 |
 |
New York : London : Moscow
|
 |
 |
 |
 |
 |
 |
|
*Due Diligence, Business Intelligence, Asset Retrieval, Debt Recovery* TT Business Intelligence Report Vol. 2, No. 54, 4 September 20033 Business Intelligence, Crime, Corruption and Debt in C&E/SE Europe and the FSU UPCOMING CONFERENCES WORLD REFINING ASSOCIATION'S "CENTRAL AND EASTERN EUROPEAN REFINING AND PETROCHEMICALS 6th ANNUAL ROUNDTABLE" This event (co-hosted with both SNP Petrom and The Rompetrol Group), will take place on 6-8 October 2003 at the Bucharest Marriott Grand Hotel, Bucharest, Romania. For further information, please contact Claire Pallen, tel: +44 (0)1242 529 090; fax: +44 (0)1242 529 060; email: [email protected]; W: www.wraconferences.com LVA'S "METEX 2003 - 5th EURASIAN METAL TRADE, MINING AND INVESTMENT FORUM" This event will talk place on 13-17 October 2003 (during LME week) in London, United Kingdom. For further information, please contact Arthur Poliakov, tel: +44 (0)20 8795 2970; fax: +44 (0)20 8795 2977; email: [email protected]; W: www.lva.co.uk THE ENERGY EXCHANGE'S "OIL AND GAS TRANSIT AND SUPPLY IN CENTRAL AND EASTERN EUROPE AND THE BALKANS" This event will take place on 23-24 October 2003 at the Radisson SAS Palais Hotel, Vienna, Austria. For further information, please contact Steve Church, tel: +44 (0)1242 529 090; fax: +44 (0)1242 529 060; email: [email protected]; W: www.theenergyexchange.co.uk BELARUS BELARUSIAN AUTHORITIES EXPEL TOP OSCE MEDIA OFFICIAL For lack of a visa, the top media official for the Organization for Security and Cooperation in Europe (OSCE) was unable to meet Belarusian journalists on 1 September as planned. The 25 August decision to deny an entry visa to Freimut Duve, OSCE Representative on Freedom of the Media, is being seen as Minsk's latest attempt to hamper the OSCE's activities in Belarus. Duve planned to visit Minsk for two days, at the invitation of Eberhard Heyken, head of the OSCE office in Minsk. The visit was for farewell meetings with Belarusian journalists before Duve's term of office expires at the end of the year. After first declining to comment, Foreign Ministry spokesman Andrey Shuplyak told journalists that Belarus had not barred Duve from visiting the country, but suggested that he visit at a later date. Shuplyak said the government was interested in cooperating with the OSCE, but that preparations for the visit should have involved the Belarusian authorities. The government wants Duve's visit to coincide with a 13-17 September seminar on the improvement of democratic institutions, or later in the autumn when the new draft media law is set for debate in the House of Representatives. The September seminar will be held by the National Assembly and the Council of Europe Parliamentary Assembly in Minsk. Duve rejected Belarus's attempt to set the time of his visit. The authorities recognized his mandate, he said, and should listen to and respond to his statements regarding freedom of the media. Since taking up his post nearly six years ago, he repeatedly has voiced dissatisfaction with the media situation in Belarus, he said. In recent months, the government of President Alyaksandr Lukashenka has increased pressure on the domestic press, foreign news agencies, and media organizations. In July, a U.S.-based nongovernmental educational and media-support organization, IREX, closed its Belarusian operations when its application to renew its accreditation was denied on grounds that the organization was funding opposition political groups and media. That move brought the U.S. Embassy in Minsk to urge Belarusian authorities to abandon their campaign of "strangling the struggling independent media in Belarus." That same month the authorities closed the Minsk bureau of Russia's NTV television channel, saying it had slandered the police in its coverage of the funeral of writer Vasil Bykau, a vocal critic of the Lukashenka regime. (TOL 01.ix.03) BOSNIA AND HERZEGOVINA USAID SAYS 1st PHASE OF TRANSFER OF ITS CREDIT PORTFOLIO TO BIH BANKS WAS COMPLETED The US Agency for International Development (USAID) has completed the first stage of selling its credit portfolio to commercial banks in BiH, announced the agency on Friday. The credits are granted under USAID's Business Development Project (BDP), initiated back in 1996 and are intended to boost the private sector. Since the start of the project, USAID has endorsed nearly 600 direct loans worth a total of KM 275.5mn (EUR 140.7mn) to Bosnian SMEs. In the meantime USAID has decided to start transferring its credit portfolio to licensed BiH banks. So far, four banks - Raiffeisen Bank, HVB Bank, UPI Banka and Nova Banka - have met USAID's criteria and joined the project, purchasing a portfolio of 195 credits evaluated at KM 44.6mn (EUR 22.7mn). Some 10,000 jobs in BiH have been opened under BDP, while 28,000 ones have been preserved. (IntelliNews 01.ix.03) BIH PRESIDENCY'S CHAIRMAN COVIC SUPPORT INTERNATIONAL TENDER FOR CORRIDOR VC The incumbent chairman and Croat member of the tripartite BiH Presidency Dragan Covic supported Croatia's position that an international tender should be held for selecting a contractor for the BiH section of Corridor Vc. According to Covic's statement over the weekend, an international tender would be the only alternative to choose the most appropriate applicant for building the strategic highway in BiH (Corridor Vc is part of a motorway to be established from Budapest in Hungary to the Croatian seaport of Ploce via BiH). Commenting on the issue about the BiH government's alleged decision to grant the contract to the BiH Malaysian JV Bosmal, Covic said that the project requires a tender and that such a contract should not be awarded on the basis of promises without a feasibility study. According to Covic, there are many companies expressing interest in the tender. He mentioned the names of Hypo Group, Alpina Strabag from Austria as well as consortia from Turkey and Italy. Meanwhile, it was reported in Sarajevo that the BiH Foreign Ministry has received the Croatian government's letter of intent for Croatia's willingness to finance the preparation of an international tender as well as participate in it. The letter is to be forwarded to the BiH Council of Ministers (CoM) and discussed at the latter's next session. (IntelliNews 25.viii.03) BULGARIA BULGARGAZ MAY OBTAIN MINIORITY STAKES IN GAS DISTRIBUTORS IN SOFIA AND VARNA The state gas operator Bulgargaz may obtain 20-25% stakes in the gas distribution companies in Sofia and Varna at the invitation of the private Overgas, which holds the licences for building and running the urban gas supply networks in the two cities. According to deputy energy minister Ilko Yotsov, Bulgargaz is expecting a detailed offer from Overgas to become the basis of future negotiations. Overgas owns Sofia Gas, which holds the licence for Sofia's regions of Bankya and Bozhurishte, while it also holds 33% in Varnagas, a JV with Varna Municipality, which holds the licence for three Varna quarters. Asked to comment Yotsov's statement, Overgas representatives yet specified that they have not yet submitted any offer to Bulgargaz. Meanwhile, Yotsov assured that the new gas export duties to be introduced by Russia as of next year would not have an impact on the price of Russian natural gas deliveries to Bulgaria. At present, the natural gas price in Bulgaria amounts to BGN 227,48 per 1,000 cubic metres, as set by the State Commission for Energy Regulation in July. (IntelliNews 29.viii.03) CROATIA HAGENA APPROVES MERGER OF ERSTE, HELIOS AND PLAVI PENSION INVESTMENT FUNDS The state agency for monitoring insurance and pension investment funds(HAGENA) approved the merger of three pension investment funds -- Erste, Helios and Plavi. Adriatic Invest would manage the new entity. The merger should be finalised in one month. HAGENA also approved a request of Croatia Insurance (CO) for founding a new pension investment fund, which should be presented to the public by the end of September. (IntelliNews 01.ix.03) UN SECURITY COUNCIL ADOPTS RESOLUTION ON ICTY WITHOUT SANCTIONS FOR CROATIA The UN Security Council adopted the resolution on the international court in The Hague, separating mandate in the prosecution office into one for Rwanda and one for FRY. The court should end its work by 2010. In the resolution, all countries involved were invited to fully cooperate with the ICTY, and to extradite those who were indicted for war crimes in FRY. When it comes to Croatia, that would relate to capture and extradition of General Ante Gotovina, who is at large for around two years now. The ministry of interior offered a financial award for notification on General Gotovina's whereabouts in May, and later in June President Mesic proposed to ICTY to hold a hearing session with Gotovina in Zagreb. For a short period after that there were expectations that General Gotovina might surrender, however, his location is still unknown. Reportedly, there was no mentioning of any possible sanctions of former Yugoslav country for not cooperating with ICTY. (IntelliNews 29.viii.03) CZECH REPUBLIC CZECH AIRLINES CSA DISMISSES ALL EIGHT MEMBERS OF THE BOARD OF DIRECTORS The supervisory board of Czech national air carrier Czech Airlines CSA dismissed all eight members of the board of directors including chairman and CSA CEO Miroslav Kula, the company announced in a statement. At the same time, it elected a new board of directors to be led by former defence minister Jaroslav Tvrdik, who also became president of the company, supervisory board chairman Eduard Janota told the press. Neither Kula nor Tvrdik commented on the changes. Vice President for finance and planning Frantisek Slaby retained his post on the board of directors, and the new members include, deputy defence minister Jaroslav Svabik, Kamil Slavik, who is also a deputy chairman of the board of directors, Tomas Heczko, Vaclav Kral and Petr Jusko. Janota said the firm shifted to the so-called German management model strengthening the supervisory board's position, with the board of directors composed almost entirely of the firm's managers. The changes will help stabilise the firm financially within a few months and further boost its activities. "The top priority is that the firm gets out of the red," said Janota. CSA is majority-owned by the state which through the National Property Fund FNM and bail-out agency CKA controls some 90% of shares. In the first half CSA lost 292 million crowns. However, by International Accounting Standards IAS it made a profit of $4.1 million, 120 million crowns. (NewsBase 04.ix.03) DHL TO MAKE PRAGUE CENTER OF EUROPEAN OPERATIONS Largest global shipping and express delivery company DHL is to build in Prague a new IT operation center for the whole of Europe. The Prague center will house DHL's current operations in the UK and Switzerland. In the initial stage in May 2004, DHL will offer 500 qualified jobs. The transfer of DHL's activities to Prague has been negotiated 8 months between the company and the government agency CzechInvest. Total costs of the transfer are estimated at billions of crowns, but DHL has declined to specify the exact figure. (PBJ 02.ix.03) NIGERIA CLOSES DOWN EMBASSY IN PRAGUE TO PROTEST SHOOTING INCIDENT Nigeria has closed down its embassy in Prague in protest against the Czech's Republic handling of the February murder of Consul Michael Lekara Wayid, CTK reported on 29 August, citing the daily "Lidove noviny". Jiri Pasovsky, who killed the consul and wounded an embassy receptionist, was found unfit to stand trial because a medical expert pronounced him insane at the time of the incident. Pasovsky was confined to psychiatric care and a court of justice in Prague has not yet decided whether he will remain in a clinic or receive outpatient treatment. Pasovsky said after the incident that Wayid offered to help him retrieve $100,000 that he had lost in investments in Nigeria if Pasovsky gave him half of the sum. Pasovsky invested in a dubious oil deal following an electronic-mail solicitation. Sources in the Czech Foreign Ministry cited by "Lidove noviny" confirmed that Nigeria protested the handling of the case in June and officially announced shortly afterward that it would close its embassy in protest. However, Foreign Ministry spokesman Karel Boruvka said the reason for the Nigerian decision was not the shooting incident. Boruvka said that "for economic reasons," Nigeria decided as long as a year ago to close down 20 embassies abroad. He said Nigeria is not breaking off diplomatic relations and that it will be represented by its Warsaw-based ambassador. He also said the Czech Republic's embassy in Nigeria will continue to operate. (RFE/RL 29.viii.03) HUNGARY MFB BUYS STAKE IN EIF The Hungarian Development Bank Rt (MFB) has purchased shares of Euro 5 million at nominal value in the European Investment Fund (EIF), acquiring a stake of 0.25%. It is the first bank from an EU member candidate country to do so, according to MFB's communication manager. MFB has also been given a seat on one of the EIF's decision-making bodies. By acquiring a stake in the Fund, MFB will be able to obtain low-cost loans and guarantees, which will allow the bank to provide loans at preferential interest rates to small businesses that carry higher risks. (BBJ 02.ix.03) ATOS ACQUISITION TO IMPROVE SYNERGON'S PROFITABILITY Publicly traded Synergon Rt made an acquisition last week that is expected to grow the company both regionally and internationally. The IT services firm bought Atos Origin Information Technology Kft, the local unit of France's Atos Origin SA, for an undisclosed price. "This looks like a good deal for Synergon; the company is profitable. It's good news and everybody was waiting for something like this," said Peter Makray, an analyst at Erste Bank Investment Rt. Sales figures for 2003 are unlikely to be affected, as Synergon will probably not consolidate Atos before November, by which time the approval of the Competition Office is expected, Makray added. Atos' local sales revenue of Ft 1.5 billion (?5.84 million) in 2002 compares with Synergon's Ft 19.5 billion. "My projection is that it may increase profits by some Ft 30 million-Ft 40 million next year," Makray said. However, the analyst added that it is hard to judge how good the deal is for Synergon, as no purchase price has been disclosed. Atos Origin employs approximately 70 in Hungary. In tandem with the takeover, Atos Origin and Synergon have concluded a strategic cooperation agreement. Synergon will represent Atos Origin as its strategic partner by providing information solutions, services and consultancy for Atos Origin clients in the CEE region, according to a joint statement from the companies. "Besides Hungary, the cooperation agreement will cover the Czech Republic, Croatia, Slovakia and Slovenia. Atos Origin will provide support services for Synergon's customers outside the CEE region," the statement said. The activities of the local Atos Origin outlet make Synergon's portfolio complete and considerably strengthen its market position in the field of information technology services and consultancy, Synergon Chairman Ferenc Czako told reporters last week. He added that Synergon has formulated two strategic goals, supported by the purchase and cooperation agreement. "On the one hand, Synergon wishes to continue to enhance its regional role on the Central East European market, and on the other hand, we continue to strengthen the proportion of service and consultancy activities within the portfolio of the company group," he said. Makray of Erste agreed that the cooperation struck up with the parent company is also important. "There are a number of overlaps: Synergon can increase its proportion of service-oriented sales revenue and services bring higher margins," said Makray. "Synergon possesses extensive experience and market knowledge in the fields of information services, outsourcing and consulting, which represent an assurance of smooth operations in Hungary and efficient and fruitful regional cooperation between the two companies," said Patrick Byron, vice-president of Atos Origin responsible for business development and integration. Although Synergon's quarterly numbers have been disappointing, its cost-cutting program is going quite well, Makray noted. (BBJ 01.ix.03) CHINA CALLS HUNGARY ITS NO. 1 PARTNER IN CENTRAL EUROPE Chinese President Hu Jintao and Prime Minister Wen Jiabao told visiting Hungarian Premier Peter Medgyessy on 28 August that Hungary is China's No. 1 partner in Central Europe, according to reports in the Hungarian media. The two premiers signed a joint declaration lauding the close and smooth relations between their countries, and representatives of both sides signed accords on combating organized crime; cooperation in education, information technology, and sports; encouraging Chinese tourism to Hungary; and exports of Hungarian foodstuff products to China. Medgyessy complained at his meeting with Wen about the Hungarian trade deficit with China, and the Chinese president pledged to encourage companies in his country to boost purchases of Hungarian products. Foreign Minister Laszlo Kovacs, who accompanied Medgyessy to China, told the daily "Nepszabadsag" that the premier assured his Chinese hosts of Hungary's "one-China policy," stressing that relations with Taiwan are only on the non-state level. (RFE/RL 29.viii.03) KAZAKHSTAN KAZAKH SECURITY SERVICE SHUTS DOWN ALLEGED HIZB UT-TAHRIR PRINT SHOP The Kazakh National Security Committee has shut down an underground print shop that was allegedly turning out literature for the illegal Muslim extremist organization Hizb ut-Tahrir in Shymkent, Interfax-Kazakhstan reported on 28 August, quoting the head of the security committee office in South Kazakhstan Oblast, Vladimir Nakisbaev. Shymkent is the administrative center of South Kazakhstan Oblast. Nakisbaev said that the secret print shop was discovered on 25 August during a series of raids intended to stop the activities of banned extremist groups. The apartment housing the print shop had been rented in February 2002 by three residents of neighboring Kyzyk Orda Oblast. Security officers found equipment for desktop publishing, a copier, and bookbinding equipment, as well as 600 leaflets and 250 books and magazines that had evidently been printed in the shop. (RFE/RL 28.viii.03) RUSSIA REFUTES POSSIBILITY 0F KAZAKHSTAN TO JOIN UKRAINIAN-RUSSIAN CONSORTIUM ON GAS TRANSPORT Russia has never considered the possibility to attract gas producers from Kazakhstan, Uzbekistan and Turkmenistan in the Ukrainian- Russia consortium on management of Ukraine's gas transit system, Russian Prime Minister Mikhail Kasyanov said. Kasyanov thus rejected the last week's statement of the Ukrainian Fuel and Energy Minister Serhii Yermylov, who invited the other Central Asian countries to join the consortium. Kasyanov added that at this stage it is only possible for Germany and its Ruhrgas to partake in the project. As recalled, in the beginning of this year Naftohaz Ukrainy and Russia's gas monopoly Gazprom established consortium for administering gas transportation via Ukraine's pipeline system, with each party controlling 50% stake in the project. The consortium is expected to start operation in September. (IntelliNews 25.viii.03) LATVIA NEW POLITICAL PARTY FORMED A group of left-wing politicians joined forces and decided to form a new political party in Latvia last Thursday evening, August 28th. The party has given itself the name of Briva Izvele Tautu Eiropa (BITE, Free Choice in a Europe of Peoples) and elected MP Jakobs Pliners as its chairman in a unanimous vote. Nikolajs Kabanovs, a current independent MP and former socialist party member, was chosen to serve as the political party's secretary. He told journalists that one of the reasons that the new party was formed was to help sustain the For Human Rights in a United Latvia left-wing alliance. FHRUL had lost its status as an alliance when the People's Harmony Party and Latvian Socialist Party left the alliance. This left only the Equality party to make a group with independent MPs. Pliners left the People's Harmony Party earlier on Thursday. All necessary criteria have so far been met in order for the new party to legally be considered as founded, according to Kabanovs. He added that authorities would soon receive the necessary registration documents to formalise the party's formation. Central Election Commission member Janis Lapinskis and businessman Eduards Zemaitis were among some of the people who joined the new party. Kabanovs said that the Free Choice in a Europe of Peoples Party would work to protect the interests of the Russian community in Latvia. He also announced that the party would take a pro-EU stance with regards to the upcoming referendum in Latvia. (NewsBase 03.ix.03) LITHUANIA RUSSIA CONDUCTS FIRST ARMS INSPECTION Arms inspectors from Russia began their first inspection in Lithuania under the so-called Vienna document of 1999 granting every member of the OSCE the right to check if another member is conducting undeclared military activities or has undeclared military capabilities, the daily "Lietuvos zinios" reported on 18 August. The Russian inspectors visited the Motorized Infantry Brigade Gelezinis Vilkas (Iron Wolf) on 18-19 August to verify the accuracy of data presented by Lithuania about its military capabilities, ammunition, and deployments. Lithuanian arms inspectors conducted similar inspection missions in Russia's Kaliningrad Oblast in 1999 and 2003. Lieutenant Colonel Ruslan Shishin told reporters after the inspection: "The general evaluation is positive. The inspection process was carried out in the spirit of mutual understanding; we give a positive, or a perfect evaluation," BNS reported. (RFE/RL 28.viii.03) POLAND IT SPECIALISTS TO ISSUES SHARES VALUED AT zl. 100 MILLION Ster-Projekt, one of the largest IT integrators listed on the Warsaw Stock Exchange (WSE), have announced plans to issue additional shares worth up to zl. 100 million. Most of these funds will be devoted to acquisitions. "This is the basic element of our new strategy, which was created in cooperation with consulting company McKinsey. New companies will widen the range of our products and accelerate the group's development. Around 70% of the new funds are planned to be spent on the acquisitions of smaller companies from the IT sector," says Piotr Smolski, the president of Ster-Projekt. Smolski also added that the company was looking forward to market consolidation for the past several months, however negotiations with potential candidate companies did not bring any effect. "We are currently very close to closing negotiations with two companies," he said. The remaining 30% of the funds will be used on research and development as well as increasing working capital. (WBJ 02.ix.03) KREDYT BANK TO SELL A STAKE IN ITS SUBSIDIARY KREDYT BANK UKRAINA The medium-sized Polish commercial bank Kredyt Bank announced on Tuesday 26 August that it would sell a stake in its Ukrainian subsidiary Kredyt Bank Ukraina to focus more on its operations in Poland, Puls Biznesu reported. Kredyt Bank owns 66.7% of the Ukrainian commercial bank, in which it has invested 20 million euros, $21.8 million, over the last five years. It gave no details on the size of the stake it was planning to sell. "Kredyt Bank made a decision to revise the group's structure and reduce its participation in Kredyt Bank Ukraina," the bank said in a statement. "The bank will focus on its activities on the Polish banking services market." Earlier this month, a source at the bank said Kredyt Bank was also considering a sale of its subsidiary in Lithuania. Kredyt Bank has been hit harder than most other Polish banks by heavy provisions for bad bank loans during a recent economic slowdown in Poland and has announced plans for a share issue to replenish its capital. The Polish bank also said in a statement that Kredyt Bank Ukraina's other shareholder, the European Bank for Reconstruction and Development, would retain its 28.3% stake. The remaining 5.1% of shares are held by unspecified Ukrainian shareholders. (NewsBase 28.viii.03) JAPAN COURTS POLAND AHEAD OF EU MEMBERSHIP Junichiro Koizumi, the prime minister of Japan, was in Poland last week as part of a European tour that also took in Germany and the Czech Republic. During his two-day visit to Warsaw, talks with Prime Minister Leszek Miller resulted in the signing of a joint statement consolidating the key points of agreement between the two governments' economic and foreign policies. The document highlights opportunities for Japanese and Polish cooperation on a broad range of issues including North Korea's nuclear threat, Iraq reconstruction and peacekeeping, EU enlargement and- as a ray of light in Poland's bleak inward investment climate - Japanese investment into Poland. Koizumi's meeting with Miller marked the first visit to Poland by a Japanese head of government in 13 years. "The visit is a measure by Japan to court Poland's EU voting power, which will be joint fifth largest in Europe, alongside Spain's, once accession is completed next year," said Jiro Okuyama, a spokesman for Japan's Ministry of Foreign Affairs. Discussions over a potential Japanese military contribution to the Polish-led stabilization force in Iraq were suspended when news broke of the bombing of the United Nations compound in Baghdad. Japanese and local government representatives had been discussing the possibility of Japan's sending 1,000 to 2,000 troops to the Polish zone. (WBJ 25.viii.03) ROMANIA ROMANIAN GOVERNMENT TO PRIVATIZE RAILWAY COMPANIES The cabinet approved on 28 August an emergency ordinance under which 24 state railway companies are to be privatized within 30 days, Romanian Radio reported. The companies slated for privatization are engaged in railway support, including wagon maintenance and repairs, and tailoring uniforms for railway personnel. Transportation, Construction, and Tourism Minister Miron Mitrea said the privatization entails laying off nearly 6,000 of the 10,000 workers currently employed by those companies. The unions oppose the measure. The government intends to make redundant more than 19,000 railway workers by the end of September. (RFE/RL 29.viii.03) RUSSIA 2 BOMBS RIP THROUGH COMMUTER TRAIN Two bomb blasts rocked a crowded commuter train in the southern Stavropol region on Wednesday, killing at least four people and injuring dozens of others in the latest deadly attack in areas surrounding Chechnya, officials said. Dmitry Oliferenko, a spokesman for President Vladimir Putin's envoy to southern Russia, said five people died when two bombs exploded under the train en route from Kislovodsk to Mineralniye Vody. Railways Minister Gennady Fadeyev said in televised comments that six people were killed -- three in the explosions and three others afterward. But regional Emergency Situations Ministry spokesman Igor Mikhailov said that four were killed and 33 injured. Channel One television said four students were killed by the morning explosions, and survivors told networks that many of the people on the train were college students and other young people. NTV television reported that the dead were an 18-year-old woman, two 21-year-old men and a 15-year-old boy. Many universities begin their fall semesters this month. Local television channels showed the train, one of its cars derailed by the explosion, surrounded by officials and ambulances. Hours after the blasts, 21 of the injured remained hospitalized, eight of them in serious condition, Mikhailov said. Viktor Kazantsev, Putin's envoy to the Southern Federal District, said on television that police have arrested a man suspected of detonating the bombs. Local police said the suspect was injured in the explosion and hospitalized in critical condition. The blasts hit as the train was approaching a small station on the outskirts of Kislovodsk, officials said. Railways Ministry spokesman Konstantin Pashkov said the bombs were planted on the railroad track and that there were about 50 people in a car that was directly hit by a blast. Each of the two bombs contained about 150 grams of explosives, according to a preliminary estimate. Russia has been rocked by several suicide bombings and other blasts that the government has blamed mostly on Chechen rebels. A string of bombings in and around Chechnya and in Moscow has killed more than 150 people since May. An officer at the headquarters of the North Caucasus Military District, which oversees Chechnya, said on condition of anonymity Wednesday that the military recently received intelligence information that rebels were preparing a series of attacks throughout southern Russia. The explosion occurred just hours before Putin arrived in the city of Rostov-on-Don, some 450 kilometers northwest of the explosion site, to lead a meeting of the presidential State Council, made up of regional governors. Putin spoke with Stavropol Governor Alexander Chernogorov about the explosions, local news agencies reported. (The Moscow Times 04.ix.03) LUKOIL WINS SERBIA TENDER Serbian Privatization Minister Aleksandar Vlahovic announced on 25 August that Russia's LUKoil made the winning bid to purchase a 79.5 percent stake in Serbian fuel retailer Beopetrol, Reuters reported the same day. LUKoil will pay Serbia 117 million euros ($128 million) for Beopetrol's 207 filling stations, invest 85 million euros to develop the company, and spend 8 million euros on social programs. Beopetrol's proximity to LUKoil's Burgas refinery in Bulgaria is an added benefit. The tender, in which LUKoil bested Hungary's MOL, came as a welcome success for the Russian oil company after recent failed attempts to acquire a 23.17 percent stake in Greece's Hellenic Petroleum and a 75 percent stake in Poland's Gdanska Rafineria. Some observers felt that LUKoil may have paid too much, however. Trust Bank's Vladislav Metnev told "Vedomosti" on 26 August, "It comes out to about $1 million per filling station. That's a bit much." Troika Dialog's Valerii Nesterov echoed Metnev in comments to "Vremya novostei" the same day, noting that Austria's OMV paid less for the filling stations it bought from BP in Bavaria, Germany. Steven Dashevskii, head of research at Aton Capital Markets, disagreed, telling "The Moscow Times," "The cash payment looks reasonable...[and] LUKoil will be investing in its own business." (RFE/RL 03.ix.03) STATE TO SELL STAKES IN 160 BANKS BY 2005 The government plans to raise at least 2 billion rubles ($65.5 million) by selling shares in about 160 banks to get rid of assets not vital to the state, a government official said Tuesday. Marat Zagidullov, head of the financial, foreign trade and mass media organizations department at the Property Ministry, said the government plans to sell its stakes in about 120 of the banks this year. Remaining stakes would be sold next year. "We have transferred all stakes to the State Property Fund. ... The fund is now calculating their starting prices at forthcoming sales," Zagidullov said. "There is a government decision [to sell]. Sales should start in autumn." The State Property Fund is the property ministry's privatization agent. The nominal value of the stakes is about 2 billion rubles. Bankers and international financial organizations have called on the government to sell its stakes in large banks, like the country's No. 1 bank, Sberbank. But the government only plans to sell a 0.01 percent stake in Sberbank controlled by the Central Bank this year. Among the country's top 30 banks, the government plans this year to sell a 16.39 percent stake in Guta Bank, a 0.13 percent stake in Promsvyazbank, a 0.13 percent stake in Bank of Moscow, a 0.37 percent stake in Vozrozhdeniye and a 0.1 percent stake in Rosbank. (The Moscow Times 03.ix.03) RUSSIAN COMPANIES RESUME WORK IN IRAQ Russian specialists have resumed construction work at the Al-Yusufiyah power plant, about 30 kilometers from Baghdad, which they began under the regime of deposed Iraqi President Saddam Hussein, ORT reported on 26 August. When completed, the plant will be the country's largest. Since the U.S.-led military action to depose Hussein this spring, Russian businesses have suffered about $40 million in direct losses and billions of dollars in indirect losses because of work stoppages on Iraqi projects. However, Russian diplomats successfully negotiated with the United States the return of Russian business, and now a number of companies are working on the postwar reconstruction of the Iraqi economy, ORT commented. (RFE/RL 02.ix.03) SAUDI CROWN PRINCE FLIES IN Underlining Russia's growing importance on the world oil market, the crown prince of Saudi Arabia arrived Monday for a three-day state visit, the first since 1932. Crown Prince Abdullah Bin Abdul Aziz Al-Saud has come to promote closer cooperation between Saudi Arabia and Russia, the world's No. 1 and No. 2 crude oil exporters, and push Russia to side with OPEC in the struggle with consumer-countries, like the United States, over the price of oil. The United States has put considerable effort into courting Russia as a potential oil supplier and alternative to Saudi Arabia, as it questions the solidity of its relationship with the Arab kingdom in the aftermath of the Sept. 11 terror attacks. Saudi Arabia may be looking to Russia for similar reasons, to counterbalance its dependence on the United States. Prince Abdullah's official meetings with President Vladimir Putin, Prime Minister Mikhail Kasyanov and Foreign Minister Igor Ivanov are to cover a range of issues, including postwar Iraq and the Middle East conflict, a Foreign Ministry press service official said Monday. The Saudi leader also is expected to try to reassure Russia that his country does not tolerate terrorists or those who support them. Moscow has accused Saudis of providing financial support to Chechen terrorists. While the Foreign Ministry refused to provide much detail on expected oil-related discussions, the issues are obviously a priority, given that Prince Abdullah arrived accompanied by Saudi Oil Minister Ali al-Naimi and that his delegation was greeted at Vnukovo Airport by Energy Minister Igor Yusufov. The two ministers managed to get in a quick round of talks almost as soon as the Saudi jet touched down, the Energy Ministry said in a statement released Monday evening. Secretaries who answered the telephone in various departments of the Saudi Embassy on Monday said no diplomats were available to comment on the visit by the crown prince, who has been the de facto ruler of Saudi Arabia since King Fahd, his older half-brother, suffered a stroke in 1995. Despite the high level of the visit, analysts said they expect no concrete agreements. (The Moscow Times 02.ix.03) RUSSIA WARNS OF DANGER IF NORTH KOREA TALKS FAIL Deputy Foreign Minister Aleksandr Losyukov is heading the Russian delegation at the six-way talks on North Korea's nuclear program that opened in Beijing on 27 August, ITAR-TASS and other Russian media reported. Losyukov said after the first round of talks that if the current diplomatic efforts fail, the crisis could erupt into war. The situation at the talks -- in which China, Japan, North Korea, Russia, South Korea, and the United States are participating -- is tense because both the United States and North Korea have adopted firm positions, Losyukov said. However, he said, compromises are still possible, and North Korea might still agree to international inspections of its nuclear sites, although the negotiations over the details of such inspections would be difficult. (RFE/RL 02.ix.03) TNK-BP ABANDONS SAKHALIN FOR SLAVNEFT BP announced Friday that it had completed its USD 6bn deal to merge its Russian assets with those of TNK, but with two notable modifications to February's initial agreement. BP had originally planned to fold its interests in the Sakhalin oil and gas fields into the new company TNK-BP, the country's No. 3 oil major, but due to resistance from Rosneft, its partner in those ventures, those plans are being put on hold. But with the unexpected exclusion of that asset came the unexpected inclusion of a different one. The British oil major said Friday that it had agreed to pay USD 1.35bn for half of TNK's 50% stake in Slavneft. TNK together with rival Sibneft acquired Slavneft through a privatisation auction last December, too late in the negotiation stage with BP to wrap it into the preliminary structure of TNKBP. When BP first announced the TNK deal in February, it was seen as a sign of growing investor confidence in what seemed like a more stable business climate under President Vladimir Putin. BP and Rosneft share the development license to the potentially prodigious Sakhalin-5 field and pre-bidding rights to Sakhalin-4. Rosneft president Sergei Bogdanchikov said last month that he opposed letting the Sakhalin ventures become part of TNK-BP, preferring to work with BP alone. Analysts said Friday that the hold-up in getting BP's Sakhalin assets into TNK-BP comes as Rosneft grows in power amid a legal attack on Yukos, the country's top oil major, which began in July with the arrest of a core Yukos shareholder. Some observers have said the standoff is partially driven by infighting between Rosneft and Yukos. (IntelliNews 01.ix.03) VLADMIR GUSINSKY FACES EXTRADITION AGAIN As President Vladimir Putin's term in office draws to a close, the circle is closing. With the arrest in Greece of Vladimir Gusinsky, one of the first oligarchs to fall foul of authorities in 2000 may--possibly--be set to return to Russia for trial. Gusinsky, a 50-year-old one-time media tycoon, was arrested in Athens airport on 23 August before he could, as he planned, spend a holiday on board his yacht. On 29 August he was released from prison on bail of 100,000 EUR. He can travel freely throughout Greece. Gusinsky is wanted in Russia for fraud and money laundering after allegedly taking $250 million out of the country illegally. The pursuit of Gusinsky, however, is seen widely as political. Two years ago, Interpol dropped an arrest warrant against Gusinsky, calling the case "predominantly political." Greek government spokesman Christos Protopappas said Gusinsky was "arrested on the basis of an updated warrant from the Russian authorities and ... a bilateral Greek-Russian agreement." Gusinsky is said to have travelled to numerous European countries without encountering any problems. This has fueled speculation in the Russian press that Russian and Greek law enforcement reached a secret agreement before Gusinsky was arrested. Russian officials have hunted Gusinsky for four years. Despite this, their response to this latest turn of events was near silence. The only official statement was that notification was received from Greece of Gusinsky's detention, and they would be seeking his extradition. They also said they are translating into Greek documents relating to the case. Greece now has 40 days to decide whether to send Gusinsky to Russia. Gusinsky has been arrested before in the European Union. Two years ago, he was arrested at his home in Spain. A Spanish court eventually released him from detention after ruling that the charges against him would not amount to a crime in Spain. (TOL 01.ix.03) CRACKDOWN ON POLICE CORRUPTION CONTINUES Interior Ministry Colonel Viktor Kostryukov, acting head of the Moscow Interior Ministry's Ecological Department, was arrested in his office on 25 August while allegedly accepting a $1,000 bribe from a businessman, ORT reported. Kostryukov reportedly came under the scrutiny of the ministry's Internal Affairs Department after the owner of a chain of Moscow gas stations complained that Kostryukov was charging $1,000 per month in exchange for not conducting ecological inspections of his stations. Internal Affairs Department head Lieutenant General Konstantin Romadanovskii said that the ministry's ecological and economic-crimes units are the most corruption-riddled departments, as their officers frequently extort bribes from businesspeople. (RFE/RL 26.viii.03) SERBIA AND MONTENEGRO BELGRADE PASSES KOSOVO DECLARATION The Serbian Parliament on 27 August unanimously adopted the controversial Kosovo Declaration, which proclaims the United Nations-administered province to be under Serbian sovereignty. The document also suggests that any dialogue about the province's autonomy should begin only after the democratic conditions set down in UN Security Council Resolution 1244 are met. Speaking to parliamentarians ahead of the declaration's acceptance, Serbian Deputy Prime Minister Nebojsa Covic, Belgrade's envoy for Kosovo, said the declaration would demonstrate to the world that Serbia is united on the Kosovo issue. And it was indeed a unique display of unity between the opposition parties and the ruling Democratic Opposition of Serbia (DOS) coalition. All 186 members of parliament approved the declaration. Ethnic Albanian officials in Kosovo have remained firm in their calls for independence for the province. Local media quoted Kosovo Prime Minister Bajram Rexhepi as saying, "[the declaration] might mean something to Serbia and Montenegro, but not to Kosovo." Belgrade and Pristina continued to swap accusations, with Rexhepi charging that authorities in Serbia are hindering dialogue on technical matters and Serbian Prime Minister Zoran Zivkovic accusing Kosovo's leaders of using the declaration as an excuse to delay that dialogue. The new head of the UN Mission in Kosovo (UNMIK), Harri Holkeri, criticized the passage of the declaration and reminded ethnic Albanians and Serbs that it is up to the UN Security Council to decide the province's future status. Following Holkeri's criticism and ethnic Albanian reactions, Covic responded by saying that the Kosovo Declaration was "a problem for people who did not want a peaceful resolution to the situation in the western Balkans." (TOL 01.ix.03) EU SUSPENDS AID TO MEDIA COUNCIL The European Agency for Reconstruction has frozen 300,000 euros($329,000) allocated for the Broadcast Agency Council, B92 reported on 27 August. The move was said to come as a surprise for Culture and Media Minister Branislav Lecic, who said it was "some kind of blackmail" to achieve political ends, b92.net quoted him as saying. Lecic said that he had received no warning of the suspension at meetings with officials of European bodies within the last month. The decision is the first time Europe has suspended aid to Serbia since the popular uprising of October 2000, B92 said. An agency representative told Radio B92 that the EU must ascertain that its grants comply with democratic procedures and the rule of law. Without elaborating, he indicated procedures were not followed and the EU is "unable to support a process that has certain flaws." Serbia's broadcasting body has been dogged with controversy since its creation in April. Independent media groups complained that the council was violating its own procedures. Some members resigned in protest against the nominee slated to represent Kosova, challenging his residence credentials. Lecic appeared unperturbed by the loss of European support, b92.net commented, since the council could be funded from other state coffers and the licensing of broadcast frequencies, which is expected to bring in large revenues. (RFE/RL 29.viii.03) SLOVAKIA PRESIDENT SCHUSTER: SLOVAKIA TO BECOME A REGULAR EU MEMBER BY MAY 2004 President Rudolf Schuster signed the ratification documents to the EU Accession Agreement on Tuesday 26 August, declaring that it was a historical moment, for which Slovakia has worked over a long time, Sme reported. Schuster added that he believed that Slovakia would become a regular EU member on May 1st, 2004. However, he noted that there is still much work to do, particularly in connection with drawing pre-entry and post-entry funds. Schuster also warned the citizens not to be too optimistic in their expectations toward the entry of Slovakia to the EU. He said that we must not expect automatic improvement of living conditions and declining unemployment. According to Schuster the government has to realise the responsibility it has and that the reforms should not be made for the EU, but for the citizens. He said he agreed with the government's reforms, but in the form which people can bear. He criticised the governing coalition that it recently focused more on internal quarrels than on the problems of the citizens. According to Prime Minister Mikulas Dzurinda the government knows that the reforms are made for people and also about their social impact. Dzurinda said that he would also like more understanding in the coalition, but he said that the controversies do not affect its work. He also announced that he would do everything to keep the coalition together. The ceremonial signing of the ratification documents to the EU Accession Agreement was also attended by the Speaker of Parliament Pavol Hrusovsky, head of the European Commission Delegation to Slovakia Eric van der Linden, and ambassadors of EU member countries to Slovakia. (NewsBase 28.ix.03) PRIVATISATION OF SLOVENSKE ELEKTRARNE EXPECTED TO BE COMPLETED BY END-04 Economy Minister Robert Nemcsics has said that because the privatisation of the power utility Slovenske Elektrarne (SE) is expected to be completed by the end of 2004, he or whoever else may be holding his position would have no reason to influence the decision, Sme reported. "Naturally, the privatisation process is always a matter of perception and the ultimate decision of the investors," Nemcsics commented on speculations linking his possible replacement to a possible delay in the privatisation of SE. He also said that even if he were recalled from his office, it would not change the terms of the privatisation tender, adding that the economy ministry restarted the tender because a new potential investor had entered. At its Monday 25 August meeting, the leadership of the New Citizen's Alliance (ANO) expressed its lack of confidence in its Economy Minister Robert Nemcsics and Transport Ministry State Secretary Branislav Opaterny and thus will initiate their being recalled from their offices. The parent party arrived at this decision after both politicians had made statements which, according to ANO, have harmed the party's interests. Furthermore, the party leadership argued that the two ANO nominees have not adequately communicated with the party. The ANO authorised its leader Pavol Rusko to ask Prime Minister Mikulas Dzurinda to recall both ANO nominees from their posts. The government reopened the tender for the privatisation of SE in July of this year, inviting further potential investors to take part. According to the government's privatisation advisor, only two new companies have expressed serious interest so far - the Czech power company CEZ and an unspecified renowned electricity company. When the government announced its intention to sell SE in August of last year, eight European strategic investors submitted preliminary bids. The potential Czech investor declared its interest to run in the tender on May 5th of this year. It is the only one of the bidders interested in buying the whole of SE, including its nuclear power plants. (NewsBase 28.ix.03) UKRAINE UKRAINE TO BEGIN CONSTRUCTION OF DANUBE-BLACK SEA DEEP CHANNEL Ukraine will begin construction of the Danube-Black Sea deep channel for sea ships, according to the Interfax-Ukraine news agency who reported a statement from the director of the Delta-Lotsman Ukrainian state company, Volodymyr Bezdolny, on August 29. If the Ukrainian Cabinet approves the project's feasibility study and if local authorities issue permission, Delta-Lotsman could begin work on the channel in two to three months, Bezdolny said. In this case, navigation tests in the new channel may begin by March 31, 2004. The channel, if constructed, will be 162.6km long and 8.1 to 8.4 metres deep. The project's cost is estimated at hryvnya 200m ($37.7m), it will be fully completed in three years and should pay off the cost 2012, according to Bezdolny. (NewsBase 02.ix.03) GAS EXTRACTING UKRHAZVYDOBUVANNIA DISCOVERS NEW GAS DEPOSITS Ukrhazvydobuvannia, the largest gas extracting company in Ukraine, discovered a new natural gas field in the Bielske deposit, the press service of Naftohaz Ukrainy announced. The reserve was found at a 4000 meters depth and is estimated at 15bn c.m - one of the largest to be discovered this decade. Extraction of gas from the new reserve is expected to start from September. Ukrhazvydobuvannia operates the Bielske deposit since 1990 but till now extracted gas from a depth of 1,800 and 2,500 meters. The company accounts for 72.8% of all gas extracted in Ukraine. In Jan-June it increased the quantity of gas extraction by 2.1% y/y to 7bn c.m. (IntelliNews 29.viii.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 and Budapest 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
|