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RUSSIAN FAR EAST NEWSMarch 2004Covering the region with news, analysis and insights since 1991 Table of Contents
FeaturesFrom the Editor - Sarah HurstThis month we were fortunate enough to receive two books dealing with the challenges of the Far East. The Siberian Curse looks at the specific problems of extremely cold weather and the legacy of Soviet central planning, while The Russian Far East suggests ways to find a balance between development and conservation. Both of these books are excellent reference sources that should be on the shelves of anyone with a serious interest in the region. As for current news, the year has begun fairly quietly in the Far East and this is probably a good thing. In two weeks' time, of course, Russians go to the polls again to elect a president – or rather, re-elect a president. Vladimir Putin was in Khabarovsk recently to open the Chita-Khabarovsk highway, creating a road link between Moscow and Vladivostok. Does this mean there will be a stronger connection between Moscow and the Far East in Putin's second term? Watch this space. U.S.-Russian Far East ActivitiesAnchorage company camps it up on SakhalinYou have to be tough to do business in the Russian Far East. That's why Harry Pursell, a 77-year-old who ran up and down an Alaska mountain in an annual race until just a few years ago, has made his company a success in the Sakhalin construction industry. It helps, of course, that Arctic Structures has decades of experience building housing that can keep people warm as far north as the Prudhoe Bay oilfields. Pursell began going to Russia on business exchange trips around the time that communism collapsed. In 1991 he won Arctic Structures its first contract there, for a U.S.-Russian joint venture called Petrosakh that had the rights to an oilfield on the east coast of Sakhalin. "They were operating on a shoestring and they talked to us about the possibility of a used camp," Arctic Structures' general manager, Rory Courreges, told RFEN. The company had acquired a number of camps after the construction of the Alaska pipeline in the 1970s, so it sent one over from Anchorage on a barge. It had 285 beds, power generation, a kitchen and recreational facilities. The camp is still operating today. "In 1992 Russia was so hungry for investment, it was very accommodating to foreigners, they treated you like an honored guest," said Courreges. "Those were the honeymoon days. Customs was easy, building officials were easy, there was very little red tape or hassle." Courreges had learnt Russian in the U.S. military, at the Defense Language Institute. He got on well with the Russian laborers, who comprised 80 percent of the project's workforce. However, for those Americans who didn't speak Russian, language wasn't much of a problem. "Construction workers can get what they need across with very little help from an interpreter. You use drawings. We generally have about one interpreter per job." In Arctic Structures' current projects 100 percent of the workers are Russian, with supervisors occasionally coming over from Alaska. "When we first got there, there wasn't much in the way of initiative," said Courreges. "If they hit a stumbling block they would all stop. That's changed tremendously." Safety standards have also improved since the arrival of Western oil companies, which enforce the rules strictly. Other differences between Russians and Americans are more entrenched: "Russians are much firmer negotiators. Americans tend to want to be popular and be liked, even if they're by our standards tough negotiators. Russians have more of a blunt attitude." After the first contract, Harry Pursell began spending about half of his time in Russia trying to develop business there. The company bought a half interest in a hotel in Nogliki, Sakhalin, which is the jumping-off point for the oilfields. In 1998 Arctic Structures was asked to build a school in the Kurile Islands. By then bureaucracy was starting to make a comeback and the project took about nine months instead of the six it would have taken in Alaska, because of the time it took to get permits. The company brought its own camp over for the workers to live in and even its own chef. "That was a very successful job," said Courreges. "We had good interaction between the expatriates and the local workers. We got a lot of training done. The workers were well-educated – the high school education there is better than here. They're resourceful because they've had to do without. We've had fantastic results." The average wage for Russian workers on the construction projects is about $4 hour, which is better than average on Sakhalin. Legally they are also entitled to 58 vacation days per year, plus public holidays. Although Harry Pursell has an excellent relationship with the Sakhalin Oblast administration, the process of obtaining permits is still a challenge for Arctic Structures. In Alaska they would go to one authority to obtain a building permit. On Sakhalin "you have to gather an unbelievable number of signatures from different organizations," Courreges said. The company deals with this by hiring a Russian engineer who knows the system. Permits from the federal government, the oblast government and the city government are required. Most recently, Arctic Structures built an 840-bed camp for the Chayvo oilfield, part of the Sakhalin-1 project operated by Exxon Neftegas Ltd. Courreges believes that the majority of the company's work might be in Russia for the next few years, as Sakhalin is in the middle of a boom. Being from Alaska puts Arctic Structures in an ideal position to take advantage of these opportunities. "If you've never worked in an Arctic climate, you're going to make mistakes," said Courreges. He sees life gradually improving for the people of Sakhalin, too, despite the problems with heating and power. "Someone with an automobile, a computer and a big TV in their house will say things aren't any better. When I started going over, there was almost nothing to buy in the grocery store, there were ration cards. Now it is expensive, but if you have the money, you can buy anything you want." New BooksThe Russian Far East: A Reference Guide for Conservation and Development by Josh Newell Review by Sarah HurstFinding hard facts about the Russian Far East can be as thankless as trying to row across the Bering Straits in a leaky kayak, but Josh Newell is a master and commander on these stormy seas. His RFE reference guide is packed with useful information, presented in a beautifully simple and readable format. It includes 53 detailed maps and dozens of photographs, some full-color. The book starts with an overview of the RFE and then each chapter is devoted to a different krai or oblast, albeit in seemingly random order: Primorsky, Khabarovsk, JAO, Amur, Sakha, Magadan, Chukotka, Koryakia, Kamchatka and Sakhalin. However, it is easy to flick from one to another as the regional names are printed on a black background on the right-hand side of each page. Each chapter is divided into the same sections, an introduction to the geography and industries of the region, followed by "Ecology", "Biodiversity hotspots", "Economy", "Toward sustainable development", "Indigenous peoples", "Legal issues", and "Perspective". A quick browse can take the curious reader from an article about ginseng in Primorsky Krai to a map of indigenous lands of Khabarovsk Krai and a photograph of a snow-covered house in Verkhoyansk, Sakha, considered the coldest inhabited place on earth. You can dip in and out of the book, or read the chapters straight through, or look up something specific, which is easy to do with the help of the index, notes and appendices. This was a labor of love by the 35-year-old author, who has led an adventurous life, working for Friends of the Earth in Vladivostok and Japan, reporting on corruption in the Russian timber trade, campaigning to improve the environmental performance of Sakhalin oil and gas projects, and somehow managing to fit in a master's degree in geography at the University of Washington. Newell doesn't take all the credit, though, as the book is an expanded edition of the 1996 work he co-authored with Emma Wilson; and there are numerous other contributors to this current work. The book identifies a raft of complex problems, but its tone is neither depressing nor polemical as it is also full of constructive recommendations. For example, the Jewish Autonomous Oblast has "rich natural resources… advantageous geographical location… stability… flora and fauna" and "the climate of the JAO is better than it is in many other parts of the country". Development should be promoted by "making interagency structural changes that promote sectors which create consumer products, minimizing wasteful use of energy and natural resources, using ecologically safe technologies, minimizing transportation expenses, creating industrial structures that can adapt to the new market economy." Where Stalin failed to attract many people to the JAO, this book might succeed. This is not to imply that the Far East's failings are glossed over. In Amur Oblast, 45.6 percent of the population has a per-capita income below the poverty line. In Chukotka, open-pit mining "visibly damages the landscape, eliminates reindeer pastures, ruins wildlife migration routes, causes sedimentation of rivers by run-off, and poisons groundwater," while in Koryakia mining is "ecologically catastrophic". Poverty, pollution and corruption are recurrent themes throughout the book. The state of the zapovedniks (nature reserves) is examined in depth, with a great deal of information about the Far East's endangered species of flora and fauna. The "Perspective" sections give insights into political scandals, development and demographic trends, such as the history of Jewish settlement in the Jewish Autonomous Oblast. One slight weakness of the book is that it is not entirely up-to-date. There is a reference to the trial of environmental whistleblower Grigory Pasko, but no mention of his release from prison in January 2003. Igor Farkhutdinov, who died in August 2003, is referred to as the current governor of Sakhalin. Figures are given for Magadan government wage arrears from 2000. Nevertheless, The Russian Far East is a magnificent achievement, and will be relished by experts and newcomers to the subject alike. The following is an extract from the Overview section of the book:TimberAlthough the timber industry has traditionally accounted for between 5 and 10 percent of the RFE's total industrial production, its importance to the economic and social fabric of village life in some regions is far greater. In the timber-rich southern RFE, especially Khabarovsk and Primorsky Krais, log exports contribute a large portion of hard-currency revenue. For many other towns and villages, the closure of wood-processing enterprises, a trend that began after perestroika, has been devastating, causing a loss of jobs, tax revenue, and basic services such as a stable energy supply (the boilers used in timber mills often provide centralized heating for communities). Official timber productions for the RFE indicate a dramatic decline in harvest, with 2000 production registering just a third of 1985 levels. This would suggest that accessible forests have had some respite from decades of overlogging, including wasteful and destructive practices such as clear-cutting, where all trees in a given plot are logged. (Clear-cutting has contributed to the steady replacement of mature conifer forests with second-growth deciduous forests at a rate of about 0.8 percent a year.) In fact, these practices may have become even more prevalent than during the Soviet era. Higher energy and transport costs have combined with a market shift from states of the former Soviet Union to China, Japan, and South Korea to increase overlogging in forests accessible to these markets. Biologically diverse forests in the southern region (Primorsky and southern Khabarovsk Krai) have been particularly hard hit. The collapse of processing, caused by decreased domestic demand, has meant that woodchips, branches, and smaller logs used to make sawnwood, plywood, and pulp and paper, are left at logging sites – increasing the already enormously wasteful operations and providing fuel for potential future fires. These Asian markets are radically changing the type of species logged and the type of wood product produced (logs rather than sawnwood, plywood, etc.) as timber companies from the RFE and Eastern Siberia compete to meet demand. The increase in high-grade logging, whereby only large-diameter, commercially valuable trees are felled, is one result. Chinese and Japanese demand for ash logs, prized for housing construction, has led to another: logging along protected river basins (Group I forests) that are crucial for regulating water levels. And the continued high demand for harvest-restricted Korean pine logs has led to an overharvest of that species, significantly reducing an important food source (pine nuts) for many animal species in the Ussuri Taiga. Official production figures are considerably clouded because many logging companies, particularly smaller ones, operate illegally. Numerous small firms emerged as the industry was privatized, and the government has been unable to regulate them. According to a study by World Wildlife Fund Russia, 50 percent of total timber harvest in Primorsky Krai in 1999 was illegal. In addition, leskhozes, the regulatory bodies responsible for forest protection, abuse salvage logging policies and regulations to augment their budget shortfalls; unscrupulous leskhoz officials also sometimes seek to enrich themselves. This corruption has fostered widespread indifference among timber companies toward logging regulations, creating a "frontier mentality" in the RFE. It is now difficult if not impossible to enforce timber harvest regulations and collect stumpage and licensing fees. Honest timber companies struggle to compete with illegal loggers. The greatest long-term threat to the region's forests, however, is rising wood consumption in Northeast Asia. Russia has emerged as the largest log supplier for China, Japan, and South Korea. Massive flooding in China in 1998 – attributed to the widespread deforestation of upper river watersheds – forced the central government to strictly limit timber harvests to protect the few remaining natural forests and to prevent further soil erosion. This policy led to a tripling of Russian log imports to China in just four years (1999-2002). By 2025, China may face a deficit of 200 million cu. m of wood per year, or 15 times the total reported yearly harvest in the RFE. Regional governments have continually called for investment in wood processing, recognizing the advantages of providing such products to these booming markets; larger, more sustainable revenues, more jobs in local communities, and a slowing of timber harvest by increasing the use of secondary products (woodchips, branches). The latter advantage would in turn reduce pressure to continually open up "frontier forests" for exploitation. But such investment has not been forthcoming, primarily due to illegal logging, capital flight, and corruption. The Russian government has taken measures to reform and better regulate the industry; President Putin himself branded the industry "uncivilized". But efforts so far have been largely unsuccessful because the same government agencies responsible for forest protection are among the violators. The future health of the RFE forests depends upon effective Russian government regulation of the industry, substantial cuts in Chinese and Japanese timber imports, and the development of a competitive processing industry… Rejuvenating processing.A number of regional governments recognize the benefits of reviving processing, an industry that collapsed in the 1990s. The Khabarovsk government has issued directives requiring at least 20 percent of the krai's timber harvest be processed locally, although enforcement of this regulation has proved virtually impossible; for example, some foreign companies promise to process timber simply to access forest resources. The Malaysian logging firm Rimbunan Hijau, which logs the Sukpai River watershed in southern Khabarovsk, agreed to process 20 percent of its cut timber but hasn't done so and continues to export Sukpai logs to Japan and China. Some processing ventures, however, have established themselves in the RFE. Several Japanese-Russian joint ventures process timber. STS Technowood, a joint venture between the Russian firm Terneiles and Sumitomo Corporation, is the largest of the ventures and produces about 30,000 to 50,000 cu. m of lumber for export to Japan. But recent developments in China are likely to hinder Russian efforts to modernize its processing industry. Chinese limits on domestic logging forced the timber industry in Manchuria, China's main timber-producing region, to search for new log sources. At least 300 sawmills operate in Manchuria and process about 4 million cu. m of timber annually. These mills already use Russian timber and may be exporting sawnwood made from Russian logs to Japan, Taiwan, and elsewhere. Since 1996, Chinese sawnwood exports to Japan have grown dramatically. If China is indeed modernizing and expanding this industry to capitalize on growing demand for processed timber, firms in the RFE would have to compete with Chinese suppliers for the Japanese and South Korean markets. Chinese suppliers and Japanese investors, however, are more likely to invest in Chinese processing mills due to cheaper labor and greater economic and political stability. In Manchuria, many small sawmills have been established with Taiwanese investment, some as joint ventures and others as Taiwan-owned companies. Despite declining harvests in China, there are new timber-processing enterprises springing up in Heilongjiang Province. The Chinese timber companies Nacha Wood, Lancian Wood, Mudanjiang Forest Wood, San Gan Ling, and Xin Yang Wood together have the capacity to process more than 600,000 cu. m annually; this indicates an already sizeable processing industry is in place. The Russian government is aware of this threat: stipulations regarding processing are prominent in recent Russian-Chinese timber harvest agreements. In March 2002, for example, the Hebei Forestry Bureau, a division of the Forest Industry Bureau in China's Heilongjiang Province, agreed with the Russian government to log 200,000 cu. m and produce 50,000 cu. m of sawnwood in the Jewish Autonomous Oblast. Plans to develop similar logging and processing ventures in Primorsky and Khabarovsk Krais and Amur Oblast exist, but may not reach fruition because they require large-scale investment and acceptance of political and economic risks. Khabarovsk Governor Viktor Ishaev has issued an ambitious decree calling for raw log exports to cease by the end of 2003, with only processed wood products allowed for export thereafter. According to the U.S. and Foreign Commercial Service, a division of the U.S. Department of Commerce, this would not only create new jobs but also increase profits three- to fifteenfold. Such a radical transformation, however, would require massive investment, which is unrealistic to expect as continued corruption discourages Russian and foreign timber companies from the long-term investments needed to develop processing. These companies would rather keep their products abroad than reinvest. The effort to ban raw log exports also faces stiff resistance from certain ministries in Moscow that are preparing the country for entry into the World Trade Organization, which is likely to consider such a measure protectionist. Finally, some within the timber industry, fearing the loss of the Asian log market, would resist the ban as they did when the Primorsky administration passed a decree in 1998 banning the export of ash logs. The regional prosecutor overturned the 1998 ban after complaints from certain individuals within the industry. The Siberian Curse: How Communist Planners Left Russia Out in the Cold
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6/28/03 |
7/31/03 |
8/28/03 |
9/30/03 |
10/31/03 |
11/30/03 |
12/31/03 |
1/31/04 |
2/29/04 |
30.35 |
30.26 |
30.39 |
30.61 |
29.86 |
29.74 |
29.45 |
28.49 |
28.52 |
The State Statistics Committee calculated the consumer price index inflation for recent months at:
1/03 |
2/03 |
3/03 |
4/03 |
5/03 |
6/03 |
7/03 |
8/03 |
9/03 |
10/03 |
11/03 |
12/03 |
1/04 |
2.4% |
1.6% |
1.1% |
1.0% |
0.8% |
0.8% |
0.7% |
-0.4% |
0.3% |
1.0% |
1.0% |
1.1% |
1.8% |
Russia's economy grew 7 percent in 2003, the fifth consecutive year of growth, the Economic Development and Trade Ministry announced in January. Last year's growth was the second-fastest since the collapse of the Soviet Union in 1991, only exceeded by 10 percent expansion in 2000. Growth is being driven by oil prices that are about $5 per barrel more than government forecasts and by soaring wages, which are driving demand for real estate and consumer products. Real wages rose 10 percent last year.
Capital flight from Russia's private sector declined from $8.1 billion in 2002 to $2.9 billion in 2003, the Central Bank announced in January.
Russia's industrial production rose 7 percent last year, the fastest rate in three years, the State Statistics Committee announced in January. Machine-building grew 9 percent in 2003, while fuel output rose 9.3 percent and ferrous metals grew 8.9 percent.
Russian companies produced 421 million tons of oil in 2003, which was 11 percent more than the previous year, the State Statistics Committee announced in January. The volume of primary oil refining reached 190 million tons last year, which was 2.7 percent more than in 2002. Natural gas production reached 620 billion cubic meters, 4.2 percent more than in 2002.
Russia increased coal production 7.9 percent to 274.7 million tons in 2003 to meet growing global and domestic demand for fuel, Anatoly Skryl of the Rosinformugol analytical company announced in January. Russian coal exports grew from 50 million tons to 57.8 million tons in 2003.
Russian Aluminum, which makes an eighth of the world's aluminum, increased output 4.3 percent in 2003 to 2.6 million tons after upgrading smelters, the company announced in January. Sales rose 12 percent to $4.5 billion. The company produces about 70 percent of Russia's aluminum and exports 90 percent of its output.
Russia increased automobile production 4.9 percent from 1.2 million in 2002 to 1.3 million in 2003, ASM Holding, which collates Russian automotive sector statistics, announced in February. Russia rolled out 1.0 million cars last year, up from 980,061 in 2002. Russia produced 194,714 trucks, including chassis, up from 174,250 in 2002. The country produced 76,530 buses, up from 67,308 in 2002.
Russia's production of vodka and other strong alcoholic beverages declined by 3.3 percent in 2003, the National Alcohol Association announced in January. A total of 464 companies produced 1.3 billion liters of strong alcohol. There were 327 wine producers that turned out 365 million liters of wine, up 9.7 percent, and 110 companies produced 459 million liters of low alcohol-content beverages, a rise of 37.5 percent. About 100 companies produced cognacs and turned out 35 million liters, a 32.9 percent increase. Russia produced 88 million liters of champagne and sparkling wine, up 8.3 percent.
Russia produced 2.3 million television sets in 2003, up 18 percent from 2.0 million the previous year, the Industry, Science and Technology Ministry announced in February. Russia also produced 2.2 million refrigerators and freezers, an increase of 14.5 percent.
Around 90 percent of Russians are confident that Vladimir Putin will be re-elected on March 14 and 69 percent plan to vote for him, according to a poll conducted by the Public Opinion Foundation in February. The second most popular candidate is Nikolay Kharitonov, on 5.4 percent, followed by Sergey Glazev on 3.5 percent. The other candidates' ratings are: Irina Khakamada – 2.2 percent, Oleg Malyshkin – 1.3 percent, Sergey Mironov – 0.4 percent, and Ivan Rybkin – 0.1 percent. Another 2.8 percent plan to vote against all candidates.
The majority of Russians, 52 percent, object to amending the constitution to extend the president's term in office to seven years, and 42 percent do not object, according to a poll of 1,500 people conducted by ROMIR Monitoring in February. Residents of the northwestern and Volga federal districts and cities with populations of over 1 million were more likely to support this type of constitutional amendment. Men were more inclined to object to a seven-year presidential term than women. However, 54 percent of Russians think Vladimir Putin should remain president after his second term of office ends in 2008, 34 percent do not, and 12 percent were undecided. The number of people who would like to see Putin's presidency continue beyond 2008 decreases as their level of income increases.
Russia received $6.5 billion in foreign direct investment in 2003, up 62 percent on the previous year, Finance Minister Aleksey Kudrin announced in January. Despite a fast growth, FDI was less than 10 percent of the country's capital investment of $72 billion in 2003, which was a 12.5 percent increase on the previous year.
Russia's foreign trade surplus soared to $59.6 billion in 2003 from $46.3 billion a year ago, thanks largely to booming oil, gas and metal exports, the Economic Development and Trade Ministry announced in January. Exports totaled $134.4 billion in 2003, a rise of 25.3 percent on the previous year. Imports stood at $74.8 billion, an increase of 22.6 percent.
Russia exported $3 billion-worth of nuclear products last year, a $400 million increase on 2002, Nuclear Power Minister Aleksandr Rumyantsev announced in February. The sales were driven primarily by fuel headed to nuclear plants in former Soviet bloc countries.
Russia's gold exports fell 27 percent last year when the Central Bank sold none of its gold, Valery Brayko, chairman of the Russian Union of Gold Producers, announced in February. Exports of gold dropped to 150 tons from 191 tons in 2002. Gold production increased to 176.9 tons from 170.9 tons. Silver exports jumped to 800 tons from 514 tons after the country's largest silver miner, MNPO Polymetall, raised production.
Russia now has 25 billionaires, up from 17 a year ago, according to Forbes magazine. For the first time Russia has more billionaires than Japan, making it the country with the third-largest group of billionaires, behind the United States, with 279, and Germany, with 52. Moscow, with 23 resident billionaires, is only eclipsed by New York, with 31. The combined value of Russian billionaires' assets grew from $35.5 billion to $79.4 billion. Imprisoned former Yukos CEO Mikhail Khodorkovsky remains Russia's richest man. His assets have grown from $8 billion to $15 billion. Second on the list is Chukotka Governor Roman Abramovich, whose fortune has grown from $5.7 billion to $10.6 billion.
Cellphone operators more than doubled their clientele in 2003 to 36.2 million – 24.9 percent of the population – as over 18 million Russians signed up for cellular services, AC&M telecom consulting firm announced in January.
An explosion in the Moscow metro in February killed 41 people and injured over 130, according to Deputy Interior Minister Aleksandr Chekalin. President Putin immediately blamed Chechen separatist leader Aslan Maskhadov, although it was unclear how the attack had been carried out or by whom.
A total of 561 terrorist acts were carried out in Russia in 2003, a 55.8 percent increase on the previous year, killing more than 200 people, the Interior Ministry announced in January. More than 400 of these attacks occurred in southern Russia, 386 of them in Chechnya. There were 1,367 kidnappings in Russia last year, which was 10 percent fewer than in 2002.
The Russian Defense Ministry lost 263 servicemen in Chechnya in 2003, the ministry announced in February. The figure in 2002 was 463. The Defense Ministry grouping in Chechnya has been reduced from 53,000 to 31,000, with 20,000 servicemen stationed there permanently. Defense Ministry forces are responsible for the mountain regions of Chechnya. A total of 971 Defense Ministry servicemen died in Russia for various reasons in 2003.
An estimated 2.8 million crimes were registered in Russia in 2003, the Interior Ministry announced in January. This was an increase of 9.1 percent on the previous year. Theft increased by 24.2 percent, robbery was up 18.4 percent and assaults were up 3.4 percent. Serious economic crimes were up 2.8 percent.
Around 77 percent of Russians would not want their son, brother, husband or other close relative to serve in the military, according to a poll of 1,600 people conducted by sociologist Yury Levada's analytical service in February. Only 20 percent say they have nothing against military service. This compares with 84 percent against military service in a similar 1998 poll and 13 percent not opposed to it. In the latest poll, 42 percent cited hazing and violence by fellow soldiers as their reason for opposing military service, and another 42 percent cited possible injury or death in combat.
Around 19,000 people died in fires last year in Russia, most of which were blamed on negligence, the Emergency Situations Ministry announced in January. Of those who died, 774 were children. More than 14,000 people were injured in fires. In total there were about 240,000 fires last year. The number of Russia's fire victims is nearly five times more than in the United States, which has twice the population. The contrast is even starker with Britain, where one in 100,000 people dies in a fire every year, compared to 12.5 per 100,000 in Russia.
The death toll from car accidents in Russia last year was around 35,500 people, a 7 percent increase on 2002, the traffic police announced in January. Another 244,000 people were injured in car accidents, a 13 percent increase on 2002. The total number of accidents rose by 10 percent.
Around 56 percent of Russians think that corruption and bribes are one of the biggest problems in the country, while only 6 percent believe that these problems are minor, and another 6 percent have never had any problems with corruption, according to a poll of 1,580 people conducted by ROMIR Monitoring in January. Around 30 percent say that corruption is a problem, but it does not rank among the most significant problems in the country. The highest rate of people who regard corruption as a key problem live in the Far Eastern federal district (84 percent) and the rate is the smallest in the northwestern district (39 percent).
Around 37 percent of Russians do not drink vodka at all and are therefore not concerned that it is going to become more expensive, according to a poll of 1,600 people conducted by ROMIR Monitoring in January. A change was made in alcohol excise collection on January 1. Another 32 percent of respondents said the news that vodka was becoming more expensive was unpleasant for them, but they have taken it quite well as their family members do not drink much vodka. A total of 15 percent said there is nothing wrong with higher vodka prices as cheap vodka will always be on sale as well. Another 8 percent were not upset by the news because they buy expensive vodka anyway, while 6 percent said the increase in prices would be a blow to their family budget and 2 percent were undecided.
Russian domestic carriers marked a third straight year of growth in 2003, flying 10.8 percent more passengers, Stanislav Ovcharenko, head of the State Civil Aviation Service licensing department, announced in January. The country's 215 airlines carried 29.5 million people last year. Flagship carrier Aeroflot carried 5.8 million passengers, up from 5.5 million in 2002. No.2 Sibir reported a 26 percent passenger increase, serving 3.4 million travelers. No.3 Pulkovo flew 2.4 million passengers, 16.1 percent up on the previous year.
The Far East's gross regional product increased by 6.9 percent in 2003 compared to the previous year, the president's representative in the region, Konstantin Pulikovsky, announced in February. Sakha accounted for a 23.0 percent share of regional production followed by Khabarovsk Krai (21.4 percent), Primorye (19.8 percent), and Sakhalin Oblast (14.1 percent). The economies of all the Far East's krais and oblasts grew, with the exception of Amur Oblast. The fastest growth was seen in Sakhalin Oblast (128.1 percent), Chukotka (110.2 percent), Khabarovsk Krai (107.6 percent) and Primorye (107.0 percent).
In the safes of the Far East Sberbank ( Russia's state bank) there are more than 30 kg of gold, 23 billion rubles ($804 million) and $184 million, the bank announced in January.
Gold production in Amur Oblast increased by 7.4 percent to 13.1 tons in 2003, Nikolay Starkov, head of the regional administration's Natural Resources and Mining Sector Department, announced in February. This was due to an injection of local and foreign investment and the full introduction of an ore mill at the British-owned Pokrovsky gold mine. Gold sales increased by 900 million rubles ($31.6 million) to 4.5 billion rubles ($158.2 million), which was a quarter of revenues from all industries.
There were 24 ruble millionaires in Buryatia last year, up from 18 in 2002, according to their tax declarations. Eight of these earned more than 10 million rubles ($350,800). One person earned 127 million rubles ($4.4 million) and paid 17 million rubles ($600,000) in taxes.
The people of Chukotka are more satisfied with their standard of living than anyone else in Russia, according to a survey conducted by Sotsio-Metriks in January. A total of 56 percent of respondents in Chukotka said their standard of living has improved in recent times, which was double the rate found in any other region covered by the survey. Only 11 percent of Chukotka respondents described their situation as bad or getting worse. Less than 4 percent reported experiencing difficulties connected with health care, education or the environment. An overwhelming 95 percent of Chukotka residents positively evaluated Governor Roman Abramovich's work.
The Russian president's fund has allocated 1.5 million rubles ($53,000) to renovate an old people's home in the village of Paratunka and 2 million rubles ($70,000) for a home for the mentally ill in the village of Yagodny, the Kamchatka Oblast administration announced in March.
There were more than 2,400 inspections of food products on sale in the city of Khabarovsk last year, the local administration announced in January. As a result, 1,300 violations were recorded and vendors were fined a total of 2.3 million rubles ($80,700). The most common violations were expired sell-by-dates, unlabelled goods and missing documents. The worst offenders were kiosks and wholesale markets.
There were 64,840 traffic violations in Magadan last year, up from 63,864 in 2002, oblast law-enforcement authorities announced in January. Of these, 2,692 were related to drunk driving and 9,648 were violations by pedestrians. There were 397 traffic accidents last year, up from 368 in 2002, in which 47 people were killed and 565 were injured.
More than 60,000 liters of illegally-produced alcohol worth over 5.9 million rubles ($207,000) were confiscated in Primorye in 2003, the krai's law-enforcement authorities announced in January. Primorye accounted for 70 percent of the criminal cases related to the illegal production and sale of alcohol in the Far East. A total of 400 illegal distilleries were shut down.
A total of 19.8 tons of gold were mined in Sakha in 2003, a 10.8 percent increase on the previous year, Sakha representative in the Federation Council Aleksandr Matveyev announced in February. Diamonds worth $1.8 billion were mined in Sakha last year, a 12 percent increase on 2002.
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
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We are disabled people from the city of Magadan, Russia. We live in the extreme conditions of the Far North and in a community which is extremely hard to live in economically. All categories of disabled persons have very little retirement income from the government. Our pensions seldom exceed $50 a month, although the declared minimum sum for survival is twice that amount.
We have united ourselves into a public non-profit organization to overcome our problems together. Now we are launching a charity action called "Disabled people are citizens of the world". We are calling for the donations we need to establish a center for social and physical rehabilitation. This center would include a clinic on the grounds of the local mineral spring well-known for its healing qualities; a gym with specialized equipment; a bus equipped with a lift for getting wheelchairs on and off, for the disabled, who for years have had no opportunity to leave the city or to visit hospitals and libraries; and such services as legal consulting to protect disabled rights. We are also looking for volunteers, and hope to find friends via the internet.
Now a few words about myself. I’ve been president of our non-profit for the last eight years. I am 42, and lost my sight at nine after a blast from an industrial explosive. I graduated from a college for blind masseurs and improved my skills for four years at the regional hospital. For all these years, my friends and I have been striving to improve our life. However, it’s hardly likely to happen without an adequate public attitude and state support.
Your kind help would be greatly appreciated by our disabled people. If there are any similar organizations for the disabled in the United States or other countries that would like to cooperate us, we would be very glad to hear from you.
Do not hesitate to contact us if you have any questions.
Yours sincerely,
Vitaly Ozmitelenko
REAP International needs people who can teach English in Russian village primary and secondary schools. The location is the Siberian republic of Buryatia, which borders Lake Baikal. Teachers are needed for the 2004-2005 school year. REAP will organize a group, or volunteers can also travel separately. The placements allow teachers to contact each other. We need between 10 and 15 teachers. Knowledge of Russian is strongly recommended (two or more years of study).
Qualifications: We can accept people with English language specialization or with other collegiate specializations. Those without formal English language education should have strong language/communication skills themselves in an allied field, such as journalism, general education, elementary education or extensive training in other languages. Bachelor's or above. Life experiences are also important to us, as there are many possibilities to work with the Buryat people in such areas as youth leadership, small business development, environmental management, agriculture, law and services to at-risk populations. See REAP's sections on volunteering, internships, living conditions and climate at our website, www.reapintl.com. We provide orientation materials as well.
Conditions: Participants are responsible for their own transport to Ulan-Ude, the capital of Buryatia, and cost of the visa. REAP will organize travel. Local schools will provide housing free of charge to the teacher's preferences, either with a family or living separately; and also fuel, electricity, transport and the official invitation are provided. Teachers are paid 2-3,000 rubles per month, depending on the school and your level of education. (Daily meal expenses average about 75 rubles per day.) The villages include local county (raion) centers of 3-5,000 people and smaller villages of 2,000 down to 1,000 or less.
Deadlines: Interested people should contact Bill Mueller, REAP Director, as soon as possible. For the 2004-2005 school year, we want to close out the group by May 15 for travel in August. REAP International, 1109 31st Street, NE, Cedar Rapids, Iowa 52402, (319) 366-4230; fax (319) 366-2209; E-mail: REAP@reapintl.com
"Rotary in Russia: The Next 10 Years - April 3-4, 2004, St. Petersburg." Rotary in Russia, a conference focusing on the development and role of the organization in the country, has been held for the past seven years in locations from Washington D.C. to Sacramento. In 2004, the conference will be held in St. Petersburg, the first conference to be hosted in Russia. Featured speakers at the April 3 and 4 event include Rotary International president Jonathan Majiyagbe from Nigeria and 2004-2005 president Glenn Estess from the United States.
The workshops attract an international mix of participants and provide a venue for Rotarians and others interested in the development of Russia to work together to discuss this issue. In addition to Rotarians, past participants have included representatives from the U.S. Departments of State and Commerce, and leaders of NGOs active in Russia including Counterpart International, FRAEC and the Center for Citizen Initiatives.
The 2004 workshop includes thought-provoking topics such as: Is Rotary in Russia an Extension of American Foreign Policy?; Humanitarian versus Economic Development Programs; and Charitable Status in Russia: Is it Practical? It will also include sessions to discuss the future structure of Rotary in Russia and other related topics.
The detailed conference agenda and speaker arrangements are now being finalized. For more information and registration information, log onto www.rotary5010.org and click the conference link, or contact workshop organizers Steve Yoshida 907-235-7559, steveyoshida@hotmail.com or Will Files 907-235-2443, will@wfiles.us.
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)
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
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.
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