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#82, October 22, 2002

MEDICAL ACADEMY WILL OPEN BRANCH IN FAR EAST

The Russian Federation Health Ministry plans to open a branch of the Academy of Medical Sciences in the Far Eastern federal district and subsequently elevate it to a status of the Far Eastern Division of the Academy of Medical Sciences.

This statement was made by RF chief sanitary officer Gennady Onishchenko at a meeting of the Far eastern council of chief sanitary officers in Khabarovsk. At present, there are four medical higher leaning institutions and two branches of national medical research institutes in the Russian Far East.


CENSUS COMPLETED IN PRIMORYE

The minimum of 90% of the total population number required to be counted during the nationwide census was reached in Primorye before the official deadline of October 16.

However, census activities continued after this date through October 20. During that period, controllers conducted selective checks to count missed persons and verify records by counters. Many citizens reported that counters performed superficially.

Russian statistics authorities will process census data for one year. According to State Statistics Committee chairman Vladimir Sokolin, first official data will be announced by the autumn of next year.

GOVERNOR DARKIN INTENDS TO REFORM MUNICIPAL ECONOMY

Primorye governor Sergei Darkin made a statement last week that Primorye citizens pay not 90% of utility costs as required by the governmental program on municipal economy reform, but 40% of real costs at most, and slightly over 10% is compensated by the federal budget. The rest has to be paid by the krai and municipal budgets.

As for the housing subsidy system, it has not be set in place in Primorye so far. The krai administration injects millions of rubles into municipal economy as housing subsidies to avoid problems with budget classification and purpose itemizing. In this, there is no proportionate distribution between utility services, and the bulk of "subsidies" is directed to fuel procurement through "PrimteploEnergo", krai-level state unitary company.

As of October 15, coal and fuel oil stockpiles were 41% and 34% higher than the planned amount.

"ZR" FILE: As of October 15, 782 of 1,024 boiler-rooms were recognized ready for winter operation, 2,380 km of heating lines were repaired versus the plan of 2,547 km and 72 km of the planned 120 km were replaced. The municipal housing sector was ready at 93%. As of the end of past week, 370 million rubles was provided to municipal economy from the krai coffers versus the plan of 500 million, and 100 million was earmarked by municipal budgets versus the plan of 200 million rubles.

Municipal economy continues to perform at a level far from normal due to non-payments, inadequate ownership laws, main asset wear-out and commercial losses. Little has changed during the past year. The only novelty introduced by Gov. Darkin’s team – uniform heat tariffs – had to be cancelled because of protests by prosecutors and municipal authorities. Still, movement ahead continues, though at a specific pace.

- We believe that Primorye’s municipal economy will reach a pre-market condition somewhere in 2004-2005, said the governor.

Though he did not explain what he meant by "pre-market condition", it is an easy guess: after the next gubernatorial election in 2005, he will have courage enough to dissect the donorship link between the krai budget and municipal economy.

WINTER PREPARATIONS DISCUSSED IN KHABAROVSK

Presidential envoy’s office considered winter preparations in the Far Eastern federal district. According to weather forecasts, winter will be harsh in this year. Average daily temperatures will drop well below normal in Khabarovsky Krai and on Sakhalin already in November. In general, the situation looks well. Coal and fuel oil stockpiles amount to 103.8% and 106.6% of the plan, respectively. Repair works have been completed on schedule, and readiness to winter is to be confirmed on November 15 – there is one more month for preparations.

However, deputy presidential envoy Aleksandr Drozdov noted that repair works failed to meet schedule in some cases and mentioned Primorskaya GRES, SakhalinEnergo and DalEnergo as falling behind in main equipment repairs, and DalEnergo and YakutEnergo in utility line repairs. Bad news came from Yucos – it wishes to sell fuel oil at 6,200 rubles/ton, while KamchatEnergo had based its tariff policy on 4,600 rubles. On the whole, major power plants arise much less concern than small-size utilities at the municipal level.

On average, only 16% of local heat supply lines and boiler-rooms were recognized ready for winter in the federal district. Corporate utilities are in a still worse condition – only 12% are ready. The situation is worst on Kamchatka, Sakhalin and Koryaksky Okrug, with Sakhalin utility operators being ready only at 5-10%. Lazovsky and Khankaisky Raions of Primorye may join these problem regions, as, by data of presidential envoy’s office, not a single ton of fuel was procured here. In Nakhodka, 24 apartment buildings are not ready for heating during winter.

Pavel Plat, head of the Far Eastern regional centre of the Emergency Situations Ministry, noted that in Primorye power plants are ready at 81%, heat supply lines at 94% and distribution points at 99%, but the emergency reserve is only 11%, a record low. However, Primorye vice governor Vladimir Vedernikov, vexed with so much attention to Primorye, assured the meeting that Primorye will do in the coming winter season very well. As for fuel prices, something must be done, otherwise the energy sector and Primorye budget may collapse – 768 million rubles are needed to cover the difference between actual prices for fuel oil and prices assumed in cost esrimations.

However, Drozdov stressed that this direct loss should be attributed to Primorye administration’s slowness. It failed to fulfill fuel procurement schedule and concluded delivery contracts in summer. As a result, it has lost 50 million rubles and another 768 million will be lost by the next spring. Vedernikov’s argument that a 50-day supply instead of the accepted practice of 100-day supplies is sufficient is performance is smooth, was not supported by the meeting.

As for fuel oil prices, there are few alternatives: either include them in the energy tariff or freeze. The latter is not so improbable – it is known that presidential envoy Konstantin Pulikovsky is now in Moscow and going to appeal to President Putin for freezing fuel oil prices in the Far East.

VOSTOKBUSINESSBANK HAS NEW PRESIDENT

According to the bank’s spokeman, Sergei Ludvik became new president on October 15, 2002. He replaced in this position Boris Grigoriev, who had lead VBB since July 2001 and, as "ZR" informed, was appointed to a new position in TransCreditBank. The new president is to continue his predecessor’s work on strengthening the bank’s position as the main partner for the Ministry of Railways divisions in the Far East, expanding business and developing new activities.

"ZR" FILE: Sergei Aleksandrovich Ludvik holds a degree of Cand. Sc. (Econ.), since 1990 he has occupied top managerial positions in local banks, including Evrobank and Promstroibank branch. During last two years, he was Vneshtorgbank branch manager in Nakhodka and then in Vladivostok.

NEW MANAGER IN "MENATEP ST. PETERSBURG" BRANCH

Viktor Rudko-Silivanov, head of Primorye office of the Central Bank of Russia approved Yury Kokh as manager of the Vladivostok branch of "Menatep St. Petersburg" bank.

Yury Kokh has replaced Tatiana Rozanova. He came to Menatep from a managerial position in the branch office of Agropromcredit bank.

DALRYBBANK SHAREHOLDERS AMEND BY-LAWS

The extraordinary meeting of Dalrybbank shareholders held on October 17 approved revisions to the bank’s by-laws made in accordance with the law "On Joint Stock Companies" of Jan. 1, 2002 and with CBR’s recommendations regarding shareholder rights protections, says Dalrybbank’s press release.

The shareholders were presented a report on financial performance during 9 months of this year. Gross profit was 41.7 million rubles. Income-earning assets amounted to 486.7 million rubles as of October 1. Balance sheet total amounted to 980.5 million, and capital grew by 86.2 million rubles.

The bank continues repaying debts to creditors in accordance with terms and conditions of an amicable agreement. These payments totaled 50.9 million rubles in this year, of which 41 million rubles was repaid to natural persons. Dalrybbank also meets its obligations to the budget.

YOUNG PIANIST FROM PRIMORYE WON 4TH PRIZE IN MOSCOW

Veronika Popova, resident of Rudnyi settlement and student of the Kavalerovo Arts School, was awarded 4th prize at the third international contest of young pianists, named after Anna Artobolevskaya, recently held in Moscow.

This is an excellent achievement, given that this prestigious contest was attended by participants from Russia, Canada, Spain, Japan, Switzerland, China and CIS states. The contest is held once in three years, beginning 1996, and devoted to Anna Artobolevskaya, a Russian pianist. Pianists competed in two tours, and three laureates were selected by the jury, composed of famous pianists and professors from Germany, the Netherlands, Switzerland and Russia, were selected out of 22 finalists. Veronica became fourth and was awarded a diploma.

Earlier, Veronica won the international contest "Young Pianist" in Vladivostok in March of this year, and in April was awarded a diploma of the international festival "New Names in Asia Pacific", held in Khabarovsk, and granted a stipend of the "New Names" fund.

FOREIGNERS SUPPORT ILLEGAL LOGGING ENFORCEMENT IN FAR EAST

According to Anatoly Kotlobai, WWF expert in illegal logging in Russian Far East, the fund has launched a new environmental project entitled "Assurance of Sustained Nature Conservation in Far Eastern Eco-region."

One of its main goals is to protect the forestland in south Sikhote-Alin area and Khingansky model area. A mobile brigade of inspectors will be set up by WWF jointly with ICEA concern (Sweden) in Jewish Autonomous Oblast to detect and halt illegal logging operations. The bulk of poached timber is sold to China. ICEA starts there construction of a large wood processing complex that will work mostly on imported timber.

Governed by civilized business requirements and environmental standards, ICEA management intends to stop illegal timber imports to China.

Khingansky Raion, the greater portion of which lies in Jewish Autonomous Oblast, has vast areas of unique coniferous/broad-leaved forests. The patrol group, being set up to protect this model area, will work on same principles as the "Tiger" and "Cedar" patrol groups successfully operating in Primorsky Krai. By WWF expert’s words, the inspectors have assessed the true figure of illegal logging in Primorye, which accounts for 50% of official data. At present, their experience is disseminated to the neighboring areas of Khabarovsky Krai, Amur Oblast and Jewish Autonomous Oblast.

MEAT PACKING FACTORY WILL PROCESS FISH

JSC TURNIF intends to retool the Vladivostok meat packing factory for fish processing before year’s end.

Work to upgrade production spaces and install German-made equipment is already under way. The new facility will turn out culinary products, preserved fish, fillets – in all, about 35 items. Raw fish will be provided by TURNIF’s catchers. The target sales market is Vladivostok, Primorsky Krai and Russian Far East as a whole.

PRESIDENTIAL ENVOY SETS UP FINANCIAL MONITORING COMMISSION

The decision to set up such a commission was made at the anti-money laundering meeting held in Khabarovsk on October 17.

The commission will work under presidential envoy Konstantin Pulikovsky and coordinate activities by RFE regions and the RF Financial Monitoring Committee, Inter-regional Inspection of the Tax Ministry, Central Bank of Russia, Interior Affairs Ministry, Federal Securities Commission, and Justice Ministry, said spokesman for the presidential envoy.

These organizations will exchange information about leasing companies, pawnshops, other non-credit institutions transacting deals with monies and other property. Joint checks will be conducted to see how the law "On Counter-Action to Legalization of Incomes Earned by Criminal Methods" is observed. This work will be supervised by the newly established inter-regional office of the Far Eastern federal district financial monitoring committee, led by Sergei Kravtsov. The office will track cash flows through banks, insurance companies and other financial institutions. Criminal investigations are already under way on organizations laundering several millions of dollars.

VLADAIR CO-FOUNDED LEASING COMPANY

JSC Vladivostok Air and JSC "MashLeasing" (Moscow), who have been cooperating for about two years, co-founded a leasing company named "Machine-building Leasing Company Vladivostok – MashLeasing Ltd." with equity split 49/51 respectively.

The purpose of the new company is to expedite leasing transactions on purchasing main assets, secured by VladAir. The first deal will be purchase of three D30KU-154 engines for Vladivostok Air.


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