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Press Review

IZVESTIA (1/8/2005)

The Navy parade in St. Petersburg in honour of the Navy Day on Sundays ended in a scandal: sailors during the rehearsal on Saturday nearly sank one of the best ships " Neukrotimy" (Untamed) of the Baltic Fleet. The story describes those developments. (1, 2, Kommersant, 3, Rossiiskaya Gazeta, 2, Vremya Novostei, 2, MK, 1, 3)

The All-Russian Center for the Study of Public Opinion (VTSIOM) has conducted a poll to see whether Russians believe in the might of the Navy and the army. The story examines results. Two pie-charts. (6 )

Mayor Yury Luzhkov on Saturday made scandalous claims against Chukotka governor Roman Abramovich. The mayor said that the oligarch had stolen enough oil to last the city for 40 years. Luzhkov threatened Abramovich with a court suit and actually rejected Sibneft' s proposal to build a new stadium in Moscow. The story reveals the essence of Luzhkov' s accusations saying how Abramovich has regarded them. (1, 2, Kommersant, 5, Rossiiskaya Gazeta, 2, Vremya Novostei, 1, 2, Nezavisimaya Gazeta, 1, 4, MK, 3)

The services of municipal parking in Moscow, starting today Aug. 1, have gone in price by four times. Now one hour of parking within the limits of Sadovoye Koltso will cost 40 rubles instead of 11 rubles in July. The story comments on the measure. (1, 2, Moskovskaya Pravda, 1)

Four districts in the Novosibirsk region on Saturday imposed a quarantine that should stop the spread of the bird flu virus that, starting July 21, has killed more than 1, 500 chickens. This virus can infect people and is deadly dangerous for them. The quarantine is expected to be imposed soon in several other regions. The story describes the virus and measures taken against it. (2, Kommersant, 4, Vremya Novostei, 3, Gazeta, 6, Noviye Izvestia, 3, Nezavisimaya Gazeta, 7 )

The American ABC channel will not be allowed to work in the structures of the Defense Ministry after the channel aired an interview with Chechen warlord Shamil Basayev. This was stated by Defense Minister Sergei Ivanov on Sunday. The story comments on the minister' s statement. (2, Kommersant, 10, Rossiiskaya Gazeta, 2, Vremya Novostei, 1, 2, Gazeta, 4, Noviye Izvestia, 2, Nezavisimaya Gazeta, 1, 2)

The federal ministers now have the right to have the third deputy, who will be called secretary of state. The corresponding decree was signed by President Putin on Friday. The story comments on the decree, saying that it has inflicted another blow to the structure of the administrative reform that started with a tough restriction of the number of deputy ministers. (2, Vremya Novostei, 2)

Yugoslavia' s former President Slobodan Milocevich (Sp. ?) , who is convicted by the Hague Tribunal of military crimes, will serve his prison sentence in a Russian prison after a verdict is delivered. This idea has been approved by American and British officials and in Russia--by President Putin. The story comments on the decision, saying that his family will be near him. (3, MK, 2)

British police possess information that the third group of Islamists plans a new series of attacks in the London underground and in other facilities in the center of the British capital. The story describes how the first two groups -- the organizers and executors of the acts of terror in London on July 7 and 21-- have been arrested or killed. (3, Kommersant, 11, Rossiiskaya Gazeta, 3)

Uzbek authorities have demanded from the USA that it withdraw the American military base " Hanabad" in the next 6 months. The base has been used by the American military since 2001. The story comments on Tashkent' s decision. (3, Kommersant, 1, 9, Gazeta, 6, Vremya Novostei, 1, Noviye Izvestia, 1, MK, 2)

Tiraspol on Saturday marked the 13th anniversary of the stay of peacekeepers in Trans-Dniestria. The Moldovan parliament has passed the law concerning the main provisions of the special status of Trans-Dniestria, and President Vladimir Voronin has signed the document. The story comments on its provisions, saying how the Russian Foreign Ministry has regarded it. (3, Gazeta, 4)

The American shuttle " Discovery" that on Friday docked with the International Space Station will stay in orbit one day longer than planned. The story explains the NASA' s decision. (4, Kommersant, 11, Gazeta, 8, MK, 3)

State Duma deputy Alexander Khinshtein has found another " target" for deputy inquiries that will probably lead to launching new criminal cases. In an interview to Radio Liberty he said that he was studying how CIS Executive Secretary Vladimir Rushailo became an owner of a posh villa in Arkhangelskoye (Moscow region) .Khinshtein does not conceal that his list also contains other candidates. The story comments on his statement. (1, 4, Rossiiskaya Gazeta, 1, 5, Vremya Novostei, 1, Gazeta, 4, Noviye Izvestia, 2, Nezavisimaya Gazeta, 1, 7)

According to Izvestia' s investigation, the Federal Guard Service is directly involved in the privatization of the two state-owned villas " Sosnovka-1" and " Sosnovka-3" and also in the attempt to privatize the state-owned dacha " Gorki-10-10" . The story examines who in person stood behind those privatizations. (1, 4)

The story describes a lucky child 1. 5-year-old Renata from the Khabarovsk Orphan, who being very ill several months ago was adopted by American Jane Makfey (Sp. ?) . The girl' s heart was successfully operated on. (4)

Colonel-General Arkady Yedelev, Deputy Interior Minister and head of the Regional Operative Headquarters for holding anti-terror operations in the North Caucasus, was seriously injured in a road accident in Stavropolye on July 29. The story gives details. (4, Kommersant, 3, Vremya Novostei, 3, Gazeta, 9)

The army this year will receive 80 new autos of the Mustang class that have been designed and assembled by the Kama auto plant. The story describes the new trucks, examining the ones the army used in Soviet times. (6)

The story comments on Defense Minister Sergei Ivanov' s statement on the Southern Kurils that he made over the weekend during his trip to the Far East, where he visited army units in the Far -Eastern Military District-- Kamchatka, Sakhalin and the Kurils. A map. (6)

The Economic Development Ministry late last week made public its report on results of the country' s economic and social development in the first 6 months of this year. The story examines them in detail, focusing on the main reason behind the slowing down of the growth pace of the gross domestic product. (7, Kommersant, 1, 2)

The Post of Russia company, starting 2006, will change the procedure of forming prices of the delivery of periodicals to subscribers. In an interview Igor Mmandrykin, head of the company, examines the new system of forming tariffs, saying how it differs from the old system. (7)

A new cargo port will be built in 3 years in the Khabarovsk region. Th The story describes the project that will cost over $100 million and that will be funded by the Siberian Coal and Energy Company (SUEK) The port will be build by a Serbian company. (7)

A virtual cellular communications operator will appear soon in Povolzhye. The network of Yevroset salons promises to service many clients. The story examines the project. (8)

All domestic oil companies will have its own coloured petrol. The story describes the project, saying what colour belongs to each company. (8)

Rosselkhoznadzor is again preparing to limit the import of Dutch flowers. The agency over the weekend accused the Netherlands of a systematic violations of the sanitary norms when exporting its products. The story comments on the agency' s remarks. (8)OMMERSANT (1/8/2005)

The Kremlin on the basis of today' s meetings is expected to make a final decision on nominating to the Nizhny Novgorod Regional Assembly its candidacy of a new governor. The story describes who has been invited to Moscow to discuss the issue. (2)

The movement " The Freedom of Choice" in the center of Moscow held an unsanctioned protest on Saturday when drivers demanded a ban on exorbitant OSAGO insurance tariffs and several other things. GAI officers managed to break up the protest The story describes the act. (3 )

The " intellectual elite" of the movement " Nashi" on Sunday gathered together on the Karelian isthmus to discuss results of the work of the recent Nashi camp (July 11-25) on Lake Seliger. Several heads of opposition youth movements --youth Rodina and Oborona -- also took an active part, giving their own recommendations. (The story describes the meeting. (3)

Chechnya' s Supreme Court on Sunday delivered a verdict in a high-profile case of the so-called Ichkerian anti-aircraft gunners -- four rebels, who in two years gunned down three federal helicopters, as a result of which about 150 servicemen were killed. The story details their case, commenting on the court' s verdict. (4)

The story reports on how Moscow and Ukrainian authorities are scandalously dividing the property (several sanatoriums) on the territory of Crimea. (4)

The state structures have developed a mechanism of receiving by Gazprom 0. 9 percent of shares that lacks to consolidate the controlling stake of the state-owned company. The story reveals the essence of the mechanism. (5)

The price of Brent oil for the first time in history on Friday surpassed the $60 per barrel mark. The reason is the explosions and fires on the oil refineries in the USA. The story describes the oil situation, focusing on souring prices. (1, 7)

Federal Nuclear Energy Agency head Alexander Rumyantsev late lasts week approved a concept of making Rosnergoatom a joint stock company. The story describes how it will be done. (1, 7)

Nestle Waters, a unit of Swiss Nestle, decided to get rid of part of its business in Russia. The story says why. (6)

VEDOMOSTI (1/8/2005)

Though Group Menatep is experiencing difficult times, it takes an active part in the charity programs. Thus, in 2004 it spent $1. 9 million on them, most part of which went to the liquidation of the consequences of the arrest of Mikhail Khodorkovsky and the state' s attacks on Yukos. (A1)

Mayor Yury Luzhkov has interfered in the Gazprom-Sibneft deal. In his opinion, Chukotka governor Roman Abramovich has stolen enough oil to last Moscow for 40 years. The point in view is Sibneft' s main asset --the Sibneft-Yugra company. Experts believe that Moscow expresses its concern not in vain, since after the deal it will be practically impossible to return the asset. (A1)

According to statistics, the average Russian earns now $300 a month, which is more than CIS neighbours. What is sad, inflation is constantly soaring. The story examines salaries and inflation. (A1)

The story comments on Mikhail Khodorkovsky' s third article from prison, in which the author talks about the need and inevitability of the " left turn" in Russia' s fate. (A1, A4, A5)

The deadline expires today when President Putin should finally compile a list of 42 persons who will make up the Public Chamber. The story says how the Kremlin explains the delay. (A2)

Funds allocated for research and studies have stopped to grow in Europe, and the share of private allocations is going down. China by the level of investments in science in five years can outstrip the European Union, the European Commission believes. (A3)

The single economic space of Russia, Ukraine, Belarus and Kazakhstan is possibly living out its last weeks. The story examines what each of these countries disagrees with and what it proposes. (A3)

In the opinion of economists in investment banks, economic activity in July will be lower that the June results. The gvt encourages economic growth, raising the cash payments to the population, but ignoring inflation. (A1)

Many businessmen dream to cooperate with big wholesale networks. American Jim Tatuailer has managed his dream to make come true. The story describes how he has done it. (A7)

The production of organic foods in the USA is expanding, as a result of which a new class of entrepreneurs has emerged. They are Americans, for whom reaching a commercial success is not a priority. They create companies to make the world better and some of them manage to earn good money. (A7)

VEDOMOSTI. COMPANIES & MARKETS SUPPLEMENT

The story examines the current position of Sibneft on the eve of a possible sale, assessing what the potential buyer may come up with. (B1)

The co-owners of VSMPO-Avisma Vyacheslaav Bresht and Vladislav Tetyukhin have bought out from Renova 13. 4 percent of shares of the corporation. Renova last week doubted that the deal would be completed, but the situation changed on Friday. (B1)

The TNT television channel has already informed its advertisement- providers that it would raise the cost of advertisement next year. Other channels, too, intend to raise prices. (B1)

Russian Railways (RZH) intends to borrow a $600 million syndicated credit. According to the Bloomberg agency, the syndicate consists of Barclays Plc, Dresdner Kleinwort Wasserstein, HSBC Holding Plc and Raiffeisen Zentralbank Osterreich AG. Brief. (B1)

Yukos subsidiary Tomskneft is a $5 billion guarantor before the Societe Generale S. A. bank. As Tomskneft stated in its operative report-2004, the company signed two agreements on a financial guarantee and a guarantee on executing its obligations with the Societe Generale S. A. bank worth $2 billion and $3 billion. Brief. (B1)

Gazprom on Thursday signed an agreement with Dutch oil trading company Vitol on the purchase of the 143 million cubic meter gas storage Humbly- Grove in the south of Britain. Brief. (B1)

Transneft will launch negotiations with banks on funding the project of building the oil pipeline Eastern Siberia- Pacific Ocean after the completion of designing the first stage of Taishet-Skovorodino. This was stated by Anatoly Yanovsky, Director of the Fuel and Energy Department of the Industry and Energy Ministry. Brief. (B1)

The Gorky Auto Plant (GAZ) in a month alone has gone up in price by 1. 5 times, having upgraded its capitalization up to $300 million. This has been partially helped by rumours about a possible purchase of GAZ by Japanese Nissan Motors, experts believe. (B2)

Home oil prices are continuing to soar. In August domestic oil refineries will buy raw materials for 8, 300 rubles per ton. Experts forecast a new spiral of growing prices of petrol. (B2)

NEZAVISIMAYA GAZETA (1/8/2005)

The newspaper offers a list of 100 leading politicians in Russia in July. The story comments on the rating, saying that the most prominent political figure that month became deputy head of the Kremlin administration Vladislav Surkov

Many influential politicians intend to take part in the elections to the Moscow City Duma. What aim do they pursue? What is the advantage of the status of the Moscow City Duma deputy over the similar advantage of the status of the State Duma deputy? Four authoritative politicians and spin doctors share their viewpoints. (2)

The story explains why prices of petrol are suitable for the state and exporters when no one thinks about consumers. (4)

Providing the population with affordable housing is a state priority task. The issue is controlled by President Putin in person. In an interview Sergei Kruglik, re-appointed head of Rosstroi, talks about serious problems and prospects of his state-owned construction complex. (5)

ROSSIISKAYA GAZETA (1/8/2005)

The presentation of the private train Moscow-St. Petersburg will take place early this month at the Leningradsky Railway Terminal in Moscow and then at the Moskovsky Railway Terminal in St. Petersburg. The story describes the first train-hotel in Russia. (1, 5)

General Valery Baranov, Commander of the federal troops in the North Caucasus, during the terrorist act at the stadium in Grozny on May 9, 2004, was seriously wounded. Today a year and a half after that terrible tragedy he is fully recovered. In an interview he talks about his military career. (1, 5)

A group of American astronauts cooperating with NASA on Saturday officially announced that now ten rather than the previous nine planets are rotating around the Sun. The story describes the new planet they have discovered. (1, 2)

The new Housing Code instructs all owners of apartments up to March 1, 2006 in an obligatory way to choose a managing company for their apartment block instead of the existing now local housing district administrations (DEZ) The story describes how it should be done. (1, 2)

The newspaper gives normative acts that have taken effect today on Aug. 1, the last month of this summer. What will they change? (2)

The Ukrainian Security Service referring to the " trustworthy diplomatic sources" reported that an assassination attempt on Prime Minister Julia Timoshenko was prepared in Kiev. The story comments on this information. (2)

The story describes a scandalous incident that took place with five Russian journalists. Iranian authorities invited them to see the country and then ordered to deport them. Possible reasons are explained. (3)

The highest skyscraper (" Federatsia" ) in Moscow will be built by a Chinese construction firm. The story examines the project. (4)

The volume of credits issued by IMPEXBANK to the population, since the beginning of this year, has increased by three times and has exceeded 7. 7 billion rubles. The story describes the bank' s retail crediting. (6)

NOVIYE IZVESTIA (1/8/2005)

The Black Sea resorts by the number of holidaymakers this year have surpassed resorts in Turkey, Egypt and Tunisia. Thus, as many as 7 million people have already visited Krasnodarsky Krai, and by the end of the season this figure will go up to 10 million. , which is by 25 percent more than the figure for 2004. The story examines reasons behind so many vacationers, stressing that services there have remained poor, and if they are not improved, the number of people planning to spend their vacation in the Russian south will drastically decrease. (1, 7 )

Famed Ukrainian singer Ruslana over the weekend visited Moscow. The Eurovision Song Contest has made her very popular. In an interview Ruslana says how this contest has changed her fate. (1, 5)

Human Rights Council of Europe Commissar Alvaro Hil- Robles on Sunday presented his report to Russian human rights activists that he has written on the basis of results of his last year' s trips to Russia. Human rights activists did not like the report. The story says why. (2, Nezavisimaya Gazeta, 2)

Newly-appointed Ambassador to Belarus Dmitry Ayatskov has failed to reach Minsk. Its authorities intend to analyze in detail his careless pronouncements about Belarussian President Alexander Lukashenko. Russia' s Foreign Ministry has no idea about Ayatskov' s whereabouts. He is supposed to stay in a Moscow hotel awaiting the decision of his fate. It' s not excluded that he will not become Ambassador. (2)

Almost 40 percent of Muscovites and 51 percent of residents in other regions are interested in an education credit-- such are the results of the study of the education credit market that has been conducted by the Finist Consulting Company. The story examines results of the study. (3)

Russians are well informed about the mortgage credit programs, but not many are willing to run to banks for such credits, despite the fact that over 50 percent of them need money to buy housing. Why? Results of a recent opinion poll taken by the Public Opinion Fund provide answers to this question. A pie-chart. (3)

President Putin today begins his two-day visit to Finland. The story examines main issues he will discuss with the Finnish leadership. (4)

Moscow late last week began to withdraw its troops from its military base in Adzharia. The process of withdrawing the Russian military bases, according to agreements with the Georgian side, will be completed in 2008. The story examines describes the process. (4)