CHINESE GO TO MAGADAN

During their 4-day trip to Magadan, Chinese visitors will investigate opportunities for investments in the region's economy, prospects for tourism and fisheries.

The Chinese delegation will visit the Magadan Airport, sea port, local lore museum and the "Golden Chamber" in the geological museum. Specially for this visit, the regional administration organized a business seminar under the title "Prospects for Mutually Profitable Cooperation between Magadan Oblast and China, Investments in the Northern Territory's Economy." - Yulia PROKHOROVA.

PRISCO SIGNED CONTRACT FOR CONSTRUCTION OF SUEZMAX TANKERS

OAO Primorsk Shipping Company (Prisco) and Hyundai Heavy Industries signed a contract on two suezmax tankers.

As Prisco spokesman informed, the tankers will supposedly be used in the Baltic Sea and, therefore, have an ice class, all necessary features for cargo transportation in northern latitudes and for passage through shallow straits connecting the Baltic Sea with the Atlantic Ocean.

Main particulars of the new ships will be: length - 285 m, beam - 50 m, draft - 15 m, deadweight - 166,000 tons. Under the contract, the tankers are to be commissioned in 2007.

They will be built at Hyundai Heavy Industries yard in Ulsan, South Korea and become first vessels of this type in Prisco. Simultaneously, Prisco builds two aframax tankers of 108,000 dwt each at Brodosplit yard in Croatia and three aframax tankers of 100,000 dwt each in South Korea. These tankers are intended for oil transportation under Sakhalin-I project. - Yury ROGOV.

YAKUTIA, HEILONGJIANG SIGN AGREEMENT ON COOPERATION

The agreement between two provinces was signed in Harbin.

As Georgy Nikonov, Yakutian permanent representative in Far East Federal District, informed, the agreement includes Yakutia's participation in the Harbin international trade fair, opening a new air flight Yakutsk - Harbin - Moscow, Chinese farm machinery deliveries.

The document was signed in the course of an official Yakutian delegation's visit to China. The delegation was led by vice president A. Akimov. A presentation of Yakutia was held in the Russian embassy in Beijing. - Yulia PROKHOROVA.

AMUR OBLAST EXPANDS COOPERATION WITH CHINA

A delegation of Amur Oblast visited Baoding City in Chinese province Hebei to present potential investment projects to the city government.

The Russian side, in particular, proposed to construct in Amur Oblast a facility for medicinal herbs processing, make investments in the region's woodworking and mining industries, international tourism infrastructure as well as search investors for an upgrade of the international terminal in Blagoveshchensk airport. As spokesman for regional administration informed, the opening of a regular flight Blagoveshchensk - harbin - Beijing was also discussed.

Russian guests held talks with producers of high-quality Chinese goods about opening an international trade centre in Blagoveshchensk and visited Baoding's large companies such as the engine manufacturing plant, processing facilities and facilities in the so-called technical and economic zone and high technology zone.

A trilateral protocol was signed by results of the visit between Amur Oblast administration, people's governments of Baoding and Heihe. As economy department head Alexander Gordeyev informed, "agreements reached with top managers of Baoding's textile mills and garment factories, operating state-of-the-art equipment and producing quality goods at relatively low prices, on selling their produce in Amur Oblast's markets."

Companies from Baoding will take part in the Amur Trade Fair to be held in Blagoveshchensk in May. Chinese factory managers were interested in the proposal to establish branches in Amur Oblast and requested information on the package of documents necessary for registration there. In further prospect, garment items could be supplied all over the Far East.

One of protocol items calls for exchanges in the fields of research, technology, education, culture, arts to be held as part of traditional culture festivals, trade and economic events. - Yulia PROKHOROVA.

SMALL BUSINESS ACCOUNTED FOR 60% OF FOOD INDUSTRY OUTPUT IN PRIMORSKY KRAI

There were 13,190 small businesses in Primorsky Krai in 2003, of which 43% operated in trade, 14% in industry and 11% in construction sector.

By data of Primorsky Krai State Statistics Committee, small companies of all economic sectors collectively generated an output valued at a total of 20.7 billion rubles. Breakdown of their input by sector was as follows: manufactured goods - 27%, trade and catering services - 20%, construction - 23%, transport - 12%, and in the food industry small business accounted for nearly 60% of gross earnings.

Small business accounted for 10% of the region's industrial production volume, mainly food products, wood items and building materials. Thus, small businesses produced 64% of sausage, 82% of semi-finished meat products, 18% of sawmill timber, 29% of precast concrete elements and 16% of wall materials.

Capital investments into small business increased to 455.2 million rubles (+10.1%), which was 3.1% of all investments to Primorsky Krai's economy. Employment in the small business sector reached 96,800 or about 10% of the region's total employment. - Yury ROGOV.

WEAK DOLLAR MEANS MORE LOSSES TO ALROSA

Diamond producing company ALROSA's unforeseen losses due to the declining dollar-to-the-ruble exchange rate totaled 680 million rubles (roughly $23.5 million) in 2003, said ALROSA president Vladimir Kalitin at a core management meeting in Mirnyi.

The bulk of ALROSA's output being sold in international markets for US dollars, its receipts are declining in ruble equivalent. In parallel, its costs expressed in rubles considerably grew due to inflation. Rise in international diamond prices does not compensate for exchange rate and inflationary losses. - Yury ROGOV.

COAL COMPANY SOLD FOR 180.6 MILLION RUBLES

An open auction for coal company OAO Dalvostugol was held in Raichikhinsk, Amur Oblast on 3 April. As spokesman for regional administration informs, auction had been announced in accordance with bailout procedures introduced by Amur Oblast arbitration court.

Dalvostugol was bought by Amursky Ugol for 180.6 million rubles. Gov. Leonid Korotkov declared he hopes that new management will recover the company from financial crisis. Despite bailout procedures, Dalvostugol remains the largest supplier of power station coals to Amur Oblast and neighbouring regions. There is a positive dynamic in its performance: debts are being restructured, wages are paid on time, production volume is slightly growing. There have been practically no interruptions in coal deliveries from Raichikhinsk for a second straight year. - Yevgeny ITAROV.

AMURSKY SHIPBUILDING YARD RECEIVED ORDER FROM VIETNAM

The yard signed a contract with Vietsovpetro on construction of a tugboat for support to oil platform operations in the Vietnamese shelf, as its technical director Anatoly Adamenya declared at a meeting on social and economic development of Komsomolsk-on-Amur.

The contract valued at several tens of millions of dollars should be executed during one year. First time for many years, the yard will fabricate both the hull and entire superstructure. Adamenya also said that the yard received three times more military orders in this year than in 2003. - Yevgeny ITAROV.

$1.5 MILLION WORTH OF WOOD CONFISCATED IN KHABAROVSKY KRAI

Spokesman for the Far East Federal District's interior affairs office said that $1.5 million worth of illegally cut timber was seized in a specially protected area, for which felling permits simply cannot be issued.

It turned out that illegal loggers were local residents who cut valuable trees - oak, stone pine, ash, lime. All of them were detained and charged with illegal tree and shrub cutting possible sentence for which could be up to 3 years in prison. Seized wood will be sold by the government. This wood batch has been the largest since the district's interior affairs office was set up. - Yevgeny ITAROV.

INDIVIDUAL EXPENSES EXCEED OFFICIAL INCOMES BY 2B RUBLES IN PRIMORSKY KRAI

Individual cash incomes in Primorsky Krai reached 18.5 billion rubles in January - February, which is a 30-% rise on same period a year ago.

At the same time, by data of state statistics, expenditures and savings totaled 20.5 billion rubles (+23%).

Average monthly wage per one worker was about 6,700 rubles in January (+32% on January 2003). Real wage referred to the customer price index rose only by 19.3%. - Yevgeny ITAROV.

MECHEL GAINED FULL CONTROL OF POSYET PORT

Mechel Steel Group officially announced purchase of 80.2% in OAO Trade Port Posyet.

68.7% were bought from OAO Siberian Coal Energy Company (SCEC) and another 11.5% from OOO Ferrotrans.

"We're interested in strong partnership relationships with Asian nations where market is rapidly growing. Purchase of Posyet Port fits well into this development strategy," Mechel director general Vladimir Iorikh declared in a corporate press-release.

It is expected that Mechel's representatives will be elected to the board in the nearest future, and an annual shareholders meeting is scheduled for 14 May.

Posyet's seating board consists of 7 members - Igor Gribanovsky, Mikhail Alexeyev, Sergei Babich, Anton Kumridi (all represent SCEC), Sergei Cherednichenko, head of Marine Administration of Vladivostok Port, Viktor Mukhortov, head of Posyet office of Marine Administration of Vladivostok Port (both represent governmental interests) and ZAO Labris director general Roman Zabelin. - Olga DOBROLYUBOVA.

KMB-BANK ISSUES UNCOVERED LOANS TO ENTREPRENEURS

Primorye entrepreneurs need only a surety to borrow up to 150,000 rubles from KMB-bank for urgent purposes.

This service is new for the local market and provided under the name of Business-ROST. As KMB-bank branch director Dmitry Solovets said, it takes only one day to check a borrower's solvency and the bank is not interested for intended purposes. Business-ROST loan is issued at varying interest rates depending on time and borrower's financial standing. Maximum term of credit is 18 months, and the next loan can be drawn only after repaying the previous one.

During three years of operation in Vladivostok, KMB-bank issued loans for a total of $26 million. Its current portfolio is 1,100 loans for a total $7.5 million. - Tatiana KOZINA.

CONTENDERS FOR SEATS IN DALENERGO BOARD

RAO UES of Russia and Planetary Alignment Limited, representing MDM Group, nominated 9 candidates each for OAO Dalenergo's board.

They are Sergei Diltayev, chief specialist of RAO's Capital Management Dept., Yevgeny Bykhanov, deputy director of "Professional Directors Institute" Fund, Fund advisers Andrei Glotov and Vladimir Zhigarev, Viktor Minakov, director general of Vostokenergo's representation, Viktor Myasnik, director general of OAO Far Eastern Energy Management Company (all represent RAO UES of Russia) and Yury Leonov, manager of MDM-bank's Corporate Finance Dept.

Another three candidates from RAO UES of Russia are "Professional Directors Institute" Fund advisers Olga Parkhomuk and Andrei Sitnikov, and Sergei Fil, chief specialist of RAO's Corporate Policy Dept.

MDM Group proposed candidacies of Alexander Zankov, SCEC's branch manager in Vladivostok, MDM Group lead specialist Dmitry Timofeyev, MDM Group chief specialist Igor Goncharov, MDM Group deputy department director Alexander Shumilov, MDM Group's Corporate Finance Management Dept. managers Yekaterina Pyatkova and Dmitry Skuratov, lawyers from Moscow City Bar Association Irina Yeliseyeva and Ruslan Kozhura.

"ZR" FILE: OAO Dalenergo has a charter capital of 328,897,635,000 rubles split into 12,333,661,312 ordinary and 4,111,220,438 preferred shares of stock with a face value of 0.02 rubles. 49% belongs to RAO UES of Russia, 28.67% is nominally held by ZAO Depositary-Clearing Company and controlled by MDM Group. - Olga DOBROLYUBOVA.

LEASING SCHEMES FOR FARMING SECTOR IN PRIMORYE

Primorsky Krai administration's Agriculture and Food Department held an open tender for farm machinery delivery on leasing terms.

The regional budget earmarks 155.7 million rubles for this programme in 2004. The tender was won by state-run company State Food Agency of Primorsky Krai.

The Agriculture Department is receiving purchasing requests from farm producers and will form a package of orders based on these requests. Experts believe that procured and delivered to local farms will be motor vehicles, tractors, grain harvesters, machinery and mechanisms for animal farming and crops raising. - Yevgeny ITAROV.

PRISCO WILL OPERATE ICE BREAKING CLASS TUG TOGETHER WITH RIEBER SHIPPING

Primorsk Shipping Company (Prisco Corporation), jointly with the specialised Norwegian Rieber Shipping AS company, has concluded a long-term charter contract with the Exxon Neftegas Limited for an ice-breaker class tugboat.

The 15-year-long contract with an option to extend will come into effect in September 2006. The tugboat will convoy oil tankers and take part in mooring operations at the De Kastri port oil terminal, said spokesman for Prisco.

In 2003 Prisco won a tender for a charter contract for three Aframax class 100,000-dwt tankers for oil transportation for Sakhalin-I project. Prisco will build and operate an ice breaking class tugboat jointly with Rieber Shipping, Norway's largest specialized shipping company. The 71-m-long tug will have a 9,000-kilowatt engine and operated in extreme navigation conditions. It will be furnished with additional fire fighting equipment. - Yury ROGOV.

POLYMETAL COMPANY (MAGADAN) RANKS AMONG WORLD'S TEN LARGEST PRECIOUS METAL PRODUCERS

OAO Polymetal's silver output in 2003 skyrocketed it to a position among ten world's leading precious metal producers.

As spokesman for Magadan administration informs, Polymetal's subsidiaries ZAO Silver of Magadan and ZAO Silver of Territory finished last year very successfully. The mining and metallurgical complex based on Dukat and Lunnoye deposits reached design capacity in the fourth quarter. Silver production totaled 410 tons in 2003 (3.5 times more than in 2002) and gold production was 1.34 tons (2.1 times more). - Yulia PROKHOROVA.

CHUKOTKA STAKES ON INTERNATIONAL TOURISM

Despite its severe climate, long and expensive transport routes, Chukotka is a focus of interest for tourists, especially foreign nationals. More than 700 persons visited the peninsula in 2003.

Local officials believe that tourism has good prospects on Chukotka and, for that purpose, an information database should be elaborate and qualification level of tourism specialists enhanced. Tandie Wallac, director of a travel agency from Alaska, will come to Anadyr in May to train local colleagues in guides performance and tourism business management. A seminar scheduled for September will be attended by specialists of the Russian International Tourism Academy, WWF and U.S. National Park Service.

Chukotka representatives will take part in the Dalintour-2004 exhibition scheduled for May in Vladivostok, in the international forum Beringia Days on Alaska slated for October.

A foremost task for the local tourism sector remains establishment of a complete information database on all interesting routes, places and services. - Yulia PROKHOROVA.

OIL PROVIDER IN NAKHODKA APPROVED CANDIDACIES FOR BOARD OF DIRECTORS

OAO Rosneft-NakhodkaNefteProduct's board approved all 7 candidates to a new board of directors to be elected at the forthcoming annual shareholders meeting.

As "ZR" was informed by Rosneft-NNP's press secretary Natalia Popravko, Rosneft parent company approved 5 candidates - Rosneft president Sergei Bogdanchikov, Rosneft-NNP director general Nikolai Petelin, Rosneft-Sakhalinmorneftegas director general Ramil Valitov, Rosneft's Oil & Product Export Department director Dmitry Bogdanov and Rosneft's Capital Construction Department director Vadim Yegorov.

Other two approved candidates represent Fairtop Limited (Cyprus) - Anatoly Susokolov and Sergei Lesnykh.

Natalia Popravko also said that the board of directors will recommend to the annual meeting to pay dividend. Its rate will be approved by the board after approval of the yearly balance sheet. - Olga DOBROLYUBOVA.

KHABAROVSKY KRAI REDUCED LIQUOR PRODUCTION

Tough competition with producers from other regions makes local distilleries reduce production of liquor and alcohol.

The same reason has caused reductions in output of confectionery, mayonnaise, animal feed. As spokesman for Khabarovsky Krai informs, losses of the bread-baking and grain processing sectors exceeded 22 million rubles in 2003.

At the same time, total output of food products has grown by 25%. Production of vegetable and margarine almost doubled, that of beer grew 2.5 times, groats - 3.3 times, brandy - 80%, wine - 23%, whole milk products - 20%, semi-finished meat products - 19%. 80% of companies in the food industry are profit makers and collectively earned a total of about 120 million rubles of profit in 2003. The food industry, trade and services sectors paid a total of 1,948 million rubles in taxes to the budget of Khabarovsky Krai. - Yury ROGOV.