Press Review

		Izvestia Kommersant Vedomosti Vedomosti. Companies and Markets Nezavisimaya Gazeta Rossiiskaya Gazeta

Izvestia
www.izvestia.ru

At a government session on Monday, President Vladimir Putin made an official statement concerning the current situation of Yukos, in light of the recent arrest of the head of the company. A story comments on the statement (full text is given). All central papers comment on the president's stand. (1, 3, Kommersant, 1, 2, Rossiiskaya Gazeta, 1, 2, Gazeta, 1, 3, Vremya Novostei, 1, 2, Moskovskiye Novosti, No. 42, p. 1-4, Noviye Izvestia, 4, Nezavisimaya Gazeta, 1, 2, Trud, 1, 5, Zhizn, 1, 2, MK, 3, Sovetskaya Rossiya, 3)

In an interview, Dmitry Medvedev, first deputy head of the presidential administration, reveals the essence of the draft bill concerning the state civil service, submitted to the State Duma by the president. Medvedev emphasizes matters which the document permits and proscribes for state bureaucrats. (1, 2)

The Kamchatka regional prosecutor's office on Monday instituted criminal proceedings against governor Mikhail Mashkovtsev and his deputy Vladislav Skvortsov, who are suspected of squandering funds allocated for purchasing fuel. (2, Kommersant, 6, Gazeta, 5, Nezavisimaya Gazeta, 4 , Trud, 2)

The Bashkir Election Commission on Monday refused to register presidential candidate Sergei Veremeyenko, former manager of Mezhprombank. A story discusses the cause. The presidential elections in Bashkortostan are scheduled for Dec.7. (2, Kommersant, 5 ,Vremya Novostei, 5)

St. Petersburg's Natur Produkt, which runs a pharmaceutical chain in 19 regions, plans to open another 30 pharmacies next year. Company president Sergei Nizovtsev on Monday revealed his company's plans, noting that its trade turnover this year will amount to $85 million, a 45 percent increase over last year. Brief. (2)

Deputy Justice Minister Yury Kalinin visited Matrosskaya Tishina Prison on Monday to inspect the living conditions of Yukos head Mikhail Khodorkovsky. Immediately after the visit, Khodorkovsky was moved to pretrial detention center No. 4, a more comfortable section of Matrosskaya Tishina. A story describes the visit, focusing on the statement of Khodorkovsky's lawyer, Anton Drel. (3, Kommersant, 2, Vremya Novostei, 3, MK, 3)

A story reports on how Western mass media and U.S. Ambassador Alexander Vershbow have reacted Mikhail Khodorkovsky's arrest and how it reflects the current situation in Russia. (3)

Russian beauty Tatyana Nikitina was declared the winner of the international Miss Asia-Pacific Region competition that was held in the Philippines. Brief. (4)

Another crisis has damaged Russian-Ukrainian relations. In an interview, Nikolai Tomenko, head of Ukraine's Supreme Rada freedom of speech committee, discusses how the crisis will affect the Ukrainian presidential and parliamentary elections. (4, Kommersant, 10)

Mrs. Chiang Kaishek, widow of the legendary Chinese Nationalist leader, has died in New York at the age of 105. A story highlights her unsuccessful political career. (4)

The panic on the stock and currency markets in connection with the arrest of Yukos head Mikhail Khodorkovsky has caused an outflow of capital from Russia. A story indicates that a change of this scale might prevent the doubling of gross domestic product. (5 , Kommersant, 1, 13, Rossiiskaya Gazeta, 2, Gazeta, 9, Vremya Novostei, 1-3, Nezavisimaya Gazeta, 1, 3)

It was reported on Monday that ExxonMobil Corp., which had intended to buy a considerable block of YukosSibneft shares, has suspended its negotiations following the arrest of Yukos head Mikhail Khodorkovsky. If the deal falls through, Russia may lose $25 billion. (5, Gazeta, 9)

A story reports on how Standard & Poor's and Moody's rating agencies have responded to the arrest of Yukos chief Mikhail Khodorkovsky. (5)

The Smolensk diamond company Kristall has been turned into a joint-stock company by government decree, with 100 percent of shares belonging to the state. A story comments on its new status. (6)

The two-year struggle between aviation alliances Sky Team (dominated by Air France) and Star Alliance (dominated by Lufthansa) for closer relations with Aeroflot has ended in Sky Team's favor. A story describes the competition and Aeroflot decision. (7)

Prime Minister Mikhail Kasyanov signed a government decree on Monday, which is scheduled to take effect on Nov. 1, concerning the rules of the electricity wholesale market during the period of reform of Unified Energy Systems. A story examines the document's major provisions. (7, Kommersant, 15, Rossiiskaya Gazeta, 1, 3, Vremya Novostei, 7, Gazeta, 11)

AFK Sistema on Monday signed an agreement to purchase 50 percent of Kosmos-TV. A story examines how the agreement will affect the company's services. (7)

The Tverskoi intercity court on Monday postponed its hearings on the suit filed by ballet dancer Anastasia Volochkova against the Bolshoi Theater because of the defendant's absence. (8, Komsomolskaya Pravda, 7, Nezavisimaya Gazeta, 9)

President Vladimir Putin submitted to the State Duma on Monday a package of amendments to the Criminal Code that envisages tougher punishments for human trafficking. A story examines the major amendments. (8, Vremya Novostei, 4)

For the fifth day, rescue workers are attempting to rescue 13 workers trapped in the Zapadnaya-Kapitalnaya mine. A story describes the rescuers' continuing efforts. (8, Kommersant, 6, Rossiiskaya Gazeta, 1, 2, Gazeta, 2, Trud, 2, Komsomolskaya Pravda, 5)

The local telecommunications company Artelecom disconnected the city's emergency telephone system "02" on Friday, citing non-payment of debts. (8)

Illegal elite condos continue to go up in the Losiny Ostrov National Park in Balashikha district, Moscow Region, despite the park administration's numerous protests against the district authorities' policy. (9)

Moscow city government finance minister Yury Korostelyov presented a report on the 2002 city budget at a session of the Moscow City Duma Budget Commission on Monday. The brief gives figures. (9)

Specialists from the Institute of Comparative Social Studies have conducted a telephone poll on lifestyle differences between men and women living in Moscow. A story examining the results focuses on the people that the respondents claimed to admire most, and what they said they fear. (9)

The newspaper rates domestic banks offering credit to consumers as of Sept. 1, 2003. (10)

The newspaper rates the performance of 100 domestic banks as of Sept. 1, 2003. (11)

Kommersant
www.kommersant.ru

A story examines how the business community has responded to President Vladimir Putin's statement on Monday on the arrest of Yukos head Mikhail Khodorkovsky. (2)

Yukos-Moskva President Vasily Shakhnovsky was unanimously elected senator of Evenkia autonomous district at an extraordinary session of the Evenki legislative assembly. A story comments on his election and his replacement at Yukos-Moskva. (3, Rossiiskaya Gazeta, 3, Gazeta, 3, Vremya Novostei, 1-3 , Nezavisimaya Gazeta, 2)

The United Russia party announced Monday that State Duma Deputy Vladimir Dubov, a former top manager of Yukos and a 6.96 percent shareholder of Menatep, has been excluded from United Russia's list of candidates for the Dec. 7 parliamentary elections. (3, Nezavisimaya Gazeta, 1, 2)

The Central Elections Commission on Monday registered Viktor Cherepkov as a candidate for a seat in the State Duma. The Primorye local election commission had refused to register him. A story comments on the CEC's decision. (4)

Valery Melnikov defeated Norilsk Nickel Deputy Director General Jonson Khagazhayev in Sunday's Norilsk mayoral elections. (5)

Four soldiers from the Special Task Force are on trial in the North Caucasian regional military court. They are accused of killing six Chechen civilians. (7)

Thirty Orthodox bishops and 15 priests have sent a letter to President Vladimir Putin asking him to prevent the State Duma from passing amendments to the Tax Code, which could increase taxes on the church. (8)

According to the State Statistics Committee, the number of early marriages has decreased by 30 percent over the past five years. A story gives other figures on marriage. (8)

Former leaders of the Young Communist League, Komsomol, on Monday gathered at Itar-Tass to commemorate their time in the Komsomol. The group proposed that the Komsomol's 85th birthday tomorrow become a new holiday called Generations Day. (8)

Moscow Mayor Yury Luzhkov has proposed that Unified Energy Systems hold a tender for selecting Mosenergo's managing company for the period of its reform. Brief. (13)

Former Railways Minister Gennady Fadeyev, currently president of Russian Railways, held his first news conference on Monday to tell journalists about his new company's plans and problems. (13, 20)

The Federal Security Service, FSB, has refused to renew MDM-Bank's license to work with documents containing state secrets. The bank might lose clients from a number of defense enterprises. A story comments on the FSB's decision. (14)

Bank of America on Monday announced that it is buying the FleetBoston Financial Group for $47 billion. (14)

Deputy Prime Minister Alexei Kudrin, who took part in the G-20 meeting in Mexico on Monday, sent an ultimatum to U.S. Treasury Secretary John Snow, saying that Russia will take part in the restoration of Iraq only if it receives access to the extraction of Iraqi oil. (15)

Sergei Karpov, president of the inter-regional exchange of the oil and gas complex, announced on Monday the results of the first exchange trading of gas extracted by independent producers. A story examines the results. (15)

Flagman vodka-filled candy has appeared in retail stores in Moscow, St. Petersburg and Nizhny Novgorod. The candy has been made by order of RVVK, which distills Flagman. (17)

Vedomosti
www.vedomosti.ru

President Vladimir Putin on Monday addressed the calls of businessmen and liberal parties for a discussion of the arrest of Mikhail Khodorkovsky. He asked for an end to speculation and hysteria over the Yukos case and instructed officials to crack down on corruption. Businessmen were disappointed with Putin's statement. (A1)

The Financial Times reports that ChevronTexaco and ExxonMobil have suspended negotiations for the purchase of a blocking stake in Yukos following the arrest of Yukos head Mikhail Khodorkovsky. (A1)

A story examines negative consequences of the arrest of Yukos head Milkhail Khodorkovsky (A1)

Vladimir Dubov, a co-owner of MENATEP and deputy head of the State Duma Budget Committee is winding up his political career: United Russia has excluded him from its list of candidates for the new State Duma. (A2)

The Finance Ministry, the Central Bank and the Economic Development and Trade Ministry have submitted to the government a new strategy for bank reform. Unlike the old strategy, the new one does not contain any deadlines for passing bills and for the Central Bank to withdraw capital from domestic banks abroad. (A3)

The Organization of Economic Cooperation and Development has issued a report that examines annual expenditures by leading European, North American and Asian-Pacific states. (A3)

What reaction could be expected from the business community to President Vladimir Putin's statement on Mikhail Khodorkovsky's arrest? Three experts share their views. (A4)

In an interview, Lolita Danilova, head of the Tryokhgorka board of directors, talks about the attractiveness of the textile sector for investment and about Bazovy Element's 2002 decision to buy a controlling stake in the company. (A5)

Vedomosti. Companies and Markets

France's Veolia Environment has entered the domestic housing and communal services market. At first, the company will manage the water canal in Podolsk, Moscow Region. But in the future, Veolia will launch an unprecedented project -- managing the St. Petersburg canal, which has an annual turnover of over $200 million. (B1)

PIK is launching a new large-scale project: Over the next four years, it plans to build 900,000 square meters of housing in Khimki, Moscow Region. Investment in the project will exceed $500 million. (B1)

Bank of America and FleetBoston Financial announced a merger on Monday, worth $47.8 billion. The deal will create the second-largest bank in the United States. (B1)

Heavy Power Machinery's management board has endorsed its financial plan through 2010. (B1)

Sibneft has announced a willingness to invest in Mogolevkhimvolokno and in the Mozyr oil refinery in the Gomel region. Brief. (B1)

Mechel is completing the consolidation of its assets. Late last week, it claimed the shares of three steel plants in Eastern Europe that previously belonged to its trading operator, Conares Trading AG. (B2)

Chinese airlines will be able to fly regular cargo flights to Russia. Two Chinese companies -- China Southern Airlines and Air China -- will have the right to make 10 cargo flights a week to Moscow. (B2)

LUKoil has taken out a low-interest, long-term loan of $750 million. A story examines its aims. (B3)

Prime Minister Mikhail Kasyanov has signed a decree on the operation of the wholesale electricity market in its transition period, UES head Anatoly Chubais said. Brief. (B3)

Citibank has offered a new service to its customers which is available only to major customers in other banks. (B5)

Nezavisimaya Gazeta
www.ng.ru

In an interview following the arrest of Yukos head Mikhail Khodorkovsky, State Duma Deputy Boris Nemtsov, co-leader of the Union of Right Forces, says that the victory of the siloviki means Russia's defeat. (1, 11)

The arrest of Yukos head Mikhail Khodorkovsky caused a crisis in the financial markets on Monday, with the economy losing almost $17 billion in just a few hours as investors rushed to sell off shares of many other companies. A story comments on Deputy Prime Minister Alexei Kudrin's assessment of the situation. (1, 3)

Five Western political scientists offer their opinions on the arrest of Yukos head Mikhail Khodorkovsky. (2)

In the business community, opinions differ on the arrest of Yukos head Mikhail Khodorkovsky. Only Unified Energy Systems head Anatoly Chubais and Russian Union of Industrialists and Entrepreneurs, or RSPP, Vice President Igor Yurgens have openly condemned the arrest. The majority of oligarchs prefers to remain silent and await the president's response. A story describes an urgent closed-door session of the RSPP management board. (3)

Emergency Situations Minister Sergei Shoigu arrived in Kamchatka on Monday to examine conditions in the region's communal housing, where many families have lost their heat. (4)

The current situation in Chechnya does not permit the withdrawal of federal troops, said Colonel Ilya Shabalkin, an official anti-terrorist operations representative, in a statement. (4)

Nezavisimaya Gazeta offers a list of the best lobbyists in Russia in September 2003. Sergei Turanov of the Agency for Economic News comments on the rating. (10)

Rossiiskaya Gazeta
www.rg.ru

A story investigates the motives behind the Oct. 9 murder of Alexei Sidorov, editor-in-chief of Tolyatti Review. Sidorov is the sixth journalist killed in Tolyatti in the past eight years. (1, 4)

Economist Yevgeny Yasin of the state-run Higher School of Economics shares his concerns about the arrest of Yukos head Mikhail Khodorkovsky. (2)

A display of drawings made by three-year-old orphans living in state-run orphanages has opened in the State Duma. (6)

Boris Gryzlov, leader of United Russia, signed an agreement on Monday to cooperate with the Russian United Industrial Party. A story describes how the parties marked the event. (6)

At an enlarged session tomorrow, the State Council will discuss the details of a draft transportation strategy up to the year 2020. A story examines the document's major provisions. (6)

MOSKOVSKIYE NOVOSTI # 42

The Moskovskiye Novosti editorial board concludes that President Vladimir Putin's first term of office will conclude with a full-scale political crisis following repeated violations of the Federal Constitution and other fundamental elements of the country's political system. (1)

In an interview, Dmitry Zimin, a member of the Russian Union of Industrialists and Entrepreneurs board and the founder of Vimpelcom, shares his views on President Vladimir Putin's statement concerning the arrest of Yukos head Mikhail Khodorkovsky. (2, 3)

In an interview conducted before his arrest, Yukos head Mikhail Khodorkovsky offers his opinion of the conflict between his company and the Prosecutor General's Office. (3)

Yabloko leader Grigory Yavlinsky and Unified Energy Systems head Anatoly Chubais have openly criticized the officials responsible for the arrest of Yukos head Mikhail Khodorkovsky. (4)

The All-Russian Center for the Study of Public Opinion (VTSIOM-A) conducted an opinion poll immediately after the arrest of Yukos head Mikhail Khodorkovsky investigating how Russians regard oligarchs in general and the Yukos case in particular. A story examines the results. (5)

Moskovskiye Novosti editor in chief Yevgeny Kiselyov shares his views on President Vladimir Putin's statement about the Yukos investigation on Monday. (6)

Political scientist Liliya Shevtsova examines how Western entrepreneurs perceive the arrest of Yukos head Mikhail Khodorkovsky. (7)

In an interview, Igor Bunin, head of the Center for Political Technologies, assures that the upcoming elections will be a battlefield of ideologies. (9)