A brief look at the stories making headlines in the Russian-language press

		Izvestia Kommersant Vedomosti Nezavisimaya Gazeta Moskovsky Komsomolets Rossiiskaya Gazeta Rossiiskaia Biznes-Gazeta Versiya #27

Izvestia
www.izvestia.ru

An important result of the meetings between Russian and American presidents in Genoa was that Russia has agreed to a link between the proposed modification of the anti-ballistic-missile defense system with the SOW reduction. Tomorrow National Security Advisor Condoleeza Rice is coming to Moscow to bring concrete proposals about the American ABM program and the terms of warheads reduction.

Yesterday residents of Gusinoye Ozero in Buryatia were allowed to come back to their homes, which they had vacated after a fire at an artilllery ammunition depot of the Defense Ministry, located several kilometers away. Blasting shells were scattered ten kilometers from the site, killing and injuring people and destroying their houses. The residents blame the military of arson, saying that the accident could have been arranged to conceal theft of ammunition.

Nikolay Aksyonenko, the Railways Minister, gave an interview to Izvestiya in connection with the government commission decision to level domestic and export tariffs. He said that his branch would lose 22 billion rubles a year from this decision, and that the Ministry should get additional funds from the state budget as compensation for these losses.

The Russian natural gas monopoly will address its major European partners - the German Ruhrgas AG and Gas de France about investments in the gas pipeline system to be constructed from Russia to China. According to analysts details of the project, that were discussed at the recent talks between Russian and Chinese leaders, remain vague.

Irkutsk Governor Boris Govorin on Monday fronted the initiative to bring the 2010 Winter Olympics to the Siberian city. He made the comment less than a week before the gubernatorial election in the region. Therefore people suspect that the statement was merely an election ploy because there is nothing in Irkutsk to provide for the reception of hundreds of thousands of Olympics visitors.

At the second sitting of the government commission on fighting drug abuse and trade, headed by premier Kasyanov, two state bodies were competing for funds to help their individual programs in combating drugs. Deputy Finance Minister Valery Loshchinin said that Russia should pay its entrance fee to the UN drugs control organization, while the State Sports Committee first deputy chairman was asking for funds for the Committee's own anti-drug program. Also covered in Kommersant

It is easier to buy heroin in Kostroma than sunflower seeds in Moscow. Mothers of numerous drug addicts in the city set up an organization that provides information about the dangers of drugs. The local police reportedly has taken part in the narcotics business. (2).

Izvestiya wrote about details about the killing of Chechen field commander Tsagaroyev, stating that this was done by teenager Habusev, a son of one of Tsagaroyev's victims. However federal troops commander General Moltenskoi made a statement on Monday saying that Tsagaroyev's death resulted from a "joint operation of militia and FSB". Also covered in Kommersant

On Monday, President Vladimir Putin met with thirty seven Russian Generals in the Kremlin. The President spoke about the international situation, mentioning global threats such as regional crises and international terrorism. Putin also unexpectedly volunteered intelligence related to the prevention of the influx of fake securities, worth billions of rubles, to Russia with the help of the FSB.

Premier Kasyanov has set off on a three-day semiofficial visit to Finland. The talks with his Finnish counterpart Paavo Lipponen will take place in the small resort city Savonlina. The topics will include the work of the Baltic Council, and it is expected that Kasyanov will discuss the situation with the Russian-speaking population in the FSU Baltic states.

A new trend in Russia's international relations has become obvious - Russian businessmen contributing more to cultivate ties with developing countries. One example of this are the activities of Russian Aluminum in Africa. A year ago the company's president Oleg Deripaska met with Guinean President General Lansana Conte. Contracts that were signed at that time between the two men have been fulfilled.

Kommersant
www.kommersant.ru

Gazprom-media CEO Aldred Kokh stated Monday that Gazprom had paid to Credit Suisse First Boston $262 million towards Media-Most's debt to that body. As compensation, Gazprom got 19 percent of NTV television stock and 25-percent packages in other Media Most companies. Gazprom was the guarantor of the initial credit of 172 million US dollars. Thus, the gas monopolist did not have any options other than to pay for the bankrupt Media Most, because otherwise, CSFB could have arrested Gazprom's own assets abroad.

The upscale Radisson SAS hotel opened Monday in downtown St.Petersburg, in the building formerly occupied by the famous Saigon cafe, where the city's underground gathered from the 1960's to the 1980's.

Tatarstan and Bashkortostan prime ministers signed an agreement stipulating concerted actions on part of the two republics' energy company. This was done in order to achieve independence from the national energy grid UES (2).

RF General Prosecutor's office has finished investigation of the case of Anatoly Lifanchikov, former head of the Ministry for the Economy's agricultural department and his deputy Vldimir Korneyev. The officials are charged with accepting bribes from agricultural enterprises for granting credits and providing foreign investments to them. Details of the investigaton are described (3).

The budget of the largest region of Siberia - the Krasnoyarsk krai - will lose up to 900 million rubles a year in payments that previously came from the Norilsk Nickel plant as the fee for the mineral wealth. The Taimyr national autonomous okrug administration has passed a resolution, according to which this fee should be paid to Taimyr's capital, Dudinka, (4).

The decision, passed by the Economic Development and Trade Ministry to double the price for the oil accompanying natural gas may make the whole oil and gas branch unprofitable - SIBUR company's president Yakov Goldovskii said in his interview to the daily. Another interview and a paper on the same issue are on the same page (6).

Vedomosti
www.vedomosti.ru

The newspaper reported that the Finance Ministry paid $82 million for debts run up by the president's property office. Since former office manager Pavel Borodin, who authorized numerous large-scale construction projects, took out loans from Mezhprombank, the bank now wants its money back from the federal budget. Thus, Russia will have to pay for Borodin's debts.

Sales of imported cars skyrocketed in the first half of the year. The sensational demand is not likely to drop in the near future.

Former Norilsk Nickel CEO Alexander Khloponin, recently elected governor of the Taimyr autonomous region, has started a tax war with the Krasnoyarsk territory. The Taimyr administration has passed a resolution according to which a major part of the revenues from mining and drilling paid by Norilsk Nickel (1.2 billion rubles a year) should be paid to Taimyr, instead of the Krasnoyarsk territory.

A contract signed between Italian Aermacchi and the Yakovlev plane design shop stipulated that any profits from future sales and use of the Yak-130 plane will be divided equally between the two partners.

During Prime Minister Mikhail Kasyanov's visit to Finland, he and his Finnish counterpart will discuss the planned construction of an oil pipeline through Finland. The project is likely to be approved.

Banking analysts are discussing reforming the Central Bank in the future, a step which could potentially deprive the bank of its independence.

Vedomosti. Companies and Markets

Computer stores are experiencing financial difficulties despite an increase in sales. Last week all franchises of the Target Ru chain closed, following the pattern of the Compulink, now managed by Bely Veter.

MDM Bank has purchased stock in the Volgograd Tractor plant. It seems that machine-building companies have become a popular investment pattern in the country.

The battle between Norilsk Nickel and LUKoil for the sea transportation assets of the North continues. Nornickel has paid another million dollars to increase its share in the Arkhangelsk port. Later this year at an auction the two giant companies will vie for the 20-percent state-owned package of the port stock.

The KSK group, which has ambitious plans to create a transportation company in western Siberia, has bought the stock of the Western-Siberian River Shipping Company (ZSRP), which provides transportation on Ob river. KSK appointed its own manager of ZSRP. Another major shareholder of ZSRP, Vostokgasprom, will appeal this appointment in court.

The Anti-Monopoly Ministry has conducted three inspections in Sberbank so far. Having considered complaints from several Krasnoyarsk region companies, the ministry ordered that the fees for opening corporate bank accounts in Sberbank should be reduced.

A number of retail stores in Moscow and St. Petersburg announced their intention to form their own trading chains, This has resulted in the boost of prices on storefront property. The articles presents a table showing average costs of rent of stores in Moscow. Meanwhile, developers are standing in line to get construction contracts on trading centers.

Nezavisimaya Gazeta
www.ng.ru

Russian-American agreements, achieved at the Genoa summit, has provided evidence that the Russian President prefers compromise with the US to militarization of the Russian economy. The author links recent sackings in the Defense Ministry with this new course, noting that the dismissal of Gen.Ivashov, the Ministry's Main department for military cooperation chief, was especially significant in this respect.

At the Court trial in Vladivostok on the case of journalist Grigory Pasko who is charged with high treason, two important witness ?€” an admiral and a fleet newspaper reporter ?€” did not give any proof of the journalist's guilt in their testimonies on Monday.

KPRF Central Committee deputy chairman Valentin Kuptsov was asked about the President's proposal to rename the Communist party into a social-democratic party. The answer was negative. Kuptsov said that there is no middle class in the present-day Russia to form the electorate for the social democracy.

The daily published its report about vacationing habits of Russian political and business elites. Their destinations range from African safari to fishing in Tamir.

The widely-advertised crime-combating campaign that is going in Dagestan has turned into farce. Former Zapkasprybvod fishing company CEO Magomedov, who was charged in misappropriation of 800 million rubles from the state budget three years ago, now insists on his re-instating in office. This has resulted in ethnic conflicts between Magomedov's Avari supporters and the Kumyk clan of the incumbent Zapkasprybvod director.

Koreans from Uzbekistan have migrated to the Leningrad region, where they are arranging profitable vegetable farms.

The dispute between five Caspian states about development of oil fields in the Caspian Sea is unlikely to be solved at the upcoming Caspian summit, because of the inflexible positions of Iran and Turkmenistan.

A profile of National Security advisor Condoleeza Rice is given in view of her future visit to Moscow. Her opinions often determine Washington's position on Russian affairs.

Moskovsky Komsomolets
www.mk.ru

Famous actress Natalya Gundareva remains in coma since July 19. Sklifosovsky Emergency Care Institute, where she has been placed, gives no comment.

The well-known Russian President's sports passion has determined the decision of the Moscow government to hold an elite tournament on judo in the fall. The show will take place in the newly-renovated Gostinyi dvor. Extensive report about favorite sports of Boris Yeltsin and of European and CIS leaders is published.

Rossiiskaya Gazeta
www.rg.ru

A report from Lensk that has greatly suffered from the May's flood. The city is now the largest construction site in Russia. Unless the construction works finish in summer, 30 thousands Lensk residents, still living in tents, will have to face heavy frosts that are common here in September.

Amendments to the federal law "On military duty and military service," exempting holders of advanced degrees (candidate or doctor of sciences) and sons and brothers of the military killed in the service from draft.

Rossiiskaia Biznes-Gazeta

The Customs Committee's order on export customs duties rates lists the percent rates for various kinds of goods and duty-free export goods.

In the heat of the fruit and vegetable season, prices remain high at Moscow markets. The author researches why ten-ruble Uzbekistan apricots cost over 50 rubles in Moscow and proposes that special shops for products from Central Asia should be restored in the Russian capital.

Moskovskiye Novosti
www.mn.ru

The weekly published its version of the Kursk submarine wreck, saying that the catastrophe resulted from collision with Admiral Kuznetsov cruiser. The version is supported by two high-rank naval commanders.

In his interview, Deputy Interior Minister Colonel General Vladimir Vasilyev comments on the recent personnel reshuffles in the ministry. He also gives his assessment of the surrogate alcohol trade, of the racket at wholesale Moscow markets and of illegal oil businesses around Chechnya.

Komomolskaya Pravda
www.kp.ru

The newspaper came to possess exclusive information shedding light on the recent Su-33 catastrophe near Pskov, killing pilot Timur Apakidze, the Hero of Russia.

In his comment to the new defensive initiative of the Russian and American leaders, President Putin said that Russia has confirmed its adherence to the 1972 ABM Treaty. The story describes details of the Genoa meeting of the two presidents and analyses positions of the sides.

Residents of shabby "Khrushchev's" five-storied houses in Medvedkovo held a meeting yesterday in front of the Moscow Mayor's office, protesting against the plans of the city administration to resettle them in Yuzhnoye Butovo (outside the Moscow Circular highway). (MOSKVA SUPPLEMENT II.)

The Moscow city Duma decided that Moscow route buses should be equipped with turnstiles. This will add problems to regular bus-riders, especially in the rush-hours. (MOSKVA SUPPLEMENT III.)

Noviye Izvestia

Fast raise of sunken Kursk submarine may result in leakage of nuclear materials ?€” people who live in the Murmansk region are fearing.

Head of the State Statistical Committee Sergey Kolesnikov was interviewed about incomes of the Russian population. According to statistics, the worst poverty level is registered in Tuva, in Ingushetia, in the Chita region and in the Komi-Permyatskii and Aginskii-Buryatskii national districts.

Versiya #27


Investigation into the activities of the "death squad" in Belarus. According to two Belarussian investigators, who defected to the US, 30 people have been executed in the republic without any court sentence.

Famous oligarch Boris Berezovsky is striving to create efficient opposition to Putin's regime in Russia. He will act through a number of regional leaders, including St,Petersburg Governor Yakovlev, Irkutsk Governor Govorin and Lebed brothers and will possibly seek alliance with KPRF leaders.