western influence in China. The story examines these measures. (9, 11)

VEDOMOSTI (18/8/2005)

The RTS index has set a new record-- it has reached almost 850 points and could have even foiled an auction to sell state-owned bonds. On the anniversary day of the default, the demand for OFZ turned out to be so high that the Finance Ministry had even to ask investors to lessen their appetites. (A1)

Federal Tax Service head Anatoly Serdyukov recommends to companies that they minimize taxes through using taxation regimes He believes that the cancellation of benefits in the closed administrative- territorial formations (ZATO) is a mistake. The story reveals the essence of his viewpoint. (A1)

Rosneft' s intention to become a minority shareholder of Sibneft has impressed Gazprom. The latter now wants to buy from Roman Abramovich and his partners 20 percent shares of the oil company if only these shares would not go to Rosneft. Gazprom' s interestedness can help release these shares from arrest but they first will have to be bought out from Yukos. (A1)

Industry and Energy Minister Viktor Khristenko has proposed to the domestic aviation industry to move all aviation design bureaus in Russia to Zhukovsky in the Moscow region and to create a free economic zone there. President Putin has immediately approved the proposal. (A1)

President Putin has submitted to the local State Council a candidacy of the present Chuvash President, Nikolai Fyodorov, to be confirmed for the 4th term of office. The story looks at the president' s choice. (A2)

Jordan' s King Abdullah II at the air show MAX-2005 on Wednesday bought two military-transportation planes Il-76 MF for approximately $100 million. The story comments on the deal. (A3)

The Finance Ministry stated that the stabilization fund by 2008 will reach 3 trillion rubles, and that nothing should be spent from it. The Economic Development Ministry would like to increase economic growth at the expense of state-controlled investments. They will discuss their viewpoints at a gvt session today. (A3)

The Central Bank' s assessments of the volume of foreign investments considerably differ from those made by the Federal State Statistics Service. The cited figures illustrate the point. (A3)

Umar Dzhabrailov, Federation Council deputy and Deputy Head of the International Affairs Committee, examines an explosive situation in the North Caucasus, focusing on two blocks of problems that make the situation such. (A4)

In an interview Stanislav Antipov, Director-General of the Rosenergoatom concern, explains, above all, why his concern needs to become a joint stock company. Antipov also shares his envision of the future of nuclear energy. (A5)

VEDOMOSTI. COMPANIES & MARKETS SUPPLEMENT

The world leading beer giant SABMiller would like to obtain one of the latest large independent breweries-- Krasny Vostok. .The story examines a proposal that Krasny Vostok has received from SABMiller. (B1)

The pool of Western banks before the end of this week may coordinate all documents for opening a credit line to Rosneftegaz to pay for 10. 74 percent of shares of Gazprom. This was stated by a source close to the deal. Brief. (B1)

The Central Bank decided to include another seven banks into the deposit insurance system. The brief names them all. (B1)

The " Regions" company managed by sons of AFK Sistema co-owners Vladimir Yevtushenko and Zelimkhan Mutsoyev will invest up to $ 800 million in the creation of the network of trading -entertainment centers. (B1)

The Moscow digital operator " Konstar -Unified Telesystems (Komstar-OTS) , part of AFK Sistema is completing the deal to obtain from Antel Holding 45 percent of shares of St. Petersburg Metrocom. Brief. (B1)

The Unified Energy Systems (UES) holding has obtained another shareholder-- new Technical Director Boris Vainzikher owns 0. 000032 percent of shares. Brief. (B1)

The TNK-BP Board of Directors decided to allocate $270 million to do work within the framework of experimental-industrial exploitation of the Verkhnechonskys oil and gas deposit. What do analysts think of this decision? (B2)

Airbus and Boeing, participants in the air show MAX-2005, are sure that in 10-20 years their planes will be dominating in the air of Russia. . How do experts regard their forecasts? (B2)

NEZAVISIMAYA GAZETA (18/8/2005)

Azerbaijan' s First Lady Mekhriban Aliyeva has received a permission from her husband to run for a seat in the country' s parliament (Milly Medjlis) . Her name was officially included in the election list of the ruling party " Yeni Azerbaijan" led by President Ilham Aliyev. The story comments on her decision and struggle for the right to participate in the elections. (1, 5)

Bird flu has been suspected to spread to the Republic of Kalmykia and the Sverdlovsk region. If medical examinations confirm the suspicions, then the number of regions infected with bird flu will reach 8. Now their number is six. The Federal Veterinary Service on Wednesday made public information about economic damage inflicted by this disease. The story examines it in detail. (1, 7, 2, Noviye Izvestia, 7)

The Union of Right Forces (SPS) in the evening today is expected to discuss a list of candidates to run for seats in the Moscow City Duma. Maria Gaidar, a daughter of highly -regarded politician Yegor Gaidar, will be among the first three names on the list. In an interview she talks about her decision, saying that her father is opposing it. (1, 2)

The first comments appeared on Wednesday on Mayor Yury Luzhkov' s instruction concerning renewing the city gvt. Thus, the Moscow Yabloko branch on Wednesday decided to apply to the Moscow gvt with its proposal to include its young specialists to several departments. Sergei Mitrokhin, Yabloko Deputy Chairman and head of the party' s Moscow branch, comments on the issue. (2)

State Duma deputies will get together for the first session on Sept. 5 and on Sept. 7 they will endorse a program of their legislative activity. The story looks at its preliminary variant, saying that the State Duma Commission' s Beslan report will be classified. (3)

Finance Minister Alexei Kudrin at a news conference on Wednesday talked about inflation, price hikes and about the draft budget-2006. The minister stressed that the August 1998 default would not repeat. (3)

The story reveals the essence of the latest statements made by lawyers of Mikhail Khodorkovsky and Platon Lebedev, staying in Matrosskaya Tishina Prison. (7)

ROSSIISKAYA GAZETA (18/8/2005)

The Transparency International organization has made public its annual corruption rating, in which Russia occupies the 71st-76th lines. In an interview Major-General Yury Kokov, First Deputy Chief of the Organized Crime and Terrorism Department of the Interior Ministry, says that Russian legislation does not have such a notion as " corruption" and, therefore, there is no federal statistical estimation of such crimes. Kokov, nevertheless, says how to crack down on this evil. (1, 9)

The Kremlin does not exclude imposing sanctions against Latvia if its authorities continue to limit the rights of the Russian-speaking population This was stated by a spokesman for the Kremlin administration. Sergei Oznobishchev, Director of the Institute of Strategic Assessments, comments on the position of Russia-speaking people in Latvia. (2)

Regional Development Minister Alexander Yakovlev on Wednesday contacted with regional leaders to find out how they are preparing for winter. Their answers were disturbing ; they said that they lack funds for effective preparations for winter. The story examines their problems. (2, Noviye Izvestia, 2)

In an interview Kazan Mayor Kamil Iskhanov talks about how his city is preparing to celebrate its upcoming 1000th jubilee. The mayor also explains why city residents have rejected the statue of Peter the Great that has been presented to the city by sculptor Zurab Tsereteli. (3)

In an interview Alexei Zhafyarov, Chief of the Political Parties, Public and Religious Associations Board, says what is awaiting political parties in connection with novelties in the election legislation. (3)

The Prosecutor' s Office on Wednesday made public the first official results of investigation into circumstances of the recent auto accident in the Altai region that killed governor Mikhail Yevdokimov. (3)

First Deputy Interior Minister Alexander Chekalin on Wednesday opened Police Station No. 1 in Sepukhov (Moscow region) . The story comments on Chekalin' s statement. (9)

NOVIYE IZVESTIA (18/8/2005)

hechnya ' s territory today looks like one big mine-field, on which both adults and children die almost every day. The story gives concrete facts to illustrate the point. The focus is on serious problems of many victims, since neither gvt officials nor public organizations want to help them (7)

Prosecutors are continuing their investigation into the incident with the AS-28 mini-submarine in the Beryozovaya habour in Kamchatka. . It became known that the Pacific Fleet' s Prosecutor' s Office had launched a criminal case against Viktor Novikov, commander of the rescue vessel " Georgy Kozmin" . He is suspected of negligence. The vessel' s crew got indignant with the criminal case against their commander, saying that Novikov was innocent. The story details the case. (1, 6 )

Crimean residents daily hold numerous protests against Ukrainian authorities' decision to open more Ukrainian schools and to limit the number of Russian schools. The story comments on this serious problem. (1, 4)

Despite President Putin' s warning, the power struggle in is continuing. The story examines political forces that make the situation in the region explosive. (2)

Almost all Kamchatka residents have no idea who in reality Viktor Vekselberg is. Even Kamchatka governor Mikhail Mashkovets has only heard about him from news reports. In this context, no one wants Vekselberg to become governor of the future united region -- Kamchatsky Krai. (2)

The growth pace of petrol prices has increased by 5 times. And if in the last week of July it went in price by 0. 2 percent, then between Aug. 2 and 8 the prices went up by 1 percent, which was reported by the Federal State Statistics Service. The story comments on the petrol situation and prices in Moscow, saying that before the end of this year petrol prices may go up by another 17 percent. )3)