CONSTRUCTION BOOM ON CHUKOTKA

17 various facilities are to be built in Bilibinsky Raion on Chukota during this year.

They are apartment buildings, social, service, industrial, housing upkeep and utility facilities. Major repairs of the Recreation and Folk Arts Centre was completed and construction of a sports complex started.

"Yarar" branch of OAO Chukotka SelkhozCorporatsia completed an upgrade of bread baking and confectionery workshops. New equipment will enable to expand their product range. - Yulia PROKHOROVA.

PRIMORYE HAS 2.5 TIMES MORE BANK CARD HOLDERS

By data of the Central Bank of Russia's office for Primorsky Krai, a total of 212,000 bank cards was issued in the region as of early 2004.

Therefore, increase in 2003 was 2.5 times. Growth in the issue of international cards continues to be higher than that of cards for domestic use.

99.8% of cards was issued to individuals and the rest is corporate cards. Despite such significant growth, percentage of cashless payments in the retail and services sector was less than 2.4%. The bulks of transactions through cards is issue of cash - 97.6%.

As of 1 January 2004, cards of the following systems were issued and are supported in Primorsky Krai: VISA International, MasterCard Int., As Sberkart, Golden Crown, STB Card, Union Card, Accord Card, Customs Card "Primorye," Avtocard, Regiobank-Universal, DINERS CLUB, American Express, JCB International.

Cards are issued by 5 banks and are also served by 12 branches of extra-regional banks and 6 branches of Sberbank.

The number of cash issue points grew by 64.7% and reached 257. The number of mini-banks grew by 2.2 times (121). There are 576 retail outlets (+52.8% on 2002), including shops, drugstores, restaurants, etc., receiving payment from cards. Total turnover in Primorsky Krai's net of credit organizations and branches has grown 2.2 times on 2002. - Nadezhda VORONTSOVA.

INSURER FROM NAKHODKA INCREASED CHARTER CAPITAL

Zashchita-Nakhodka insurance company applied to FSC for increase of charter capital up to 12.5 million rubles by issue of uncertified shares of stock.

Its director general Andrei Baslyk believes that capital may be paid in already in two months after executing necessary procedures. It should be reminded that the company's capital was 9.5 million rubles in 2001, when it grew by 70%.

It is most likely that shareholders, including OAO Primorsk Shipping Company, Nakhodka Ship Repair Yard, Nakhodka-Torgmortrans-Service will avail themselves of their priority right to buy shares.

This increase in charter capital was caused by new law requirements, according to which insurers have a charter capital of at least 30 million rubles. As Andrei Baslyk informed, they hope to bring their capital up to 20 million rubles before this year's end. - Tatiana KOZINA.

CARGO TURNOVER GROWS IN VOSTOCHNY PORT

Vostochny port's total turnover amounted to 2,795,000 tons in January-February (+28% on same period in 2003).

As spokesman for Vostochny informs, its cargo complexes handled 2,299,000 tons (+25%), including 1,928,000 tons of coal (+15.8%). Coke turnover grew 9 times and reached 115,600 tons. Iron ore concentrate turnover was 93,100 tons.

OOO East Ural Terminal handled 155,500 tons of mineral fertilizer (+15%).

ZAO Vostochny International Container Service handled 41,485 containers (in TEU equivalent) during 2 months, which is a 59% increase on January-February 2003, when this figure was 23,651 TEU.

"ZR" FILE: ZAO SeverStalTrans and its partner companies hold over 60% of shares in the port and 20% belongs to the Russian State Property Ministry. - Olga DOBROLYUBOVA.

PRICES IGNORE DOLLAR EXCHANGE RATE

Though dollar to the ruble exchange rate somewhat declined in recent months, effects on prices for computer parts and household appliances were different.

Computer companies traditionally denominate prices in "foreign currency units," with their unit, as a rule, somewhat higher than the official rate set by the Central Bank. Difference can be quite significant. For instance, with the current rate being about 28.5 rubles per one dollar, many companies recalculate at 29.5 to 32 rubles. However, as the dollar rate goes down, the equivalent of the "foreign currency unit" also declines.

The bulk of computer parts - motherboards, video cards, RAM - are produced in China and on Taiwan with prices denominated in dollars. Leading producers of processors and hard disks are American companies, with prices also fixed in dollars.

As for household, TV and video appliances, sellers have been fixing prices in rubles for a long time and, therefore, exchange rate fluctuations do not cause immediate price changes.

"In principle, prices for household appliances should slightly decrease," says Priliv-Line director Valery Malyshkin. "But, on the other hand, tendencies in dollar rate are not clear. It is not unlikely that the downward trend will reverse to upward. Besides, the euro to rubles rate is growing and, unlike computer parts, a considerable percentage of household appliances is imported from Europe.

A large portion of deliveries goes through Moscow, even if manufactured in Asia, and wholesalers are not eager to reduce prices. Many switch to using euros, regardless of currency in which goods have been bought.

Today, there are several retail chains selling household, TV and video appliances. If somebody will start dumping prices, the rest will take part. Of course, no one will benefit by that. Profitability of this business is not that high and allowance for price reduction is not boundless.

"That's why we try not to make any sudden movements," Valery Malyshkin summed up. "Stability is to the benefit of all market players."

There is one more reason why no serious price reductions should be expected. After the August 1998 crisis, producers and suppliers of large shipments of household appliances notably reduced dollar prices for their goods at the expense of profitability to retain their standing in the market. And now they would like to win back financial losses incurred five years ago. - Yevgeny PETROV.

LARGE BATCH OF SMUGGLED GOODS SEIZED IN PRIMORYE

Customs agents from Ussuriisk and border guards seized a large batch of smuggled goods at the border crossing point Poltavka at around 13:00 on 19 March.

When inspecting a Kamaz truck, belonging to a Chinese company and heading for China half-full, customs agents saw random items piled in a container. As the driver, a Chinese national, asserted, the pile contained just a few used accumulators and boxes with food items somebody had requested him to deliver. Upon searching the pile, agents found bags with undeclared goods wrapped in tarpaulin.

The assortment was very wide: 768 severed bear paws (presumably Himalayan bear, total weight 844 kg), 1,550 Siberian polecat fells, 1,600 sable fells, 53 raccoon fells, 30 fox fells, 155 mink fells, 2,180 black squirrel fells, 388.5 kg of dried sea cucumber, bear gall (24 pieces, total weight 1.2 kg), three pheasants, 3 hearts of large animals, musk glands (280 pieces, 50 kg), 64 deer penis (weight 10 kg), frog "fat" (49 kg), deer antlers partly with skull fragments (142 pieces, weight 108.5 kg).

This contraband batch of animal parts was the biggest in several last years, the press service of the Far East Customs Authority reported. Russian experts evaluate the seized batch at more than 2.5 million rubles. But this evaluation applies to Russia, and in China or any Southeast Asian country such animal parts fetch several times higher prices in the black market.

Damage to nature is tremendous - 192 bears, including cubs (some paws were small), and 100,000 frogs were killed to stock up the whole amount (about 0.5 g of fat-like matter can be derived from one frog). It is easy to count how many other animals were killed.

Investigation has been launched on this incident. In accordance with Article 188 of the Russian Federation Penal Code (Smuggling), persons involved in it may face a prison term up to five years if found guilty. - Yury ROGOV.