The matter is the modification of Moscow international airport in accordance with modern European standards. A third terminal not far from Sheremetyevo-1 is planned for construction and the present terminals are supposed to be renovated. The total price of the project is $1 billion, length of the reconstruction - 10 years. The capacity of the two terminals that function now is 8 million people a year and last year the airport dealt with 11 million. The construction of the new terminal will improve airport's opportunities and it will be able to dealt with 20 million people.
"NEC Neva Communication Systems", a closed joint-stock society, which produces digital automatic telephone stations, is in difficult situation. The primary reason is the decreased demand from St.Petersburg Telephone Net (PTN) company - the largest NEC customer. PTN has reduced by 7 times the financing of the program for installing the new telephone lines for 1999 because the company is suffering large losses as the government refuses to increase tariffs.
The budget provides for year extraction of diamonds worth $1.5 billion and the pure income is anticipated to be Rbl 8.7 billion.
In February this year Gazprom paid taxes amounting to Rbl 5.2 billion, which is three times more than in July, 1998 (the month before the economic crisis). Then the amount of taxes paid was Rbl 1.8 billion. Company's Board of Directors Deputy Chairman Petr Rodionov reported this.
In July, 1995 the Dutch company bought this plant at a price of $2 million and they have spent $61 million more in credits to the plant. Philips was going to invest $210 million to modernize the company. The plant was to start producing in 1999 3.5 million of modern television tubes in Voronezh annually. However due to unfavorable market conditions Philips's managers had to reduce jobs and take some other unpopular measures. Then a conflict with the regional administration, which was blocking the activity of the Dutch concern, began. The parties haven't managed to reconcile their differences and as a result the plant was sold to the administration of the Voronezh region for one ruble.
The whole amount of the NWSL load hasn't changed as compared to 1997 and was about 11.6 million tons of cargo. Redistribution between the export-import and home loads has taken place. The quantity of foreign loads has reduced by 14%, where as loads within Russia were 15% more than in 1997, i. e. 6.4 million tons of cargo were transported.
CB rate (Rb/$)
March 22 23.63
Buying
Selling
price
price
LukOil
7.400
7.500
Rostelecom
0.8900
0.9100
Norilsky Nickel
2.0000
2.1000
RAO Gasprom
0.1583
0.1591
RAO Edinye
0.0563
0.0564
Energeticheskiye Sistemy (Unified Energy Systems)
After the collapse in September when all the revenues of the federal budget were only 6.65 of gross national product (tax revenues being about 5% of gross national product), where as in December 16.7% of gross national product were received by the budget. The sale of 2.5% block of Gazprom's shares and seasonal improvement of tax payments contributed to this. Some growth of production was mentioned in industries producing commodities that substitute for imports. But all these factors are short lived. The Ministry of Finance explained that the treasury is likely to receive little less than 9% of gross national output in February compared to 9.1 % in January.
Deputy Minister of Finance Oleg Vyugin expressed such an opinion. Mr. Vyugin named IMF's demand to increase the primary budget proficit for 1999 from 1.64% up to 3.5 % to be impossible to fulfil. This demand means that the budget expenses should be reduced and budget incomes increased to 5% of the gross national product as compared to the average of the past two years.
According to official information the Central Bank reserves reduced in January only by $600 million. The rest $400-500 million were attracted in currency market.
The total amount of the savings of the population exceed Rbl 250 billion, 20% of which is kept in hard currency.
This was provided for by the resolution signed by RF Prime Minister Yevgeny Primakov. In compliance with the governmental order the Russian Fund for Federal Property will be the settler. In the beginning the bank's charter capital will be Rbl 375 million. With the placement of shares it is expected to rise to Rbl 4 billion. No less than 75% plus one share must be the state property.
RF Central Bank reports that the volume of credits given by all Russian banks was Rbl 416.5 billion on Jan. 1, 1999, Rbl 125.1 billion of them being ruble credits and Rbl 291.4 billion being currency ones. Before ruble devaluation the share of hard currency credits was considerably lower - on Aug. 1, 1998 the hard currency credits were 47% of all private banks' credits.
Sberbank of Russia has managed to reach that level of deposits, which the bank had before the crisis. On Jan. 1, 1999 the amount of population's assets deposited in Sberbank was Rbl 126.8 billion. In Russia 84.7% of deposits of individuals are stored in Sberbank. The volume of hard currency deposits of the population in Russian Sberbank is $1.3 billion. In September 1998 a campaign was started to transfer deposit liabilities from six private banks into Sberbank. Many of depositors continue using Sberbank services.
This is the maximum fall fixed after the sharp devaluation of ruble in August - September last year. Due to the considerable fall in imports quantity of exported goods have been much greater than import for a long time. In January 1999 the balance was $2.1 billion, while in January of 1998 it was $300 million.
Among the registered cars about 488 thousand are of foreign make (the share in increment is 35.6%). Official dealers imported only 14.5 thousand registered cars. So-called gray dealers have supposedly imported the same amount. Then it is easy to determine that private persons imported about 70% of cars. Most of them are certainly second hand.
According to the information, issued by the State Customs Committee, in August - September, the volume of supplies of such large firms as Ron-Pulenk and Hinoin decreased by 98% as compared to the same months of previous year. Upsa has reduced supplies by 91%, Torrent Pharmaceuticals - by 91%, Gedeon Richter 76%, Ron-Pulenk Poper - by 73%, Glaxo Welcome - by 56% and so on. The number of firms that import medicines has fallen from 800 to 520.
This year Gazprom is going to extract 543 billion cubic meters of natural gas, i. e. 10.7 billion less than in 1998. Gazprom's Board of Directors Deputy Chairman Valery Remisov reported this. The lack of gas resources for Russian consumers will be about 20 billion cubic meters.
This launch of the Russian rocket is the second in the series of six commercial launches with space machinery for Globalstar. The cost of one launch is about $30 million.
The food supplies to Moscow from regions of Russia as well as from abroad have been reducing because trade firms can not meet the suppliers' demands for preliminary payment. In the near future money from the city budget will be allotted to purchase food to stabilize the capital's food market. The Mayor's Office reports in 1999 Moscow is going to buy 680 tons of meat and meat goods, 520 tons of whole milk products, 60 thousand tons of butter, 1,200 tons of corn and 500 thousand tons of sugar.
IDC has reported 950 thousand personal computers were sold in Russia last year, which is 32% less than in 1997. Then the sales volume was 1.4 million of computers. After the market's catastrophic collapse some stabilization was achieved in the third quarter of 1998. In the fourth quarter the situation became better and the sales volume rose by 60% as compared with the third quarter.
The Ministry of Finance is going to limit the share of risks transferred by the Russian insurance companies abroad - reinsurance. Russian insurance companies may transfer to the foreigners not more than 5% on company's reserves on life insurance and not more than 30% of reserves on other kinds of insurance.
This project is treated as a pilot for working out the model of economic co-operation of Russia and EU countries. Those companies - investors who will decide to settle their enterprises in the territory of the area are promised to receive considerable benefits in federal, regional and local taxes.
Export fees for oil are of flexible character. They depend on changing prices in the main markets. It is possible there will be no export fees at all in the territory of Russia should the average monthly prices in the main world markets fall under $9.8 a barrel.
This provision was established in the First Part of the Tax Code, which took effect on Jan. 1, 1999. Before this enterprises were allowed to pay taxes in hard currency as well as in rubles. Foreign firms acting in Russia should now choose some Russian banks, which will be their agents on budget payments.
Most significantly the deputies have reduced the excise for strong beer (alcohol - more than 8.6 %). The excise was increased 4 times - from Rbl 0.72 up to Rbl 3. This innovation won't influence home production while this kind of beer has not being brewed in Russia. Excise for tobacco goods will grow by 15-20%. For example, Rbl 24 will be taken from 1000 if import cigarettes instead of Rbl 20.5 at present. Tax authorities will take Rbl 14.5 for 1000 of Russian filter cigarettes instead of Rbl 17 at the moment. The excise for high quality gasoline will be increased from Rbl 450 a ton to Rbl 518.
Residents are obliged to sell 75% of export currency returns in the home market within seven days after the sum has been received. There is only one exception. Those residents who have taken credits (loans) in hard currency and now have been repaying them (on condition they spent not less than 25% of currency returns for such purposes) may sell 50% of currency assets they receive on export contracts till the moment they repay the above mentioned credits (loans).
RF President Boris Yeltsin has signed a law passed by the State Duma on Feb. 17, 1999 which sets forth the criminal liability for non-payment of wages, pensions, allowances, grants and so on.
This provision was set forth by the law "On gas supplies in the Russian Federation" passed by the State Duma. The law provides that the sale of state shares or other disposition may take place only by the federal law. The law allows the 20% participation of foreign capital. Gazprom's head Rem Vyahirev has reported that the state share in the revenue from export to foreign countries apart from the CIS countries is about $650 million a year. Mr. Vyahirev has expressed no disagreement of the increase of number of Gazprom's stocks owned by the state from 25% (this was suggested by the government) and 30% (this was suggested by the Industrial Committee of the State Duma) up to 35%, which the State Duma did.
The sale of 2.5% block of shares in Gazprom at a commercial tender with investment conditions is not in the Ministry of the State Property plans for the second semester of 1999. This was reported by Deputy Minister of the State Property Sergey Molozhavy. The Ministry has no plans to hold a large privatization tender in the oil branch of industry in 1999. The only transaction that is worth mentioning which can take place this year is the sale of 9% package of LUKoil shares. The terms for this transaction haven't been fixed yet.
There was long ago an idea to unite the three companies. The Ministry of the State Property and Russian Fund of State Property jointly own 100% of Rosneft's shares, 85% of ONACO's shares and 75% of Slavneft's shares. Tyumen Oil Company has suggested merging the four companies, the blocks of shares in state property would be assigned to be the starting capital of the new holding. In the opinion of project's authors it will be easier for a large holding to stand competition in the market. TOC also considers, the merger will allow for reduced production and management expenses. By the way, TOC executives also suggest they could carry out the management of the holding in order "to apply the experience of restructuring and anti- crisis management". The Ministry of Fuel and Energy has found no economic sense to the state in TOC's offer yet. The company needs access to state oil, because its own oil has been mortgaged for several years ahead in order to receive credits, - reports a governmental source. However the Ministry admits the opportunity for specific bargaining between the state and the private company as a result of which the latter will be included into the holding.
The Fund of Property tried not once to sell the last 23.81% block of shares which is now federal property. In 1998 the auction was first scheduled to take place in September and then in December. However the shares haven't been sold - the Fund of Property cancelled its action every time. The reason was that the Fund just before the auction had no order from the Russian Fund of Federal Property (RFFP). The thing is that after September St.Petersburg concluded a contract with the RFFP and received the right to sell the federal property and now the procedure has become more complicated. Now it is necessary to receive an order of RFFP for the sale of every object. Sometimes there is a delay in receiving the orders.
The State Duma has adopted in the first reading the Federal Constitutional Law "On the State Hymn of the Russian Federation". In compliance with the law the hymn "is a piece of music created on the basis of musical version of the USSR State Hymn composed by A. V. Aleksandrov. A year ago Boris Yeltsin suggested a bill on Russian symbols. This bill providing for the establishment of a three- color flag, two-headed eagle and a Patriotic Song by Mikhail Glinka as the state symbols was rejected by the deputies.
The delegation of Iran headed by Iran Ambassador in Russia Mechdi Safari stayed for a two-day visit to the Kirov region. Much time in the program is devoted to the visits to enterprises of the Military Industrial Complex. Export of weaponry is one of the stakes of governor Vladimir Sergeenkov in the industrial policy of the region.
This information can be learned from the results of the poll held by the Scientific Research Center for the Institute of Youth. 47% of Moscow inhabitants are for the participation of Yugoslavia in the Union of the Slavic States and 24% are against this. For 29% it was difficult to formulate their opinion on the matter.
This was reported by Head of Moscow Chechen Diaspora Zanbek Hamzaev at a press conference held on March, 12. About 500 thousand people live in Ichkeriya at present. Sergey Stepashin's announcement made on March 7, in connection with the kidnapping of general Gennady Shpigun may be the reason for this step. The Interior Minister has declared that "all the citizens wishing to leave Chechnya not depending on their nationality must be given the opportunity to do so, they must be provided by financial aid."
In his opinion, the reasons for the crisis are "the serious mistakes in the reform course, as well as the criminalization of the financial system that has killed the oligarchs and the systems itself". He has also mentioned that small economic achievements have appeared, such as the monthly increment beginning on December, which was 1-1.5%, the strengthening of industrial and agricultural production is also expected.
The Interior Ministry experts reported this. "This figure as well is being named by experts of law enforcement bodies of foreign countries with which we cooperate. Only in Spain more than 60 thousand villas, residences and apartments have been purchased by such money recently".
Russia will then have to face completely different military situation with the necessity of an arms race. Mr. Primakov agrees that the START II disarmament treaty will determine the future development of international relationships and the future relations of Russia with other countries but primarily with the USA.
This measure is the most important in newly passed program of solving of year-2000 problem in state bodies and budget organizations of the city. The program also provides for changing of part of equipment and upgrading programs. The state budget allots Rbl 300 thousand for financing of works.
Among them Rbl 570 million is the state budget debt on the federal special-purpose programs. Almost the same sum is the amount owed by large companies among those heading the list are: Izhorskiye zavody (Rbl 93.1 million), Baltic Sea steamship line (Rbl 19.8) and Kronshtadt sea plant (Rbl 18.7 million). The debts of other 30 thousand of juridical persons are much less.
Energy supplies have been now completely discontinued to 500 enterprises in the St.Petersburg and Leningrad region, incompletely to 850 enterprises. Lenenergo's debtor indebtedness exceeds Rbl 3 billion.
The turnover in a secondary GGKO market was Rbl 689.734 million. The volume of forward contracts increased by Rbl 5 million and was Rbl 30.765 million in February. In February three issues of GGKO to the sum of Rbl 270 million were repaid. Four GGKO issues to the sum of Rbl 430 million must be repaid in March.
The minimum monthly cost-of living standard in St.Petersburg rose by 7.5% over the two first months of 1999, growing to Rbl 1,142.3. Half of the money - Rbl 556.3 - is spent on food. Rbl 429.5 is spent on services and taxes, Rbl 156.5 for other goods. The export of food has reduced from 52% down to 24% on average, export of certain goods being 1-2%. The sales volume has reduced and the structure of the consumption has changed and this has led to considerable growth of enterprises' expenses. Now every third public service enterprise is unprofitable, the trade firms have almost no circulating funds.
The urgent works are being estimated at $200 million. All the works on the dike have ceased because of lack of financing. The construction was not laid up. It was abandoned. Water washes the sand more and more every year, swallows large stones. Should the large flood which have been forecast by specialists ever take place the dike won't be able to protect the city.
The ceremony took place at a Physics and Techniques institute named after Ioffe. Tokamak is an experimental installation of thermonuclear synthesis. The launch of tokamak is the largest event in the scientific life of the city for several years. It's worth mentioning that only Great Britain and the USA possess installations similar to "Globus-M".
© A&G Information Services Inc. 1999