GUSINSKY SUMMONED FOR QUESTIONING

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GUSINSKY SUMMONED FOR QUESTIONING

Izvestia, November 2, 2000, p. 2

The General Prosecutor’s Office released a statement yesterday to the effect that Gusinsky had been summoned for questioning. The General Prosecutor’s Office intends to charge him under Article 159 of the Criminal Code of the Russian Federation (“fraud”).

According to the statement, the investigation has found that in 1999 Media-Most and some of its subsidiaries had debts exceeding their assets, and were operating at a loss. Under the circumstances, Gusinsky and other Media-Most executives should have wound up the company and its subsidiaries.

The statement reads: “Despite this, Gusinsky – as owner of Media-Most and its subsidiaries – and other Media-Most executives used the essentially nonexistent assets as security for loans exceeding $300 million and over 5 billion rubles… The latest amnesty does not apply to Gusinsky, regardless of his state award, because of the serious nature of these allegations.”

TOP BRASS VISITING INGUSHETIA

Izvestia, November 2, 2000, p. 3

Interior Minister Vladimir Rushailo has visited Ingushetia. Almost 200 Interior Ministry generals from various Russian regions accompanied the minister. Additional security measures were in force in Ingushetia during the visit.

A Federation Council commission, headed by Governor Ivan Sklyarov of Nizhny Novgorod, was also present in Ingushetia.

All these visits are being attributed to the eighth anniversary of the conflict between Ossetia and Ingushetia.

RUSSIAN FAR EAST PRESIDENTIAL ENVOY PLANS TO VISIT JAPAN

Izvestia, November 2, 2000, p. 3

Konstantin Pulikovsky, presidential envoy for the Far East federal district, intends to visit Japan in late November. He will meet with Japanese business leaders to discuss investment in the economy of the Russian Far East.

SECURITY COUNCIL AND FREE SPEECH

Izvestia, November 2, 2000, p. 3

On a visit to Britain, Security Council Secretary Sergei Ivanov was quoted as saying that the Russian authorities were not encroaching on free speech – while the media restricts itself to defending human rights and national security interests.

Ivanov: The Security Council supports free speech, the right of Russian citizens to have access to information, and punishment of those who deliberately withhold information from the people.

RUSSIAN MILITARY HARDWARE RUNS INTO TROUBLE ABROAD

Moskovsky Komsomolets, November 2, 2000, p. 2

South Korea has decided against buying three of Russia’s latest-model diesel powered submarines. Seoul’s stated reasons include unreliable telecommunications systems and weak batteries. India is still considering whether to buy submarines from Russia.

The quality of the military hardware is probably not the problem; but maintenance is. If the hardware is used and serviced properly, its performance is above reproach. Romania, for example, still uses some ships built by the Soviet Union. Half the world uses Soviet Kalashnikov firearms.

Meanwhile, Russian Prime Minister Mikhail Kasianov has been promoting KA-50-2 (Erdogan) helicopters in Turkey. Kasianov has offered Turkey these helicopters at a considerable discount, and some of them will be handed over to Ankara as partial payment of Russian state debts to this country. Moreover, Russia is even prepared to allow Turkey to produce these helicopters under license.

AN UPDATE ON THE PRESIDENT’S RATING

Trud-7, November 2, 2000, p. 4

President Vladimir Putin’s approval rating remains high. His actions are approved by 71.5% of respondents and disapproved by 19.6%, according to the independent Russian Public Opinion Center. This poll surveyed 2,000 Russians aged 18 and over, in mid-October.

RUSSIA’S ECONOMY IN THE FIRST THREE QUARTERS OF 2000

Parlamentskaya Gazeta, November 2, 2000, p. 3

The State Auditing Commission has endorsed a progress report on implementation of the budget in the first three quarters of 2000. The document states that positive trends and growth in major macroeconomic indicators continued in the Russian economy. However, growth slowed and inflation became more noticeable in the second quarter. In the first quarter, GDP was 108.44% compared to the same period of 1999; while in the second quarter it amounted to only 106.7% of the 1999 equivalent.

BEREZOVSKY WILL BE QUESTIONED

Nezavisimaya Gazeta, November 2, 2000, p. 3

Deputy General Prosecutor Vasily Kolmogorov claims that his subordinates have “convincing evidence” which makes it possible to charge those involved in the Aeroflot case with “major fraud”. From November 13 onwards, all such individuals, including Boris Berezovsky, will be summoned for questioning.

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