RUSSIAN FAR EAST NEWS

July 2004

Covering the region with news, analysis and insights since 1991
Published by:
American Russian Center, University of Alaska Anchorage
3211 Providence Drive, Anchorage, Alaska 99508
Phone: 907-786-4300, fax: 907-786-4319, email: ayarc@uaa.alaska.edu
Web: www.arc.uaa.alaska.edu

Table of Contents

Features
From the Editor
U.S.-Russian Far East Activities - Alaska Welcomes new Specialist
New Book - Bering: The Russian Discovery of America
Far East First-Hand - An American student acclimatizes
Industries
Fishing
Mining
Oil, Gas, and Energy
Transportation and Shipping
International Update
Politics and Legislation
Social Issues
Arts & Culture
Business
Education
Environment
Health
Media
Science
Did You Know? Facts and Figures at a Glance
Announcements
Business Information
Calendar
Travel

Features

From the Editor - Sarah Hurst

Hot water was restored to Vladivostok just in time for the July 4 mayoral election. If this was an effort to impress the voters, it isn’t entirely clear in which direction they were supposed to swing, except presumably away from the unpopular incumbent, Yury Kopylov. Rumors about Primorye Governor Sergey Darkin’s connections with alleged crime figure and mayoral candidate Vladimir Nikolaev have been rife, but no one is sure how their relations are today. Darkin didn’t publicly endorse any candidate.

The local media decided to play it safe by providing very little coverage of the election campaign. The Kremlin also kept its preferences quiet, with President Putin making no comment during his recent visit. If Vladivostok residents can now wash in comfort, they are still mostly in the dark about the political rivalries that are being fought out in their troubled city. Now they must choose between the two front-runners in a second round of voting: outspoken Duma Deputy Viktor Cherepkov or Vladimir “Winnie the Pooh” Nikolaev. It might be wrong of this foreign publication to take a political standpoint, but we won’t be able to suppress a small smile if Cherepkov is victorious. If not, we predict more cold showers.

U.S.-Russian Far East Activities

New trade specialist’s outlook optimistic
Leonid Kokaurov is the new Russian Far East trade specialist for the State of Alaska. He told RFEN about himself and his plans.

Please introduce yourself.

My name is Leonid Kokaurov. I was born in Irkutsk near Lake Baikal. I studied history, social science and economics and received a master's degree from Magadan University. I furthered my studies at the Russian Far Eastern University in Vladivostok. My area of focus for the graduate studies was economic reforms during the Krushchev era. I moved to Alaska in 1991 and own my own consulting company. My projects are quite varied. I function as a business liaison between U.S. companies and RFE business and government. I have facilitated transactions in the mining, fisheries, construction, and oil and gas industries, as well as working on U.S.-based education and training projects. From 2001 to 2003, I worked as a program manager at the University of Alaska Anchorage’s American Russian Center for a U.S. Department of Labor grant that providing training to Russian engineers in project management and logistics.

Tell us about your new contract with the State of Alaska.

I am working under contract part time, perhaps 20-30 hours per month, for translation and other projects. I work closely with Margy Johnson, director of international trade in the Office of the Governor. The contract began in May and I am looking forward to providing assistance so that the good relationships which the State of Alaska has established in the RFE may continue.

How would you assess the current state of Alaska-RFE ties?

Economic relations in the service sector continue to be important. As in the past, the most important Alaska/RFE relationships - economically and politically - are centered on the relationship with Sakhalin. The tragic demise of Governor Farkhutdinov and more than a dozen key members of his administration in a helicopter crash caused the government to naturally turn its attention to domestic affairs. Now that things are settled there, it is time to again move forward.

Long-term, there are important possibilities related to the high number of RFE students who come to Alaska to further their education. Some of these students may be future RFE leaders and business people.

Alaskans immediately look to possibilities on Sakhalin with the oil projects, but what other parts of the Far East do you think have potential, and what specific projects could Alaskans get involved in?

At the same time as the Alaska/Sakhalin relationship is moving forward again, Alaska also has opportunities to continue and strengthen beneficial relationships with other regions in the RFE, especially Primorye and Khabarovsk Krai. Primorye is home to Vladivostok, which is an administrative, educational and cultural center and the business gateway to the RFE. Khabarovski Krai is the federal capital of the RFE; President Putin's official representative works RFE issues from that point.

An example of a practical and productive project would be the development of hatchery plants in the RFE. Right now Sakhalin is working in this area.

Lots of talented students from the RFE come to Alaska to study and not all of them return to the RFE. Do you see this brain drain as a problem for the RFE?

This is a challenge. It's natural that some of the students who come to Alaska to study learn to love the state and want to stay. Even if they stay, they will benefit the RFE. Whatever work they do, they bring to it knowledge of business opportunities in Russia.

Recently, however, we are seeing a change. University of Alaska Anchorage professors have gone to universities in the RFE and provided training there which enables students to receive degrees from UAA. This kind of educational exchange benefits both sides. We're living in a global economy.

Will you work on improving transportation links between Alaska and the RFE?

This is one of the most critical and difficult problems facing the continued growth of business between Alaska and the RFE. There is no easy solution. Which will come first - increased business, improved transportation links or increased volumes of cargo and passengers? In my consulting projects outside of the State of Alaska contract, I do actively work with freight forwarders and air cargo carriers.

Do you think the State of Alaska is doing enough to promote the teaching of Russian in schools and universities?

Alaskan students have access to several levels of Russian language training. For the first time, a federal grant is enabling Turnagain Elementary School in Anchorage to provide a partial Russian immersion program for kindergarten and first grade students. Tell your readers to call Turnagain Elementary School to enter their children in the lottery for this program which starts this fall. On average, children in language immersion programs traditionally test higher than children in regular programs! Russian is also taught at some of the Anchorage high schools and at the university.

Which Alaska companies have been most successful in the RFE, and why?

Lynden Transport is a very successful logistics and freight forwarding company. They have learned how to do business efficiently in the RFE. I think the RFE is very important in their business plan. They have also been working there for a long time and have stayed committed to providing service.

What plans are there to develop tourism between the RFE and Alaska?

One of the big challenges for residents of the RFE is obtaining a visa to travel. Also, Alaska is a very expensive destination for RFE residents. I do see an opportunity for Alaskan tourism experts to provide training to RFE operators. This type of work does not provide competition to Alaska because the U.S. adventure travelers who want to see the RFE are extremely well traveled and have already been to Alaska several times. Positioning Anchorage as the primary tourism entry point to the RFE will benefit Alaska.

New Book

Bering: The Russian Discovery of America by Orcutt Frost ( Yale University Press)
Review by Andrew Crow, University of Alaska Anchorage

If you are interested at all in the history of Alaska or the Russian expansion east into Siberia, you have at least heard of Vitus Bering and his two expeditions to find North America. You may have read something about them in a popular history like James Michener’s Alaska, or William Hunt’s Arctic Passage . You may even have read a more detailed account like Corey Ford and Lois Darling’s Where the Sea Breaks Its Back . These books all related the fascinating story of Russia’s exploration of the North Pacific with varied success, but none of them add much original research or new material. Orcutt Frost’s new book Bering is different. While it retells the story, in an engaging and interesting way, it also offers new information and materials ranging from recently discovered letters written by Bering and his wife Anna, to the results of a Danish archaeologist’s excavation of Bering’s last camp and grave on Bering Island.

It is not surprising that Frost’s book offers more. Bering is the latest in a long series of work he has produced on the Russian expeditions, including two other books: an edited translation of Steller’s Journal of a Voyage With Bering 1741-1742 (with translation by the University of Alaska Anchorage’s Margaret Engel), and Bering and Chirikov: The American Voyages and Their Impact. Professor Frost has managed to weave a wealth of information into the story, from details of Russian politics, to descriptions of the two huge expeditions Bering headed, to minute details about Bering’s last voyage. Even with all these details the book remains interesting and the story easy to follow.

In part, this is explained by Frost’s deep personal interest in the story. In the preface Frost describes his personal visits to the sites where Bering’s crew landed on his voyage to America: Kayak Island, the Shumagin Islands and finally Bering Island. He also explains how his interest in George Steller, the most notable crew member on Bering’s ill-fated ship, led him to write a book about Bering. While the book does not dwell on Frost’s travels, it certainly benefits from his first-hand experience with these places, which gives his descriptions a vibrant immediacy.

What Frost is really able to bring to this subject is a broad view of the society that Bering lived in. The descriptions of Bering’s earlier career and 18 th-century Russian politics, and especially the role foreign experts played in Russia, put Bering’s life and his two expeditions into context. They also offer answers to some of the questions that have nagged me about Russia’s exploration. Why was a Dane leading a Russian expedition? Why did the expeditions spend so little time in America and why was Bering’s ship so hampered by dissent on its return trip? Why is so little known of these expeditions? Frost provides plausible answers to these questions in his discussions of the Russian navy’s institution of sea councils, the interplay between Russian officers and seamen and foreigners, and the intrigues in St. Petersburg and Moscow.

There are a few instances where the details of the book become difficult to follow. Frost often alludes to the newly-found correspondence between Bering, Anna Bering and Count Ostermann, the German-born head of the Russian government. These passages are among the few times in the book where the details are not crystal clear. There are also several instances where the book almost gets mired in what seem to be long-standing academic arguments about Bering and his expeditions.

These are fairly minor shortcomings. It is hard to write clearly and engagingly about something you love and have spent years researching. It is especially hard when the subject is as complicated and as little known as Vitus Bering and his two great expeditions. Professor Frost has overcome these difficulties. Bering offers just what any reader wants in a history, an interesting story, and enough details to clearly put the story into context.

Far East First-Hand

First day in the Far East
by Rebekah Smith, University of Alaska Anchorage

When I stepped out of the plane onto the rickety stairs that would take me down to the ground in Vladivostok, I was scared, sleep-deprived and already missing my boyfriend terribly – but at the same time, I was excited and filled with a sense of accomplishment. The ground I was descending towards was not just any ground; it was Russian ground. I had finally made it: I had arrived in Russia.

The dream of going to Russia was an old one. I remember reading books as a kid, full of romantic stories about princes and poor servant girls, splendid balls in the palaces of the tsars, hot-blooded revolutionaries - and all of them had fascinating names like Andrey, Marina, Dmitry. I think it was the names that first attracted me to the Russian language and culture. These names that were somewhat exotic yet familiar at the same time just rolled off the tip of your tongue like music on an unknown instrument.

And now, after studying Russian for three years, after getting to know Russian people in Anchorage and after long months of preparation for this semester abroad, I was here, ready to meet the people behind those names in their own country. Of course, I knew that the real, contemporary Russia was not like in the books. Despite my nervousness, I felt prepared. I knew that Russia was not the Russia of the novels – those were too romanticized. I knew that it was not the Russia of the textbooks – I knew, of course, that countries and culture change much quicker than any textbook could follow.

I grew up in Germany and certainly never read an accurate portrayal of that country anywhere. I knew that there were many stereotypes, especially in the United States, that still lingered from the Cold War, and I knew not to trust these. I also knew not to believe the accounts of my Russian friends completely – being something of an immigrant myself, I knew how quickly your view of your country of origin is warped, particularly when you put it in words for others. I had traveled before. I wasn’t naïve.

But standing at the bottom of the stairs waiting for the bus that would take us to the main entrance of the terminal, I realized suddenly that while I knew an awful lot of versions of Russia I didn’t trust, there wasn’t really anything that I knew to be accurate. Maybe I wasn’t so well prepared after all. I pushed that thought aside quickly and forced myself to look confident as I walked inside. After all, Russian customs was coming up and I had heard plenty about that from enough sources to have my doubts that this would be easy. I took the paper, filled it out - in Russian, of course, as I proudly noticed I could do with ease - and progressed through the first passport control.

I reminded myself not to smile, as my friends had cautioned me that I would look silly and any man might think I was trying to flirt. In Russia, a smile is not part of the business environment. I was successful and walked on to the next desk. Where was customs, anyway? Someone asked me a question I didn’t understand. I asked him to repeat it, but he just rolled his eyes and waved me on. It wasn’t until I was standing outside waiting for my contact person to recognize me with my luggage that I understood that had been customs, without strip searches or anything – even my bags hadn’t been opened. Interesting – in a very good way!

My contact, Nastya, stood just a few feet away from me for about 15 minutes before either of us had the courage to ask who we were waiting for. I guess my picture isn’t a good likeness. She said I just “didn’t look American enough.” I decided to take that as a compliment. After all, Russian women are very conscious about their appearance and are rumored to be some of the most beautiful in the world.

We left the Vladivostok airport and I stood around for a while as Nastya bargained with a driver. Taxis are expensive in Russia. And why waste money when there are so many private people waiting to give rides for a much more reasonable (and negotiable) price? Of course, people had warned us never to use these unofficial taxis, but this wasn’t the only time I used one. It was the preferred means of evening transportation for almost everyone I met while in Russia and proved to be very efficient.

We had a day to spend in the city before our train left for Khabarovsk, where I was to spend the next four months studying at the Far Eastern State Transport University. Vladivostok reminded me a lot of my hometown in Germany, albeit mostly of those parts that I wouldn’t want to be alone in during the day, much less at night. The architecture was most certainly European, which I enjoyed seeing again. I was, however, rather shocked by the unlit pedestrian tunnels under the busiest streets, which had cables hanging down from the ceiling as proof that sometime, somehow, there had been functioning lights down here. It did seem that that had been quite some time ago, though – maybe even back to the times of my childhood books.

Well, I had known that not all surprises about Russia would be pleasant. To pass the time, Nastya and I decided to drop off the luggage at the train station and see the sights. We wandered around for a while and then went to see a movie. By that time I hadn’t slept in over 48 hours, so I was a bit afraid that I would fall asleep in the soft chairs. But, fortunately, I became so engrossed in the movie, which, to my amazement, I understood at least 70 percent of, that I didn’t close my eyes even for a moment. Don’t ask me what it was about, though – my brain was certainly not awake enough to commit anything substantial to long-term memory.

After the movie, Nastya and I sat in a little café and enjoyed some ice cream while we got to know each other better. The movie had warmed up my Russian and I felt at ease, struggling with some words but fighting to express everything I wanted to say. We had a good time, and I realized that it actually was possible for me to talk to someone in Russian; not in dialogues rehearsed in class, not for friends who thought the accent was “so cute,” but in real life. Suddenly, Russian for me was no longer something that belonged in class. It turned into a way to express myself. I was excited. It was only my first day but I suddenly knew that I would be close to fluent by the time I returned.

The train ride to Khabarovsk was something of an adventure. We had the good spots, in sleeper cars with four beds to a compartment. The halls to our wagon were so narrow I had a hard time getting the bags to fit through, and I caught myself thinking that an obese person could certainly sue for discrimination. That thought was reinforced by the beds, which were certainly not twin size. They proved to be quite comfortable, however, particularly considering they were the first I had seen in what felt like eternity.

Nastya and I got comfortable and rejoiced that no one had joined us in the compartment as we pulled out. Unfortunately, there was one more stop on the outskirts of the city before the real journey began. When our companion for the remainder of the trip got in, my eyes opened wide in a mixture of horror and amazement – here was the stereotypical large, malodorous Russian village muzhik (there is no English word), complete with a (comparatively) small bottle of vodka and hearty snacks. Apparently, the articles about Russia weren’t all completely wrong. Well, I was too tired to dwell on this revelation, so I simply breathed a sigh of relief that I had already changed into something more comfortable to sleep in and dosed off to the sound of that unique music, the Russian language, ringing out from the bunks below mine.

It is this day, my arrival, that stands out most vividly in my memory. The days that followed were much the same – I met new people, improved my Russian skills and saw with my own eyes what was and wasn’t true about my Russia, the Russia that I saw between January and May 2004 in Khabarovsk, the capital of the Far East.

Of course, the surroundings were very different during most of the time. I lived in the dormitories, of course, the best ones – reserved predominantly for teachers and international students; I had language classes with the other American program participant as well as a chemistry class with the Russian students. The greatest learning experiences, I must say, were outside of the classroom. I learned about student life with my new friends from the dormitories and from classes. I learned about family life by visiting the relatives of my boyfriend (who is from Khabarovsk) on Sundays. And I learned about everyday life – how to buy groceries, how to find a connection to the internet, how to ask for directions- simply by being there, in Russia.

Now that I am back, I have adjusted to my life in the United States again, here in Anchorage. There are many things I miss about Russia. I miss the food, which seems to me absolutely divine now. I miss the way that when you get together, everyone sits around the table and eats and talks as a group. I also miss the public transportation, which was scary but efficient and even the fact that we walked almost everywhere constantly; certainly not something I was expecting to long for when I returned. And of course, I also miss the friends that I made. I sometimes feel that it was all just an amazing dream. But although it seems almost unreal now, I know that it IS real. I lived in Russia – an invaluable experience that I will never forget. It wasn’t a dream: it was the fulfillment of a dream.

Industries

Fishing

President baits fishing industry

After visiting a fishing trawler and a marine resources research center in Vladivostok, President Vladimir Putin said he was upset by the current situation in which Russian fishermen sell some 80 percent of their catch directly to foreign companies without paying customs, strana.ru reported in June. “In the USSR the proportion was reversed,” Putin said. “It looks like we are selling cheap raw materials and buying expensive finished products.” He called on the fishing industry to enlarge fishing companies through mergers and to impose severe punishment for poachers. “I have no doubt that the Duma will support a bill strengthening administrative and criminal punishments for poaching,” Putin added.

Khabarovsk fishing quotas under scrutiny

The Russian Interior Ministry’s organized crime divisions have stopped the operations of a group of extortionists, which included current and former officials of the State Fisheries Committee, Interfax news agency reported in June. The group is suspected of extorting $3.7 million from the management of a company in Khabarovsk Krai in October-December 2003 for the assignment of fishing quotas for 2004. Four people have been detained in connection with the case.

Fishermen go on hunger strike in Nakhodka

Eight out of 34 crew members from the trawler Viktor Streltsov held a three-day hunger strike in protest at not being paid their wages for almost a year, Vladnews.ru reported in May. The sailors’ union persuaded them to stop the hunger strike and await a court decision. The vessel, which belongs to the Sakhalin Fishing Company, has been arrested at the port of Nakhodka in Primorsky Krai. Crew members had planned to block a railway line, but the Nakhodka Mayor’s Office talked them out of it. In total, the Sakhalin Fishing Company owes the crews of the Viktor Streltsov and another vessel, the Dalmos, 15 million rubles ($518,000). If the debts are not paid soon, the boats will be sold at auction.

Kamchatka court wraps up fish case

A court in Petropavlovsk-Kamchatsky has passed sentence on two of the nine captains of fishing vessels who were involved in Russia’s biggest ever smuggling case, RIA Novosti reported in May. The captain of the Morskoy Veter (owned by Don-Ryba in Kamchatka), Yury Vetrov, and the captain of the Seawind-1 (owned by Kunashirsky Proliv in the Kuriles), Vladimir Kuznetsov, were sentenced to two and three years in prison respectively and fines of 50,000 and 70,000 rubles ($1,700 and $2,400). Illegally-caught mintai (a codfish) worth 27 million rubles ($930,000) was found on board the Seawind-1. The damage to the Russian environment was estimated at 242.5 million rubles ($8.4 million). More than 1,000 tons of fish was found on board the Morskoy Veter, which caused 262.6 million rubles-worth ($9 million) of damage to the environment.

The total damage to the environment caused by the refrigerator ship Lanzheron (owned by Brig on Sakhalin) and eight other vessels on the expedition was estimated at 2.1 billion rubles ($72.4 million). The smugglers were caught by border guards last spring near the northern Kuriles.

Sakhalin smugglers’ fortunes flag

The Sakhalin Oblast Court has fined the captain of the smuggling vessel Mikan 27 million rubles ($931,000), ASTV-Inform reported in May. The trawler was stopped by border guards last September at the south end of Sakhalin Island, almost on the border with Japan. A search uncovered 210 tons of fish on board, which had been transferred from the schooner Sangar. The fish was valued at 27 million rubles.

In another case, the captain of the Sakhalin trawler Mirny and its owner, a company called Angor, were fined for illegally catching crab, RIA Novosti reported. The captain was fined 317,168 rubles ($11,000), and the company was fined 634,335 rubles ($22,000). The Mirny was caught in April in Peter the Great Bay, near Vladivostok, with six tons of crab on board.

Meanwhile, around five tons of illegally-caught live crab were found by authorities on board the Anzhelika (registered in Kholmsk) off the east coast of Sakhalin, Ekho-DV news agency reported. The Anzhelika was escorted to Korsakov for further inspection. It was the second time this year that the vessel had been stopped. In February it was found with two tons of live crab on board. The captain of the vessel and its owner, Vostokryba, were fined 86,606 rubles ($3,000).

Mining

Primorye governor stops miners’ hunger strike

Around 47 miners went on hunger strike at the Rakovsky mine in Mikhaylovsky District of Primorye, Vostok-Media news agency reported in June. They were demanding the payment of wage arrears. After a week, three of the miners were taken to hospital. A case against Yelena Priyemenko, the managing director of Energy Vostok, which owns the mine, was already under consideration by a Vladivostok court. A total of 2.4 million rubles ($83,000) is owed to 90 miners. Priyemenko is alleged to have used the company’s money for other purposes when she should have been paying employees. In response to the hunger strike, Primorye Governor Sergey Darkin decided to pay the miners from his reserve fund.

Prospects for Chukotka gold deposit look bright

Canada’s Bema Gold Corp. has found “significant gold mineralization” at its Kupol deposit in Chukotka, Bloomberg news agency reported in June. The site is approximately 400 meters deep and 3.1 kilometers long. The company drilled 49 holes in the exploration process. The mine at Kupol could last for 12 years, with average annual production in the first 10 years of about 470,000 ounces of gold, and 5 million ounces of silver. The company’s shares have more than doubled in the past year.

Alrosa extracts more Sakha diamonds

The first diamonds have been extracted from the new Istok deposit in Sakha, Vladivostok News reported in June. Sakha-based Alrosa, Russia’s largest diamond producer, received a license to explore Istok in May. Istok is one of the Ebelyakh group of deposits in Anabarsky District.

Oil, Gas, and Energy

Sakhalin Energy appoints new CEO, avoids whales

The CEO of Sakhalin Energy, Steve McVeigh, is to leave his post in July, Bloomberg reported in May. McVeigh will return to Shell after running Sakhalin Energy for more than three years. He will be replaced by Ian Craig, a Shell manager in Malaysia.

Sakhalin Energy is to reschedule offshore pipeline construction work in the Piltun-Astokhskoye field pending further technical work that is intended to ensure minimal disturbance to gray whales, The Sakhalin Independent reported. Offshore pipeline construction work during 2004 will now be focused on the Lunskoye field and Aniva Bay further south, previously planned for completion later in the construction period.

The overall construction project schedule will not be affected. The first liquefied natural gas deliveries to customers are scheduled for 2007. The population of about 100 gray whales migrates to Sakhalin Oblast and feeds off Piltun in the summer months. Numerous protest actions demanding changes to the Sakhalin-2 project, which allegedly endangers the species, have been held by Russian and international environmental organizations in the past few years.

Hunger strike threat pays off at Primorye energy company

Employees of the Ussuriysk branch of Primorye energy company Primteploenergo threatened a hunger strike to protest at unpaid wages, Vostok-Media news agency reported in May. The management owed them 8.6 million rubles ($297,000) for two months’ work. The workers had appealed to various authorities for help, from the local prosecutor to the Russian president, but received no response. When they threatened a hunger strike, the management offered them a payment schedule and gave them half of their salary for March.

Transportation and Shipping

Sakhalin port struggles with pipeline parts

A delivery of parts for the Sakhalin oil pipeline halted all other work at Korsakov Port in June, gazeta.ru reported. The parts arrived from Nakhodka on the ship Spirit. The schedules of five container ships that regularly come to Korsakov from Vladivostok and Pusan in South Korea were disrupted. Other vessels heading for Korsakov from Nakhodka with more pipeline parts on board were redirected to Kholmsk.

International Update

Japan

Sakha administration makes plans with Mitsui

During an official visit to Japan, Sakha President Vyacheslav Shtyrov signed a protocol on cooperation with the Mitsui company, YASIA news agency reported in May. In 2003 the volume of trade between Sakha and Japan was worth around $150 million. Sakha exported coal and furs and imported machine-building equipment for mining. Mitsui is now interested in coal mining projects in southern Sakha at the Elginsky deposit and the Denisovskoye mine.

North Korea

Far East residents help stricken town turn over new leaf

Around 1,000 children’s books have been sent as humanitarian aid from Khabarovsk to the North Korean town of Ryongchon, Vostok-Media news agency reported in June. Ryongchon, 10 miles southeast of the Chinese border, was the scene of a massive collision between two trains carrying explosives in April that destroyed 1,850 homes and killed 161 people. The Russian ambassador to North Korea, Andrey Karlov, asked Far East residents to collect books as many schoolchildren in the town are learning Russian.

People’s Republic of China

Chinese exchange contracts with Chukotka

Chukotka and China have strengthened their economic ties at a trade fair in Harbin, Chukotka.org reported in June. The Chukotka Agriculture Corporation signed an agreement with farmers from the Chinese province of Heilongjiang on the purchase of beef and pork. The first 250-ton shipment is due to arrive in Chukotka in August. Chukotka will export bearded seal fat to China. The fat is used as a food supplement and for medicinal purposes, and 100 tons will be sent from the village of Lorino at the end of July. At the trade fair Chukotka also signed a contract with Huawei Technologies, which is to deliver telecommunications equipment to the okrug.

South Korea

Sakhalin Koreans await cultural center

A Korean cultural center is to be built in Sakhalin’s capital, Yuzhno-Sakhalinsk, regions.ru reported in June. The two-storey building will have a 300-seat auditorium and seminar rooms. The project will take about two years to complete.

Politics and Legislation

The National Scene

(note: to become federal law, bills usually are approved by the State Duma in three readings, then approved by the Federal Council, and then approved by the Russian president; some regulation, however, is enacted by presidential decree.)

Duma replaces social benefits with financial compensation

The State Duma has passed a bill replacing social benefits with financial compensation in its first reading, Interfax news agency reported in July. The vote was 296-116, with four abstentions. There were protests around the country against the bill by people who believe that it will impoverish socially vulnerable groups such as veterans, pensioners and the disabled. Benefits such as free public transportation will be replaced with monthly financial compensation, beginning in 2005, if the bill is signed into law by President Vladimir Putin.

Duma ratifies European defense treaty

The State Duma has ratified the Conventional Forces in Europe treaty, an agreement setting limits on heavy weapons across the continent, the Associated Press reported in June. The vote was 355-28, with two abstentions. The treaty was seen to be in Russia’s interest, as it allows additional flexibility in deploying its forces between regions, and entails no extra costs for the armed forces. But Moscow had held off on ratification pending commitments from the Baltic states to join the treaty.

Duma toughens terror penalties

The State Duma has approved a bill that toughens anti-terrorism legislation, allowing penalties of up to life imprisonment for convicted terrorists, the Associated Press reported in June. The vote was 431-0, with three abstentions. The measure must now be adopted by the Federation Council and signed into law by President Vladimir Putin. Previously the top penalty for convicted terrorists was 20 years in prison.

Prime minister sets terms for alternative service

Prime Minister Mikhail Fradkov has signed a decree setting the period for alternative service at between 18 and 42 months, Radio Free Europe/Radio Liberty reported in June. Conscripts without a higher education performing alternative service in organizations belonging to the armed forces and other military agencies will have to serve for 36 months, while those with a higher education must serve 18 months. Those conscripts without a higher education who perform their service for an organization controlled by federal or regional authorities must serve 42 months; those with a higher education will serve 21 months.

President signs controversial bills on public gatherings and referendums

President Vladimir Putin has signed a much-criticized bill on public gatherings into law. The State Duma passed the bill in its third and final reading, Radio Free Europe/Radio Liberty reported in June, and the Federation Council passed it a week later. The vote in the Duma was 336 in favor with 97 against and two abstentions. Under the bill, organizers of public demonstrations have to inform authorities about their planned event at least 10 days in advance.

President Putin has also signed into law a bill on referendums. The State Duma passed the bill by a vote of 300 in favor with 96 against and the Federation Council passed it shortly afterwards. The Communist and Motherland factions and independent deputies opposed the bill in the Duma. The law makes the holding of referendums the exclusive right of the authorities, as opposed to grassroots movements.

In the Russian Far East

President observes military maneuvers

President Vladimir Putin and Defense Minister Sergey Ivanov observed the Mobility-2004 military exercises at an army base near Vladivostok, Radio Free Europe/Radio Liberty reported in June. Afterwards, Putin gave awards to soldiers taking part in the drills and said that regular and successful military exercises would promote a positive image of the armed forces. Ivanov said that China, Japan and North Korea were not concerned by the exercises because they were not aimed at real combat action.

Law and order, housing and employment are biggest issues in Far East

The Russian president’s representative in the Far East, Konstantin Pulikovsky, has received 19,000 statements and complaints from residents of the region in his four years of work, Primorskoye Television & Radio reported in May. Khabarovsk Krai residents send the largest number of letters, about 40 percent of the total last year. Primorye residents sent 25 percent of the total last year and Amur Oblast residents sent 13 percent. People write to Pulikovsky when they have given up hope of resolving their issues on a local level.

The most frequently mentioned issue, the subject of 23 percent of the letters, was the police and criminal justice system. Another 22 percent of the letters were about housing and utilities. People are angry about the rising price of electricity and heating, and they believe that Russian energy companies’ policies discriminate against Far East residents. Pulikovsky has asked Far East academics to assess the basis for energy tariffs and see how they correspond with incomes in the region, and has promised to show the results of the research to President Vladimir Putin. The third most frequently mentioned issue is employment and wages.

By law Pulikovsky must look at each letter within a month. Last year he found around 200 cases of red tape or violations of the rights of Far East residents. In half of those cases the guilty parties were punished.

CHUKOTKA AUTONOMOUS OKRUG

Auditors declare Chukotka bankrupt

Chukotka is bankrupt, according to a report by the Russian Audit Chamber, Vostok-Media news agency reported in May. Chukotka’s debt to the federal budget on January 1, 2004 totaled 9.3 billion rubles ($321 million), compared with revenues of 3.9 billion rubles ($134 million). The Audit Chamber found financial violations totaling 1.5 billion rubles ($52 million). “The general situation in the okrug during the tenure of [Governor] Roman Abramovich’s administration has significantly changed for the better, but they still haven’t managed to rescue Chukotka from bankruptcy,” said auditor Sergey Ryabukhin, Chukotka.org reported.

“I respect Abramovich. He is a good guy, but he should not hold on to the post of Chukotka governor,” said Audit Chamber Chairman Sergey Stepashin, according to Interfax. “Abramovich has a hobby, which is soccer. Let him continue with it. But it is not a good idea to perform experiments on the region and its people. Looking at the results [of the audit] I can say that Abramovich has let down the Russian president badly.”

Chukotka’s troubles date back to the mid-1990s when it borrowed money from the federal government. In the past three years the okrug has repaid more than a third of its debt, but constant fines prevent it from repaying the amount in full. The Audit Chamber considers that in this situation bonus payments from the okrug budget to teachers, doctors and local government employees were illegal.

MAGADAN OBLAST

Magadan mayor heads south

Magadan Mayor Nikolay Karpenko has resigned from his post after being appointed head of a department under the president’s representative in the Southern Federal District, Kolyma.ru reported in June. Karpenko was head of the Magadan city administration from 1993 and was elected mayor in 1997 and 2001. First Deputy Mayor Vladimir Pecheny will take over as acting mayor from July 6 until new elections are held.

PRIMORYE (PRIMORSKY KRAI)

Vladivostok prepares to vote in new mayor

An alleged crime figure nicknamed “Winne the Pooh”, Vladimir Nikolaev, will face off against State Duma Deputy Viktor Cherepkov in the second round of Vladivostok’s mayoral election, Primorskoye Television & Radio reported in July. In the first round, held on July 4, Nikolaev received 26.8 percent of the vote, followed by Cherepkov with 26.3 percent. The current mayor, Yury Kopylov, came third with 18.1 percent. Another 9.6 percent voted against all candidates. Nikolaev is well known in Vladivostok and features in a textbook on local organized crime. A second round run-off between the two leading candidates will take place sometime before July 25, as no one got more than 50 percent.

There were some bizarre circumstances surrounding the election. Yury Kopylov faced a rival with the same name as his own, Vostok-Media news agency reported in June. Yury Ivanovich Kopylov, the head of the administration of a non-profit called City of Vladivostok, was a candidate. The real mayor’s patronymic is Mikhailovich. Viktor Cherepkov also faced a rival with the same name. The less well-known Cherepkov is a Viktor Grigorevich, while the deputy is Viktor Ivanovich. Viktor Grigorevich supposedly works for a company called Freedom and People’s Power, which happens to be the name of the electoral bloc that Viktor Ivanovich leads. Apparently the second Cherepkov was discovered in another part of Russia and brought in to take votes from the original candidate. This was tried before, when a candidate called Igor Cherepkov won 1-2 percent of the vote in an election just because of the confusion over his name.

The other candidates in the first round were Vladimir Baturin (the director of a management institute), Yury Marakhovsky (the director of a company called Kontinent), Nikolay Markovtsev (a deputy in the Primorsky Krai legislature), Svetlana Nikolaeva (the director of companies called Ekspress Avto and DaNa) and Aleksandr Perednya (a deputy in the Primorsky Krai legislature and the chairman of the board of the collective fishing farm Vostok-1).

Governor lifts restrictions on Vladivostok water supply

All restrictions on the water supply in Vladivostok have been lifted, Interfax news agency reported in June. “The territorial administration has decided to lift all limits on the cold and hot water supply,” Primorye Governor Sergey Darkin said. Vladivostok has endured nine months without any hot water, and with a limited supply of cold water.

Primorye representative goes to United Nations

The first vice-president of the Association of Indigenous Small-Numbered Peoples of the North in Primorye, Pavel Sulyandziga, has become a member of the UN Permanent Forum on Indigenous Issues, Yezhednevniye Novosti Vladivostok reported in May. Sulyandziga, who is from the village of Krasny Yar, promised to try and attract additional resources for development programs for indigenous peoples in Russia. His priorities are to preserve land for traditional subsistence activities, develop small businesses and revive languages and culture. The other new members of the Permanent Forum are from Morocco, Australia, Canada, Denmark, Ecuador, Nepal and the Philippines. Their three-year term of office begins in January 2005.

SAKHALIN OBLAST

Senator and former deputy governor step up

Sakhalin’s representative in the Federation Council, Valery Goreglyad, has been voted into Russia’s Audit Chamber, TIA Ostrova reported in May. The 12 auditors have the rank of minister and serve for six years. Usually there is fierce competition for the posts, but Goreglyad was voted in by 126 out of 132 senators. Sakhalin Governor Ivan Malakhov will now have to appoint a new representative to the Federation Council, Russia’s upper house of parliament. Meanwhile, 43-year-old former Deputy Governor Sergey Podolyan has been appointed deputy head of the federal agency for fishing. Podolyan held the post in the Sakhalin Oblast administration from 2001 to 2003, when he unsuccessfully ran for the State Duma.

Governor appoints new deputy governor

Malakhov has appointed Sergey Osipov as a deputy governor, Sakh.com reported in June. Previously Osipov was the director of the Yuzhno-Kurilsk fish factory.

Social Issues

Arts & Culture

Poland gives Koryak dancers chilly reception

The Koryak state dance ensemble, Mengo, was detained by border guards as they tried to enter Poland, Vesti Petropavlovsk-Kamchatsky reported in May. The dancers were traveling by bus to Belgium and Spain on a tour. They were accused of smuggling the skins of rare animals such as bear and lynx, items that they needed for their performance. Mengo travels abroad nearly every year and this was the first time they had been stopped by authorities. The bear skin was very old and the lynx skin was a shaman’s costume. The snout of an otter was also used as a costume.

The leader of the dance ensemble, Mark Numan, was taken into custody in the town of Byala Podlyaska, 40 kilometers from the border. Meanwhile, a former member of Mengo, Tatyana Romanova, who is now a deputy in the Kamchatka Oblast assembly, tried to get help for the dancers. After two days Kamchatka’s State Duma deputy, General Viktor Zavarzin, heard about the case and contacted the Russian Foreign Ministry. The high-level diplomatic intervention brought about Numan’s immediate release, and the dancers were able to continue with their tour.

Chukchi gospel miraculously appears

The Institute for Translating the Bible has released a translation of the gospel according to St. Luke into the Chukchi language, Radio Free Europe/Radio Liberty reported in May. The translation took 13 years and was difficult because some of the key biblical concepts don’t have exact parallels in the language, which has only existed in written form since 1932. Philology professor Aleksandr Volodin, who has translated the Bible into the Itelmen language, which is similar to Chukchi, noted that some words present particular challenges. For example, the word “angel” translated into Itelmen can mean the same thing as “postman”. As many of the 15,000 Chukchi in Russia do not read Chukchi, the institute also made an audiotape of the translation.

Vladivostok police ask governor to organize discos

Vladivostok police are concerned about teenagers gathering at unsanctioned outdoor discos, Primorskoye Television & Radio reported in May. Up to 1,500 children as young as 12 and 13 dance in the central square, the House of Youth and the Fish Market without supervision. There are always fights because many of the children get drunk. The police have written a letter to Primorye Governor Sergey Darkin proposing that discos should be held in a controlled environment, for example at the Avangard or Dynamo stadiums, or the park at the sanatorium. Alcohol would be banned at such events.

Business

Tax inspectors reward Buryatia companies

The most law-abiding businesses in Buryatia have been awarded by the tax service with diplomas and consulting services, Inform Polis reported in May. The companies that paid large amounts in taxes in 2003 without any violations included cake and candy manufacturer Amta, Nizhneangarsktransstroy and a Ministry of Defense facility in Zaigrayevsky District. In total they contributed over 220 million rubles ($7.6 million) to the budget of Buryatia. Individual taxpayers were also recognized, including food distributor Mikhail Galshin, who paid more than a million rubles ($34,000) in taxes, and Nadezhda Sanditova, a printer from the village of Zaigrayevo, who paid 150,000 rubles ($5,200).

Education

Sakha head teacher goes to prison for fire

A Sakha court has sentenced the head teacher of a school in Sydybyl, where 22 pupils died in a fire in April 2003, to five years in prison, Vladivostok News reported in May. Stanislav Ivanov, 60, was found guilty of violating fire regulations. He was also fined 2.3 million rubles ($80,000) and banned from taking up any position of responsibility for the three years following his release. A short circuit near the school’s entrance started the fire, which then tore through two floors of the wooden building. The fire escape was blocked.

Environment

Floods force residents out of Sakha village

The village of Suordakh in Verkhoyansky District of Sakha has been evacuated due to floods, Vostok-Media news agency reported in June. All 400 residents were taken to higher ground, either within three kilometers of the village or by helicopter to Batagay, the district center. Suordakh is located on a tributary of the Yana River. Other villages on the Yana were also partially submerged. The Indigirka River in Oymyakonsky District was also rising dangerously, and both rivers were said to have reached record levels, caused by melting snow from the mountains and heavy rain.

Sakhalin pipelines threaten wildlife

The construction of two oil and gas pipelines on Sakhalin is harming local wildlife, Ekho-DV news agency reported in May. According to Sakhalin’s chief game manager, Yury Yeremin, both common and rare species are dying. In 2003 there were 3,500 reindeer, 250 Manchurian deer, 21,000 sables, 2,300 otters and 14,000 musk-rats. In 2004 there are 3,000 reindeer, 200 Manchurian deer, 17,000 sables, 2,000 otters and 13,000 musk-rats. Other factors that contributed to the decline in numbers were snowy winters, forest fires, a lack of food and the work of foresters. Some species are increasing their numbers, including foxes, squirrels and hares.

Man and tiger are casualties in Primorye

A tiger attacked an inspector from Primorye’s Sikhote-Alin reserve, Igor Sharov, but he managed to escape, Ekho-DV news agency reported in May. The incident occurred late at night. Despite his injuries, Sharov reached the nearest village, Melnichny, where he received emergency medical attention before being sent to hospital in Plastun. A surgeon operated for six hours on around 50 wounds inflicted by the tiger’s teeth and claws. Afterwards Sharov’s condition was described as satisfactory.

A few days later, a dead tiger was found in the area where Sharov was attacked. It had apparently been shot from a passing vehicle and went looking for water before it died. The dead tiger was about three years old, so it may not be the one that attacked Sharov, which was thought to be a year or a year-and-a-half old. The Skihote-Alin reserve protects tiger habitat, which is rapidly disappearing. There are only about 450 Siberian tigers left.

Ash pollutes Primorye river

Around 60,000 cubic meters of ash landed in Primorye’s Partizanskaya River as a result of a breach in a dike near gold slag heaps, Ekho-DV news agency reported in May. The water turned a milky color and dead fish were seen in the river. The damages caused by the accident were estimated at 22 million rubles ($759,000).

Health

Food poisoning hits café, school, health camp

A three-year-old girl died and nine other people were taken to hospital after dining in a café in the town of Vilyuysk in Sakha, Vladivostok News reported in May. Local media speculated that the poisoning could have been caused by a cook using sodium nitrite instead of salt. Sakha’s Prosecutor’s Office has opened a criminal case.

Over 100 people, including 56 teenagers, were taken to hospital with food poisoning after a graduation ball at a middle school in the village of Tambovka in Amur Oblast, Vostok-Media news agency reported in June. The food went bad because it wasn’t properly stored in the hot weather.

Meanwhile, 14 children and one adult were hospitalized after contracting food poisoning at a children’s health camp near the village of Bychikha in Khabarovsk Krai, Tikhookeanskaya Zvezda reported in July. Salmonella was suspected.

Media

Vladivostok mayor appeals fine for libeling TV boss

A Vladivostok court has ordered the city’s mayor, Yury Kopylov, to pay 10,000 rubles ($344) to the chairman of the Vladivostok State Radio & Television Company, Valery Bakshin, for accusing him of murdering a cameraman, Vladnews.ru reported in June. The company’s employee, Farit Urazbaev, was killed at the end of March. Kopylov made his comment at a press conference. He has appealed the court’s decision.

If he wins the appeal, Bakshin has promised to spend the money on equipment for one of Vladivostok’s children’s homes. Bakshin said that Kopylov did not have the courage to call him and apologize. “That in itself shows you the level of human qualities of Mr Kopylov,” Bakshin added.

Science

Meteorite lands in woman’s luggage

A piece of meteorite was found in the luggage of a young woman from Khabarovsk at the city’s airport, Vostok-Media news agency reported in May. The woman was on her way to Japan. The rock was thought to have been stolen from a participant at an international tourism exhibition in Vladivostok, DalTour2004. The 300-gram (10.6-ounce) Sikhote-Alin meteorite was found deep in Primorye’s taiga in February 1947. It is thought to be worth over $3,000 on the black market.

Did You Know? Facts and Figures at a Glance

Russian Federation

The ruble

According to the exchange rate set by the Central Bank of Russia, on the following dates $1 US was equal to X rubles http://www.cbr.ru/eng/currency_base/daily.asp

Inflation

The State Statistics Committee calculated the consumer price index inflation for recent months at:

Investment and Capital Flight

Net capital flight amounted to $5.5 billion in the first half of this year, compared to a net inflow of $3.9 billion in the same period last year, the Central Bank announced in July. Last year’s net capital flight totaled $2.3 billion, with most of it occurring after the October arrest of Yukos oil magnate Mikhail Khodorkovsky.

Politics

There is little indication that a cult of personality around President Putin has been forming in Russia over the last three years, according to a study conducted by the Yury Levada Analytical Center in May. The national survey of 1,591 respondents found that 11 percent said they have or would like to have a bust or portrait of Putin, compared to 9 percent in 2001. An overwhelming 81 percent said they have no such desire, and the same number also said they have no desire to see a monument to Putin erected in their town. Only 15 percent of respondents said that portraits and monuments “reinforce [the president’s] authority and popularity,” while 29 percent said they “provoke laughter and cast the president in a bad light.” Young people living in small towns were most likely to be hard-core Putin fans. The center said that much of so-called Putinmania is actually just a provincial youth fashion.

Around 72 percent of Russians approve of President Putin’s activities as head of state, according to a poll of 1,600 people conducted by the Yury Levada Analytical Center in June. Only 25 percent disapprove. The performance of Prime Minister Mikhail Fradkov is approved of by 37 percent, while 44 percent disapprove. More than half of the respondents, 54 percent, disapprove of the work of the Cabinet, while 38 percent approve of it.

International

Russia has the highest number of citizens seeking political asylum abroad, the UN High Commissioner for Refugees announced in June. A total of 7,508 Russian citizens applied for political asylum abroad during the first quarter of this year. Most were former residents of Chechnya. Asylum applications from Russians fell by 26 percent during the past six months.

A total of 1,128 suspects wanted by the Russian police and other law-enforcement agencies are hiding abroad, Aleksandr Valyavko, a top official in the Interior Ministry’s Main Criminal Investigation Directorate, announced in June. About 30 percent of the suspects are thought to be hiding in Germany, while 24 percent are in the United States. Another 11 percent are in China, 9 percent are in Greece, 6 percent are in Canada and 6 percent are in the United Arab Emirates. Last year 28 suspects were apprehended abroad, and 13 suspects have been extradited to Russia so far this year.

Federal Budget

Russia posted a federal budget surplus of 244.6 billion rubles ($8.4 billion) in the first half of this year, the Finance Ministry announced in July.

The federal budget received 5.0 billion rubles ($173.9 million) in revenues from selling state and municipal property in the first half of this year, the Finance Ministry announced in July. The balance of sales of state reserves of precious metals and stones reached 6.9 billion rubles ($237.6 million) in the first half of the year.

Living Standards

The wealth of Russia’s 36 billionaires equals a quarter of the country’s gross domestic product, or $110 billion, the Russian edition of Forbes magazine reported in May. By comparison, the fortunes of the United States’ 277 billionaires amount to a mere 6 percent of GDP.

Executives at Russia’s biggest companies on average take home 750 euros ($890) more than Western bosses, according to survey results announced in May by Watson Wyatt, a global consultancy firm. Average after-tax pay for Russian managers was calculated at 108,750 euros, as opposed to 108,000 euros for Western European executives. The report surveyed 125 companies in Russia. The average Russian worker earns less than a tenth of a Western European worker’s wages.

The Conflict in Chechnya

Chechen President Akhmad Kadyrov and five other people were killed in a terrorist attack at Grozny’s Dynamo stadium during Victory Day celebrations, Vladimir Yakovlev, presidential envoy to the southern district, announced in May. Another 43 people were hospitalized.

At least 98 people were killed and 125 wounded in a night-time assault on Ingushetia, a republic next to Chechnya, a regional government official announced in June. Sixty-seven of the dead were members of law-enforcement agencies. About 1,000 militants took part in the attacks. Afterwards, 86 people were detained in connection with the raids.

Trends

The number of representatives of indigenous peoples in Russia has increased by 25 percent over the last 12 years and totals 306,000, the Federal Statistics Service announced in June. Indigenous peoples make up between 19 percent and 40 percent of the population in Evenk, Chukotka, Koryak and other autonomous okrugs.

Russians spend 27 hours a week watching television compared with 14 hours listening to radio, according to a survey of 1,600 people conducted by ROMIR Monitoring in May. Russians also spend 12 hours sitting at their computer versus 10 hours a week reading books, magazines or newspapers. Of the national radio stations, Mayak was the most popular, with 40 percent of respondents saying that they tune in. Radio Rossii and Evropa Plus were tied for second place.

Over 21,000 religious organizations of 59 different faiths have been registered in Russia, First Deputy Justice Minister Yevgeny Sidorenko announced in May. Over 2,000 checks on the activities of religious associations carried out last year resulted in the dispatch of 1,900 warnings for infringements on legislation, and 246 applications to courts for the closure of various religious organizations. Over 4,000 churches and monuments and 15,000 items in museums were returned to the Orthodox Church over the last decade.

Some 700 people die of conditions caused by smoking in Russia each day, Andrey Demin, president of the Russian Association of Public Health, announced in May. Up to 70 percent of men, 30 percent of women and over 50 percent of teenagers smoke in Russia. The tobacco market is estimated at $4-8 billion, which is twice the size of the market for medicine.

Illicit trade in drugs fetches up to $10 billion per year – nearly the equivalent of one-tenth of government budget revenues – Oleg Kharichkin, deputy head of the Federal Anti-Drug Service, announced in June. There are about 500,000 drug users in Russia. Around 65 percent of drug arrests are related to opiates, such as heroin, although amphetamine use in clubs and discos is growing. The agency has only managed to confiscate 72 million rubles ($2.5 million) in illegal proceeds this year, in the form of apartments, cars, dachas, money and other property, Kharichkin said.

A quarter of Russians consider themselves victims of police abuse, according to a survey of 2,013 residents in the country’s 12 largest cities conducted by the Yury Levada Analytical Center in May. More than 80 percent of respondents said the police are corrupt, but still two-thirds said they would turn to the police if they were in trouble.

Around 43 percent of Russians have a negative opinion of the traffic police, according to a survey of 1,500 people conducted by the Public Opinion Foundation in June. Only 14 percent view the organization positively. A total of 34 percent of respondents said the traffic police are not coping with their responsibilities, while 32 percent said they are doing so satisfactorily. A total of 29 percent said the image of a traffic police officer is that of a “bribe-taker”, while 9 percent described him as “someone brazenly and impudently exceeding his authority”. Only 5 percent of respondents described officers as “honest, just and principled”.

The number of civil servants at the federal, regional and municipal level increased by 48,100 in 2003, the State Statistics Service announced in May. The total number as of January 1, 2004 was 1.3 million. The number does not include personnel from the Defense Ministry, Interior Ministry and other law-enforcement agencies. Because of the enactment of changes in the Criminal Code and Criminal Procedure Code, the number of personnel in the courts and prosecutors’ offices increased by 9.5 percent or 14,600. The federal executive department also experienced an increase of 3.3 percent or 14,900.

There are about 50,000 skinheads in Russia, who commit on average 30-40 attacks a month motivated by xenophobia and ethnic enmity, the Moscow Human Rights Bureau’s director, Aleksandr Brod, announced in May. He said that in the past three or four years the number of attacks has increased by about 30 percent annually. Moscow and St. Petersburg are home to about 2,000 skinheads each, and their number in other cities varies from 500 to 1,000. “Neither society nor the state is purposefully fighting against extremism and xenophobia,” Brod said.

Russian Far East

A total of $976.2 million was invested by foreign countries in the Russian Far East in the first three months of this year, the press service of the president’s representative in the Far East announced in June. Around 81 percent of the investment went to Sakhalin, followed by Sakha with 12.6 percent, Khabarovsk Krai with 4.4 percent, Primorye with 1 percent and Kamchatka with 0.7 percent. Around 70 percent of investments were direct.

A total of 6,694 people in the Far East are HIV-positive, the Center for Preventing and Fighting AIDS announced in May. Of these, 5,158 are in Primorsky Krai. The krai has the 14 th-highest rate of infection in Russia. In the country as a whole there are 284,000 people with HIV. Of these, 75 percent were infected via intravenous drug use and 12 percent through sexual intercourse. There are 135 people with HIV in Sakhalin Oblast. Only 75 people in Magadan Oblast – 51 men and 24 women - are HIV-positive. Of these, 43 are from the city of Magadan and the rest are from other districts. More than 90 percent of them are aged between 18 and 39.

Amur Oblast

There are more than 50,000 unemployed people in Amur Oblast, which is over 10 percent of the able-bodied population, the oblast’s employment department announced in May. The average age of the unemployed is 34.

Republic of Buryatia

A total of 39 people earned over one million rubles ($34,400) in Buryatia in 2003, up from 32 the previous year, the tax inspectorate announced in June. Only two people earned over 10 million rubles, ($344,000) down from eight in 2002. One person earned 20 million rubles ($688,000). The total income tax collected in 2003 was 72 million rubles ($2.5 million), an 11-percent increase on the previous year. Of this, 90 percent came from residents of Ulan-Ude.

Chita Oblast

Accidents cost Chita Oblast 10.3 million rubles ($355,000) in the first half of 2004, the oblast department for emergency situations announced in June. A total of 433 people were involved in emergency responses. The biggest accidents were the crash of a Mi-8 helicopter and an explosion at a café. Wildfires also caused considerable damage.

Jewish Autonomous Oblast

Only one-third of this year’s graduates from the Birobidzhan Pedagogical Institute intend to become teachers, the institute announced in May. The others have either found work in other sectors or haven’t made up their minds what they want to do yet. The Jewish Autonomous Republic has 100 vacant teaching positions, of which more than half are in Russian and foreign languages. Last year only one-fifth of the institute’s graduates took up teaching positions.

Kamchatka Oblast

Over 8,000 foreign tourists visited Kamchatka in 2003, the oblast administration announced in May. Of these, 32.4 percent were from the United States, 26.2 percent from Japan, 10 percent from Germany and 8.1 percent from France.

Khabarovsk Krai

It will cost 240 million rubles ($8.3 million) to replace all the old elevators in Khabarovsk’s residential buildings, the Khabarovsk Mayor’s Office announced in May. This year it is planned to replace 86 elevators at a cost of 56 million rubles ($1.9 million). Last year 69 elevators were replaced. In the city there are currently 94 elevators that do not work, and people living in those buildings have to climb the steps to their apartments. Parts from the elevators have been stolen. Thefts of elevator parts cost the city 1 million rubles ($34,500) per year.

Magadan Oblast

The city of Magadan requires at least 100 more doctors for its hospitals to work normally, the Mayor’s Office announced in June. Last year the number of doctors declined by 11 and other health workers declined by 62. There are only 20 full-time therapists for 56 posts and 15 pediatricians for 34 posts. Low salaries are the reason for the shortage.

Primorsky Krai

A total of 116 people in Primorye earned between 1 million ($34,400) and 10 million rubles ($344,000) in 2003, the tax inspectorate announced in June. Another three people earned over 10 million rubles. The highest income declared was 55.9 million rubles ($1.9 million). The total income tax collected in 2003 was 190.2 million rubles ($6.6 million).

Primorye’s fish-processing plants are working at only one-third of their capacity, the deputy head of the krai administration’s fishing department, Georgy Martynov, announced in May. In 2003 the plants processed only 33,000 tons out of a possible 100,000 tons of fish. A total of 108 fish-processing plants were registered in the krai last year, out of which 40 were considered large companies.

Sakhalin Oblast

Forest fires on Sakhalin in 2003 caused damage that cost over 335 million rubles ($11.6 million), the oblast administration announced in May. Fires destroyed over 23,000 hectares (57,000 acres) of land. Only seven criminal cases were opened in connection with the fires, out of 92 investigations. In five of the cases the culprits were brought to justice.

Note: unless otherwise stated, all dollar figures are at current exchange rates.

Sources include:

BISNIS - http://www.bisnis.doc.gov/bisnis/country/fareast.cfm
Chukotka.org - http://www.chukotka.org/index.html
Interfax - http://www.interfax.ru/?lang=EN
Moscow Times - http://www.moscowtimes.ru/indexes/01.html
RFE/RL (Radio Free Europe/Radio Liberty publications)- http://www.rferl.org/
RosBusinessConsulting - http://top.rbc.ru/english_index.shtml
Russian Regional Report
Sakhalin Independent - http://sakhalinindependent.com/
Sakhalin.ru - http://www.sakhalin.ru/
Vladivostok News - http://vlad.tribnet.com/news.html
Vostok-Media - http://www.vostokmedia.vl.ru/

Announcements

FRAEC and USAID announce

Request for Applications - New and Roll Out Partnerships in the Russian Far East

Fourth Round of Grants - U.S.-RFE Partnership Activity
New U.S. West Coast - Russian Far East Partnerships
Deadline for Proposals: August 31, 2004
The New U.S. West Coast – Russian Far East Partnerships program supports non-commercial initiatives that will strengthen democratic society, improve the economic environment in the RFE, and further integrate the RFE into the Pacific Rim. Grants, up to a maximum of $70,000, will be awarded for one-year activities implemented by NEW partnerships between U.S. West Coast and Russian organizations focused on the RFE. Strategic focus areas for New Partnerships include Rule of Law, New Strategies for Social and Economic Infrastructure Development, Support of Environmental Advocacy, Good Governance, and Child and Youth Welfare Practices. Please see the RFA for New Partnerships at: http://www.fraec.org/NewPartnerships.htm

Russian-to-Russian Roll Out Partnerships
Deadline for Proposals: August 31, 2004
The Russian-to-Russian Roll Out Partnerships program supports replication of best practices in the Russian Far East achieved through previous Russian-American collaboration. Grants, up to a maximum of $20,000, will be awarded to partnerships between Russian organizations for 6 – 12 month projects to replicate experience in the strategic areas of this program to new regions or communities. An American partner may be included and is eligible to receive up to $5,000 for travel-related expenses to and from the Russian Far East project site. The strategic areas include Rule of Law, Professional Association Strengthening, Small and Medium Enterprise (SME) Development, Support of Environmental Advocacy, Good Governance, and Social and Economic Infrastructure Development.

Please see the RFA for Roll Out Partnerships at: http://www.fraec.org/RollOut.htm

Business Information

Calendar

Business Associations

Russian Far East Regional Customs Brokers Association in Vladivostok works on issues related to customs brokerage business development and customs infrastructure development. Contact: Vitaly Basenko, Executive Director; tel.: (7-4232) 515-112, 414-779; e-mail: fecba@roof.ru ; web: www.dvratb.roof.ru

The Far-East Confederation of Business Women in Vladivostok promotes businesses owned and managed by women and improvement of the general business climate through influence on and dialogues with local government. Contact: Irina Tumanova, Director; tel.: (7-4232) 439-955, 436-259; e-mail: vladmmc@stl.ru. (BISNIS)

Rotary Clubs

Vladivostok Central Rotary Club. Meetings: Tuesdays, 6-7 pm at the Conference Hall of the Far Eastern State Academy of Economy and Management. Nikiforova St. 53-A-, apartment 24. President: Vladimir Svitich, email svitich1@yandex.ru. Home tel.4232-299-015, cell phone 4232-733-817, office tel. 4232-463-159. English-speaking contact Evgenia Klokova, eklokova@fastmail.vladivostok.ru.

Vladivostok Eco Rotary Club (VLADECO) is involved in numerous humanitarian, ecological, and exchange programs. Meetings: Thursdays, 6:00pm, location to be arranged. Please contact an organizer for details. One-day notification is required to attend the meeting. Contact: Alexander (Sasha) Gurko, club president, gurko@vld.global-one.ru; or contact Evgenia Terekhova, past president; tel./fax: (7-4232) 320-600; e-mail: evgenia_t@mail.primorye.ru.

Vladivostok Rotary Club. Meetings: Wednesdays, 5-6pm, House of Journalists. Contact: Svetlana Pasternak, past president; tel.: (7-4232) 22-96-98, 22-15-26 (message); e-mail: rotary@mail.primorye.ru. Postal address: Russia, 690091, Vladivostok, Sukhanova str. 1-12. Translator: Natalia Prisekina; tel.: (7-4232) 26-04-65; e-mail: russinvecchi@stl.ru

Yakutsk Rotary Club. A one-day notification is required to attend meetings. Meetings: Wednesdays, 6:00pm, Regional Museum. Contact: Nadezhda Ertyukova, club president; tel.: (7-4112) 425-260 (work), (7-4112) 253-533 (home); or contact Vyacheslav Ipatiev, past president, TourService Center; tel.: (7-4112) 251-144; fax: (7-4112) 250-897; e-mail: info@yakutiatravel.com

Yuzhno-Sakhalinsk Rotary Club. Meetings: Thursdays, 6:15 pm, Pacific Cafe in SakhinCentr, Kommunisticheskiy prospekt 32. Contact: 1. Alexander Vasilevsky, current president 2003-2004; tel. (7-4242)735-418, e-mail: vasilevski@sakhgu.ru; 2. Svetlana Vasina, past president 1999-2000; tel.: (7-4242) 557-468; e-mail: root@mskcom.sakhalin.su; 3.Tanzilya Ivanova, past president 2000-2001; tel.: (7-4242) 7999-51; e-mail: gestorsakh@yahoo.com

Travel

RussiaJetDirect begins weekly flights from Anchorage to Yuzhno-Sakhalinsk, Sakhalin, coming from Houston and Seattle, on October 5. Flight time is just over 18 hours on a Boeing 737-800 and the company offers a 15 percent discount on all pre-purchased seats. Contact tel: 877-787-2449. This information provided by World Trade Center Alaska.

Circumpolar Expeditions (CP) can arrange charter service from Alaska to Russia. CP has been specializing in logistical support to Russia since 1991. CP will handle all air, hotel, visa support etc. to Russia, in addition to services for Russians to travel to the U.S. Contact tel: 907-272-9299, toll-free: 888-567-7165, fax: 907-278-6092, e-mail wallack@arctictravel.net, web page www.arctictravel.com.

International Travel Consultants (ITC) can arrange charter service from Anchorage, Alaska, to Yuzhno-Sakhalinsk, Sakhalin. In addition to this charter service, ITC can handle any scheduled carrier's reservations and ticketing, including SAT (Sakhalin Air). Contact in the U.S.: tel.: (907) 561-7722; fax: (907) 561-3600; e-mail: itcinc@alaska.net; contact Sakhalin-Alaska Consulting Group in Yuzhno-Sakhalinsk: tel.: (7-4242) 728-335.

Mavial [Magadan Airlines] provides service from Anchorage, Alaska, to Petropavlovsk-Kamchatsky, Kamchatka Oblast, and to Magadan and return. Mavial has coordinated these Anchorage--Petropavlovsk-Kamchatsky--Magadan flights to facilitate connections with Khabarovsk and Vladivostok on other regional carriers Dalavia and Vladavia and can also write tickets for Dalavia and Vladavia. Mavial is also providing charter service between Anchorage and Petropavlovsk-Kamchatsky, and Anchorage and Anadyr. Contact in Anchorage: (907)248-2994, e-mail: magadanair@alaskalife.net

Bering Air continues to fly charters between Nome, Alaska, and Provideniya, Chukotka. It plans to begin direct service to Anadyr, Chukotka, in the future, when the Anadyr airport opens as an international airport. Contact in Nome: (907) 443-5620, Elena@beringair.com or info@beringair.com.

Korean Air provides direct Anchorage-Seoul service. The airline also flies Seoul to Vladivostok three times a week. Connections to other Russian Far East destinations on Russian air carriers are available, but Korean Air does not do the ticketing for them, nor do most travel agencies in the U.S. (see notes on Mavial, ITC and Aeroflot). Contact in Anchorage: (907) 243-3329 or 1-800-438-5000.

Northwest Airlines provides connections between Anchorage-Seattle-Seoul or Tokyo daily, in conjunction with Alaska Airlines. Connections to Russian Far East destinations on Russian air carriers are available, but Northwest does not do the ticketing for them, nor do most travel agencies in the U.S. (see notes on Mavial, ITC and Aeroflot). International reservations tel.: 1-800-447-4747.

Aeroflothas ruled out providing direct service between the U.S. West Coast and the Russian Far East. The company does continue service from the U.S. West Coast to Moscow and then from Moscow to the Russian Far East. Aeroflot also says it can write tickets for some Russian air carriers. Contact in Seattle: (206)464-1005.