 |
 |
New York : London : Moscow
|
 |
 |
 |
 |
 |
 |
|
*Due Diligence, Business Intelligence, Asset Retrieval, Debt Recovery* TT Business Intelligence Report Vol. 2, No. 49, 26 June 2003 Business Intelligence, Crime, Corruption and Debt in C&E/SE Europe and the FSU UPCOMING CONFERENCES EUROMONEY'S "RUSSIA & THE CIS 2003: ECONOMIC CHALLENGES FOR THE 21st CENTURY" This event will take place on 9-10 September 2003 at the Radisson Slavyanskaya Hotel, Moscow, Russia. For further information, please contact Susie Teuton, tel: +44 (0)20 7779 8366; fax: +44 (0)20 7779 8795; email: [email protected]; W: www.euromoneyconferences.com EUROMONEY'S "SOUTH EAST EUROPE: THE 3rd REGIONAL FINANCE & INVESTMENT CONFERENCE" This event will take place on 21-22 October 2003 at the Hotel Croatia, Dubrovnik, Croatia. For further information, please contact Susie Teuton, tel: +44 (0)20 7779 8366; fax: +44 (0)20 7779 8795; email: [email protected]; W: www.euromoneyconferences.com BELARUS SADDAM HUSSEIN'S SECRETARY LINKED TO BELARUS Saddam Hussein's personal secretary was found with Belarussian passports when he was captured in Iraq last week, a U.S. and a British newspaper reported. But Belarussian authorities said Wednesday this was not possible. First the Independent and then The New York Times reported this week that Belarussian passports had been found on Abid Hamid Mahmud al-Tikriti when he was captured on June 16. Mahmud is suspected of obtaining the passports in Syria, according to the reports. He told U.S. interrogators that he was in Syria after the war with Hussein's sons, Odai and Qusai, before being expelled, The New York Times reported Wednesday, citing two unidentified U.S. government officials. The paper speculated that the other passports could have been for Hussein's sons. The day before, the Independent quoted an Iraqi Kurdish official involved in the hunt for Hussein as saying Mahmud "had just returned from Syria where he had obtained the passports, probably without the knowledge of the Syrian government." The Belarussian ambassador to Syria, Vladimir Zagorsky, said his mission did not and could not have issued passports to Iraqi citizens or any other foreigners. "This is impossible," the ambassador said Wednesday in a telephone interview from Damascus. He said the Iraqis could not have received Belarussian passports in postwar Iraq either, since the embassy there remains closed. In Minsk, a spokesman for the Belarussian Interior Ministry, which is responsible for issuing passports, also said the reports appeared to be false. (The Moscow Times 26.vi.03) BOSNIA AND HERZEGOVINA ICG REPORT: BiH'S DEADLINE FOR EU ENTRY IN 2009 UNREALISTIC The International Crisis Group (ICG), an influential NGO based in Brussels, said in its latest report that the BiH government's ambition for Bosnia's membership in the EU in 2009 is not realistic. According to the document entitled "Thessaloniki and After (II) The EU and Bosnia", the ICG indicated that the basic issues regarding the establishment of state have not been solved in BiH yet. The ICG also believes that amid the Western Balkan states, Croatia is the only country that has a chance of being admitted to the EU by 2007. Meanwhile, in an interview with the Austrian newspaper Standard, the Special Co-ordinator of the Stability Pact for South Eastern Europe, Erhard Busek, stated that BiH needs to develop in line with the Dayton Agreement as a single state. (IntelliNews 24.vi.03) BULGARIA FINANCE MINISTER HINTS AT POSSIBLE SALE OF DEBT CLAIMS AGAINST IRAQ Finance Minister Milen Velchev said to the local press that the government might sell the USD 1.7bn debt claims against Iraq to an investment bank or another entity. He added that the US administration was not quite interested in taking over formal guarantees on the debt claims and that the government would consider a deal with a private company aiming to secure quick receipts on the debt claims. The other option for the government would be to sign a debt-for-oil deal. However, Velchev commented that quick arrangements with Iraq would not be possible due to uncertainties with the temporary administration in the country. Taking into account previous statements from the ministry, the government is likely to seek a deal for selling the debt at some 25-30% of the face value. (IntelliNews 26.vi.03) CROATIA PRESIDENT STJEPAN MESIC COMMENTS ON EU ACCESSION The individual approach to European associations, asserted at the Zagreb Summit in 2000, still holds good, but it is not in opposition to regional co-operation, Croatian President Stjepan Mesic said in his address at the EU-Western Balkans Summit in Porto Carras on Saturday, Jutarnji List reported. "The principle of individual accession, asserted at the Zagreb Summit, still holds good. But it is not in any way in opposition to regional co-operation which is an unavoidable step on route to a united Europe," Mesic said at the Summit of EU heads and five countries included in the Stabilisation and Association process (SAp), Croatia, Bosnia and Herzegovina, Serbia and Montenegro, Macedonia, and Albania. Croatia has the strength, ability and will to meet political and economic requirements for entry into the EU, Mesic said. Croatia will persevere in the war against global terrorism and organised crime, as well as in efforts to overcome the aftermath of the wars in the former Yugoslavia, including full co-operation with the Hague's UN war crimes tribunal. "We want to become part of the great European family. We will do our part in the job. In this endeavour we expect your help and support," the President concluded. (NewsBase 24.vi.03) INA PRIVATISATION: FINAL OFFERS EXPECTED IN THE FIRST WEEK OF JULY The final offers for 25% +1 share of INA oil and gas company should be submitted by the end of the first week in July, while the exact cut off date is yet to be determined, the council for INA oil and gas company privatisation decided yesterday. According to previous reports and statements of government officials, the bids were expected by the end of June. However, the council reported that negotiations with potential partners were now over and the privatisation process was running on schedule. The remaining candidates in the competition are Russia's Rosneft, Hungary's MOL and Austria's OMV. Reportedly, the cabinet expects to see at least USD 360mn revenue from the first stage of INA’s privatisation. (IntelliNews 24.vi.03) CZECH REPUBLIC CESKA SPORITELNA SETS UP REAL ESTATE COMPANY Savings bank Ceska Sporitelna (CS) has founded its own real estate company, Realitni Spolecnost Ceske Sporitelny, which yesterday became active on the Czech real estate market. It will provide services to both the corporate sector and individuals, and also it will cooperate with leading developers. CS analysts expect prices on the domestic real estate market to remain stable. (PBJ 24.vi.03) CZECH-GERMAN POLICE BREAK MAJOR TRAFFICKING NETWORK In one of its most successful operations against human traffickers, the Czech police have arrested 15 members of a gang that was helping immigrants cross illegally into Germany. In similar sweeps in Cologne, Munich, and Bonn, German police made 16 arrests. The 150 police officers involved in the operation found 130 migrants at five different sites. Their German counterparts seized 29 migrants. Police say that it has evidence that the gang has transported 400 Asian migrants into the EU, earning at least 54 million crowns (roughly $2 million). However, it suspects the gang has taken many more immigrants into Western Europe. Each would-be immigrant had paid $10,000 to $15,000. According to the Czech police, human trafficking may now be more profitable than drug trafficking. Ivan Cernik from the Czech police’s organized crime unit indicated that there may be dozens of comparable groups operating in the Czech Republic. The results of this raid reflected current trends. For the past 10 years, the Czech Republic has been a major transit point, with the major destination being Germany. As in this case, most illegal migrants passing through the Czech Republic come from China, with the route normally running through Russia, Ukraine, and Slovakia, although Armenians are another group singled out by Czech police. The three Czechs arrested were, as usual, lower in the chain of command, with responsibility for establishing local contacts and, in one case, transporting, guarding, and housing the migrants. According to German figures, almost as many Czechs (325) as Germans (333) were arrested in 2001 for trafficking in Germany. (TOL 17.vi.03) HUNGARY MONEY LAUNDERING WATCH DE-LISTS HUNGARY The Paris-based Financial Action Task Force on Money Laundering Group (FATF) has taken Hungary off the list of countries they watch in relation to money laundering, the Hungarian State Financial Institutions Supervision (PSzÁF) confirmed. Hungary was listed as a country open to suspicion in 2001, but this status was lessened last June to a status of being observed. This recent move is the result of Hungary identifying 90% of the Ft 450 billion in unnamed accounts through February, 2003, the FATF statement explained. (BBJ 24.vi.03) MOL SUPPORTS GOVERNMENT'S DECISION TO SELL ITS REMAINING STAKE IN MOL Mol has voiced support for the government's decision to sell its remaining stake in the oil and gas group and prepare the country's gas market for liberalisation, Magyar Hirlap reported. Zsolt Hernadi, Mol's chairman, said continuing government price caps would still lead the company to incur some losses on gas imports this year. But the new regulatory regime would mean prices more closely reflect costs and "greatly benefit the company." The first stage of the deregulation will mean industrial customers, which make up some 40% of Hungary's gas market, will be free to buy gas from January next year. Hernadi reiterated policy on Mol's gas transmission business, saying a decision on retaining or selling a majority stake in this could only come after the regulations are published. He also stressed that reports that the privatisation was intended to attract a strategic partner were incorrect. "The government is only seeking institutional and retail investors," he said. It plans to sell a 10-13% stake this year and offload the remainder of its current 23% holding within two years. (NewsBase 24.vi.03) KAZAKHSTAN KAZAKH GOVERNMENT DISCUSSES ACTION PLAN During a 24 June discussion of the plan of action that Kazakhstan's new cabinet is legally required to present to parliament within a month, Prime Minister Daniyal Akhmetov set out his views of the government's role in the economy, khabar.kz and Interfax reported. Akhmetov was quoted as saying that the government's first priority should be to promote competitive, export-oriented production. However, this would not mean a complete liberalization of the market. Nor would the government give its total support to domestic producers. Some Kazakh politicians have called for the revision of contracts with foreign oil firms to give greater benefits to Kazakhstan, but Akhmetov said the government will not rewrite existing contracts. (RFE/RL 25.vi.03) KAZAKHSTAN BEGINS PROCESS OF LEGALIZING SHADOW ECONOMY The Kazakh government has submitted to the Mazhilis (lower house of parliament) a law legalizing property acquired through the shadow economy, RIA-Novosti reported on 20 June. According to the Mazhilis press service, the government explained that in the absence of proper legislation during the transition to a market economy, an extensive shadow economy had developed, and the draft legislation is intended to bring the holdings of small entrepreneurs into the legal economy and to resolve the issue of unregistered property belonging to rural migrants to the cities. The shadow economy in Kazakhstan accounts for one-quarter to one-third of the country's gross domestic product, according to a government note accompanying the draft law. (RFE/RL 23.vi.03) PRESIDENT DENIES WRONGDOING Kazakh President Nursultan Nazarbaev denied any involvement in a scandal involving kickbacks from Western oil companies interested in developing Caspian oil resources, instead blaming former Prime Minister Akezhan Kazhegeldin of having manufactured the scandal. In an interview for the "Financial Times" of 12 June, Nazerbaev called the charges against James Giffen, a banker and former presidential adviser, "provocative and baseless." A federal court in the United States indicted Giffen and a Mobil executive in April on charges of corrupt business practices. A second indictment accuses J. Bryan Williams, a retired Mobil senior vice president, of having failed to pay taxes on an alleged $2 million kickback from Giffen for his role in Mobil's 1996 purchase of a 25 percent stake in Kazakhstan's Tengiz oil field. According to the "Financial Times" of 10 June, Williams has agreed to cooperate with U.S. prosecutors and begun providing details of the activities of other oil company executives. However, after entering a plea of guilty, Williams denied cooperating with the prosecution and said he acted alone and without the knowledge of Mobil executives, the "Financial Times" reported on 13 June. (RFE/RL 15.vi.03) LATVIA VAIRA VIKE-FREIBERGA RE-ELECTED AS PRESIDENT Vaira Vike-Freiberga was re-elected to a second four-year term as president during an extraordinary parliamentary session on Friday by a vote of 88-6, the local media reported. Her re-election was expected, as she was the only candidate and had been nominated by the ruling coalition of New Era, For the Fatherland and Freedom/LNNK, Union of Greens and Farmers, and Latvia's First Party, as well as the opposition People's Party. The opposition National Harmony Party also supported her candidacy. Only the leftist Socialist Party and some independent deputies opposed her re-election. Vike-Freiberga, after living in Canada for almost 50 years, was elected president in 1999 with only 53 votes in parliament. She has succeeded in becoming the country's most popular political figure, despite not being affiliated with any political party. Her new term of office will begin on July 8. (NewsBase 24.vi.03) LITHUANIA GAZ DE FRANCE INTEREST IN 34% STAKE IN LIETUVOS DUJOS Gaz de France and a consortium comprising E.On AG and Ruhrgas submitted statements of interest to take a 34% stake in the Lithuanian gas distribution company Lietuvos Dujos, which is being privatised, the Lithuanian State Property Fund said. The fund said it intends to finish determining by Friday, December 21, whether the two applications meet the tender requirements. Only companies from NATO, EU and EU candidate countries, as well as OECD member countries may participate in the tender. The winner is likely to get management rights in Lietuvos Dujos. The restriction in effect bans Russian gas companies and their proxies from bidding for the stake. The sale for is expected to be concluded in the second quarter of 2002, and then government will seek a gas supplier, likely to be Russian, to take another 24% in the company. The government will retain a 24% stake in Lietuvos Dujos, but may sell it later on the local stock exchange, where currently about 8% of the company is listed. (NewsBase 25.vi.03) POLAND S&P REVISES POLAND'S RATING OUTLOOK TO NEGATIVE DUE TO FISCAL POLICY CONCERNS The rating agency Standard & Poor’s revised its local and foreign currency outlooks on Poland to negative from stable. At the same time, Standard & Poor’s affirmed its BBB+/A-2 foreign currency and A/A-1 local currency ratings on Poland. "The outlook revision reflects a deterioration of Poland’s medium-term fiscal prospects, in view of increased fiscal pressures going forward and political difficulties facing key fiscal reforms," S&P analyst Beatriz Merino explained. S&P also said that pressure on expenditures would increase from 2004, reflecting costs related to EU membership. The agency warned that unless the planned tax cuts are accompanied by deep reforms, they would contribute to a widening of the fiscal gap. The government plans to reduce the corporate income tax from 27% to 19% as of 2004, and to increase the tax-free amount in personal income taxation. S&P expects the general government deficit to increase to more than 6% of GDP in 2003 from 3% in 2000, and the debt-to-GDP ratio to close to 50% of GDP in 2003 from 39% in 2000. It warned, however, that if the government fails to rationalise social expenditures, strengthen budget management, and downsize the large public sector, the general government deficit might exceed 7% of GDP in 2004-2005, while the debt-to-GDP ratio would rise to over 60% of GDP by 2006. S&P warned that this would delay Poland’s EMU accession until after 2010. S&P believes that the parliamentary discussion on the 2004 budget in the autumn could still cause the minority government to collapse. In such a case, the risk of fiscal loosening would rise already in 2003 and prospects of significant fiscal reforms in 2004 would be set back. This could lead to further downward pressure on the ratings, S&P concluded. (IntelliNews 24.vi.03) BANK AUSTRIA-CREDITANSTALT TO ACQUIRE STAKE IN BPH PBK Bank Austria-Creditanstalt (BACA) is to take over an 18.95% stake in BPH PBK, at a cost of EUR439 million. The shares will be taken over from Germany's second largest bank, HVB Group, which is a strategic investor in the Polish and the Austrian company. In accordance with the strategy of HVB Group, all operations in Central Europe will be carried out by BA CA, which currently controls a 52.2% stake in BPH PBK, after acquiring an additional 9.1% of shares last year. The public offering of up to 18.95% of BA CA shares, now being prepared, will not be executed on the Warsaw Stock Exchange (WSE) as previously anticipated; however, Polish investors can take part in the transactions and acquire the shares through the bank's domestic division. BA CA shares are to reach the WSE this fall in the form of Polish Deposit Receipts. (WBJ 24.vi.03) ROMANIA US INVESTORS REPORTEDLY INTERESTED IN PETROM Capital Daily summarises in today's issue the positions expressed by the American oil companies, the potential bidders for Petrom, concluding that there is enough interest from the US companies for balancing Lukoil's expected bid. Industry Minister Popescu has recently paid a visit to the US for meeting representatives of Chevron Texaco, BP Amoco and ExxonMobil. According to Popescu, the three intend to participate in the tender to be started these days by the Romanian officials for the 50% stake in Petrom. The most interested US investor is reportedly BP Amoco. The company's head of finances and investments, Byron Grote, was quoted by Curentul as saying that his company is interested in Petrom's refinery and not in the extraction activities. BP gave up its gas stations in Romania recently to OMV but still maintains such stations in Bulgaria and Turkey, explaining that some refineries in Romania might make sense in this regard. Chevron Texaco and Conoco Philips are on the other hand interested in Petrom's extraction activities, Capital reads. An unnamed Chevron official is quoted as saying that the company is currently negotiating with Halliburton on teaming up for buying from the Romanian state the specific units they are interested in. This case, BP might join the team, says Grote. Beside the American investor, ENI of Italy is believed to be interested in the deal, allegedly supported by PM Nastase - PM Berlusconi team. However, the Italians are conditioning the deal on the completion of Constanta-Omisalj-Trieste pipeline. (IntelliNews 25.vi.03) RUSSIA YUKOS PUSHES STOCK MARKET PAST 500 BARRIER The benchmark RTS index climbed over the 500 threshold on Wednesday for the first time since October 1997, boosted by a rally of Yukos shares. The Russian Trading System hit a high of 502.11 in midafternoon trading before settling to close up 1.89 percent at 492.82. Shares in oil giant Yukos jumped 3.16 percent to an all-time high of $14.05 after the company announced it would increase oil exports by 42 percent this year. The bullish market earlier this week pushed Yukos' capitalization to $30 billion, the highest of any Russian company. With Wednesday's gains, its capitalization topped $31 billion. Traders, who had widely expected the RTS to pass 500 this month, said stocks were being boosted by renewed interest from foreign investors and high oil prices. Flush with petrodollars, Russian corporate investors have little incentive to invest in depressed markets abroad so they are pouring money into the local market, they said. "We believe it will move higher from this level in the near future, with all likelihood that it will break its all-time high of 569 before this year is over," said Sam Barden, head of international trading and sales at Trust investment bank. Barden said that apart from liquidity, a main moving force behind the market surge has been a huge demand for Russian assets from Russian industrial groups. "The Russian market is evolving, and we are in the latter stages of asset consolidation," he said. "Those industrial interests have long-term views, and the assets and companies that they are buying will likely be repackaged and resold back on the market" as initial public offerings. Alexei Zabotkine, economist at United Financial Group, predicted the RTS would reach 520, cautioning that the third quarter might bring a correction if oil prices fall as expected and squeeze the flow of petrodollars onto the market. Peter Westin, senior economist at Aton, said that outperforming blue chips aside, the Russian stock market is offering some "interesting stories" for investors, particularly in second-tier stocks. He noted that the RTS rally is coming on the back of positive news about GDP growth. Economists have been steadily raising their economic growth forecasts in recent months. "For example, adding 1 percent to the gross domestic product forecast adds 10 percent to the market upside," Westin said. (The Moscow Times 26.vi.03) HSBC BANK SIGNS USD 200mn LOAN AGREEMENT WITH VTB BANK During President Putin’s visit to Great Britain, HSBC Bank signed a USD 200mn loan agreement with major VTB bank. The loan will be used for financing British imports to Russia. Also, the bank can use the funds to finance imports of machinery from other developed countries. Meanwhile, MDM Bank signed a USD 50mn syndicated loan agreement with Deutsche Bank and Standard Bank London. The loan interest rate (2.95%) is the lowest for a Russian bank since the 1998 financial crisis. Also, the WB plans to extend a USD 200mn loan to Russia for developing mortgage lending. The WB’s Julian Schweitzer said the bank will lend USD 200mn to the city of Kazan for developing its utility network. The WB might also provide Kazan a USD 250mn loan for building the city’s subway. (IntelliNews 26.vi.03) PUTINS GIVEN THE ROYAL TREATMENT IN BRITAIN Following their arrival in London on 24 June, President Vladimir Putin and his wife, Lyudmila, were driven in a cortege of seven horse-drawn carriages to Buckingham Palace for a banquet in his honor hosted by Queen Elizabeth II, Russian and Western media reported. The queen told Putin that it was "no secret" there have been "significant differences" between the two countries over "how best to handle Iraq." Now, she added, they are "firmly in agreement on the route we have decided in the United Nations" and have forged a "long-term partnership" that is "of profound importance," AFP reported. Putin expressed condolences for the 24 June deaths of six British servicemen in Iraq and praised the queen, who visited Russia in 1994, for promoting Russian-British relations. Russia and Great Britain, Putin said, "occupy key places in one another's systems of foreign-policy priorities." Putin, who is on a four-day state visit, placed a wreath at the Tomb of the Unknown Warrior in Westminster Abbey. He also met with Conservative Party head Iain Duncan Smith and Liberal Democratic Party Chairman Charles Kennedy. (RFE/RL 25.vi.03) TVS BACKERS SAY MEDIA MINISTRY ON SHAKY LEGAL GROUND Media-Sotsium General Director Oleg Kiselev declared on 23 June that the Media Ministry violated the law when it turned off TVS broadcasts on 22 June and that Media-Sotsium will seek financial compensation, Russian media reported. It was widely reported that the noncommercial partnership Media-Sotsium won a March 2002 tender to broadcast on channel six. However, Konstantin Remchukov, head of the advisory council for Oleg Deripaska's Base Element holding company, told NTV on 22 June that Media-Sotsium did not in fact receive a license as a result of that tender. It instead got only a "temporary broadcasting permit." However, Remchukov, who is also a Union of Rightist Forces deputy in the State Duma, added that the organizers of the tender did not make this clear, and if they had, many experienced businesspeople "would have been forced to think twice before participating in the tender." (RFE/RL 24.vi.03) PUTIN GIVES OVERVIEW OF RUSSIAN FOREIGN POLICY In a 21 June interview with the BBC on the eve of a four-day state visit to Great Britain that will begin on 24 June, President Vladimir Putin said that he has information that unspecified European companies have supplied Iran with "technology of dual use, to say the least." Therefore, Putin said, Moscow will resist efforts to use "the nuclear theme to squeeze Russian companies out of the Iranian market." Putin also said Russia will expand its relations with NATO, but continues to view the UN Security Council as the main institution for resolving international conflicts. Commenting on the Israeli-Palestinian conflict, Putin did not exclude the possibility of deploying Russian personnel as part of an international security force in the region. Putin added that Moscow views Palestinian Authority President Yasser Arafat as a viable political figure who could participate in any peace efforts. (RFE/RL 23.vi.03) DUMA DEPUTY LAMENTS GOVERNMENT'S FAILURE TO COPE WITH CRIME Appearing on a political talk show on NTV on 20 June, Duma Deputy Vitkor Ilyukhin (Communist) said that one of the reasons he supported the recent no-confidence motion against the government was that the cabinet has failed adequately to address the problem of crime in the country. He expressed particular concern about the penetration of criminal elements into the defense sector, mentioning the recent gangland-style killings of Igor Klimov, the acting director of a leading air-defense company, and of a colleague of Klimov's from the same company. Ilyukhin said that such killings have become so commonplace that the government and the public don't even discuss them anymore. Instead of fighting crime, Interior Minister Boris Gryzlov heads the pro-Kremlin Unified Russia party, Ilyukhin said, noting that such activity by government officials is against the law. Ilyukhin was supported by military journalist Pavel Felgenhauer, who said that criminal elements are attracted to the defense sector because of its high profit potential stemming from lucrative arms deals with foreign countries. Speaking on the same NTV broadcast, Duma Deputy and Interior Ministry Major General Aleksandr Gurov (Unity), chairman of the Duma's Security Committee, revealed some statistics about violent death in Russia. In 2002, Gurov said, 51,000 Russian were killed by criminals. Fourteen thousand died in suspicious automobile accidents and 3,000 more under other suspicious circumstances. More than 50,000 Russians committed suicide in 2002, "driven to it either by the government or by their spouses," Gurov said ironically. The number of contract murders, however, declined from 600-800 a few years ago to 70 in 2002, although the victims of such killings are often more prominent now than in the past. (RFE/RL 23.vi.03) RUSSIA BECOMES FULL-FLEDGED FATF MEMBER The Financial Action Task Force (FATF) welcomed Russia and South Africa as members on 19 June, AFP reported the same day. The two countries stiffened legislative controls to move from observer status to full-fledged membership in the international anti-money-laundering body. German FATF President Jochen Sanio termed Russia, which was on a blacklist of uncooperative states as recently as last October, a "great success story," Reuters reported on 19 June. Though FATF membership brings with it a raft of potential benefits -- from a cleaner overall image to an improved national credit rating -- some observers noted that the organization's requirements could redound to the detriment of privacy. "Citizens should get ready for total surveillance of their wallets," wrote "Kommersant-Daily" on 20 June, noting that Russia's Committee for Financial Monitoring will "receive access to a huge amount of information about the financial transactions of individuals and organizations." "Vremya MN" commented in the same vein on 18 June that "FATF members are already prepared for an aggressive asault on banking secrets." (RFE/RL 20.vi.03) RUSSIA WORLD'S LEADING ARMS EXPORTER Russia in 2002 surpassed the United States and became the world's leading weapons dealer, selling arms abroad worth $5.9 billion, according to an annual study by the Stockholm International Peace Research Institute (SIPRI), Russian and Western media reported on 17 and 18 June. The SIPRI figure for Russia is higher than the $4.8 billion figure officially released by Russia's state arms export agency Rosoboroneksport, with the discrepancy accounted for by differing methods for calculating the total, "Kommersant-Daily" reported on 18 June. China and India are the biggest customers for Russian military hardware and are also the world's largest arms importers. According to the report, the United States led the world in military spending with a total of $336 billion, followed by Japan with $49 billion and the United Kingdom with $36 billion. The United States accounts for 43 percent of global military spending, according to the SIPRI report. (RFE/RL 19.vi.03) SERBIA AND MONTENEGRO S-M UNREALISTIC TO ENTER EU IN 2007 SAYS HEAD OF GOVERNMENT'S EU ACCESSION TEAM A date for EU membership of 2007 is very unrealistic, according to Maja Kovacevic, head of the government’s team on EU accession. She presented her views during a conference of NGOs and independent experts on the opportunities Serbia and Montenegro to boost the EU accession process. According to some of the participants, each of the 12 countries which presently aspires to join the EU have their own criteria to satisfy before receiving positive signs from the European Union. The most probable date for Serbia-Montenegro, therefore, for the start of a feasibility study that will make the way of full-fledge negotiation process will be the beginning of 2004, which would bring the possible start of negotiations to the beginning of 2005. This statement from the conference has come under sharp contrast with what high Serbian officials proclaim in the days, following the Thessaloniki meeting, including PM Zivkovic’s optimistic predictions for the start of the pre-accession process in the summer of 2003. (IntelliNews 26.vi.03) IFC IN TALKS ON ACQUIRING 20% OF VOJVODJANSKA BANKA The International Finance Corporation (IFC), the World Bank's investment arm, is in talks with the Serbian Ministry of Finance and Economy and the Serbian central bank on acquiring up to 20% of Serbia's Vojvodjanska Banka, Khosrow Zamani, the Director of IFC's Southern Europe and Central Asia Department, told a press conference. However, Zamani declined to comment on the acquisition value. Vojvodjanska Banka is one of the nine commercial banks in which the state acquired stakes after the central bank swapped their debts to the Paris Club of state creditors and the London Club of bank lenders into state-held equity. The IFC provided more than $1bn to finance various projects in South Eastern Europe over the past two years, with around $50m of the funds appropriated for Serbia. (NewsBase 25.vi.03) SLOVAKIA BAWAG (AUT) WINS TENDER FOR 82% STAKE IN ISTROBANKA BANK Austria's BAWAG banking house has won the tender for a 82% stake in the mid-size retail bank Istrobanka, over Bank Austria and Volksbank. Spokeswoman for the seller, insurance company Slovenska Poistovna, Lucia Bombosova said that BAWAG bid an amount equal to 225% of Istrobanka's net equity, calculated according to international accounting standards. The bid exceeds the expectations of Slovenska Poistovna's shareholders. Privatisation advisor Deloitte & Touche said this transaction was one of the most effective sales of banks in Central Europe. Slovenska Poistovna announced the tender for Istrobanka shares in June 2000. More than 10 investors showed initial interest but only six of them submitted preliminary bids. After due diligence the three Austrian banks submitted binding bids. (NewsBase 25.vi.03) UKRAINE FITCH UPGRADES UKRAINE'S CREDIT RATING FROM B TO B+ Rating agency Fitch raised the sovereign longterm foreign and local currency ratings from B to B+ with stable outlook. Fitch also kept a B rating of short-term bonds. The rating was increased due to the stability of the national currency reflected by zero m/m inflation in May, surplus of the current account and the record NBU’s forex reserves growth. Fitch also pointed out the recent decrease of VAT from 20% to 17%, the implementation of the economic program of Viktor Yanukovich’s cabinet, the improvement of relationships with the US caused by sending Ukraine’s armed forces to Iraq and FATF’s positive decision on Ukraine’s actions on fighting money laundering as arguments for the increase of Ukraine’s rating. Fitch also estimates Ukraine’s debt at the end of 2002 at 34% of GDP, while the median ratio of B-rated countries is 74%. The main factor that constrains Ukraine’s rating is the unstable political situation, which is expected to last until the next presidential elections in 2004. Moody’s earlier raised Ukraine’s credit rating from Caa1 to B2, due to reforms in the energy sector, the start of land privatization, progress with reduction of tax privileges and higher transparency of fiscal policy. At the end of 2002, S&P assigned B rating to long-term sovereign credit pointing out to improvement of the government’s strategy on financing its external debt payments. S&P assigned B rating with stable outlook to Ukraine’s issue of eurobonds placed on June 4. The local authorities have not yet responded to the good news but the reaction will be no doubt positive although such an upgrade comes at no surprise. In that light, foreign analysts comment that the upgrade has long been priced in, which is reflected in the eurobond yields. (IntelliNews 26.vi.03) 2 CHARGED IN $2Bln GAS SCAM Ukraine's Prosecutor General late Monday charged two former business associates of prominent opposition politician Yulia Tymoshenko with illegally acquiring more than $2 billion through shady natural gas deals and financial schemes. After a monthlong investigation, prosecutors filed charges claiming that Tymoshenko's former colleagues from the now-defunct Unified Energy Systems -- Ukraine's predominant gas dealer in the 1990s -- illegally acquired $2.25 billion through sales of Russian natural gas, the prosecutor's office said in a statement. The two are also accused of hiding hard-currency revenues, stealing state assets and tax evasion that allegedly cost the state another $216 million. The defendants, Tymoshenko's father-in-law Hennadiy Tymoshenko -- former UES president -- and former accountant Antonya Boliura, were extradited from Turkey and detained in Ukraine in 2002. Yulia Tymoshenko and her husband Oleksandr have been acquitted of similar charges, but prosecutors reopened an investigation into their alleged wrongdoing earlier this month. Tymoshenko headed UES before becoming deputy prime minister in 1999. Last month, a Kiev appellate court ruled that prosecutors had opened a previous case illegally and ordered the defendants to be released. However, the Supreme Court put the decision on hold after prosecutors accused the judges of falsifying their decision. (The Moscow Times 25.vi.03) INFORMATION PROVIDERS - For either a free trial, or for further information on the services of our Information Providers, please contact: NEWSBASE NewsBase is a leading provider of business and economic news and intelligence from Russia, Central Europe and the FSU. Daily bulletins and industry specific weekly reports backed by an archive containing over 10 million words combine to provide a comprehensive service to a global blue chip client base. Contact: Jon Laurijssen T: +44 (0)131 478 8537 F: +44 (0)131 478 7001 E: [email protected] W: www.newsbase.com, www.newsbaseworldmonitoring.com NEW WORLD PUBLISHING New World Publishing is a primary source of business-related information for Central Europe, through its publications the Prague, Budapest and Warsaw Business Journals. Contact: Mark Child T: +420 2 4608 6524 F: +420 2 4608 6501 E: [email protected] W: www.ceebiz.com, www.pbj.cz, www.wbj.pl, www.bbj.hu THE MOSCOW TIMES The Moscow Times offers readers an independent and precise view of the political, economic and business life of Russia. Contact: Andrew Boag T: +7 095 232 3200 F: +7 095 232 1761 E: [email protected] W: www.themoscowtimes.com INTERNET SECURITIES, INC. (IntelliNews articles) Internet Securities, established in 1994, is the pioneering provider of electronically delivered emerging markets business information. Contact: Ludek Macha T: +420 2 2421 9055 F: +420 2 2421 9060 E: [email protected] W: www.securities.com RADIO FREE EUROPE / RADIO LIBERTY Radio Free Europe/Radio Liberty is a private, international communications service to Central, Eastern and Southeastern Europe; the Caucasus; and Central and Southwestern Asia funded by the U.S. Congress through the Broadcasting Board of Governors. Contact: Peter Baumgartner T: +420 (0)2 2112 2039 F: +420 (0)2 2112 2012 E: [email protected] W: www.rferl.org TRANSITIONS ONLINE (TOL) TOL is a nonprofit Internet magazine and media development organization that produces timely, original news and analysis, covering all 28 countries in the post-communist region through its network of local journalists and editors. Contact: Eugen Babau-Iladi T: +420 (0)2 2278 0805 F: +420 (0)2 2278 0804 E: [email protected] W: www.tol.cz TEMPLETON THORP T +44 (0)20 7520 9380 F +44 (0)20 7504 8180 E [email protected] W www.templetonthorp.com |
...INTELLIGENCE AND RECOVERY
|
©
Templeton Thorp 2002 - 2004 : Disclaimer : Privacy Statement : Feedback
|