The St. Petersburg Times by wuyunyi

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									N O. 92 (924)                                                                        T UE SD AY, D E CE M B E R 2 , 2003                                                       W W W. S P T I ME S RU S S I A . C O M

                                                                                                                                                                                                       CENTRAL BANK RATE

   City Reaches                                                              Candidates Hit                                                         Vershbow Cites
   Out to Investors                                                          Campaign Trail                                                         Piracy as Hurdle
   Governor’s envoy Brodsky                                                  Voters get speeches, vague                                             U.S. diplomat says pirates
   unveils city plans, Page 5.                                               pledges. Pages 11, 12.                                                 smother progress, Page 9.

Liberal Candidates Suffer ‘Administrative’ Pressures
By Vladimir Kovalev                          getting rid of the so-called “administra-    United Russia party.”                        tors to place campaigning information            thing and his minority is targeted by the
STAFF WRITER                                 tive resource,” saying that the success of      Golov quoted a report written Nov.        only for the State Duma candidate                authorities,” Golov said Monday.
Irina Khakamada, Union of Right              the economically liberal and pro-civil       28 by his campaign assistants, who were      Shevelyov, Alexander Vladimirovich,”                “There is open interference by use
Forces co-leader and a candidate in the      rights parties depends directly on how       refused permission to place advertise-       said an official report signed by Irina          of administrative resources in district
St. Petersburg electoral district No. 209,   big the turnout is.                          ments in Primorsky District school No.       Pakoshova and Mikhail Deryabin, who              No. 210,” he said. “All the schools and
and Anatoly Golov, Yabloko’s candi-              Opinion polls have predicted the         41 located at 1/3 Ulitsa Marshala            visited the school Friday.                       polyclinics are covered with campaign
date in the No. 210 district, on Monday      city will have one of the lowest turnouts    Novikova.                                        Shevelyov is the United Russia can-          materials in Shevelyov’s favor.”
complained they face serious adminis-        in the country.                                 “The school No. 41 director ex-           didate in District No. 210.                         Khakamada was similarly critical of
trative pressure in the election cam-            “We are not able to place [campaign      plained her refusal to place campaign            Neither the school nor the District          unequal treatment by organizations un-
paign.                                       materials] in any organizations with         materials by the fact that she, along        Education Department could be                    der state control.
    Speaking at a news conference at         budgetary financing,” Golov said.            with directors of other schools, had         reached for comment Monday.                         “I faced gibberish of some sort the
the ABN news agency, Golov and               “They have orders from authorities not       signed a document [issued by] Pri-               “A significant number of our citi-           other day when [state-owned television
Khakamada urged St. Petersburg resi-         to accept advertisements except those        morsky District Education Ministry           zens are not going to vote, making it            channel] Rossia broadcast a report of
dents to vote Sunday to assist society in    from candidates running with the             Department that obliges schools’ direc-      possible for minority to decide every-                              See LIBERALS, Page 2

                                                                                                                                                                                        Police Shun
                                                                                                                                                                                        By Alina Ledovaya
                                                                                                                                                                                        SPECIAL TO THE ST. PETERSBURG TIMES

                                                                                                                                                                                        A foreign woman who was raped in St.
                                                                                                                                                                                        Petersburg says going to the local police
                                                                                                                                                                                        for help was a humiliating ordeal and
                                                                                                                                                                                        only added insult to injury.
                                                                                                                                                                                            Sasha, who was willing to be identi-
                                                                                                                                                                                        fied, but whose name has been changed
                                                                                                                                                                                        on the advice of her lawyer, said that at
                                                                                                                                                                                        the beginning of November after a
                                                                                                                                                                                        night out with friends a man attacked
                                                                                                                                                                                        her on the staircase to her St. Peters-
                                                                                                                                                                                        burg apartment. He threatened to dis-
                                                                                                                                                                                        figure her if she resisted or made any
                                                                                                                                                                                        sound, and then had sex with her.
                                                                                                                                                                                            After the attack, she ran downstairs
                                                                                                                                                                                        and called for help. The neighbors
                                                                                                                                                                                        caught her alleged attacker almost im-
                                                                                                                                                                                        mediately and called the police.
                                                                                                                                                                                            “When the police had him in their
                                                                                                                                                                                        custody I thought that everything was
                                                                                                                                                                                        over, that he would be punished,” said
                                                                                                                                                                                        Sasha, a citizen of a European Union
                                                                                                                                                                                        member country, who has lived in the
                                                                                                                                                                                        city for 2 1/2 years and speaks good
                                                                                                                                                                   SERGEY GRACHEV/SPT   Russian. Some other matters relevant
Activists marking World Aids Day in St. Isaac’s Square on Monday. The group, waving placards saying “The Right to Life” was demanding affordable HIV medication.                        to her case have not been mentioned in
                                                                                                                                                                                        this report on the advice of her lawyer.

St. Petersburg Has One of Highest HIV Infection Rates                                                                                                                                       However, despite all the evidence –
                                                                                                                                                                                        the alleged attacker, his victim, wit-
                                                                                                                                                                                        nesses and fresh evidence of the assault
                                                                                                                                                                                        – it was not enough for the police.
By Irina Titova                              fected through sexual contact. In 1999       sharing infected equipment; these peo-       Baltic States, Russia and Ukraine. In                The police press service denied all
STAFF WRITER                                 the city registered only 440 new cases.      ple are relatively isolated from the ma-     Central Asia, the epidemic is expanding          Sasha’s allegations, saying they could
Four hundred out of every 100,000 St.           However, in 2000 the city’s infection     jority of the population. Heterosexual       rapidly, the report said.                        not be true. The service said Sasha had
Petersburg residents are HIV-positive,       rate grew by seven times due to the in-      transmission on the other hand, espe-           These are the worst-affected areas,           been in a state of shock when she had
says Aza Rakhmanova, head of St. Pe-         creased of abuse of drugs in the city,       cially if sex workers are infected, can                                See HIV, Page 2                               See SASHA, Page 2
tersburg center for HIV-positive moth-       and made 5,417 new cases. In 2001 the        expose more of the population to HIV
ers and children.                            number of new cases was 22 times that        risks.
    This puts St. Petersburg into the five   of 1999 to 10,119 people.                        Rakhmanova said St. Petersburg is
administrative regions with the gloomi-         However, last year the number of          characterized by a big number of HIV-
est statistics, Interfax reported her say-   new cases nearly halved to 5,037 and         positive pregnant women.
ing Monday.                                  the trend for a lower number of new              Within the whole period of registra-
    According to the latest data of St.      cases has continued this year with only      tion more than 1,000 children were
Petersburg AIDS Prevention Center,           1,949 recorded in the firsts nine months.    born from HIV-positive mothers, she
the city has recorded 20,873 cases of           However, a worrying tendency is           said.
HIV since 1987.                              that heterosexual transmission is ac-            “Of course, not all of those children
    “Most of the infected are young          counting for an ever greater number of       will be infected, only a third of them,”
people,” Rakhvanova said.                    new cases. Last year heterosexual trans-     Rakhmanova said.
    More than half of those infected are     mission accounted for only 5 percent of          Meanwhile, a recent UNAIDS re-
aged 20 to 40, with one fifth of those in-   new cases but they accounted for 11.7        port on Russia put the country high in
fected aged from 15 to 18.                   percent of new cases in the first six        the list of AIDS spreading next to Cen-
    Until 1999 St. Petersburg registered     months of this year.                         tral Asia and some other countries of
about 100 new cases of HIV-positive             While much of the initial spread was      Eastern Europe.
people every year, most of who were in-      confined to intravenous drug users               HIV infections continue to rise in the
2   y   Tuesday, December 2, 2003                                                                      N       E     W       S                                                                            The St. Petersburg Times

LIBERALS                                                                                                                                                                                         HIV
Continued from page 1                                                                                                                                                                            Continued from page 1
[State Duma Speaker Gennady] Se-                                                                                                                                                                 but HIV continues to spread in Belarus,
leznyov [candidate in the district No. 209]                                                                                                                                                      Moldova and Kazakhstan, while more
licking a machine tool when visiting some                                                                                                                                                        recent epidemics are now evident in
factory,” she said. “The workers and di-                                                                                                                                                         Kyrgyzstan and Uzbekistan.
rectors were saying how good he is.”                                                                                                                                                                 It is now estimated that around 1
    “If I were to want to visit a factory, I                                                                                                                                                     million people aged 15-49 are living
would be lucky if they even let me in,                                                                                                                                                           with HIV in Russia (although various
not to mention meeting any directors;                                                                                                                                                            estimates put the figure at between
they would all be hiding,” she said.                                                                                                                                                             600,000 and 1.5 million), according to
    Khakamada said she had tried sev-                                                                                                                                                            the World Health Organization.
eral times to set up debates with Se-                                                                                                                                                                One survey in Russia found fewer
leznyov, but he was repeatedly unavail-                                                                                                                                                          than half of teenagers aged 16 to 20 use
able and could not be even reached per-                                                                                                                                                          condoms when having sex with casual
sonally to hear her proposal.                                                                                                                                                                    partners. The percentage of sex workers
    The City Court declined Khaka-                                                                                                                                                               reporting consistent condom use has sel-
mada’s appeal to strike Seleznyov’s reg-                                                                                                                                                         dom topped 50 percent, while, among in-
istration as a candidates on grounds                                                                                                                                                             jecting drug users, fewer than 20 percent
that he had abused administrative re-                                                                                                                                                            on average report consistent condom use.
sources, Interfax reported Monday.                                                                                                                                                                   By some estimates, there could be as
    During the current election cam-                                                                                                                                                             many as 3 million injecting drug users in
paign, the court has heard three com-                                                                                                                                                            Russia.
plaints in total but ruled that only one                                                                                                                                                             Most of these drug users are male
candidate is to be struck from the list of                                                                                                                                                       and many are very young in St. Peters-
city candidates, Interfax quoted Dmitry                                                                                                                                                          burg, studies found that 30 percent of
Krasnyansky, deputy head of the City                                                                                                                                                             them were under 19 years of age, while,
Election Commission, as saying Friday.                                                                                                                                                           in Ukraine, 20 percent were still in their
    “The court made its ruling only for                                                                                                                                  ALEXANDER BELENKY/SPT   teens. A survey of Moscow youth aged
Irina Rodnina’s complaint to remove            SPS co-leader and Duma candidate Irina Khakamada sharing a laugh with journalists at her news conference on Monday.                               15-18 found that 12 percent of males
the registration of Alexander Morozov,            Monday was the last day a candidate paign materials stolen, she said.                 “It was always the case that the                         had injected drugs.
[a candidate in District No. 207],”            could be taken off the list by court deci-      “The woman received concussion speaker was representative of a major-                                 By the end of 2002, a cumulative to-
Krasnyansky said. “Competitors ap-             sion, according to the federal election law. and her cell phone was broken apart by ity or a candidate approved by the party                      tal of 229,000 people had been officially
peals to remove current deputies Ok-              The media is not allowed to publish two guys who were screaming that she of power,” Khakamada said. “That was                                  diagnosed with HIV. Almost a quarter
sana Dmitriyeva [from District No.             any poll ratings or surveys starting should get out of there with ‘her true with [Ivan] Rybkin or Seleznyov.                                      (50,400) of that total was added in 2002
213] and Yuly Rybakov [of District No.         Tuesday, five days before the election Khakamada,’” she said, pointing out As for now, I hope Sergei Shoigu will                                  alone, indicating that the epidemic is
206] failed.”.                                 day, Sunday Nov. 7.                          that her opponents often stress that she not leave his post as Emergency Minis-                      growing quickly.
    The campaign looked “flabby,” he              Khakamada complained her cam- is of part-Japanese origin and does not ter … that leaves [Boris] Gryzlov to be                                      These reported cases almost cer-
added, and expressed his hope that “it         paigners had been physically attacked. live in St. Petersburg.                        the speaker, and if he is, we’ll be ex-                     tainly grossly underestimate the num-
would be given a dynamic of some sort          One of her assistants was severely              Khakamada also said Seleznyov has pecting a new person to be appointed                            ber of people living with HIV, the UN-
a few days before the voting.”                 beaten up on the street and all her cam- little chance of continuing as speaker.      Interior Minister.”                                         AIDS report said.

                                                                                                                                                                        I N               B R I E F
SASHA                                          form such tests. Sasha believes an ex-
                                               amination could have produced crucial
                                                                                             work in our country,” she added.
                                                                                                  “When a raped woman goes to a
Continued from page 1                          evidence in the case.
                                                  Meanwhile, her alleged attacker
                                                                                             hospital, a doctor can refuse to record
                                                                                             her injures just because he doesn’t have
                                                                                                                                             Peacekeepers to Liberia                             “a creeping coup” and creating a “par-
                                                                                                                                                                                                 allel center of power,” the paper re-
contacted police and that this could           gave his version to the police of what        special application forms or because he         s MOSCOW (AP) — President                           ported.
mean she had mixed up her facts.               had happened, saying the sex was con-         doesn’t want to get involved [since the         Vladimir Putin has ordered 40 military                  Pavlovsky called the amount of
    The service specifically denied one        sensual. He was let go.                       doctor could be required to give evi-           officers to be sent to Liberia to serve in          damages awarded “absurd” and said
of Sasha’s allegations, that a policeman          Only at 8 a.m., when Sasha called          dence later in court],” she said.               the United Nations’ peacekeeping mis-               he plans to appeal.
had been drunk on duty, saying this was        her lawyer and asked her employer for             There is only one Official Examina-         sion, the Kremlin said Monday.
    The service also said that her alleged
                                               help, was she given detailed instructions
                                               on what she should do.
                                                                                             tion Laboratory in the city and it works
                                                                                             weekdays only until 3 p.m. If women
                                                                                                                                                 Putin’s order, which was released by
                                                                                                                                             the presidential press service, said the
                                                                                                                                                                                                 Candidates Struck Off
attacker would not have been released             A week later, on the advice of her         are attacked on Friday evening, there is        officers would serve in the mission’s               s MOSCOW (SPT) — Courts dis-
if there were reasons to suspect he was        lawyer, Sasha went to the Official Ex-        therefore little chance that an authori-        headquarters and also work as liaison               barred two opposition candidates from
guilty — in fact, Sasha had been ac-           amination Laboratory on Yekaterinsky          tative medical examination will be con-         officers and military observers.                    the State Duma elections over the
quainted with her attacker before the          Prospekt, where she was given an offi-        ducted.                                             The United Nations has deployed                 weekend.
incident.                                      cial medical report; meanwhile, prose-            The Women’s Crisis Center offers            peacekeepers to help the West African                   Yury Shefler, an exiled vodka ty-
    Sasha says she had never met the           cutors opened a criminal case.                victims psychological, legal and medical        country recover from a four-year civil              coon, was struck off the Union of Right
man before.                                       Sasha is also gathering evidence and       aid. The service is free and the center         war after an August cease-fire was                  Forces’ party list, while Anatoly Bykov,
    Sasha said that while she was stating      waiting for the court hearings, but says      gives advice on what to do if raped.            agreed between rebels and the govern-               a former chairman of the Krasnoyarsk
her evidence at a police station, one po-      she lacks evidence.                               According to their advice, if a rape is     ment. The peacekeeping contingent is                Aluminum plant, was barred from
liceman, who was drunk, made jokes                “If I had done everything right from       committed, the woman should:                    slated to grow to 15,000.                           standing as a Communist Party candi-
about her. He said she was unattractive        the very beginning, if I known what to            - immediately call her closest friend                                                           date for the Achinsk single-mandate
and that Russian girls were much more
beautiful than she was.
                                               do, I might now be able to prove that
                                               this young man is guilty.”
                                                                                             or relative, or call the Women’s Crisis
                                                                                             Center confidential number, 327-30-00
                                                                                                                                             Grenade Blast                                       district.
                                                                                                                                                                                                     The Central Elections Commission
    In the morning an investigator told           Sasha said she wants the man to be         (English is spoken), or the city’s psy-         s VLADIKAVKAZ, North Ossetia                        requested the cancellation of Shefler’s
Sasha that her story sounded very “ro-         imprisoned and cured, as he is a danger       chological service, 427-71-04                   (AP) — One boy was killed and four                  candidacy last week.
mantic,” she said.                                                                               - take someone with her to the po-          others were injured in southern Russia                  The court ruled that, based on FSB
    “They treated me as if I were lying,”                                                    lice station to avoid any psychological         when a hand grenade they were playing               investigators’ findings, Shefler had not
Sasha said in an interview, “and repeat-                                                     pressure (if the victim is a foreigner, it is   with exploded, emergency officials said             signed his application in person, thus vi-
edly asked me if I was sure that I
                                               Foreigners who are                            important to talk to police officers only       Monday.                                             olating election procedures.
wanted to open a criminal case.”               attacked should take                          through an interpreter)                            Two of the boys were in grave condi-                 Shelfer, who has lived outside Russia
    A Russian friend, who came to help                                                           - file a written declaration that de-       tion following the blast Sunday in the              since the government wrested the coun-
Sasha as soon as she found out what            a local person to the                         tails exactly what happened and de-             town of Bolta, 10 kilometers south of               try rights to Stolichnaya and other pop-
happened, corroborates Sasha’s ac-
                                               police so that there is                       scribes the attacker thoroughly. Ask for
                                                                                             a copy of this declaration.
                                                                                                                                             the regional capital Vladikavkaz, said
                                                                                                                                             Sergei Schchetinin of the North Ossetia
                                                                                                                                                                                                 ular vodka brands from him last year,
                                                                                                                                                                                                 has said he will appeal the decision. In
    Investigators asked lots of questions      no language barrier.                              - ask for a medical examination (do         branch of the Emergency Situations                  the course of the fight over the vodka
about Sasha’s sex life and accused her                                                       not wash; give clothing to the examiner)        Ministry.                                           brands, prosecutors accused Shelfer of
of behaving badly, the women say.              to society. He likely has some mental         at the Official Examination Laboratory             The explosion occurred when the                  threatening to kill a former deputy agri-
    “They suggested to me that it              disorder, she said.                           (Yekaterinensky Prospekt, 10 tel. 544-          boys, all aged 13 or younger, were try-             culture minister.
wouldn’t have happened to me if I had              The police press service said that        80-34) or go to the nearest hospital.           ing to open the grenade with a rock,
come home earlier, as if in this country       this year 153 reports of rape were regis-         - hire a lawyer and get psychological       Schchetinin said.                                     W      E    A     T    H          E    R
there is a time when everything is per-        tered with city police and 92 criminal        help, or go to the Women’s Crisis Cen-
                                                                                                                                                                                                                    TUESDAY              9:33
mitted; as if after 11 p.m. rapists and
murderers can commit crimes and go
                                               cases have been opened.
                                                   The Women’s Crisis Center says
                                                                                                 - if the victim is a foreigner, she
                                                                                                                                             Pavlovsky Must Pay                                                     WEDNESDAY
unpunished,” Sasha said.                       Sasha’s experience is all too familiar,       should contact her consulate as soon as         s MOSCOW (SPT) — Moscow’s Sol-                                         FRIDAY               9:39
    The investigator also hinted that          and that it is one of several hundred         possible.                                       ntsevsky district court ruled that political
Sasha had shady friends, such as artists,      that occur in the city each year.                 In many cases, women are so psy-            analyst Gleb Pavlovsky should pay 30                                   TUESDAY              4:01
musicians and journalists, and that she            In 2003, 60 cases were reported to        chologically depressed that they believe        million rubles ($1 million) in damages to                              WEDNESDAY            4:00
was leading an abnormal life, the              the center, but staff say the figure is in-   the rape was their own fault and often          Mezhprombank founder Sergei Pu-                                        THURSDAY             3:59
women said.                                    complete; far from all assaulted women        do not even try to call the police, psy-        gachyov, Vedomosti reported Monday.                                    FRIDAY               3:58
    After the humiliating questioning,         seek help there.                              chologist Anna said.                                The court supported the libel action
Sasha was taken to hospital, where she             Most rapes in Russia never lead to            Those who do contact the police are         brought by Pugachyov against
had to wait 1 1/2 hours for tests, she         convictions because women do not              often treated badly, and afterward de-          Pavlovsky, and a number of printing                                    Snow
said. The police officers hadn’t given         know what to do, the center says.             cline to open a criminal case, so rapists       and electronic media outlets, for pub-                                 High 3, Low 0
her the special medical form that was              “Their first human reaction is to         feel that they can commit crimes with           lishing a report accusing the former
necessary for the examination, so the          wash themselves and throw away the            impunity, she added.                            banker of being behind a power grab.                                   Cloudy
doctor had problems registering the            clothes and everything that reminds               “We — doctors, police and women’s               Pavlovsky, regarded as one of                                      High 4, Low -1
case.                                          them of rape, thus they annihilate the        crisis centers — should work together,          Moscow’s most influential political spin
    He refused to examine her mouth –          evidence,” said Anna, a staff psycholo-       very closely and professionally,” Anna          doctors, accused a group led by Pu-                                    Cloudy
the rapist had forced Sasha to have oral       gist.                                         said. “Only in this way will we be strong       gachyov and Kremlin officials Igor                                     High 3, Low 2
sex – saying the hospital does not per-            “And besides, the system doesn’t          enough to prevent violence.”                    Sechin and Victor Ivanov of mounting
Tuesday, December 2, 2003                                                                            N      E      W        S                                                       The St. Petersburg Times              y    3

Fewer Visas Matviyenko Asks Putin for More Funding
Refused                                        By Galina Stolyarova
                                               STAFF WRITER

                                               St. Petersburg Governor Valentina
                                               Matviyenko has asked President
THE ST. PETERSBURG TIMES                       Vladimir Putin for additional funding so
The refusal rate for applications for          that big city projects can proceed at pace.
U.S. visas in St. Petersburg is falling, In-       She asked the president for addi-
terfax quoted Christopher Misciagno,           tional federal funding of 200 million
consul at the U.S. Consulate General,          rubles ($6.7 millon) for the next year.
as saying Friday.                              She believes that the 108 million rubles
    In the financial year ending Sept. 30,     already earmarked is far short of what
2002 only 17 percent of applications           the city needs.
were refused compared to a 24-percent              In 2003, St. Petersburg received 370
refusal rate during the previous finan-        million rubles from the federal govern-
cial year, Misciagno said.                     ment.
    The figures contradict what St. Pe-            Matviyenko said she wanted to ac-
tersburg Governor Valentina Matvi-             celerate work on the city’s ongoing ring
yenko told U.S. Ambassador Alexander           road project and keep on restoring
Vershbow during a visit to St. Petersburg      works in the historical center of St. Pe-
last month.                                    tersburg.
    “It has become more difficult to get           “To keep up the current pace of
a visa, and we get a lot of complaints         restoration, the city needs 300 million
from St. Petersburg residents,” Interfax       rubles from the state per year,” Interfax
reported her as saying then.                   quoted Matviyenko as saying.
    Vershbow had replied that despite              The governor also expressed her
new, stricter visa rules “the number of        concern with lack of funding for the re-                                                                                                               ALEXANDER DEMINACHUK/REUTERS

denials did not change and is about 20         pairs to the city metro, but she               Putin smiling at a meeting Saturday with Hungarian Prime Minister Peter Madgyessy at the city’s Konstantinovsky Palace.
percent.”                                      promised that the connection between               At a news conference after the talks the graves of slain democrat politician ergetics — will be young top managers
    Misciagno said one common reason           Lesnaya and Ploshchad Muzhestva sta-           with Madgyessy on Saturday, Putin said Galina Starovoitova and the late mayor aged in their 30s and 40s with experience
for refusal is that applicants did not         tions will be fully restored next year.        the two leaders discussed the conse- of St. Petersburg Anatoly Sobchak, in business,” Matviyenko said Saturday.
have Russian citizenship.                          “On May 27, we will organize a test        quences of Hungary joining the Euro- who introduced Putin to politics.                  Putin encouraged the new governor:
    “It’s hard for such applicants to re-      train ride, and we are planning to fully       pean Union.                                  The same day, Dmitry Medvedev, “As the new government has been
ceive visas because it is difficult for        resume the operations by June 30, 2004,”           “We are very happy for Hungary head of presidential adiministration at- formed, it is the very time to start ful-
them to show that they have strong ties        Matviyenko said.                               that the country will shortly join the EU tended the opening of the Anatoly filling the promises given during the
to Russia, especially if they have been            Putin asked for the ring road to be        but we have some reservations as well Sobchak Memorial Museum at the Be- election campaign,” Putin said.
living here only two to three years,” he       finished by the end of 2007. The sched-        because when the country joins the Eu- loselsky-Belozersky Palace on Nevsky             On Saturday night, he attended the
was quoted as saying.                          uled finish date for the much-delayed          ropean Union, it will have to adjust its Prospekt.                                   President’s Cup judo tournament.
    Other applicants less likely to be is-     project of 2008 is too long to wait, he        trade with Russia to the existing EU re-     “In the photographs at this museum         Interfax quoted Putin’s former judo
sued a U.S. visa include those without         said.                                          strictions,” Putin said. “We must do we see the people who were among the coach, Anatoly Rakhlin, as saying that
a permanent job, recent graduates, sin-            “We mustn’t slow down and lose the         whatever possible for the positive pro- founders of democracy in Russia,” having a sports background clearly
gle people and those with neither              tempo we have reached during the               cess of EU enlargement not to damage Medvedev said at the opening ceremony. helps the president to keep up with his
“good income or strong family ties” in         preparations for the St. Petersburg’s          the Russian-Hungarian relations.”         “There are quite a few things that we high pressure work.
Russia, Misciagno was quoted as say-           300th anniversary,” Interfax quoted                Sergei Prikhodko, deputy head of don’t regret we have parted with but               “Of course, you wouldn’t call the
ing.                                           Putin as saying.                               presidential administration, said Satur- there is also a lot to feel nostalgic for.” president a professional sportsman but
    There is no gender discrimination              Putin was in St. Petersburg for a series   day that the two presidents have agreed      Matviyenko told Putin that she has Vladimir Putin swims, runs and goes
when deciding to issue a visa; the num-        of meetings with Hungarian Prime Min-          to work on the visa regime between finished forming her new administration. skiing not because he is president of
ber of men and women receiving visas           ister Peter Madgyessy, Armenian presi-         their countries.                             “Heading all leading committees — Russia but because he needs it and he is
is about equal, he said.                       dent Robert Kocharian and Matviyenko.              Also Saturday, Putin laid wreaths to construction, economics, finance and en- competitive,” Rakhlin said.
4   y   Tuesday, December 2, 2003                                                                      N        E      W       S                                                                     The St. Petersburg Times

Prosecutor Pressures
Courts, Judge Says
By Caroline McGregor                           eral’s Office “act as one, having a com-
STAFF WRITER                                   mon interest in the Zaitsev case,”
MOSCOW — Elections, the indepen-               Kudeshkina said, singling out First
dence of the courts and a high-profile         Deputy Prosecutor General Yury
furniture scandal converged Monday, as         Biryukov as being behind Yegorova’s
a Moscow City Court judge accused the          interference.
Prosecutor General’s Office of pressur-            Judges on low state salaries are sub-
ing the court to issue rulings in its favor.   ject to pressure that comes in different
    Judge Olga Kudeshkina, who is run-         forms, she said. Stubborn judges risk
ning for the State Duma from a single-         having their salaries cut, authority re-
mandate district in the Moscow region,         stricted and fringe benefits revoked.
said in a speech to voters that prosecu-           “In my experience, this is not an iso-
tors have exerted “unprecedented pres-         lated instance of a court case being used
sure” on judges hearing criminal cases,        for political or commercial or personal
in violation of the law.                       interests,” said Kudeshkina, who has 20
    Kudeshkina has said she was pres-          years experience on the bench. “Today
sured to rule in favor of prosecutors          it’s Zaitsev, tomorrow it could be any
when hearing the case of Pavel Zaitsev,        one of us. No one is protected.”
the Interior Ministry investigator who             Kudeshkina said she had decided to                                                                                                                            ALEXANDER BELENKY/FOR SPT

headed a disputed probe into fraud at          run for the Duma in order to make                   Gray Power                Older people handing out campaign literature near Chernyshevkaya metro station ahead of Dec.
                                                                                                                             7 State Duma elections. They say that young people are showing little interest in the poll results.
the Grand and Tri Kita furniture stores.       judges less vulnerable to outside pres-
    In the latest chapter of the case,         sure.
which has run for three years, the
Moscow City Court on Nov. 3 handed
Zaitsev a two-year suspended sentence
for abuse of office.
                                                   “With what’s happening now, it’s im-
                                               possible to keep silent,” she said. “If
                                               judges are quiet, then the country could
                                               become a judicial basket case.”
                                                                                                Matviyenko Booed at Rock Concert
    The Prosecutor General’s Office in             Prosecutors dismissed the allega-            By Sergey Chernov                               “Akvarium’s music has always met           tics. Flirting with the authorities was
November 2000 had charged Zaitsev              tions as a publicity ploy. “This is an un-       STAFF WRITER                                the expectations of youth,” she said, and      seen as unworthy [for underground
with overstepping legal bounds in his          concealed campaign speech,” Natalya              St. Petersburg governor Valentina           even “It’s thanks to you that rock music       rock musicians]. I think that everybody
investigation of furniture importers al-       Vishnyakova, a spokeswoman for the               Matviyenko was booed when she ar-           has become the 20th century’s classic.”        felt the falseness of the moment.”
legedly tied to the two stores, which          Prosecutor General’s Office, told Inter-         rived at Boris Grebenshchikov’s 50th            The speech and ceremony did not fit            Grebenshchikov has been generally
were suspected of listing artificially low     fax Monday. “What else can you say               anniversary concert at the Oktyabrsky       well with the spirit of the band, according    seen as kind of spokespman for his gen-
weights to minimize customs duties.            when she saved up all her rage almost            Concert Hall on Thursday to decorate        to some members of the audience.               eration, like Bob Dylan in the West,
    Prosecutors also said Zaitsev had          half a year? The events she’s talking            the lead singer of the seminal local rock       “Most people who go to Akvarium            while Akvarium was considered sub-
conducted 12 unauthorized apartment            about happened this summer.”                     band Akvarium with a state honor.           concerts know the history of rock and          versive and frequently banned from
searches and had detained two suspects             Genri Reznik, the head of the                    Earlier in the month, President         roll in Russia very well, including the role   playing concerts under communist rule.
without cause.                                 Moscow Bar Association, said Kudeshk-            Vladimir Putin signed a decree award-       of such people as Matviyenko, who was a        The band reacted by developing a sys-
    But in September 2002, the Moscow          ina’s allegations were serious and de-           ing Grebenshchikov the Order of Merit       boss at the local department of culture in     tem of underground, private apartment
City Court cleared Zaitsev of all charges,     served “intense scrutiny” by a qualified         for the Motherland (4th grade) medal        the 1980s,” said Andrei Burlaka, the edi-      concerts.
ruling that prosecutors had not pre-           group of judges. If confirmed, such inter-       for his “great contribution to develop-     tor of the local web publication Rock-n-           In one particularly vicious clamp-
sented sufficient evidence of his guilt.       vention “bears the markings of a criminal        ment of the art of music.”        , who was at the concert.               down on the band, Grebenshchikov was
    In an interview Monday on Ekho             offense. Of course it’s a scandal. I can’t re-       Many in the audience reacted with           “I think that most people saw it as        fired from his job and expelled from the
Moskvy radio, Kudeshkina said that             call a recent time when a judge has been         hostility while Matviyenko was delivering   false and unscrupulous. Greben-                Komsomol after he unleashed a perfor-
with Zaitsev’s acquittal, prosecutors          so outspoken,” he said.                          a lengthy, Soviet-era-worded speech.        shchikov has always been outside poli-         mance at a rock festival in Tbilisi in 1980.
who sought a guilty verdict “felt their            Lawyer Dmitry Afanasiev at-
prestige in the eyes of society had been       tributed the problems to a loophole that                                                                                I N           B R I E F
    The Prosecutor General’s Office ap-
pealed to the Supreme Court, which
                                               exists in Russian legislation. In contrast
                                               to laws in the United States, there is no
                                               prohibition on lawyers from either side,
                                                                                                Call to Send                                ‘Ongoing’ Restoration                          organs, and Konstantin Kondakov, who
sent Zaitsev’s case back to be heard by
a new panel of judges, including
                                               representing the government or private
                                               individuals, meeting one-on-one with a
                                               judge to present their views before the
                                                                                                Troops Home                                 s ST. PETERSBURG (SPT) — The
                                                                                                                                            Culture Ministry will not cut the level of
                                                                                                                                                                                           was made first deputy head of the ad-
                                                                                                                                                                                               Mikhail Brodsky was also named
    Kudeshkina said in the course of           case is heard.                                                                               funding for the restoration of historic        the governor’s representative to the
hearing the case, Olga Yegorova, the               “It’s a mini-judicial process, before the    By Arthur Max                               monuments in St. Petersburg, Interfax          Legislative Assembly while Vitaly
chairman of the court, had summoned            judicial process,” he said. “The name of         THE ASSOCIATED PRESS                        quoted Culture Minister Mikhail Shvy-          Azarov, formerly St. Petersburg’s rep-
her to her chambers and made it clear          the game is who gets access to the judge         MAASTRICHT, Netherlands (AP) —              dkoi as saying on Monday.                      resentative in Moscow, was named the
what decision was expected.                    first, and who will be heard more. It’s to-      Georgia’s acting president Nino Bur-            “The attention to the city will be no      first deputy chief of administration.
    Yegorova and the Prosecutor Gen-           tally ridiculous, but that’s the basic flaw.”    dzhanadze called Monday for a swift         less than it was for the [300-year an-
                                                                                                withdrawal of Russian troops and said
                                                                                                her country had earned the right to be
                                                                                                                                            niversary] festivities,” he said. “I always
                                                                                                                                            said that the city would not stop with
                                                                                                                                                                                           Official Charged
Russians in U.S. Have Voice                                                                     integrated into Europe after its peace-
                                                                                                ful revolution.
                                                                                                    With Russian Foreign Minister Igor
                                                                                                                                            the anniversary. I hope that it will live to
                                                                                                                                            all eternity.”
                                                                                                                                                The ministry’s funding is part of a
                                                                                                                                                                                               ST. PETERSBURG (SPT) — The
                                                                                                                                                                                           former head of the Kirovsky district of
                                                                                                                                                                                           St. Petersburg was charged with taking
THE ST. PETERSBURG TIMES                       saying. Many Russians will have to               Ivanov looking on, Burdzhanadze ac-         federal program that covers more than          bribes, Interfax reported on Monday.
Votes by Russian citizens living in the        travel several 100 kilometers to take            cused Russia of undermining Georgian        600 historical sites. The program is due           The St. Petersburg prosecutor’s of-
United States are unlikely to have a big       part in the elections.                           sovereignty by supporting separatist        to run until 2010.                             fice opened a criminal case against
influence on the outcome of voting in             “In the past only 2 percent to 5 per-         provinces and by hosting their leaders                                                     Vladimir Yarmin on Nov. 20.
electoral district No. 209 in St. Peters-
burg, Interfax quoted Nikolai Konkin, a
                                               cent of eligible [Russian] voters in the
                                               U.S. actually vote,” he added.
                                                                                                last week in Moscow.
                                                                                                    That meeting “ruined all the positive
                                                                                                                                            Radioactive Car                                    A spokeswoman for the prosecutor’s
                                                                                                                                                                                           office was quoted as saying that the case
member of the Central Electoral Com-              Interfax reported that during a visit         messages” sent by Russia when it            s ST. PETERSBURG (SPT) — A                     would go to court in two months, once
mission responsible for the Northwest,         to St. Petersburg last month U.S. am-            helped broker the resignation of former     train car traveling between Riga and           the victim and suspect have familiarized
as saying Friday.                              bassador Alexander Vershbow asked                president Eduard Shevardnadze, she          Moscow that was found to have above-           themselves with the case.
    Votes by Russian citizens living in        Governor Valentina Matviyenko about              said at a meeting of foreign ministers of   normal levels of radioactivity was re-             Yarmin stands accused of taking
the U.S. can be counted in city elections.     the local electoral district, where an “in-      the 55-nation Organization of Security      turned to Latvia, Interfax reported on         160,000 rubles and no less than $100,000
    “According to a consular list are          teresting contest is underway between            and Cooperation in Europe.                  Monday.                                        from a construction company “in ex-
about 40,000 Russian citizens there and        Deputy State Duma Speaker Irina                      It was Burdzhanadze’s debut ap-            The radioactivity was noticed during        change for being able to engage in busi-
polling stations will be organized in          Khakamada and Speaker Gennady Se-                pearance outside Georgia since the          a customs inspection at the Sebezh sta-        ness without hindrance,” the prosecu-
New York, Washington, San Francisco            leznyov,” in which immigrants’ votes             popular uprising sparked by the elec-       tion in the Pskov region, the news             tor’s office said.
and Seattle,” Konkin was quoted as             may be a crucial factor.                         tions denounced by the opposition as        agency said, citing the press service of
                                                                                                    Burdzhanadze held out an offer of
                                                                                                                                            the Northwest regional arm of the
                                                                                                                                            Emergencies Ministry.
                                                                                                                                                                                           Drug Arrest
                                                                                                better relations, saying the new leader-       Passengers on the car were trans-           s ST. PETERSBURG (SPT) —
                                                                                                ship “is ready to step out of the box of    fered to another car and continued on          Pulkovo airport customs officials de-
                                                                                                historical tragedies” with Russia.          to Moscow, the report said.                    tained a tax inspector from the Kalinin-
                                                                                                    Ivanov met last Thursday in                                                            sky district of St. Petersburg on Friday as
                                                                                                Moscow with the leaders of South Os-
                                                                                                setia and Abkhazia, two provinces that
                                                                                                                                            New Appointments                               she attempted to smuggle 49 tablets
                                                                                                                                                                                           (13.5 grams) of the drug MDMA in lug-
                                                                                                declared themselves independent re-         s ST. PETERSBURG (SPT) — The                   gage stashed in a suitcase, Interfax re-
                                                                                                publics in the early 1990s. They have       St. Petersburg city administration has         ported.
                                                                                                not been internationally recognized.        named Anna Mityanina head of its le-              Law enforcement agents immedi-
                                                                                                    Burdzhanadze later met privately        gal committee, Interfax reported on            ately began tracing the source of the
                                                                                                with Ivanov in a small conference room.     Monday.                                        drug, stating that the suspect was “an
                                                                                                Details of the meeting were not avail-          Mityanina was formerly acting head         active member of a local criminal
                                                                                                able. She also was likely to meet U.S.      of the committee, the report said.             group.”
                                                                                                Secretary of State Colin Powell Tues-           Other appointments include Nina               The suspect reportedly attempted to
                                                                                                day, the final day of the two-day confer-   Shubina, who was made head of the              board an airplane bound for Magadan
                                                                                                ence.                                       committee for working with executive           when her luggage was inspected.
Abramovich Puts Off
Yukos-Sibneft Union
AGENCE FRANCE PRESSE                         Putin,” he told AFP by telephone from
MOSCOW — The billionaire Russian             London.
owner of Chelsea football club, Roman            According to the deal, first unveiled
Abramovich, faced accusations of act-        in April and virtually complete,
ing in the Kremlin’s interests by calling    Abramovich got 26 percent of Yukos.
off a mega merger between his Sibneft            “The shareholders [of Sibneft] were
firm and the struggling Yukos oil giant.      threatened with losing their business
    Yukos, whose main shareholder            because of the Yukos affair. To save it,
Mikhail Khodorkovsky is behind bars,         Sibneft was forced to turn to the Krem-
was plunged into confusion after Sibneft     lin for advice,” Vedomosti said.
on Friday dropped a bombshell by, at the         Kommersant commented that
last moment, breaking off a merger that      Abramovich could now try to mount a
would have created the world’s fourth-       takeover of Yukos despite its much big-
largest oil company.                         ger size.
    The Moscow press pointed the                 A source in the Russian presidential
finger at 37-year-old Abramovich for          administration applauded the behavior                                                                                                                                   ALEXANDER BELENKY/SPT

the sudden demise of the deal, saying        of the tycoon, who has come under do-         Mikhail Brodsky (l) discussing foreign business concerns with Peter Langham, commercial consul at the British Consulate.
he had tried to force Yukos to hand          mestic criticism for selling off most of

                                                                                           City Pledges Transparency
over management control of the com-          his Russian assets and splurging hun-
bined group to his Sibneft firm.              dreds of millions of dollars on Chelsea.
    “When Yukos didn’t accept the ulti-          “He is making the right choice politi-
matum, Sibneft was obliged to an-            cally and after the break-up with Yukos
nounce the suspension of the merger,”        the authorities won’t have any problems
Vedomosti said.                              with him,” Vedomosti quoted an un-            By Robin Munro                                ministration and will be introduced to          rector of SPIBA, said Monday that the
    Newspapers        suggested      that    named Kremlin official as saying.              STAFF WRITER                                  the Legislative Assembly shortly, but           briefing was the beginning of an official
Abramovich had not acted on his own              According to reports, Abramovich          St. Petersburg’s new administration           could still be amended.                         dialogue between the new City execu-
initiative but instead based his move on     and Sibneft president Yevgeny Shivdler        wants to work with the foreign business           “I invite you to participate in the         tive authorities and the international
the wishes of President Vladimir Putin,      flew to Israel on Thursday to meet with        community to make the city attractive         process,” he said to the assembled busi-        business community.
with whom he reportedly met recently.        core Yukos shareholder Leonid Nevzlin,        to investors, says Mikhail Brodsky,           ness people.                                        “The feedback I got from SPIBA
    Exiled Russian tycoon Boris Bere-        who is living in exile in Tel Aviv and con-   Governor Valentina Matviyenko’s rep-              Brodsky, a member of the Union of           members was overall positive,” she said.
zovsky, who says he was forced to sell       trols the voting rights for Khodorkovsky.     resentative in the Legislative Assembly.      Right Forces, or SPS, party said                “Brodsky brought good news to the
his 50-percent share in Sibneft to               They told him he had to appoint the           “I am ready to listen to any propos-      Matviyenko is more ready to listen to           business community: the new city ad-
Abramovich under duress in 2000, said        former head of the presidential admin-        als from this association,” he told a         ideas on how to develop business than           ministration is ready to listen to business,
he was convinced his former protege          istration, Alexander Voloshin, as chair-      briefing organized by the St. Petersburg      was the previous governor Vladimir              and to facilitate the improvement of the
was acting in concert with the Kremlin.      man of the merged giant and take Shvi-        International Business Association and        Yakovlev. Unlike Yakovlev, who toward           investment climate in St. Petersburg.
    “This was an attempt to put a com-       dler as chief executive.                      The St. Petersburg Times.                     the end of his term in office faced a hostile       “However, it is just the beginning of
pany under control of people who are             When he refused, Sibneft released             He also said he could personally          legislative assembly, Matviyenko has ma-        the long and difficult way,” she added.
loyal to Putin, and no one has ever hid-     its statement announcing that the             promote businesspeople’s objectives,          jority support from lawmakers, he said.         “Lots of measures should be taken to
den the fact that Abramovich is loyal to     merger had been “put on hold.”                rather than merely pass requests on to            Mikhail Oseyevsky, vice governor in         break barriers to investment.
                                                                                           the governor.                                 charge of city finances, Yury                       “Just one example is the new draft
                          I N          B R I E F                                               “I have some leeway to act on my          Molchanov, who is to head a new com-            city law on corporate property tax by
                                                                                           own,” he said. “I will try and do every-      mittee on investment, and Andrei                the St. Petersburg Legislation Assem-
                                                                                           thing properly and will not make the          Chernenko, who is in charge of law en-          bly that abolishes the property tax con-
Multiplex Mania                                 The construction project is expected
                                             to be ready in the first quarter of 2004,
                                                                                           governor correct me.” The administra-
                                                                                           tion intends to provide tax incentives,
                                                                                                                                         forcement, are to “safeguard and
                                                                                                                                         streamline” the administration’s actions
                                                                                                                                                                                         cessions that were given to investors by
                                                                                                                                                                                         the previous legislation and will result
s ST. PETERSBURG (SPT) — The St.             when the company will start building,         including tax credits and tax holidays, to    so that a good investment climate exists        in the significant increase of the tax bur-
Petersburg Banking House announced           he said.                                      make administrative information read-         in the city, he added.                          den to investors and deterioration of
plans to invest $45 million over 1.5 years                                                 ily available and to slash bureaucratic           Natalya Kudryavtseva, executive di-         the investment climate,” she added.
in developing a chain of nine multiplex
movie theaters in St. Petersburg, Interfax
                                             City Clean Up                                 hurdles, Brodsky said.
                                                                                               “We want to become open and
reported Epos company general director          ST. PETERSBURG (SPT) — Most                transparent,” Brodsky said. “Any per-
Eduard Pichugin as saying Monday.            factories will be moved from St. Peters-      son will be entitled to have access to
    The first multiplex, the 940-seat        burg’s center over the next five to six       any information that the state authori-
Kronverk Cinema, was opened Nov. 27          years, Governor Valentina Matviyenko          ties have, for a small fee in line with the
at the Zanevsky Kaskad shopping cen-         told a gathering of builders Wednesday,       cost of providing it.”
ter. The completed chain will offer          Interfax reported. Matviyenko pointed             To address the problem of busi-
11,000 seats and 57 screens in shopping      to 200 factories in the city that, in addi-   nesses having to knock on many doors
centers throughout the city. Four the-       tion to being an eyesore, “break envi-        in the administration to get permission
aters are slated to open in 2004.            ronmental, fire protection and other          to operate, Brodsky said the adminis-
                                             norms.”                                       tration is considering creating a special
$71M Housing Order                              Matviyenko jealously protects in-
                                             dustry itself and was quoted as saying
                                                                                           agency that would see that foreign in-
                                                                                           vestors are treated correctly by all the
s HELSINKI (Bloomberg) — YIT                 that “we shouldn’t let the income from        authorities they have to deal with.
Oyj, the Finnish construction company        the city’s factories go to another re-            A draft law “On State Information
that bought ABB Ltd.’s Nordic build-         gion,” meaning that relocation does not       Resources” regulating the information
ing-systems unit, said it won a 60 mil-      mean banishment from St. Petersburg.          policy has been prepared by the city ad-
lion-euro ($71.6 million) order to build
four apartment blocks in the former
Russian capital of St. Petersburg.
    YIT will sell the 1,318 apartments af-
ter their completion by the end of 2005,
the Helsinki-based company said in a
Hugin statement.

$60M Terminal
s ST.PETERSBURG (Prime-Tass) —
St. Petersburg’s leading boat excursion
operator Arctur Travel plans to build a
sea passenger and cargo terminal worth
$60 million in St.Petersburg by 2005,
Nikolai Khvoschchinsky, director of the
state company in charge of governmental
sea transportation orders, said Friday.
6 y TUE SD AY, DECEMBER 2, 2003

Mobster Casts Shadow on Gazprom Partner
By Catherine Belton                                                                                                                       guarantee is designed to give it leverage      Naftogaz-Eural deal and expressed
STAFF WRITER                                                                                                                              over Eural TG’s trading deals because it       concern about the latter’s links with or-
MOSCOW — “Three Romanians with                                                                                                            is collateralized with the gas Eural TG        ganized crime.
no business experience and an Israeli                                                                                                     is being paid with.
with alleged mob ties register a trading                                                                                                      But Naftogaz Ukrainy says that Eu-         PHONE BILLS
company in a Hungarian village. Before                                                                                                    ral TG is Gazprom’s creation all the           Apart from Gordon, the other three reg-
the company is even legally formed it is                                                                                                  way. “All the agreements with Eural            istered shareholders of Eural TG appear
granted the rights to transport billions of                                                                                               Trans Gas were made by Gazprom,”               to live pretty much in poverty. Accord-
dollars’ worth of natural gas from Cen-                                                                                                   says Naftogaz spokesman Konstantin             ing to a copy of the latest company filing
tral Asia, across Russia, to Ukraine.”                                                                                                    Borodin. “It is a contractor for               with the Hungarian Registration Cham-
    These shareholders are, at least on                                                                                                   Gazprom.”                                      ber, as of Nov. 21, Eural TG’s other own-
paper: an actress hoping to earn money                                                                                                                                                   ers are three Romanian citizens — Anca
to pay her phone bill, a nurse, a computer                                                                                                THE MOBSTER                                    Negreanu, Mihai Savu and Louise
programmer, and an alleged associate of                                                                                                   Reports that Eural TG is linked to no-         Lukacs — who live in the town of Cluj-
a Ukrainian-born crime lord who is on                                                                                                     torious Ukrainian-born organized               Napoca. The ownership structure has
the FBI’s “most wanted” list for money                                                                                                    crime lord Semyon Mogilevich, whom             not changed since the company was es-
laundering, racketeering and fraud.                                                                                                       the British government has dubbed              tablished last December.
    Linked to the same mobster, accord-                                                                                                   “one of the world’s top criminals,” are            A Romanian investigative reporter,
ing to the Russian government, is the                                                                                                     starting to haunt Gazprom.                     Paul Radu, who works for the Jurnalul
head of the new company, Eural Trans                                                                                                          “The ownership of this company is a        National, a Romanian newspaper, vis-
Gas, which stands to gain about $1 bil-                                                                                                   dark story and it smells bad,” says            ited these three Eural TG “owners” in
lion a year in pre-tax profits that could                                                                                                  Troika’s Nesterov. “Potentially this is        their homes.
have gone to Gazprom.                                                                                                                     very dangerous for Gazprom.”                       “Anca Negreanu and Mihai Savu are
    Sound dodgy? For Gazprom’s minor-                                                                                                         The respected publication Jane’s In-       a young couple in a pretty bad financial
ity shareholders, the tale just gets worse.                                                                                               telligence Digest was the first to blow         situation,” Radu wrote in the paper in
    Not only has the world’s biggest gas                                                                                                  the whistle on the company’s relation-         March. “They live in a room in Anca’s
company let the little Hungarian opera-                                                                                                   ship to Mogilevich.                            mother’s apartment. Anca is a nurse and
tion take over a lucrative export channel                                                                                                     In January, the magazine said that it      also studies psychology. Mihai works for
over which it had pledged to regain con-                                                                                                  had “uncovered links” between Eural            a computer software company in Cluj.”
trol, it has also supported it with almost                                                                                                TG and Mogilevich, pointing out that               The three were contacted by a Hun-
$300 million in loans and guarantees.                                                                                                     Eural TG and a company tied to                 garian lawyer named Karl Ferenc who
    The gas giant, according to its own                                                                                                   Mogilevich and headquartered in                was a friend of the other Romanian
financial statement for the first half of                                                                                                   Cyprus called Highrock Properties              shareholder, actress Louise Lukacs, and
2003, is the guarantor of a $227 million                                                                                                  share the same Budapest address.               told them they could make some money
loan to Eural TG from state-owned                                                                                                             “Highrock Properties’ address in Is-       if they traveled to Hungary to register as
Vneshekonombank. On top of that,                                                                                                          rael is reportedly the same as the ad-         the official owners of Eural TG, he wrote.
Gazprombank, which is 100 percent                                                                                           WWW.FBI.GOV   dress of one of Eural TG’s four owners,            “Karl Ferenc called me. He is an old
owned by Gazprom, loaded another              The British government has dubbed Mogilevich “one of the world’s top criminals.”            the Israeli Zeev Gordon, who, accord-          and trusted friend. He told me to enter
$70 million to the company, according         he would, it has been turned over to fraud and tax evasion to the tune of $1                ing to a copy of company filings with the       this business,” Lukacs was quoted as say-
to a list of the bank’s 10 biggest borrow-    Eural TG.                                   billion are seen as part of a Kremlin           Hungarian Registration Chamber, is             ing. “I accepted and I hope I will get
ers obtained by The Moscow Times.                Investors say Gazprom’s financial aid campaign to gain greater control over               registered as living at Tel Aviv, 35 Shaul     some money out of this. At least to cover
    Investors thought Gazprom man-            to Eural TG appears to point to closer the oil industry.                                    Hamelech Street, America House.”               my phone bill. I have to pay more than 1
agement had put an end to such prac-          connections between the two companies           “The creation of Eural Trans Gas is             None of these allegations could be         million lei [$34] every month for the
tices. When President Vladimir Putin          than Gazprom is willing to admit. They comparable to what Gazprom did with                  confirmed independently, but a copy of a        phone. I don’t know what exactly it is
put a loyal lieutenant, Alexei Miller, at     say it is a clear sign that having managers Itera, which ultimately led to Putin’s          letter written to Interpol by Russian In-      with this business. You better ask Karl.”
the helm of the gas monopoly back in          loyal to the state does not necessarily dismissal of the previous management                terior Ministry Major General A. P. Mor-           Attempts by The Moscow Times to
2001, Miller vowed to liquidate the           mean greater transparency.                  team,” says Vadim Kleiner, Hermitage’s          dovets links the head of Eural TG, for-        contact Ferenc were unsuccessful.
murky schemes used by former man-                “Gazprom’s support for Eural Trans director of research.                                 mer Hungarian Education Minister An-
agement to siphon off up to $3 billion a      Gas does not make business sense,”              Others say turning over the Turk-           dras Knopp, to Mogilevich. Mordovets           NO WORRIES
year from the company.                        says William Browder, the head of Her- men-Ukrainian operation to Eural TG                  told Interpol in the letter, a copy of which   Gazprom and Naftogaz brush off con-
    Miller regained most of those lost        mitage Capital Management, which is even more outrageous than letting It-                   was obtained by The                                                cerns over Eural
assets and eliminated a lot of the murky      owns shares in Gazprom.                     era take over Gazprom markets in the            Moscow Times, that                                                 TG’s       shareholder
trading deals that mainly benefited It-           “One has to question the manage- former Soviet Union.                                    Knopp helped Mogile-                                               structure and allega-
era, an octopus-like structure based in       ment’s motives. None of their current           “This would not be the first time            vich create a cigarette
                                                                                                                                                                     ‘Eural TG made                          tions of its links to
Florida and widely believed to be tied        arguments make sense to us,” he says. Gazprom has created its own competi-                  smuggling ring in the      the best offer and                      organized crime.
to the old management team.                   “It does not seem in line with Putin’s tor,” says Valery Nesterov, energy ana-              1990s.                                                                 When asked why
    But Miller failed to retrieve one of      law-and-order campaign.”                    lyst at Troika Dialog. “But at least Itera          The letter, which      we took it,’ the                        Naftogaz had de-
the biggest channels — the sale of gas
from Turkmenistan to Ukraine. Instead
                                                 Putin’s crackdown on corruption is more solid, has its own reserves and
                                              and the jailing of Yukos founder extracts gas. Eural TG is just a trading
                                                                                                                                          was written in 1998
                                                                                                                                          when Knopp was a
                                                                                                                                                                     Naftogaz                                cided to make three
                                                                                                                                                                                                             Romanians and an
of wresting it back from Itera, as he said    Mikhail Khodorkovsky on charges of firm that at best can be called shady.”                   vice president at major    spokesman said.                         Israeli linked to orga-
                                                                                              According to a copy of company              German         cigarette                                           nized crime major
                                                                                          documents obtained by The Moscow                maker Reemtsma, says Knopp sup-                players on the geopolitical stage, at
                                                                                          Times, Eural TG was launched with just          ported Mogilevich’s appeal for Hungar-         least nominally, company spokesman
                                                                                          $12,000 in start-up capital.                    ian citizenship. It says Mogilevich intro-     Borodin says simply: “Eural TG made
                                                                                                                                          duced Knopp to members of the Rus-             the best offer and we took it. After
                                                                                          THE DEAL                                        sian government responsible for the            working together for nearly a year, we
                                                                                          The contract appointing Eural TG the            cigarette business. It alleges Mogilevich      trust the management of the company.”
                                                                                          agent for transporting 36 billion cubic         “threatened to kill” an individual who              Both Naftogaz and Gazprom say
                                                                                          meters of gas per year from Turk-               was disrupting their smuggling opera-          they knew of no contacts between Eural
                                                                                          menistan to Ukraine was signed by               tion.                                          TG and Mogilevich and that they are
                                                                                          Gazprom deputy chairman Alexander                   German investigators began looking         unconcerned by reports to the contrary.
                                                                                          Ryazanov on Dec. 5, 2002, according to          into Reemstma’s possible involvement                “[These allegations] are important
                                                                                          company documents.                              in cigarette smuggling in 2000, but no         only if there are official charges brought
                                                                                              Eural TG was registered in Hungary          charges were ever filed.                        against the leaders of this company,” says
                                                                                          on Dec. 6, 2002.                                    “Knopp’s assistant said he could not       Gazprom spokesman Sergei Kupriyanov.
                                                                                              In return for its services, Ukraine is      be reached for comment, but in an in-          “Khodorkovsky is right now sitting in
                                                                                          obliged to pay Eural TG 38 percent of           terview with the Kyiv Post earlier this        prison and Yukos continues to work.”
                                                                                          the value of the deal, or 13.7 bcm in gas,      year, Knopp confirmed Eural TG did                   Though Gazprom and Gazprom-
                                                                                          according to Naftogaz Ukrainy, the              business with Mogilevich-linked High-          bank are now backing the company with
                                                                                          Ukrainian gas monopoly that is paying           rock Properties. He denied, however,           nearly $300 million in loans, Kupriyanov
                                                                                          Eural TG under the deal.                        any ties with Mogilevich himself.”             says the company’s shady ownership
                                                                                              Now that Eural TG is beginning to               “I have never seen or heard                structure is of no concern either.
                                                                                          export gas from Ukraine — it already            Mogilevich on the premises of Eural                 “We understand that this is not the
                                                                                          has one contract under its belt to sell         TG, though he is obviously always with         most transparent company in the world.
                                                                                          Poland 2 bcm by July 2004 — it is on            us because unsubstantiated news re-            But we have no choice,” he says. “If we
                                                                                          track to post a pre-tax profit of more           ports make the claims regularly,” he           buy the company, then we will do the
                                                                                          than $1 billion a year if it can export the     told the Ukrainian newspaper. “We              due diligence. But if we are lending to
                                                                                          rest of the gas Ukraine pays it, even after     are not hiding from anyone. We are             it, then we demand collateral.”
                                                                                          paying Gazprom $450 million in annual           absolutely legal, available and ready to
                                                                                          fees for the use of its pipeline network.       answer questions.”                             BLAMING EACH OTHER
                                                                                              Gazprom says it was forced to give up           Nevertheless, the reports of ties with     Gazprom has already tried to buy the
                                                                                          the trade deal and bow to the wishes of         organized crime were compelling                company. When news of the Eural TG
                                                                                          its Ukrainian counterpart, which, it says,      enough to attract the attention of the         deal first broke, Gazprom tried to wave
                                                                                          insisted that if Itera had to be replaced,      U.S. State Department. In May, the             aside investors’ concerns by saying it and
                                                                                          the new agent had to be Eural TG.               then U.S. ambassador to Ukraine, Car-          Naftogaz were each about to buy 50 per-
                                                                                              Gazprom says its $227 million loan          los Pascual, lashed out at the Gazprom-                            See GAZPROM, Page 7
7 y TUE SD AY, DECEMBER 2, 2003

Bosporous Back-Up Gov’t To Close Tax Havens
Stops Transneft Oil
REUTERS                                      Black Sea. Turkey requires all oil tankers
                                                                                           By Peter Baker
                                                                                           THE WASHINGTON POST

                                                                                           MOSCOW — When oil tycoon Roman
                                                                                           Abramovich was elected governor of
                                                                                                                                                                                          said it could raise $1 billion to $2 billion
                                                                                                                                                                                          a year from all businesses.
                                                                                                                                                                                               Some leading investors expect the
                                                                                                                                                                                          government to go after YukosSibneft
MOSCOW — Pipeline monopoly                   over 200 meters in length to pass through     the remote Arctic region of Chukotka                                                           more directly, possibly by slapping it
Transneft has halted pumping crude to        the straits only during daylight hours.       in 2000, he won himself not only a polit-                                                      with a multibillion-dollar bill for back
the Black Sea port of Novorossiisk, as          Shipping sources at Novorossiisk           ical office but also a tax haven. Along                                                         taxes. The state auditor has forwarded
massive shipping jams through Turkey’s       said that though the port had been open       with the prefabricated home he had                                                             a report on Sibneft’s tax practices to au-
Bosporous straits left the port dry, a se-   for most of this week, hardly any ships       flown in, Abramovich set up trading                                                             thorities for investigation. The Tax
nior company official said on Friday.        had made it through to load.                  companies that let him cut his com-                                                            Ministry would not comment but dis-
   “We have stopped shipments,”                 This meant that storage capacity of        pany’s income tax bill in half.                                                                cussed taxation of major oil companies
Transneft vice president Sergei Grigo-       half a million tons (3.6 million barrels)         It was all perfectly legal, according to                                                   at a news conference on Thursday.
ryev said. Grigoryev said storage tanks      at the main Urals loading terminal is         his aides, and yet it rankled many in                                                               “The oil and other companies were
at Russia’s largest Black Sea oil port       now full, the source said.                    power in the Russian capital. Instead of                                                       able to save a lot of money and optimize
were full, as severe congestion through         Shipping data shows Novorossiisk has       paying the statutory corporate income                                                          their profits,” Reznik said in an inter-
Turkey’s Bosporus straits had pre-           exported just over 700,000 barrels per        tax of 24 percent last year, his oil com-                                                      view. He added, however, that he was
vented tankers from reaching the port.       day (bpd) in the past week, down from         pany, Sibneft, paid an effective tax rate of                                                   not sure the latest measures would suc-
   Tankers have been unable to meet          almost 900,000 bpd in the first three         12 percent. According to its own public                                                        ceed in generating more payments to
loading schedules due to new Turkish         weeks of November and versus a million        reports, Sibneft trimmed even that back                                                        the government.
rules that govern the only gateway to the    bpd capacity.                                 to 5 percent in the first half of this year.                                                         Executives at Yukos and Sibneft,
                                                                                               Sibneft was the most aggressive oil                                                        which are still merging their staffs, said
                                                                                           company in minimizing its tax burden,                                                          they did nothing more than U.S. com-
GAZPROM                                      JKX says it is not worried about Eural
                                             TG’s ownership structure, adding that
                                                                                           oil industry analysts said, but it was fol-
                                                                                           lowed closely by Yukos oil company,            Russian oil tycoon Roman Abramovich
                                                                                                                                                                                FOR SPT   panies do in using legal loopholes to
                                                                                                                                                                                          minimize tax payments.
Continued from Page 6                        any future deal will be conducted in the      which bought out the smaller firm last          wanted to play the oligarch game.’’                  “You take advantage of all legally
                                             interests of its own shareholders.            month. Now many analysts say they be-              Hoping to get a larger share of the         available tax advantages that might be
cent of its new broker. That way, it said,                                                 lieve that resentment over the low tax         wealth this boom is generating, President       available to the company,” Bruce Mis-
it could get a share of the transit fees.    SHRUGGING CRUSADER                            bills paid by Yukos and Sibneft may            Vladimir Putin’s government has moved in        amore, the American chief financial
    But those talks broke down over the      Boris Fyodorov, the independent               have helped fuel the legal attack on the       the last week to force oil companies to pay     officer at Yukos, said in an interview.
summer and have not been renewed.            Gazprom board member whose crusad-            father of the YukosSibneft merger, bil-        more taxes. Putin’s finance minister             “As far as we know, we’re perfectly in
The two sides blame each other.              ing against the monopoly’s relations with     lionaire Mikhail Khodorkovsky, who             pushed legislation through the State            line with what we needed to pay in
    Gazprom blames Naftogaz for refus-       Itera nearly landed him in jail, says he’s    was arrested at gunpoint Oct. 25 and           Duma, to eliminate tax havens in destitute      taxes.”
ing to allow it into the venture on a par-   prepared to give Gazprom management           charged with tax evasion and fraud.            provinces such as Chukotka and to give               John Mann, a spokesman for Sibneft,
ity basis. But Naftogaz says the buyout      the benefit of the doubt on Eural TG.              “The line in the snow has been             the government power to raise export du-        said the outrage over attempts to lower
fell through because Gazprom’s owner-             “Neither I nor any of the other di-      crossed,” said James Fenkner, research         ties on refined oil products.                    its tax bill may stem from cultural differ-
ship of companies already based in           rectors like the situation. But the gen-      director at the Troika Dialog invest-              The elimination of the tax havens           ences. “In the Western sense, it’s per-
Hungary would have made Eural TG             eral position is not to fight Ukraine.”        ment bank, who has studied the oil             will cost YukosSibneft an additional            fectly normal,” he said. “In Russia, it’s
ineligible for the offshore status and the        Fyodorov told a conference call with     companies’ tax practices. Oligarchs, as        $620 million to $750 million in income          relatively new, and that’s probably why
associated tax breaks it now enjoys.         concerned investors Wednesday that he         the top tycoons here are known, “had a         taxes in 2004, according to analysts at         people are more upset about it. But at
    “If Gazprom wanted to take the           had raised the issue at a meeting Friday      massive windfall. They used this mas-          the Moscow-based Alfa Bank.                     the same time, it’s the law.” He also noted
business away from Itera it had to com-      with Gazprom CEO Miller and was               sive windfall to line their own pockets        Vladislav Reznik, deputy chairman of            that Sibneft paid nearly $900 million in
pete,” Borodin says. “You can only do        told that Eural TG “is purely a               with big dividend distributions and then       the Duma’s budget and tax committee,            taxes other than income taxes last year.
this through an offshore company. Itera      Ukrainian effort.”
was an offshore company.”                         He also said Economic Develop-
    Borodin says if Gazprom becomes          ment and Trade Minister German Gref
the sole transit agent it will have to pay   wants to raise the issue with Gazprom
greater taxes in all the states through      management, as do investors.
which gas is transported.                         “Gazprom’s explanations have not
    Gazprom says its hands are tied, and     cleared the matter up for investors,”
that “certain moments in our relation-       Troika’s Nesterov says. “Instead, what
ship [with Naftogaz] go beyond com-          they’ve heard has worried them. We
mercial relations.”                          would like a clearer explanation from
    Gazprom says an intergovernmental        Gazprom on why and how this com-
agreement good through 2006 means it         pany was created.”
cannot attempt to force its way into a            According to Fyodorov, Eural TG’s
deal by threatening to turn off access to    relationship with Gazprom will be termi-
its pipe network.                            nated when a new gas supply contract be-
    “There are a lot of conflicting inter-    tween Gazprom and Turkmenistan
ests,” says Kupriyanov. “We want to          comes into effect. But that will not be un-
supply gas ourselves. They want to do it     til Jan. 1, 2007.
independently. We are dependent on
them for transporting gas to Europe.
They have large debts to us, and so on.”
    Kupriyanov says if Gazprom tries to
push Eural TG out Ukraine will retali-
ate by raising transit fees for Russian
gas heading to Europe.
    “The security of our supplies to Eu-
rope depend on Ukraine. We can be hit
with fines if the gas does not get
through,” Kupriyanov says. “It makes
no sense for us to break our heads try-
ing to get in on this deal.”

In an ironic twist, Gazprom’s funding of
Eural TG may just fatten it up for a
Western rival eyeing a way to break
into Gazprom’s monopoly on exports to
Europe from the former Soviet Union.
   British-based JKX Oil & Gas, which
already has stakes in a number of
Ukrainian oil ventures, has been trying
to buy part of Eural TG together with a
company called Benam Holdings since
July, according to JKX.
   JKX company has several heavy hit-
ters behind it, including former British
Trade and Industry Minister Peter
Fraser and controversial Swiss tycoon
Bruce Rappoport, who has close ties to
the Israeli government.
   JKX, for now, says it cannot say
what Benam Holdings is. A web search
for the company also came up with no
results. Like Gazprom and Naftogaz,
8 y TUE SD AY, DECEMBER 2, 2003                        Focus           Business
   I N           B R I E F

RusAl Buys Into Rival                         Local Lawyer Shatters Glass Ceiling
s MOSCOW (Reuters) — Russia’s                 By Michael Diosi                                                                                                                              progress. The mentality of continuous
top aluminum producer, Russian Alu-           SPECIAL TO THE ST. PETERSBURG TIMES                                                                                                           improvement is the driver for any pro-
minum (RusAl), said on Friday it had          There is a contagious enthusiasm about                                                                                                        fessional services firm. Every day you try
bought at an auction a 14-percent gov-        Olga Litvinova, office managing partner                                                                                                       to be better than you were yesterday.”
ernment stake in Metallurg firm con-          of Ernst & Young and EY Law in St.                                                                                                                 Her intention now, she says, is to be
trolled by the rival No. 2 aluminum           Petersburg. For a start, she manages to                                                                                                       constantly tackling new and bigger chal-
company, SUAL.                                make tax law sound exciting. More than                                                                                                        lenges. She is not, however, drawn to
    “We confirm the acquisition of the        that, she makes it sound exhilarating.                                                                                                        Moscow. “Unfortunately there is mi-
Metallurg stake,” a RusAl spokeswoman             A useful quality for Litvinova, as this                                                                                                   gration from St. Petersburg to Moscow
said. She declined further comment.           week she launches EY Law in St. Peters-                                                                                                       because they don’t see the opportuni-
    Metallurg includes Russia’s smallest      burg as the new brand for the legal prac-                                                                                                     ties for self-realization here,” she says.
aluminum smelter, Volkhov, and the            tice of professional services firm Ernst &                                                                                                    “But for me, I see that there is still so
Pikalyovo alumina refinery, located in        Young. “We are not so much opening                                                                                                            much that can be done. It would be
northwestern Russia.                          something new,” she says, “as giving a                                                                                                        easy for me to relocate, but there is no
    In November 2002, RusAl bought a          separate identity to an existing depart-                                                                                                      point. At Ernst & Young I can work on
32 percent stake in Nadvoitsy aluminum        ment, reflecting the fact that we already                                                                                                     a Russia-wide scale. I believe St. Peters-
smelter, also controlled by SUAL, but         have a law firm. It is,” she explains keenly,                                                                                                 burg has not explored all of its poten-
later sold it to the rival company.           “a truly integrated practice. We are able                                                                                                     tial, it is maybe 20 to 30 percent utilized.
                                              to consider a problem from all angles.”                                                                                                       St. Petersburg is not a satellite region
Oil Tariffs Raised                                Litvinova herself exemplifies the
                                              multidisciplinary ethic, and is accord-
                                                                                                                                                                                            but has its own interesting and dynamic
                                                                                                                                                                                            identity. There is a gap now between
s MOSCOW              (Bloomberg)        —    ingly immersed in the St. Petersburg                                                                                                          Moscow and St. Petersburg in terms of
Transneft, Russia’s crude-oil pipeline        business environment. She was last                                                                                                            business development. It is more chal-
monopoly, will increase oil shipment          week elected the new chairman of the                                                                                                          lenging to work in a more difficult, less
charges 8.62 percent from Jan. 1 after        executive committee of the St. Peters-                                                                                                        developed regional market.”
the government agreed to raise tariffs,       burg International Business Associa-                                                                                                               For Sebastian FitzLyon, of surveyors
Interfax reported, citing a Federal En-       tion, a forum for local business to voice                                                                                                     and valuers S. Zinovieff and Co. — and
ergy Commission decision.                     its concerns and lobby for legislative                                                                                                        the Australian honorary consul in St.
    State-run Transneft, which ships most     and administrative changes. She is the                                                                                                        Petersburg — it is Litvinova’s energy
of Russia’s oil, had asked for a 10 percent   first Russian, and the first female, to                                                                                                       that informs her success. “She is the
increase, Semyon Vainshtock, the com-         hold the position.                                                                                                                            most energetic person I know here,” he
pany’s chief executive, said last week.           “I have found that it is very interest-                                                                                                   said. “As a lawyer she is extremely
    Russia, the world’s No. 2 oil supplier    ing,” she says, “to work in an environ-                                                                                  SERGEY GRACHEV/SPT   competent, running a very large and
after Saudi Arabia, should increase crude     ment with the representatives of vari-          Litvinova believes that “only 20 to 30 percent” of St. Petersburg’s potential is used.        successful legal practice. She has very
extraction to about 420 million tons of oil   ous disciplines — financial, tax, legal.        lawyers who joined an accounting firm.          As Andersen’s grew, Litvinova de-             strong leadership skills and makes deci-
next year, from an estimated 412 million      That is very exciting.”                         At the beginning I was not sure whether scribes a very forward-thinking manage-               sions extremely quickly. She is normally
tons in 2003, Vainshtock said.                    “Russian law is still an emerging law,      this would be a long-term career for a ment philosophy at the firm. “I was very               thinking of three things at a time.”
                                              and it is very controversial,” she says.        lawyer. … I was only looking for a job impressed,” she says. “Maybe a year af-                     For someone so immersed in law and
PM Sees 4% Growth                             “Every tax issue is also a legal issue.”
                                              And it is so exciting, she says, “because
                                                                                              part-time, expecting to go back to study ter starting with the company, the man-
                                                                                              at the end of the summer, and when the agement started talking with me about
                                                                                                                                                                                            business (even her husband is a lawyer),
                                                                                                                                                                                            it is surprising Litvinova can find time for
s MOSCOW (Bloomberg) — Russia’s               it changes every day.”                          summer was over I approached the then careers, and this was new, because no-                  anything other than work. “It is a ques-
economy may grow between 4 percent                Growing up in distant Kamchatka,            head of the office and said that I was go- body in Russia in the early ‘90s was talk-         tion of attitude,” she explains, “of prior-
and 4.5 percent next year, Interfax           where her father was an electronic engi-        ing back [to University]. He showed me ing with a fairly junior person about                  itization. It is a fine balance, and some-
quoted Prime Minister Mikhail Kasya-          neer with the Soviet navy, she received a       his ten shelves of German tax law books, what you should be doing and how they                times work wins.” She is a keen skier, go-
nov as saying Friday.                         “phenomenal” education which she                and then he showed me the single shelf can help you to build your career. I re-               ing every year to Scandinavia with
    “There are reasons to believe that        complemented by attending St. Peters-           below it with just three very thin binders member a discussion with our managing              friends. “Living in Northwest Russia,
we have already guaranteed a 4 percent        burg State University in the early 1990s.       of the new regional Russian tax law. He partner and the first time he mentioned               skiing is always possible here, especially
rise in GDP, irrespective of the price of     “My family was originally from St. Pe-          said to me, ‘Look at how much I had to to me, ‘you know what, you can be a                    if you don’t have much time,” she says.
oil and other commodities,” Kasyanov          tersburg,” she explains, “and so it was         learn at law school, and how much you partner in our firm.’ I thought at the                       She is also a keen supporter of the
said, according to Interfax. “One can in      logical for me to go to law school here.”       have to learn, and then tell me you can’t time that this was close to impossible.”            Mariinsky Theater, indulging a personal
fact expect an increase of 4 percent to           Becoming a tax lawyer, however,             work and study at the same time!’ So I          But when in 2002 Arthur Andersen              affection for opera and ballet by attend-
4.5 percent.”                                 happened somewhat accidentally. “I              stayed working for them.”                   merged practices with Ernst & Young,              ing with clients and business partners.
    Russia is forecasting growth of 6.6       must say,” she says, “that I never ex-              It was, it seems, a good decision. “It Litvinova took over as managing part-              “The Mariinsky is a landmark for the
percent this year, a fifth year of growth.    pected to do something like tax.”               was such an exciting time, everything ner of the St. Petersburg office.                       city,” she says, “and such cultural estab-
Gross domestic product grew 4.3 percent           At the suggestion of one of her law         was as new for an intern as it was for the      Her personal and professional ambi-           lishments require the support of the com-
in 2002, 5 percent in 2001, 10 percent in     school professors, she applied for an in-       professor and the clients. I could prac- tions are clear. “Yes,” she says, “I would           munity.” Indeed, she is launching EY
2000 and 6.4 percent in 1999, a year after    ternship at Arthur Andersen in 1992.            tice tax law and learn together with ev- describe myself as ambitious, and I be-              Law this week with a cocktail reception
the government’s default on $40 billion of        “It was my first employment,” she           erybody. There was no knowledge ac- lieve that this is a characteristic that we               at the premiere of “Samson et Dalila.”
domestic bonds and the ruble’s devalua-       says. “I was still in law school at the time    cumulated, everybody was learning are specifically looking for. Ambition in                        Being multi-disciplinary, it seems, is
tion left the economy in near-collapse.       and I was probably one of the few               from their own experiences.”                a good sense is the driver for people to          not just about work.
9 y TUE SD AY, DECEMBER 2, 2003

Piracy Stifles Creativity and Stalls Economy
By Alexander Vershbow                              their works in Russia due to current                                                                                                       directly endangers the health and even
Russians are rightly proud of their rich           piracy levels. President Vladimir Putin’s                                                                                                  the lives of Russians who rely on fake
heritage of music, literature, theater and         visit this month to Mosfilm emphasized                                                                                                      or poor quality remedies.
film, as well as their achievements in sci-         the similar damage that piracy is doing                                                                                                         The ultimate result here is that, in
ence, space and technology. The critical           to Russia’s film industry, despite recent                                                                                                   the long run, the financial effects of
acclaim of recent films such as “The Re-            critical successes.                                                                                                                        piracy will continue to hinder the devel-
turn” shows that Russia’s long tradition               Likewise, the reason software firms                                                                                                     opment of high-content-value industries
of literary and artistic creation is still alive   can afford to pay computer program-                                                                                                        that would provide some of the best jobs
and well. Russia is known throughout the           mers and other technicians is because                                                                                                      for Russians — jobs that focus on
world for its achievements in science and          they can expect to make money selling                                                                                                      knowledge, creativity and innovation —
culture. But something that Russia is be-          a final product. Russia has a large pool                                                                                                    while creating unneeded obstacles for
coming increasingly known for — theft              of talented programmers and technical                                                                                                      the growing Russian export market.
and piracy of intellectual property —              professionals, but the technology sector                                                                                                        Piracy is very profitable, but the
threatens Russia’s future capacity for cul-        here is also a victim of the pirates, who                                                                                                  profits are realized by only a very rich
tural and scientific achievements.                  deprive innovators of the funding they                                                                                                     few, at the expense of many, many others.
    Over the past year, growing atten-             need to keep innovating.                                                                                                                   It is obviously at the expense of the artists
tion has been paid to the burgeoning                   Russia’s scientists and inventors have                                                                                                 and creative professionals whose profits
levels of optical disc piracy (CDs,                the potential to contribute to bringing                                                                                                    are siphoned off. But it is also at the ex-
DVDs and CD-ROMs) in Russia.                       Russia into the mainstream of commer-                                                                                                      pense of the software developer who is
However, recent polls show that Rus-               cially viable technical innovation, espe-                                                                                                  unable to create new and innovative
sian citizens are not concerned about              cially if the country can attract invest-                                                                                                  computer programs without fear of his
piracy involving music, films and soft-             ment from high-tech companies. But this                                                                                                    final product being stolen. It is at the ex-
ware products, because they believe the            process will never truly get off the                                                                                                       pense of the musician who cannot afford
only victims of this type of piracy are            ground if technical innovation is not ad-                                                                                                  to record her work. It is at the expense of
major Western recording and film stu-               equately protected by well-enforced pro-                                                                                                   the film studio that has to reduce the
dios, which, in their view, have no need           tection of intellectual property rights.                                                                                                   number of films it can produce for the
for the extra revenue generated by sales               Despite an attractive pool of talented                                                                                                 Russian market. It is at the expense of
in Russia. But Russians, too, are al-              creative professionals in both the techno-                                                                                                 every Russian worker who could be em-
ready victims of the pirates, and if               logical and cultural arenas, foreign in-                                                                                                   ployed by a growing company in an in-
piracy continues unchecked the number              vestment that could help bolster these in-                                                                                                 dustry that simply won’t grow while the
of domestic victims will swell.                    dustries in Russia is undermined by the                                                                                                    pirates bleed away its funding.
    Intellectual property rights exist to          pirates. Piracy has reached such epidemic     view Russia as a country that does not re-    not just to sell CDs of Mariah Carey and            And it is at the expense of all of us
serve as an incentive to creativity. The           proportions in Russia that it is increas-     spect the rule of law, intellectual or per-   Eminem. But — they continue — due to           here and around the world, who are de-
reason that artists can afford to write            ingly seen as the next China, which dur-      sonal property rights, they will continue     the current level of piracy it is simply not   prived of the rich cultural and scientific
and record music is because they can               ing the height of its piracy problem had      to invest in places where their property,     viable to invest the amount of money           achievements that constitute Russia’s
expect to be paid for their recordings.            29 plants producing pirated material.         in all of its forms, is better protected.     the Russian music industry deserves.           greatest historical legacy — and her
During discussions with both promi-                Russia is reported to have at least that          For example, Western studios say             Nowhere is the danger of piracy as          promise of even greater contributions
nent and up-and-coming Russian musi-               many illegal plants operating now. It is      that one of their primary goals in enter-     clear as in the ever-increasing arena of       to our world in the 21st century.
cians, I have made a point of asking               estimated that more than 320 million pi-      ing the Russian marketplace is to culti-      counterfeit pharmaceuticals. Not only
how to obtain their works on CD. Sadly,            rated disks are produced in Russia each       vate the abundance of talented musi-          does drug piracy take away profits that         Alexander Vershbow is the U.S. ambas-
the overwhelming response has been                 year, about 90 percent of which are ex-       cians in Russia and to share their cre-       could be used to develop more effective        sador to Russia. He contributed this
that it is simply not profitable to record          ported. As long as potential investors        ative talents with the rest of the world —    and more profitable medicines, but it           comment to The St. Petersburg Times.

Tax Evasion Isn’t Just
For Multimillionaires
By Vladislav Schnitzer                             source of income,” she said.
Not long ago my old friend Stepan                      “What is it?” he asked. In the heat of
asked me sheepishly if I would spot him            the moment he nearly mentioned that he
2,000 rubles till the end of the month.            occasionally worked as a gypsy cab driver,
“Of course,” I replied. “What’s wrong?”            but right at that moment the inspector
    I was surprised by Stepan’s request.           took pity on Stepan, opened a second file
We’d been friends for ages and in all              on her computer and told him that he had
that time we’d never borrowed more                 concealed dividend income.
than 100 rubles from each other.                       “But I’ve never owned stock in my
    “It’s like this,” said Stepan. “The day        life!” Stepan insisted.
before yesterday I got a notice from the               “You have received dividends. We
tax inspector’s office saying that I had            have all the details.”
five days to pay a 2,000-ruble fine or                   And then Stepan remembered that
face legal action.”                                back in the 1990s he had traded his pri-
    A fine? Tax inspectors? This sur-               vatization voucher for 50 10-ruble
prised me even more. “You aren’t earn-             shares in Gazprom.
ing a little extra under the table, are                “You have been paid a dividend of
you?” I asked.                                     10 kopeks per share, for a total of 5
    “Oh,        come                                                      rubles,” the in-
on!” he said. “Can                                                        spector said. “By
the tax inspectors                                                        law you have to
really have found
                          ‘You failed to pay, so                          pay tax on that in-
out that I pick up        you’ve been fined.                              come. You failed
the occasional fare                                                       to pay, so you’ve
on the way to and         Simple as that,’ said                           been fined. Simple
from work?”
    Stepan       took
                          the tax inspector to                            as that.”
                                                                              “But I never
time off from work,       the pensioner.                                  saw that money,”
drove to the tax                                                          Stepan objected.
office and stood in line for two hours just         “No one told me anything about it.”
to talk with the inspector, a pretty young             “That’s your problem,” the inspector
woman who muttered something when                  said. But given the ridiculously small
he said “Hello” without looking up from            amount of income involved, the inspec-
her computer. “Name?” she asked. “Ad-              tor softened. “Tell you what. I don’t think
dress?” Reading from her computer                  you’re guilty of intentional tax evasion,
screen, she announced: “You have con-              so I’ll reduce the fine to 500 rubles.”
cealed income from the government.                     In the end Stepan appealed his case
That offense carries a 2,000-ruble fine.”           to the deputy head of the district tax in-
    Stepan explained that he had only              spectorate, who finally saw the absurdity
one source of income, and that the in-             of the situation and rescinded the fine.
stitute payroll office assured him that
his taxes had been paid. But the woman             Vladislav Schnitzer is a pensioner and
stuck to her guns. “You have a second              journalist living in Moscow.
10 y TUE SD AY, DECEMBER 2, 2003
                                                                                                                  Stocks                         Focus
Boeing Chief Executive Walks Markets React to Yukos-
By Kathy Fieweger

CHICAGO — Boeing Co. Chairman
                                                                    total surprise.”

                                                                       Boeing said
                                                                                                                                        vestment bank Stephens Inc., said it was
                                                                                                                                        unclear if Condit resigned or was fired,
                                                                                                                                        but added that Sears’ firing was the last
                                                                                                                                                                                                           Sibneft Merger Nixing
and Chief Executive Phil Condit re-                                 Sears for speak-                                                    straw in a series of missteps for Condit                           By Dmitry Dmitriev                                              tinue to consider Eurobonds issued by
signed under pressure on Monday, fol-                               ing          with                                                   and Boeing, which is also the No. 2 U.S.                           MOSCOW — Russian external debt                                  state-owned companies as being pro-
lowing an ethics scandal and other cor-                             Druyun about                                                        military contractor.                                               was lower last week in line with global                         tected from both types of risk. Therefore,
porate missteps that have hurt business                             future employ-                                                          Those included an indefinite ban by                             markets. The benchmark Russia 30                                we see them as being the most attractive
prospects.                                                          ment with the                                                       the Air Force on military rocket                                   ended the week at 93 7/8 (-7/8), with its                       buys under current market conditions.
    Harry Stonecipher, who retired last                             company while                                                       launches for using rival Lockheed                                  yield increasing from 7.25% to 7.37%.                               The GKO-OFZ market was stronger
year, was named president and chief ex-                             she was still                                                       Martin Corp. documents to help win                                 The losses were mainly caused by weak-                          last week despite a lack of rubles on the
ecutive officer of the world’s largest                               with the Air                                                        the initial award, as well as news last                            ened U.S. Treasuries. Meanwhile, the                            market at the end of the month. The
aerospace company. Considered by                                    Force as a top                                                      week the Pentagon would look into                                  sovereign spreads tightened by 4-6 bp,                          market only fell on the last trading day of
many a shrewd and hard-nosed leader,                                procurement                         REUTERS                         delaying a big contract to lease and                               demonstrating their resilience to the po-                       the month, as news broke that the
Stonecipher was formerly Boeing’s vice                              official.          Phil Condit                                       buy 100 air refueling tanker planes                                litical uncertainties arising from devel-                       Yukos-Sibneft merger may be cancelled.
chairman after running McDonnell                                       Sears was Condit’s No. 2 man, and                                from Boeing.                                                       opments surrounding the Yukos-Sibneft                           Corporate and municipal ruble bonds
Douglas. Boeing and McDonnell Dou-                                  industry experts said last week that                                    Boeing has also lost market share                              merger and the forthcoming elections.                           were also stronger last week, with City of
glas merged in 1997.                                                Sears’ firing raised questions about                                 for its airplanes in recent years to rival                             Corporate Eurobonds were even                               Moscow bonds posting the best gains due
    “Boeing is advancing on several of                              Condit’s role in running the company,                               jetmaker Airbus. On Monday, Qantas                                 more resilient last week. Most posted                           to their large duration and the strong
the most important programs in its                                  as well as leadership succession at Boe-                            Airways announced an order for 23                                  notable gains and the best performers                           creditworthiness of the issuer, which
history and I offered my resignation                                ing.                                                                Airbus A320s worth about $1.15 billion                             were Gazprombank 08 (+1.28%) and                                draws foreign investors. The key factors
as a way to put the distractions and                                   Taking on the role of nonexecutive                               for its new low-cost carrier. Airbus is                            Sistema 08 (+1.14%). Corporate spreads                          in the ruble debt market’s increase were
controversies of the past year behind                               chairman is Lew Platt, former CEO of                                owned by European aerospace com-                                   over the sovereign yield curve tightened                        the rise of the ruble in the FX market, a
us, and to place the focus on our per-                              Hewlett-Packard Co.                                                 pany EADS.                                                         by 10-40 bp. Meanwhile, Vneshtorgbank                           fresh increase in the CBR reserves, and
formance,” Condit said in a state-                                                                                                          In one of his first statements as                               has decided to scale down the size of its                       the CBR’s comments that the ruble may
ment.                                                                                                                                   CEO, Stonecipher told analysts and re-                             proposed Eurobond to $300 million.                              be allowed to float more freely and may
    The departure of Condit, 62, from
the world’s largest manufacturer of
                                                                    Sears’ firing raised                                                porters on a conference call that Boe-
                                                                                                                                        ing’s proposed new 7E7 jetliner pro-
                                                                                                                                                                                                           Pricing has been postponed until Dec. 1.
                                                                                                                                                                                                               Russian sovereign spreads can be
                                                                                                                                                                                                                                                                           continue to appreciate in the short-term
                                                                                                                                                                                                                                                                           — implying that the Bank may make
commercial airplanes follows the                                    questions about                                                     gram was on track.                                                 expected to tighten further in the                              fewer ruble interventions.
firing last week of Chief Financial                                                                                                          “We are… looking forward to going                              medium-term on the back of Russia’s                                 The best surprise last week was the
Officer Michael Sears for what the
                                                                    Condit’s role in                                                    forward with the airplane,” he said. “I                            robust economy, the authorities’ strong                         Duma’s approval in all three readings of
company said was unethical conduct.                                 running the company,                                                have been a proponent of it all along                              commitment to service the country’s                             a reduction in stamp duty on new secu-
Also dismissed was a former high-                                                                                                       and continue to be so.”                                            debt, and the decreasing volume of ex-                          rity issues, from the current 0.8% to
ranking Air Force official, Darleen                                  as well as other issues.                                                The board will hear presentations                              ternal debt in both absolute and relative                       0.2%, with a maximum charge of
Druyun.                                                                                                                                 on the 7E7 in mid-December, as sched-                              terms. In the near-term, this tightening                        100,000 rubles (approx. $3,300). This
    “They needed to send the very                                      The surprise move caps a tumul-                                  uled, Stonecipher added.                                           should, however, be constrained by po-                          long-awaited and necessary law will
strongest signal they could to Congress,                            tuous year at Chicago-based Boeing,                                     Shares of Boeing were up 14 cents at                           litical tensions — driven by both the                           have a positive impact on the market’s
DoD [U.S. Department of Defense], in-                               which has suffered in nearly all of its                             $38.53 on the New York Stock Ex-                                   Yukos events and the elections — as                             development and be attractive to com-
vestors,” said Richard Aboulafia at Vir-                             core business units from a severe                                   change on Monday morning, off an ear-                              well as by the lack of activity by major                        panies considering ruble bond issues, as
ginia-based consultancy Teal Group.                                 downturn in commercial aircraft deliv-                              lier low at $37.70. The stock has risen                            players as the year draws to a close.                           it should lead to a significant reduction
    “This is an [extension] of recent is-                           eries. It also faces investigations into al-                        more than 52 percent since mid-March.                                  The corporate spreads have been hit                         in their borrowing costs.
sues that have plagued Boeing,” said                                leged illegal activities and unethical                                                                                                 even harder by the political uncertainty.
Marcy Yeamans, analyst for Banc One                                 conduct in its military contracting pro-                            Additional reporting by Chelsea Emery                              However, their high yields and shorter                          Dmitry Dmitriev is a fixed income and
Investment Advisors. “Given the issues                              cedures.                                                            in New York, Chris Stetkiewicz in Seat-                            durations make them less exposed to                             banking analyst with United Financial
at the company, it shouldn’t have been a                               Eric Hugel, analyst for New York in-                             tle and Jason Neely in London.                                     global interest rate volatility. We con-                        Group.

                                                     R           U         S           S          I          A          N                   M           A        R           K           E          T          S                                                          Source data from Troika Dialog

 CENTRAL BANK RATE                            BENCHMARK STOCKS                                                                                               RTS INDEX AND VOLUMES
                                                                       CLOSE, $ W-o-W, %        VOLUME, $ EV/EBITDA MCAP, $ MLN 52WK HI 52WK LO
                                              Index RTS             529.27             4.75 103,517,253                 132,931.4        650.09    335.33                                                                                          23, Malaya Morskaya Street, St.Petersburg
                                              Oil & Gas                                                                                                                                                                                            Phone (812) 380 6850            Fax 380 6851
                                              Gazprom*               1.255             2.21 91,740,500           3.38       24,676.8      1.437  0.660
                                              LUKoil                21.615             4.85 6,962,910            5.32       17,801.3     24.550 13.610
                                              Sibneft                2.300             6.24    398,500           4.87       10,905.0      3.350 1.820
                                                                                                                                                                                                                                                   Thought of the Week
                                              Surgutneftegaz         0.525             6.23 3,608,610            2.80       12,144.0      0.601 0.286
                                              Tatneft                1.014             6.71 1,056,500            3.17        2,114.3      1.355 0.721                                                                                              Hard work never killed anybody, but why take
                                              YUKOS                 11.375             0.31 8,705,050            4.37       21,979.6     16.350  8.360
  DOLLAR RATE IN SELT               Nov. 28                                                                                                                                                                                                        a chance?
                      WA*              LAST   UES                    0.261            10.48 18,473,000           7.13       11,204.7      0.347     0.104                                                                                          Edgar Bergen
                                                                                                                                                                   RTS Index             Volume, $ mln (r.h.scale):       RTS           MICEX
  TOD            29.7389            29.7500   Mosenergo              0.064            -2.30    613,300           6.16        1,802.1      0.085     0.031
                                              Irkutskenergo          0.112             0.45          -           6.31          531.5      0.127     0.072                               Nov. 24     Nov. 24     Nov. 24      Nov. 24    Nov. 24
  TOM            29.7409            29.7350   Bashkirenergo          0.259            -1.03          -           4.35          281.7      0.370     0.125    RTS change                  2.07%       1.69%       3.13%       -0.14%     -2.01%    OIL PRICE
                                              Chelyabenergo          0.031             2.48          -           6.24          160.1      0.033     0.010    Closing level              515.75       524.46      540.87      540.13      529.27                       LATEST      W-o-W     DISCOUNT TO BRENT           52WK HI 52WK LO
  * WA – weighted average                     Kubanenergo            4.225            -2.87          -           9.90           75.5      4.600     2.100    RTS                         14.17        21.71       37.27         7.31      23.06   Urals, $/pbl            27.79   -2.76             3.77%                32.72     18.26
                                              Kuzbassenergo          0.505             9.78          -           7.05          306.1      0.550     0.172    MICEX                      277.12       377.46      362.70      240.01     351.27
  CENTRAL BANK RATES                Nov. 28   Lenenergo              0.603             1.73          -           4.62          513.6      0.630     0.265                                                                                         TROIKA DIALOG EXTERNAL DEBT INDEX (TEDI)
                    FOR      RUR       USD    Rostovenergo           0.031             0.00          -           4.51          110.9      0.034     0.018
                                              Samaraenergo           0.061            -6.54          -           6.99          242.7      0.074     0.033
  Australia           1     21.53      0.72   Sverdlovenergo         0.385             5.48          -           3.57          239.9      0.385     0.162
  UK                  1     51.07      1.72   Telecommunications
                                              Rostelecom             1.910             3.38     1,859,695        4.56        1,697.2 2.248          1.122
  Belarus         1,000     13.84      0.47
                                              Central Telecom        0.304             1.00             -        3.71          596.1  0.359         0.235
  Denmark            10     47.71      1.60   MGTS                  10.700             1.42             -        5.76          970.5 11.750         6.200
  USA                 1     29.74      1.00   North Western Telecom 0.400              5.12             -        3.17          347.5  0.530         0.345
                                              Siberian Telecom       0.031             0.82        76,850        4.14          447.7  0.036         0.023
  Euro                1     35.50     1.19    Ural SI                0.032             7.06       489,076        6.45        1,182.3  0.039         0.013                                                                                         OFZ WEIGHTED AVERAGE YIELD (%)
  Iceland           100     39.73      1.34   Volga Telecom          2.358             3.74        97,756        4.73          700.4  2.690         1.200
  Kazakhstan        100     20.28      0.68
                                              Norilsk Nickel        58.000        10.21         1,315,800        6.27       12,406.5 65.500        18.750
  Canada              1     22.79      0.77   Severstal            113.400         9.30           166,750        3.07        2,503.2 125.000       47.000
  Norway             10     43.45      1.46   Manufacturing
                                              AvtoVAZ               25.200             6.78             -        6.94         761.7      30.250 19.150
  SDR                 1     42.81      1.44   GAZ                   25.550             2.20             -        6.93         168.4      30.500 14.000
  Singapore           1     17.24      0.58   KamAZ                  0.343             3.32             -        6.19         269.1       0.435 0.258
                                              UHM (Uralmash)         7.350            -1.34        64,650        6.19         271.9       9.240  5.250
  Turkey       1,000,000    20.22      0.68
                                              Consumer & Retail                                                                                                                                                                                   MINFIN BONDS
  Ukraine            10     55.17      1.86   GUM                    2.048            -0.12              -       5.44         122.9       2.500     1.310    ADRS                                                                                                   MATURITY       BID          W-o-W       YTM         SPREAD     W-o-W
  Sweden             10     39.33      1.32   Red October            6.000             0.42              -       4.73          57.9       7.650     2.700
                                                                                                                                                                    SHARES PER ADR CLOSE, $ W-o-W, % VOLUME*, $               52WK HI 52WK LO     MinFin 5           5/15/12      87.50     -0.750          6.32%        298.0       2.6
                                              TzUM                   0.495             0.00              -       5.23          44.4       0.495     0.276
  Swiss               1     22.93      0.77                                                                                                                  LUKoil                 4       86.40     4.35     234,876,483      99.00    52.00    MinFin 6           5/15/10      96.50      0.375          4.55%        249.7     -40.8
                                                                                                                                                             SurgutNG              50       26.55     7.93      57,990,506      30.00    14.20    MinFin 7           5/15/15      75.75     -0.812          7.35%        401.2      -2.0
  Japan             100     27.20      0.91   Aeroflot               0.555             3.98        28,000        3.78         616.4       0.630     0.322
                                                                                                                                                             Gazprom               10       24.10     2.55      61,048,203      28.50    10.00    MinFin 8          11/15/11      91.70      0.075          5.64%        236.0     -21.4
                                              PRISCO                 4.175            16.78             -        5.15          92.4       4.175     1.435
                                                                                                                                                             Tatneft               20       19.95     3.91       7,557,249      27.20    14.20
                                              Banking                                                            P/BV
  INTERBANK O/N RATES                                                                                                                                        Sibneft               10       23.00     4.55      22,862,108      34.00    18.00
                                              Sberbank             253.750             4.86       760,150        1.05        5,001.3 309.000 188.500         YUKOS                 15       46.00     0.55     337,184,745      68.50    33.33
                                              * Non RTS traded
                                                                                                                                                                                                                                                  SOVEREIGN EUROBONDS
                                                                                                                                                             UES                 100        26.18    11.88      52,275,610      34.65    10.50
                              1.75                                                                                                                                                                                                                               COUPON MATURITY          BID       W-o-W         YTM     SPREAD W-o-W
  3.00                                        PREFERRED SHARES                                                                                               Mosenergo           100         6.35    -2.31       2,774,034       8.13     3.00
                                                                                                                                                                                                                                                  Russia 05       8.75%      7/25/09   108.50 -0.250          3.38%        134.0   -16.0
                                                                                                                                                             Rostelecom             6       11.58     4.99       2,727,610      13.20     6.59
  2.00                                                                     CLOSE, $           W-o-W, %   VOLUME, $ DISCOUNT            52WK HI    52WK LO    VimpelCom           0.75       69.48    12.70      84,828,983      70.25    30.00    Russia 07      10.00%      6/27/11   116.55 -0.825          4.88%        155.0     0.0
                                              Rostelecom pref                 1.258               5.19       60,750    -34%              1.510       0.750   Golden Telecom         1       27.90     3.45      12,833,762      33.47    12.01    Russia 10       8.25%       4/1/14   111.14 -0.485          5.31%        198.0    -9.0
  1.00                                                                                                                                                                                                                                            Russia 18      11.00%      7/25/22   132.50 -1.812          7.34%        303.0     0.0
                                              Sberbank pref                   3.600               2.86            -    -29%              4.010      2.140    MTS                   20       82.50     7.21      66,022,489      87.50    33.25
  0.00                                        Surgutneftegaz pref             0.341              11.44    1,376,575    -35%              0.390       0.203   Norilsk Nickel         1       57.86    10.42      73,283,062      65.25    18.25    Russia 28      12.75%      6/25/32   156.37 -1.880          7.63%        333.0    -4.0
         11/17 11/18 11/19 11/20 11/21        Tatneft pref                    0.556               3.97       27,750    -45%              0.740       0.434   Wimm-Bill-Dann         1       18.84     1.56       3,287,155      22.80    16.00    Russia 30       5.00%       4/1/34    93.75 -1.062          7.37%        307.0    -3.0
                                              UES pref                        0.238              11.76      116,250     -9%              0.313      0.091
Tuesday, December 2, 2003                                                          E      L       E      C       T       I      O       N                                                 The St. Petersburg Times           y   11

Shoigu Takes United Russia Dance to Perm
By Carl Schreck                                                                                                                                                                          Don’t Have to Fear,” (“You don’t have
STAFF WRITER                                                                                                                                                                             to fear thick fog, you don’t need to fear
PERM, Ural Mountains — With a                                                                                                                                                            empty pockets…. You just have to fear
healthy dose of populism, Sergei Shoigu                                                                                                                                                  your own cowardice.”) and the school’s
took the United Russia show to Perm                                                                                                                                                      ballerinas’ performance of “The Waltz
on Friday, showing off his soccer skills                                                                                                                                                 of the Flowers,” from Tchaikovsky’s
and offering a vision of Russia’s future                                                                                                                                                 “The Nutcracker.”
geography that could make for some                                                                                                                                                           Shoigu’s final stop was at Perm’s
nervous neighbors.                                                                                                                                                                       Spartak Sports Complex, where he
    “In the end, I hope we live to see the                                                                                                                                               donned a United Russia jersey for an
day when we again have a huge country                                                                                                                                                    indoor game of soccer against a team of
within the borders of the Soviet                                                                                                                                                         local United Russia members.
Union,” said Shoigu, emergency situa-                                                                                                                                                        Everybody loves a winner, and
tions minister and No. 2 on the federal                                                                                                                                                  United Russia has not been shy about
list of the pro-Kremlin party.                                                                                                                                                           aligning itself with Russia’s recent soc-
    The statement at the Perm Drama                                                                                                                                                      cer success for some free PR. In
Theater was met with resounding ap-                                                                                                                                                      September, Shoigu was shown promi-
plause from the crowd of 1,000 that was                                                                                                                                                  nently on television alongside Interior
bused in to support the unification of                                                                                                                                                   Minister and United Russia leader
the Perm region and its smaller neigh-                                                                                                                                                   Boris Gryzlov and State Sports Com-
bor, the Komi-Permyak autonomous                                                                                                                                                         mittee head and hockey legend Vyach-
district. A referendum on unification                                                                                                                                                    eslav Fetisov, cheering wildly as the na-
will be held next Sunday, the same day                                                                                                                                                   tional team beat Switzerland 4-1 in
as the State Duma elections.                                                                                                                                                             Moscow.
    Shoigu, one of Russia’s most popular                                                                                                                                                     The win helped pave Russia’s way to
politicians, traveled to this industrial                                                                                                                                                 next year’s European Championships in
city of 1 million in the southern foothills                                                                                                                                              Portugal.
of the Urals to stump for United Russia                                                                                                                                                      A few days later, Gryzlov and
ahead of the elections. But his expan-                                                                                                                                                   Shoigu were photographed alongside
sionist pronouncement left journalists                                                                                                                                IGOR TABAKOV/SPT   Brazilian soccer great Pele for the
puzzled about what exactly he meant by        Emergency Situations Minister and United Russia co-chairman Sergei Shoigu looking down during a ballet performance in Perm.                opening of a soccer field in Moscow.
“within the borders of the Soviet             quakes and his religious background.       40-year-old construction worker, said         “We’re happy to welcome you to                        The local United Russia squad
Union.”                                            Shoigu, born in the traditionally he likes what he’s seen of Shoigu and our school!” the girl would say, bowing                       hardly stood a chance Friday evening
    At the press conference following         Buddhist republic of Tuva, said he was would vote for him if he ever decided to while holding a loaf of bread and a                        against Shoigu’s squad, which, with leg-
the speech, he didn’t exactly clear things    baptized Russian Orthodox when he run for president. “He’s a responsible small bowl of salt in one hand, the tra-                          endary Soviet goalkeeper Rinat
up, saying only that he was talking           was 5 years old.                           person,” he said. “He’s a man of his ditional offering to guests.                               Dasayev in goal, won 6-4 in front of a
about reunification in geographical                But hockey non sequiturs aside, word and a man of action.”                          “Our doors are always open for                    crowd of 500. After 10 straight missed
terms, not political.                         United Russia has an ace in Shoigu as         Shoigu’s stop at the Perm Drama you!” the boy would say.                                     shots at close range in the first half,
    When asked how he envisions such a        its campaign face. Wherever there is Theater was his fourth appearance of                When Shoigu finally arrived, the                  Shoigu eventually managed to score
process, Shoigu sat silently for 13 sec-      trouble — earthquakes, floods, fires, the day on a standard campaign menu welcoming duo gave a flawless and                                one goal in the second half.
onds before unleashing another head-          mining accidents — the 48-year-old of stops and photo-ops: meetings with perky performance, after which 15-                                    Pribylovsky said United Russia’s
scratcher.                                    emergency situations minister cuts a small-business leaders, visits to schools year-old student Dima Torchuk gave                          sports politics and talk of restoring the
    “Would you like the Russian na-           dashing figure as he shows up in his and sports clubs and speeches to rally the guest of honor a guided tour of the                        Soviet Union play on similar emotions
tional hockey team to win the world           trademark turtleneck sweater and the United Russia troops.                            school. Shoigu’s bodyguard, who bore a               among voters.
championship?” he barked. Those pre-          Gore-Tex jacket to save the day.              Earlier in the day, he visited Perm’s striking resemblance to the Perm re-                       “Hockey and soccer are the two
sent could only exchange confused                  Though he is on the United Russia prestigious Gymnasium No. 11 to tour gion’s karate expert governor, Yury                            most popular sports in Russia, and
looks.                                        party list, Shoigu is not expected to take the school’s facilities, a tour Putin took Trutnev, kept students and journalists               more than half of the population roots
    Then, having apparently collected         a Duma seat, but rather to stay on as a few weeks earlier during his visit to from getting too close to the minister.                      for one team or another,” he said.
his thoughts, Shoigu said he sees such a      minister.                                  Perm. The school’s hallways were              During a stop at the school’s Inter-                  “It’s the same type of populism as
reunification as similar to the creation           Vladimir Pribylovsky, who heads the chaotic 30 minutes before Shoigu’s ar- net classroom, a school official meekly                    the nostalgia for the Soviet Union,” he
of a Russian-Belarussian union: “hard,        Panorama think tank, said it is no mys- rival. Raisa Zobachyova, the school’s asked Shoigu’s permission to hang his                        added.
difficult and long.”                          tery why Shoigu enjoys great popular- director, raced around shouting instruc- picture in the room. Shoigu gave a                              “They’re just trying to show unity
    Shoigu responded to follow-up             ity.                                       tions to restless students on where to muted affirmative, to the official’s ob-                 with a majority of the population.
questions on the matter with a threat to           “He’s always on TV, and he’s always stand, while a boy and girl in traditional vious relief.                                              “The only difference is that it is a bit
end the press conference, ensuring a se-      saving something,” Pribylovsky said.       peasant costumes practiced their greet-       After the tour, Shoigu was treated to             harder to play soccer than to sit there
ries of banal questions about earth-               Perm resident Alexander Voronov, a ing near the front entrance.                  a boys’ choir rendition of the song “You             and wish the Soviet Union still existed.”

Nemtsov Courts Young Voters in the Urals Deputies Pass Raft of Bills
By Oksana Yablokova
                                         On Last Day of State Duma
                                                 “So why did you and Yeltsin sell out
                                              to America?” one note said.
                                                                                             Nemtsov wrapped up the meeting
                                                                                          by asking the students whether they
CHELYABINSK, Ural Mountains —                    “Yeltsin and I sold Russia, how in-      wanted to have good jobs, their own          By Anna Dolgov                                    0.5 percent of GDP, abolishes the sales
Some 450 students sat in a hall of the        teresting,” Nemtsov said, chuckling.        businesses, big salaries and better hous-    SPECIAL TO THE ST. PETERSBURG TIMES               tax and cuts value-added tax to 18 per-
Chelyabinsk State Pedagogical Univer-            “What is going on in Georgia, and        ing. SPS, he said, holds the key to all of   MOSCOW — To the strains of the na-                cent. Inflation is predicted to fall to be-
sity, licking ice cream cones and munch-      how is Chubais doing these days?” an-       these desires.                               tional anthem, a half-empty State                 tween 8 percent and 10 percent next
ing on potato chips as they waited with       other note asked, referring to Unified         “I don’t just think I have won them       Duma on Friday ended its last session             year — down from a predicted 12 per-
increasing impatience for Boris               Energy Systems chief and SPS candi-         over. I know I have,” Nemtsov said as        before new elections of Dec. 7, having            cent this year.
Nemtsov to show up and explain why            date Anatoly Chubais.                       rushed out of the hall to go to the rock     rushed through a last-minute flurry of                The Duma voted 371-0 to approve a
they should vote for his Union of Right          “Chubais is doing great. He recently     concert.                                     largely economic measures.                        bill insuring bank deposits, which is ex-
Forces, or SPS, party.                        bought an energy company in Georgia,           SPS won a strong 18 percent of the            In the chamber, which emptied                 pected to aid the modernization of the
    After 40 minutes and several an-          by the way,” Nemtsov said.                  vote in Chelyabinsk in the 1999 Duma         through the day as deputies left to go on         banking system and protect private de-
nouncements by school officials that                                                      elections, and local party officials make    the campaign stump, a handful of oppo-            positors against loss if banks go
Nemtsov was running late, the anger in                                                    no secret that they are counting on          sition lawmakers were drowned out by              bankrupt.
the air was almost tangible.                                                              young voters this time around.               a chorus of self-congratulation from                  Under the bill, expected to come
    By all appearances, it was not the        Nemtsov said he                                But in the lobby an old woman             pro-Kremlin lawmakers.                            into force Jan. 1, deposits of up to
best start for one of Nemtsov’s final
campaign trips in the run-up to the Dec.
                                              could sing better than                      stopped him, saying, “Aren’t you
                                                                                          ashamed about what you have done to
                                                                                                                                           Deputies passed the final readings of
                                                                                                                                       bills on the 2004 budget, bank deposit
                                                                                                                                                                                         100,000 rubles will be fully insured,
                                                                                                                                                                                         while deposits in state-owned Sberbank
7 State Duma elections. Nemtsov made          Zhirinovsky, but the                        the country? I don’t think this is some-     insurance and cutting stock market                will be insured through a separate gov-
a quick half-day visit Thursday to this
freezing industrial city in the southern
                                              concert crowd refused                       thing your mother taught you, or is it?”
                                                                                             “I am not ashamed, and my mother
                                                                                                                                       trading fees.
                                                                                                                                           Finance Minister Alexei Kudrin
                                                                                                                                                                                         ernment fund until 2007.
                                                                                                                                                                                             The administration hoped to speed
Urals to drum up support among young          to listen to find out.                      supports me in everything I do,” the 44-     welcomed the 245-151 passing of the               the amendments through three read-
voters with a speech and a rock concert.                                                  year-old former deputy prime minister        budget, which included approval of a              ings without debate, but after the
    The waiting students, however,                                                        replied.                                     new stabilization fund aimed at creating          Union of Right Forces and Yabloko
warmed up quickly to the handsome,               One student asked why he should             Some 15 minutes later he showed up        a cushion against plunging oil prices.            factions said they would not approve a
well-spoken politician when he got on         trust Nemtsov and whether Nemtsov           at the Yunost stadium, where an SPS              “After the creation of a stabilization        second reading unless their objections
stage a few minutes later with a brief        could offer any guarantee that his state-   concert featuring the rock bands Chiche-     fund, the prospect of Russia defaulting           were taken into account, the bill passed
apology for being tardy.                      ments were more than pre-election           rina and Serga had already started. On       in the foreseeable future… has greatly            only a cursory first reading.
    “With 10 days left before the vote,       promises.                                   the way over, Nemtsov and his en-            receded,” Kudrin said after the session.              In televised comments Friday, Presi-
my aim is quite obvious — to convince            “I have not just appeared recently,      tourage of local party officials swapped     “This is a great final accord of the work         dent Vladimir Putin thanked outgoing
you to vote for the Union of Right            like many others have,” Nemtsov said.       suit coats and ties for casual sweaters.     done by the Duma. It’s a bill to be               deputies for their “joint, creative and
Forces,” Nemtsov told the crowd of            “I have been around for some time, and         “Honestly, I cannot sing, but I am        proud of.”                                        intensive work” and said he expected
mostly young women.                           I will stay around. I will not vanish.”     not as bad as Zhirinovsky,” Nemtsov              The budget requires that the gov-             the same from the new Duma.
    Over the next 1 1/2 hours, he an-            Nemtsov discussed two key SPS poli-      told the crowd of several thousand peo-      ernment place between $5 billion and                  “If the Duma is efficient, a president
swered questions ranging from Georgia         cies — military reform and combating        ple, referring to Liberal Democratic         $6 billion in the stabilization fund next         can do a lot together with the parlia-
to the amount of his personal wealth,         corruption — and warned students not        Party leader Vladimir Zhirinovsky, who       year, but is not allowed to spend from            ment,” he said. “But if the Duma is in-
which were passed up to him on pieces         to vote for pro-Kremlin United Russia,      released an album in 1999.                   the fund until it totals 500 billion rubles       volved in internal intrigues and posing
of paper. He read every one of them out       which he described as “a party of power-       But the crowd began to roar its dis-      ($16.8 billion).                                  before cameras… the president will be
loud and often joked with the senders.        hungry and corrupt bureaucrats.”            approval before he could start to sing.          The budget provides for a surplus of          tied hand and foot.”
12   y   Tuesday, December 2, 2003                                                      E      L       E       C       T       I      O       N                                                       The St. Petersburg Times

Crude, Clever Tricks in Siberia
By Caroline McGregor                            years” on Shimkiv, who is spun as the              A tagline at the bottom clearly
STAFF WRITER                                    face of big business.                          stated that the mocking tale was paid
NOVOSIBIRSK, Western Siberia —                     Recently, he said, he has had to deal       for from Tolokonsky’s campaign fund.
In a campaign environment strikingly            with the distribution of black PR                  Here, the retort came from Tolokon-
devoid of issue debates, candidates are         leaflets appearing to be Shimkiv’s re-         sky himself, but sometimes it comes in
left to seek creative and sometimes ma-         sponses to six questions. Among them:          the person of Viktor Starkov, another
nipulative ways to win voters’ affection.       “Why do gasoline prices keep rising?”          candidate in the six-man race for gover-
    This is true nationwide, but it’s easily    The answer given made Shimkiv out to           nor about whom little is known.
visible in Novosibirsk, where anti-oli-         be profit hungry, Petrov said, even                Starkov was a contestant four years
garch slogans are used against a Yukos-         though prices are determined by world          ago, too, when Tolokonsky, then-mayor,
supported candidate for the State Duma,         markets and refinery costs.                    narrowly defeated Starikov for the gov-
anti-Semitic slogans are leveled against           Shimkiv is not the only candidate to        ernor’s post. It is widely thought that
the governor, and sports matches and            argue that the media unfairly give him a       pro-Tolokonsky forces put Starkov on                                                                                   MIKE SOLOVYANOV/SPT

vandalism are employed as publicity             bad rap.                                       the ballot to dupe Starikov’s voters into        A young woman and her daughter telling Zhirinovsky their plight on Sunday.
tools. The region will elect a governor            TV reports cast suspicion on the al-        casting their vote for someone with a
and four Duma deputies on Dec. 7.
    The tricks can range from the crude
to the clever.
    Andrei Shimkiv is the director of
                                                cohol produced and sold by local vodka
                                                baron Eduard Kozhemyakin, running
                                                for the Duma for United Russia, said
                                                Igor Reshetnikov, spokesman for the
                                                                                               similar name.
                                                                                                   The regional administration’s mouth-
                                                                                               piece, Sovietskaya Sibir, has tried to blur
                                                                                               any distinction between Starikov and
                                                                                                                                                Zhirinovsky Offers All
Novosibirsknefteprodukt, a retail sub-
sidiary of the newly formed oil giant
YukosSibneft, and he’s running for a
                                                party’s Novosibirsk branch. He said the
                                                leading local station links Kozhemyakin
                                                to the mafia whenever possible and
                                                                                               Starkov. A Starkov ad replicated the text
                                                                                               and layout of an adjacent one placed by
                                                                                               Starikov, with only a handful of words
                                                                                                                                                Kinds of Aid to Voters
Duma seat as an independent, against            notes that his business quadrupled after       changed. The picture of Starkov looked           By Greg Walters                             He’s a buffoon with ultranationalist
the Communist incumbent.                        he was elected to the city legislature.        strikingly similar to Starikov.                  SPECIAL TO THE ST. PETERSBURG TIMES         rhetoric. He always caters to the
    His campaign manager, Dmitry                   Mikhail Titov, one of the five candi-           “The idea is to make voters lose             MOSCOW — For more than an hour              tastes of the discontented audience.”
Petrov, complains that every time tele-         dates running against Tolokonsky, was          track of who’s the real candidate and            they streamed into Vladimir Zhiri-              The discontented audience was
vision journalists mention Shimkiv’s            accused of selling poor-quality shoes          who’s the imitation,” Chugainova said.           novsky’s office, handing written            certainly in attendance Sunday.
name, “he’s identified as a gasoline oli-       through a company he founded in 1993.              Tolokonsky rivals are, meanwhile, us-        complaints and legal documents to               “My dear Vladimir Volfovich. It’s
garch. The want him to be seen up               Titov has run as a Communist in the past,      ing a similar tactic. Candidate Boris            the leader of the Liberal Democratic        awful, awful,” said one retiree who
there with Khodorkovsky,” the former            but this time around, he does not have         Mironov, whose campaign registration             Party and asking for assistance.            was on the verge of tears. “Please
Yukos chief executive.                          the party’s support, which observers           documents describe him as “temporarily                To each, Zhirinovsky, like many        help me. I can’t live without gas. They
    This particularly chafes, since Shimkiv     chalk up to the governor’s bargain with        out of work,” seems to have been put for-        politicians, promised solemnly,             privatized my apartment, and now
is a company manager, not a sharehold-          the Communists, who account for a solid        ward for the express purpose of banging          “We’ll try to help you.”                    they tell me my pension’s not enough
ing owner. “There’s no logic,” Petrov           quarter of the regional electorate.            the anti-Semitic drum against Tolokon-                But, unlike most politicians, he       to pay my bills. There’s no light, no
said. “It’s like calling a journalist a media      Given the backdrop of strong public         sky, who is Jewish. The candidate has no         often meant it more personally.             heat. And my cat and dog have died.”
magnate just for working at a paper.”           support for the case against Yukos, it’s       chance at winning, so many suspect he is              Zhirinovsky offered short-term             Zhirinovsky glanced over her gas
    The negative coverage Shimkiv feels                                                        being financed by a business figure with         loans to help with utility bills. He said   bill. “And your deputies, what are
he recieves roots in a tangled web of                                                          an interest in unseating Tolokonsky.             he would get gas supplies to apart-         they doing about it?” he said. “Don’t
backroom agreements involving regional                                                             Blocked from direct access to the            ments turned back on. He volun-             they still have deputies in the Duma?
Governor Viktor Tolokonsky, the Com-
                                                Distributing a rival’s                         media, Starikov came up with a way to            teered the services of LDPR lawyers.        That’s our democracy for you. And
munist Party and the interests that con-        campaign material                              get in through the back door by casting               Visitors, in turn, thanked him and     they dare call me a fascist. Just yes-
trol the local television stations. Through                                                    himself at the center of a hockey-match          about half promised him their votes.        terday, Yavlinsky did it again.”
these opaque deals, the Communist               can deprive him of                             scandal, or the appearance thereof.                   “This is an everyday activity,” an         After making their cases, visitors
Duma candidates get favorable TV cov-
erage in exchange for not challenging
                                                votes, if done in truly                            Through his connections with Vy-
                                                                                               acheslav Fetisov, the head of the State
                                                                                                                                                LDPR spokeswoman said of Sun-
                                                                                                                                                day’s gathering.
                                                                                                                                                                                            to Zhirinovsky’s office on Sunday
                                                                                                                                                                                            were handed gift bags with LDPR
Tolokonsky for the governor’s seat.             irritating ways.                               Sports Committee, Starikov organized                  Zhirinovsky has been flying            lighters, pens, campaign literature
    All of Novosibirsk’s leading state and                                                     a recent hockey game between two                 around the country and meeting with         and a CD featuring samples of
private television networks are con-            not surprising that politicians running        teams of “living legends” — all-star vet-        voters in a similar fashion, she said.      Zhirinovsky’s public statements laid
trolled by Yakov London, which has ties         against these candidates would try to          eran players now in their 50s and 60s —               “Of course it’s part of the cam-       down over electronic dance tracks.
to Press Minister Mikhail Lesin and ad-         stoke voter resentment against wealthy         at the city’s biggest stadium.                   paign,” she said. “But this is standard.        One song, titled, “Bush Is a Shitty
vertising agency Video International.           businessmen.                                       A week before the match, after               It’s not just part of the campaign.”        Cowboy,” appears to use remarks
These three are said to function inde-              A candidate vandalizing his own            thousands of tickets had been given out,              Zhirinovsky’s election campaign        Zhirinovsky has denied making.
pendently of Tolokonsky’s administra-           posters or distributing ads for rivals,        Starikov said the game risked getting            has entailed much more than handing             Sunday, though, saw a more
tion, though they have a cooperative re-        however, is a bit more unexpected. It          canceled by the governor — a move                out individual favors. His oratory has      even-tempered politician listening to
lationship, said Andrei Nikolayev, direc-       may seem counterproductive at first            that effectively cast Tolokonsky as a vil-       ranged from the populist — he has           his electorate.
tor of the city’s Public Policy Institute.      glance but done properly, it’s not.            lain who would make a political tool of          called for oligarchs and liberal reform-        One young woman, a student, com-
    The governor, meanwhile, calls the              On several Novosibirsk roadside            an apolitical event.                             ers to be “removed from the country”        plained of living in a 12-square-meter
shots in mainstream newspapers, be-             billboards, black paint was dribbled               Whether or not Tolokonsky was in-            — to the bizarre, such as a proposal to     room with three other people. A limp-
cause low circulations and thin profit          over the image of a local TV journalist        deed prepared to call off the game, it ul-       legalize polygamy as a way to deal          ing soldier said he wasn’t receiving his
margins make them financially depen-            running for governor. And a spate of           timately took place as planned, and              with the declining population.              stipend. Most, it seemed, had some sort
dent on his support, said Andrei                sidewalk light boards promoting a              both Tolokonsky and Starikov claimed                  The key to understanding Zhiri-        of financial or housing troubles.
Kostyanov, a journalist who writes for          Union of Right Forces candidate for            credit for making it happen.                     novsky as a political phenomenon is             Zhirinovsky promised to help
Novaya Gazeta and other papers.                 the Duma and his grand plans for ex-               Not all tricks involve two different         the realization that while he excels        them all. Between cases, he blamed
    Petrov said the Communists get              panding the city’s metro were smashed.         candidates, some involve two identical           at getting attention, almost no one         reformers, oligarchs and the govern-
good mileage out of pinning “all eco-               In both cases, the defacement was          ones. Yevgeny Loginov is the face of             takes his ideas seriously, said Masha       ment in general of selling out the av-
nomic sins and troubles from the last 15        rumored to be the handiwork of the             Vladimir Zhirinovsky’s ultranationalist          Lipman, an analyst at the Carnegie          erage Russian, pounding his desk as
                                                candidates’ own teams, not their oppo-         LDPR party in Novosibirsk, having run            Moscow Center. “He’s often de-              he made his points.
                                                nents whom they accused.                       in virtually every federal and regional          scribed as an ultranationalist in the           “There’s democratic freedom for
                                                    Vandalism “is an excuse for a news         election since 1993 and won election to          West,” she said. “That’s part right.        you,” he said.
                                                story,” Igor Patrushev, a local journalist,    the State Duma in 1999. This year he is
                                                said over lunch in the basement of the         running for both a single-mandate seat
                                                city’s press club. “You get to talk about
                                                yourself, and it makes it seem like your
                                                competitors think you are a serious con-
                                                                                               and for governor.
                                                                                                   Another Yevgeny Loginov is run-
                                                                                               ning in one of Novosibirsk’s three other
                                                                                                                                             Supreme Court Bars Former
                                                tender, when that might not be the case.”
                                                     Distributing a rival’s campaign ma-
                                                terial can deprive him of votes, if done
                                                                                               single-mandate districts, also from
                                                                                               LDPR. Registered in Moscow, he
                                                                                               seems to have been imported solely to
                                                                                                                                             Foes of Kremlin From Polls
                                                in a properly irritating way.                  stretch LDPR’s reach in the region.           THE ASSOCIATED PRESS                           Kremlin and went on to serve a term as
                                                    Each car to which an opponent’s                “You need a way to stay in the pub-       MOSCOW — The Supreme Court on                  Kursk governor.
                                                sticker is pasted is at least one vote that    lic eye,” said Petrov, Shimkiv’s cam-         Saturday barred two former foes of ex-            Also Saturday, the Supreme Court
                                                opponent won’t get, and the stickier the       paign manager. “So if you clone your-         President Boris Yelstin’s Kremlin from         upheld a ruling barring Skuratov, who
                                                glue the better. Littering entryways with      self, you can be two places at once and       running in State Duma elections, revok-        was the chief prosecutor from 1995 to
                                                a flurry of flyers for another candidate       meet twice as many people. Even if            ing former Vice President Alexander            1999 and investigated corruption in
                                                makes him equally unpopular.                   people say, that’s the wrong Loginov, it’s    Rutskoi’s registration and upholding a         Yeltsin’s Kremlin, from running as a
                                                    Gubernatorial candidate Ivan               already an excuse to talk about him.”         decision to prevent former Prosecutor          candidate from the Buryatia region.
                                                Starikov says the playing field is tilted in       These ruses, however, can’t go on         General Yury Skuratov from registering.           Skuratov also was denied registra-
                                                Tolokonsky’s favor. His campaign man-          forever, as people are getting wiser, said        The Supreme Court overturned a             tion because of problems with his state-
                                                ager, Nadezhda Chugainova, says the            Galina Bychkovskaya, editor of state-         ruling from a regional court that had re-      ments about his place of work and, ac-
                                                city’s newspapers require her staff to         owned Radio Slovo.                            jected a Communist Party official’s suit       cording to Interfax, he and Rutskoi had
                                                submit Starikov’s ads three days before            She recalled that in the 1995 gover-      to prevent Rutskoi from running in the         indicated the same place of employ-
                                                they run, simply so the governor’s office      nor’s race, a photo of a mansion was          Dec. 7 elections. It was the second time       ment on their registration papers — the
                                                has time to come up with a direct retort       widely circulated that was ostensibly in      he has been prevented from running for         Moscow State Social University.
                                                for the opposite page.                         Switzerland and belonged to a leading         office in recent years.                           Rutskoi and Skuratov have not been
                                                    Opposite a full-page interview with        Communist figure. Four years later, in            In Saturday’s ruling, the Supreme          vocal opponents of the Kremlin under
                                                Starikov in a recent local edition of Ar-      1999, the same picture was wheeled out,       Court agreed with claims by prosecu-           President Vladimir Putin.
                                                gumenty i Fakty — paid for by his cam-         this time against the incumbent gover-        tors and the regional Communist Party             Rutskoi accused the Communists of
                                                paign — was a caricature of Starikov as        nor. This time it is labeled as his home      chief that Rutskoi included inaccurate         engineering his removal from the race,
                                                a donkey and a short fable titled “The         in the Canary Islands.                        information about his place of employ-         while Skuratov claimed the decision to
                                                Candidate Ass.” It reads: “One ass, de-            “We’re reaching the limit of trust,”      ment on his application for registration       bar him was politically motivated, and
                                                ciding that all around were asses /            Bychkovskaya said. “You can only de-          as a candidate, Interfax reported.             said he would lodge a complaint with
                                                Hatched a plan to push the lion from           ceive people so long. Eventually they             Rutskoi was jailed in 1993 after join-     the European Court of Human Rights,
                                                the director’s chair … ”                       figure it out.”                               ing a hard-line opposition to Yeltsin’s        Interfax reported.
Tuesday, December 2, 2003                                                 P          H        O       T      O               P         A        G      E                                 The St. Petersburg Times         y    13

Former Capital Novgorod Retains its Glory

                                                                      ALEXANDER BELENKY/SPT                                                                                                                     ALEXANDER BELENKY/SPT

The wooden tiled cupolas of the Virgin of the Sign Cathedral in the central city.             The Yaroslavl court where a monastery and a market once stood. A museum and former house of Yaroslav the Wise are here.

                                                                                                                                                                                                                ALEXANDER BELENKY/SPT

                                                                                                                                               A well-known humpbacked bridge takes pedestrians across the Volkhov river.

                                                                                                                       ALEXANDER BELENKY/SPT                                                                    ALEXANDER BELENKY/SPT

Pigeons flapping on ice outside the St. Sophia Cathedral. Built between 1045 and 1050 it was Russia’s first brick building.                    Novgorod’s monument to Russia’s millennium, which was unveiled in 1862.

                                                                      ALEXANDER BELENKY/SPT                                                                                                                     ALEXANDER BELENKY/SPT

Vivid frescos painted in the 17th century inside the Virgin of the Sign Cathedral.            A twilight view of the domes and an adjacent building with a lit window at the site of Novgorod’s St. Sophia Cathedral.
Tuesday, December 2, 2003                                                            O       P       I     N       I      O       N                                                The St. Petersburg Times          y   15

                                                                                                                                                                          It began in the heyday of J. Edgar Hoover, the
                                                                                                                                                                      cross-dressing martinet who reigned supreme in
                                                                                                                                                                      Washington for decades, blackmailing presidents,
                                                                                                                                                                      wiretapping dissidents (his sex tapes of Martin
                                                                                                                                                                      Luther King Jr. were said to be a particular fa-
                                                                                                                                                                      vorite) and generally playing merry hell with
                                                                                                                                                                      American liberties all across the board. In the
                                                                                                                                                                      1960s, the FBI formed a partnership with a Boston
Naked Gun                                                                                                                                                             gangland outfit, using its hitmen as informants to
                                                                                                                                                                      finger other gangs. It was a sweet deal for both
By Chris Floyd                                                                                                                                                        parties: the Bureau got high-profile collars for its
Don’t kid yourself — and don’t let them kid you.                                                                                                                      PR mill, and the gangsters got to knock off their
When they come at you with that pious sugar,                                                                                                                          enemies with the blessing — and cover — of the
telling you how they’re going to protect you, se-                                                                                                                     biggest “roof” around: the U.S. government.
cure you, keep you free, you better run and check                                                                                                                         Not only did the FBI cover for its pet killers;
the back door … because that’s where their goons                                                                                                                      agents actually allowed four men to be convicted
will be breaking in.                                                                                                                                                  (two of them sentenced to execution) for a murder
    Last week, the U.S. Congress approved an ex-                                                                                                                      that Hoover knew had been committed by one of
pansion of FBI powers that will allow Attorney                                                                                                                        his “informants.” Two of the innocent men died in
General John Ashcroft’s federal police to arbitrar-                                                                                                                   prison; the others were freed after serving 30 years
ily seize records from a range of private businesses                                                                                                                  of hard time. In all, the FBI’s informants murdered
without bothering a judge or grand jury with any                                                                                                                      more than 20 people in Boston — “often with the
silly-billy nonsense about evidence or even suspi-                                                                                                                    help of FBI agents,” noted the Congressional re-
cion of criminal intent. All Ashcroft’s boys have to                                                                                                                  port. And lest you think this blood work was just
do is say, “Boo! Terrorism!” and they can take                                                                                                                        something from the “bad old days,” consider this:
whatever they want.                                                                                                                                                   the FBI-Mob death squad was still operative at
    This expansion of Patriot [sic] Act powers was                                                                                                                    least as late as 1995, when a helpful fed tipped off
smuggled into the funding bill for the Bush                                                                                                                           Boston’s top mobster, Whitey Bulger, before he
Regime’s security organs. Although the FBI is                                                                                                                         could be arrested by some nonmobbed cops.
technically under the supervision of the Judiciary                                                                                                                    Whitey is still at large — and presumably still en-
committees, Bushist bagmen in Congress routed                                                                                                                         joying the shelter of his trusty “roof.”
the measure through the secret sessions of the in-                                                                                                                        And, by the way, not a single FBI agent has
telligence committees to avoid any public debate,                                                                                                                     ever been arrested — or even disciplined — for
Wired Magazine reports.                                                                                                                                               their part in this murderous enterprise.
    As usual, the power grab was accompanied by                                                                                                                           So don’t kid yourself that these new powers
earnest pledges that it would only be used in the                                                                                                                     won’t be abused. They will. Power — the armed
most extreme cases of genuine terrorist danger.                                                                                                                       power of the state, the power over life, death and
This was also the line given out when the Patriot                                                                                                                     the liberty of the individual — will always go just
[sic] Act was first passed in 2001. Ashcroft — who                                                                                                                    as far as you let it. It will trample every ethical and
is so holy that he had his daddy pour cooking oil      lap-dancing joint. The club owner was suspected of      amusing (last year he installed an $8,000 curtain to   moral boundary, pour itself into every nook and
over his head after his 1994 election to the Senate    offering bribes to Vegas officials to win approval of   hide the wantonly bare breast of a statue at his       cranny of life, public and private, seeking domi-
to signify that he, like King David, had been          a law allowing a more hands-on approach between         Washington headquarters), there’s a far more sin-      nance at every level — unless you maintain a rig-
anointed with the Lord’s “dominion over men” —         dancers and customers, the Las Vegas Review-            ister side to this corrosion of America’s few re-      orous system of checks and balances to balk the
solemnly swore that the draconian measures             Journal reports. While the case had nothing to do       maining liberties. For the very day after the Con-     flow of power, frustrate it, channel it, disperse it,
would never be applied to anything but dire            with terrorism, obviously the very thought of           gressional rubberstamps gave their Viagra-like         subject it to reason, humanize it.
threats to the national security.                      naked flesh being fondled constituted a dire threat     boost to the FBI’s reach, another legislative com-         But in the militarized, one-party state of
    This was, of course, the usual load of mule ma-    to national security in Ashcroft’s oily mind. And       mittee released its report on “one of the greatest     Bushist America, where law is scorned and reason
nure we’ve come to expect from the incontinently       obviously, nothing will prevent Ashcroft and his        failures in the history of federal law enforcement”    has fled, those restraints are being swept aside.
mendacious Regime. Witness the scene in Las Ve-        minions from using the Act to pursue any other          — the FBI’s eager participation in Mob murders,        The back door is wide open.
gas this month, where Ashcroft’s agents invoked        personal bee that’s buzzing in their fully armed        carried out with the full knowledge and approval
the Patriot [sic] Act’s anti-terrorism powers to run   federal bonnets.                                        of the highest levels of government, The New           For Annotational references, see the Opinion sec-
roughshod over due process in a local probe of a           While Ashcroft’s sexual anxieties are mildly        York Times reports.                                    tion at
                                                                                                                                                                                         The St. Petersburg Times               y    16

                                                     TUESDAY, DECEMBER 2, 2003

UN Announces New
Plan To Fight AIDS
By Lawrence K. Altman                         plan calls for rapidly expanding pro-
THE NEW YORK TIMES                            grams to train workers and improve
The World Health Organization, a              services, not adding new ones.
United Nations agency, called on devel-           “We cannot in a two-year period
oping countries yesterday to train and        build new health systems,” said Dr.
organize 100,000 health care and non-         Charles Gilks, the leader of the organi-
professional workers to carry out its         zation’s new AIDS treatment program.
plan to begin delivering antiretroviral           But with insufficient supplies of drugs,
drugs to three million AIDS patients by       even a successful WHO program will cre-
the end of 2005.                              ate enormous ethical issues for countries
    The organization said 6 million of        in deciding which patients to treat.
the 40 million people infected with the           Dr. Julian Fleet, a senior policy ad-
AIDS virus were in immediate need of          viser for the United Nations AIDS pro-
antiretroviral treatment, but that only       gram, said “the question of who will re-
about 480,000 were receiving it.              ceive antiretroviral drugs is really a
    The new program, which the organi-        question of who shall live.”
zation said would cost at least $5.5 bil-         Because making such decisions in-
lion, is intended to reach half those in      volves broad societal issues, the WHO
need by the end of 2005 — two million         is planning a meeting at its headquar-
more than would be reached by then            ters in Geneva in a few weeks to help
without such a program.                       countries answer that and other thorny
    In issuing a more detailed frame-         questions.
work for its program, to coincide with            The organization’s plan challenges
World AIDS Day today, the organiza-           the 34 countries with the highest infec-                                                                                                                                JAYANTA SHAQ/REUTERS

tion also recom-                                                   tion rates to rapidly     An Indian sex education worker gazes from the window of a trolley in Calcutta decorated in association with World AIDS Day.
mended four combi-                                                 train workers to ac-
nations of antiretrovi-
ral drugs that coun-
tries could use to start
                           Even a successful
                           program means
                                                                   celerate the integra-
                                                                   tion of AIDS treat-
                                                                   ment in their health
                                                                                             In Radical Policy Shift, New Delhi
                                                                                             Set To Offer Free AIDS Treatments
treatment. The list was                                            care programs.
vastly simplified from     ethical issues for                         Many countries,
the 35 possible combi-
nations the organiza-
                           countries deciding                      medical schools, pri-
                                                                   vate groups and
tion had recom-            whom to treat.                          other organizations       THE NEW YORK TIMES                            though it does provide drugs to try to        for far broader testing, and train doc-
mended previously.                                                 have started AIDS         NEW DELHI — India has decided to              prevent AIDS transmission from moth-          tors and nurses to monitor the dosage
All four combinations                                              programs in heavily       expand substantially its program to pro-      ers to babies in childbirth.                  and effects of antiretroviral therapy.
have been proved effective, though            infected countries. The numbers of pro-        vide antiretroviral therapy to people             But several obstacles must be over-          India is estimated to have at least 4.6
none include the powerful protease in-        grams have reached the point where             with HIV and AIDS, government offi-           come by spring. The government must           million people with HIV — the second
hibitor drugs that are often prescribed       better coordination is needed to avoid         cials say.                                    still reach a final agreement with the        highest number in the world, after
in the United States and other wealthy        duplication of research, training and              By April of 2004, the government          country’s pharmaceutical companies,           South Africa. More than 600,000 new
countries.                                    treatment efforts, Dr. Peter Piot, the di-     hopes to begin providing free antiretrovi-    which manufacture generic versions of         cases occurred in 2002.
    By involving about 100,000 workers,       rector of the United Nations AIDS pro-         ral therapy to all HIV-positive new par-      antiretroviral medications, to reduce their      Doctors in India prescribe antiretro-
the organization’s anti-AIDS plan is the      gram, said in a recent interview.              ents, and all children under 15, in the six   prices, as these companies recently           viral therapy, but at $1 a day, it costs too
most ambitious of the many that a num-            “The lack of HIV treatment is with-        states with the highest rates of HIV and      agreed to do in Africa and the Caribbean.     much for most people.
ber of countries have advanced in re-         out a doubt a global emergency,” Dr.           AIDS. Eventually, in those states all peo-        The government has yet to identify           Providing the drugs will also chal-
cent months and raises practical and          Piot said. “We firmly believe that we          ple with full-blown AIDS are to be            “budgetary support,” the money to pay         lenge India’s underfinanced health sys-
ethical issues.                               stand no chance of halting this epidemic       treated.                                      for drugs for as many as 100,000 people,      tem. The great majority of financing for
    In issuing its plan, the WHO said it      unless we dramatically scale up access             The decision amounts to a signifi-        the number it estimates would be              India’s programs to prevent or treat
hoped to provide the technical details        to HIV care. Treatment and prevention          cant policy shift for India, which has not    served in the first year.                     AIDS comes from outside donors like
of what was needed to treat people to         are the two pillars of a truly effective,      previously tried to offer antiretroviral          It also will have to recalibrate its      the World Bank and the Bill and
extend their lives. The organization’s        comprehensive AIDS strategy.”                  treatment on any significant scale,           weak public health system to provide          Melinda Gates Foundation.

                                                 I N           B R I E F
                                                                                                                                           Disney Co. Vice Chair Roy Disney
Sniper To Testify                             and Deputy Prime Minister Gianfranco           latest sign of improving relations be-

s CHESAPEAKE, Virginia (AP) —
                                              Fini, who shifted the National Alliance
                                              more to the centre and this week visited
                                                                                             tween the South Asian nuclear rivals.
                                                                                                The neighbors severed air service
                                                                                                                                           Resigns, Lashes Out At CEO Eisner
Attorneys for sniper suspect Lee Boyd         Israel to symbolically cut the party’s ties    and road and railway links last year amid     THE ASSOCIATED PRESS                          mously adopted governance rules has
Malvo have subpoenaed convicted mas-          to fascism. Mussolini has often said she       tensions that led them to the brink of        LOS ANGELES — In a sign of sim-               become an occasion to raise again criti-
termind John Allen Muhammad to tes-           is fiercely proud of her grandfather and       war. The last flights were on Jan. 1, 2002.   mering tension at the top of one of the       cisms of the direction of the Company,
tify, raising the possibility that Muham-     during her 1992 election campaign                 Since India called in April for a re-      nation’s largest media giants, Walt Dis-      and calls for change of management,
mad could speak on the younger man’s          many Italians flocked to her, bearing          sumption of dialogue between the two          ney Co. vice chairman Roy Disney              that have been previously rejected by
behalf.                                       dog-eared pictures of “Il Duce” and            countries, relations have improved.           stepped down from the board of direc-         the Board.”
    Muhammad, whose trial ended last          giving her the Roman salute, one of            They have restored some bus links,            tors and called on chairman and chief             Eisner is credited with transforming
week with a Virginia Beach jury rec-          Benito’s trademarks.                           and on Wednesday began a cease-fire           executive Michael Eisner to resign in a       Disney from a minor producer of
ommending the death sentence, still                                                          on the military line that divides the         scathing letter.                              mediocre films and caretaker of two
faces prosecution in several other
                                              Taliban Frees Prisoner                         disputed Himalayan region of Kash-
                                                                                                                                               “It is my sincere belief that it is you
                                                                                                                                           that should be leaving and not me,”
                                                                                                                                                                                         theme parks in 1984 into a media giant,
                                                                                                                                                                                         whose holdings include five theme parks
    His attorneys don’t want to do any-       s KABUL, Afghanistan (AP) — Tal-                                                             Disney wrote to Eisner. He also ac-           around the world, the ABC TV network,
thing to aid those prosecutions, in the
hope they can get the Virginia death
                                              iban insurgents freed a Turkish road en-
                                              gineer who was kidnapped a month ago
                                                                                             Japan Destroys Rocket                         cused Eisner of “muzzling” his voice on
                                                                                                                                           the board.
                                                                                                                                                                                         the ESPN sports cable channel and one
                                                                                                                                                                                         of the highest-grossing movie studios.
sentence overturned on appeal or re-          in southern Afghanistan, officials said        s TOKYO (Reuters) — Japan de-                     Disney’s departure may be a pre-              Eisner’s detractors accuse him of
duced by the trial judge when Muham-          Sunday.                                        stroyed a rocket carrying two spy satel-      emptive move to avoid being forced            presiding over a “brain drain” that saw
mad is formally sentenced in February.           Hasan Onal was returned in good             lites for monitoring secretive neighbor       from the board of The Walt Disney Co.         top executives leave the company over
    Last Tuesday, Malvo prosecutor            health to the Turkish Embassy in Kabul         North Korea minutes after launching it        He is the nephew of company co-               the past 10 years, including former stu-
Robert Horan Jr. said the chance that         on Sunday, after he was handed over by         on Saturday, echoing failures that            founder Walt Disney and the last family       dio chief Jeffrey Katzenberg, Steven
Muhammad will take the stand in the           Taliban to tribal elders in a southern         dogged its space program in the late          member to be active in the company.           Bollenbach, who now heads the Hilton
Malvo case is “zero.” But Cooley said         province, then passed to government            1990s.                                            The board’s governance and nomi-          Corp., and most recently, Paul Pressler,
he has not received any notification          officials and flown to the capital.                North Korea is believed to be devel-      nating committee decided against rec-         who left last year to head Gap Inc.
from Muhammad’s lawyers that they                Onal, an employee of the Turkish            oping nuclear weapons, and the satel-         ommending the 73-year-old Disney for              Roy Disney’s letter also blames Eis-
will try to quash the subpoena.               company Gulsan-Cukurova, was ab-               lites, along with two others launched in      another term because he is over the           ner for the failure to maintain construc-
                                              ducted Oct. 30 along with his Afghan           March, had been promoted as a signifi-        mandated retirement age of 72, the            tive relationships with business part-
Mussolini To Form Party                       driver while returning by car to a camp
                                              for construction workers repairing the
                                                                                             cant boost to Japanese intelligence
                                                                                                                                           company said Sunday.
                                                                                                                                               The board’s presiding director, for-
                                                                                                                                                                                         ners, including Pixar Animation Stu-
                                                                                                                                                                                         dios, which co-produces computer-ani-
s ROME (Reuters) — Alessandra Mus-            Kabul-Kandahar highway.                            The failure is an extreme embarrass-      mer U.S. Senator George Mitchell, said        mated films with Disney, including the
solini says she will form her own political                                                  ment for Japan just weeks after neigh-        in a statement Sunday he regretted Dis-       record-breaking “Finding Nemo.”
party, after quitting the right-wing Na-
tional Alliance this week when its leader
                                              Pakistan Allows Flights                        boring China put a man into space.
                                                                                             There was no immediate word on the
                                                                                                                                           ney’s actions and confirmed that the
                                                                                                                                           governance and nominating committee
                                                                                                                                                                                             Disney’s stock has fallen from more
                                                                                                                                                                                         than $40 per share in 2000 to under $14
publicly condemned her grandfather            s ISLAMABAD, Pakistan (AP) —                   cost of the launch. A spokesman for the       recently informed Disney that the age-        in 2002. The stock has risen nearly 34
Benito, Italy’s Fascist former dictator.      Pakistan will allow Indian airlines to re-     Japan Aerospace Exploration Agency            limit rules should apply.                     percent since the beginning of the year
   The once-aspiring actress and model        sume flights in its airspace, President        said that part of a booster rocket had            “It is unfortunate that the Commit-       as the company’s fortunes have gradu-
has long been at odds with party leader       Pervez Musharraf said Sunday — the             not separated as expected.                    tee’s judgment to apply these unani-          ally improved.
Tuesday, December 2, 2003                                                                     W        O        R       L      D                                                              The St. Petersburg Times        y   17

54 Iraqis Dead In Bloodiest Post-War Battle
By Niko Price                                                                                                                                                                                an agreement with Americans for a
THE ASSOCIATED PRESS                                                                                                                                                                         power handover by July, with officials
BAGHDAD — In the deadliest re-                                                                                                                                                               saying the council has set up a commit-
ported firefight since the fall of Sad-                                                                                                                                                      tee to assess the best way to choose a
dam Hussein’s regime, U.S. soldiers                                                                                                                                                          provisional legislature.
fought back coordinated attacks Sun-                                                                                                                                                            A delay or unraveling of the agree-
day using tanks, cannons and small                                                                                                                                                           ment would be a major setback for
arms in running battles throughout the                                                                                                                                                       Iraq’s U.S.-led administration.
northern city of Samarra. The troops                                                                                                                                                             Also Sunday, U.S. forces reported
killed 54 Iraqi fighters, and five Amer-                                                                                                                                                     an attack the previous day near the
icans were wounded.                                                                                                                                                                          Syrian border in Husaybah, 200 miles
     Minutes later, two South Korean                                                                                                                                                         northwest of Baghdad, in which two
contractors were killed nearby in a                                                                                                                                                          U.S. soldiers were killed and a third
roadside ambush in what U.S. officials                                                                                                                                                       was wounded. Their deaths brought to
called a new campaign aimed at under-                                                                                                                                                        104 the number of coalition troops
mining international support for the                                                                                                                                                         who have died in Iraq in November, in-
U.S.-led occupation of Iraq.                                                                                                                                                                 cluding 79 American troops. In terms
    Attacks on Saturday killed seven                                                                                                                                                         of coalition losses, it has been the
Spaniards, two Japanese diplomats and                                                                                                                                                        bloodiest month of the war that began
a Colombian oil worker.                                                                                                                                                                      March 20.
    Lieutenant Colonel William Mac-                                                                                                                                                             MacDonald said the attack on the
Donald of the 4th Infantry Division                                                                                                                                                          South Koreans — on the highway be-
said attackers, many wearing uniforms                                                                                                                                                        tween Samarra and Tikrit — had no
of Saddam’s Fedayeen militia, opened                                                                                                                                                         apparent link to the attacks on the U.S.
fire simultaneously on two U.S. supply                                                                                                                                                       convoys.
convoys on opposite sides of Samarra.                                                                                                                                                           The South Koreans were electricians
After barricading a road, the attackers                                                                                                                                                      who were building power lines for the
began firing from rooftops and alley-                                                                                                                                                        Seoul-based Omu Electric Co., said
ways with small arms, mortars and                                                                                                                                                            Lee Kwang-jae, director general of
rocket-propelled grenades, he said.                                                                                                                                                          South Korea’s Foreign Ministry. Two
   U.S. troops responded with rifles,                                                                                                                                                        were killed and two were injured in the
120mm tank rounds and 25mm cannon                                                                                                                                                            attack.
fire from Bradley fighting vehicles.                                                                                                                                                             On Saturday, gunmen in a car — ap-
U.S. fire destroyed three buildings the                                                                                                                                                      parently in coordination with others
attackers were using, MacDonald said.                                                                                                                                 CEERWAN AZIZ/REUTERS   waiting by the side of the highway —
   “It sounds like the attack had some      U.S. soldiers load the bodies of two Japanese diplomats killed Saturday onto a truck at a hospital in the Iraqi city of Tikrit.                  ambushed a convoy of Spanish military
coordination to it, but the soldiers re-   threatening. A statement released by in a BMW attacked another U.S. con- President Bush declared major combat                                     intelligence agents, killing seven. One
sponded, used their firepower, used        the military on Monday raised the voy in Samarra with automatic rifles, over.                                                                     Spaniard escaped from the attack as
tank and Bradley fire and other            death toll to 54.                          MacDonald said. The soldiers                 U.S. officials have only sporadically                     young men kicked the bodies and
weapons available to them, to stop this      “We have been very aggressive in our wounded all four men and found released figures on Iraqi casualties, and                                   chanted pro-Saddam slogans. Two
attack and take the fight to the enemy,”   convoy operations to ensure the maxi- Kalashnikov rifles and grenade launch- wouldn’t say whether there has been a                                Japanese diplomats also were killed
he said.                                   mum force protection is with each con- ers in their car.                             deadlier firefight that went unreported.                     Saturday north of Baghdad when they
    When the smoke cleared, 46 Iraqis      voy,” MacDonald said. “But it does           MacDonald said the attack was the Samarra is 60 miles north of Baghdad                               stopped to buy food and drinks at a
were dead, 18 were wounded and             send a clear message that if you at- largest faced by his Task Force Iron- in the so-called Sunni Triangle, where                                 roadside stand, MacDonald said. The
eight were captured, MacDonald said        tempt to attack one of our convoys, horse — whose mission includes the opposition to the U.S. occupation of                                       diplomats, on their way to attend a re-
Sunday. Five American soldiers and a       we’re going to use our firepower to hunt for Saddam. Military officials in Iraq has been fiercest. The fighting                                   construction conference, were not trav-
civilian were wounded, he said, adding     stop that attack.”                         Baghdad said they haven’t reported a came as the U.S.-picked Iraqi Govern-                             eling with a military escort. Their Iraqi
that none of the injuries were life-          Shortly after the firefight, four men deadlier attack since May 1, when ing Council said Sunday it is rethinking                               driver was also reported killed.

                                                                                           Tokyo, Seoul Still Plan U.S. To Free
                                                                                           To Send Troops To Iraq Inmates From

                                                                                           TOKYO/SEOUL — Japan and South
                                                                                                                                             South Korean President Roh Moo-
                                                                                                                                         hyun condemned the shootings.
                                                                                           Korea voiced determination on Monday              “This incident is not terror against the        THE ASSOCIATED PRESS

                                                                                           to proceed with sending troops to Iraq        military or a public organization but ter-          SAN JUAN, Puerto Rico — More than
                                                                                           despite weekend killings of several of        ror against civilians,” Roh told his aides.         100 prisoners will be released from U.S.
                                                                                           their nationals there and popular doubts          Many South Koreans disagree with                custody at the detainment camp in
                                                                                           about taking part in the operation.           sending more troops, and opposition has             Guantanamo Bay, Cuba, and more will
                                                                                               Neither of the two North Asian na-        grown since the latest spate of attacks.            follow, military officials said.
                                                                                           tions plans to send large numbers of sol-         In Japan, a poll published on Mon-                  It wasn’t clear if the men and boys
                                                                                           diers or to take part in combat operations,   day showed most Japanese were op-                   to be transferred from Guantanamo
                                                                                           but their participation marks an impor-       posed to sending troops, at least until             would face further detention or prose-
                                                                                           tant step for the U.S.-led coalition forces   security improves.                                  cution in their own countries. The first
                                                                                           in persuading more countries to join.             Japan has passed a law to allow                 of two new transfers is scheduled for
                                                                                               Two Japanese diplomats were killed        troops to be sent to Iraq but because of            the end of December, and the other in
                                                                                           in an ambush on Saturday en route to a        the pacifist constitution they can be sent          January, an official told The Associ-
                                                                                           reconstruction conference in the north-       only to “non-combat zones” for recon-               ated Press on condition of anonymity.
                                                                                           ern town of Tikrit while two South Ko-        struction and humanitarian work.                        The official did not say where the
                                                                                           rean electrical workers died in a shooting,       The cabinet was expected to ap-                 prisoners would be sent and a military
                                                                                           also near the city that is the hometown of    prove a basic plan for the dispatch of              spokeswoman declined Sunday to pro-
                                                                                           deposed president Saddam Hussein.             some 500 Japanese non-combat ground                 vide details about future transfers from
                                                                                               “There is no change in our stance,”       troops — minus key details such as the              the U.S. base at Guantanamo Bay,
                                                                                           said Japanese Prime Minister Junichiro        scope and timing — as early as Friday.              Cuba.
                                                                                           Koizumi, who was re-elected last month            The Japanese media were sharply                     The military official who spoke on
                                                                                           but must balance the demands of secu-         divided over whether Koizumi should                 condition of anonymity said that one of
                                                                                           rity ties with the United States with the     proceed with his plans to send troops               the boys who would be transferred shot
                                                                                           concerns of voters before Upper House         that were already on hold after a bomb              and killed a special operations soldier
                                                                                           elections in July.                            attack killed 19 Italians in southern Iraq          in Afghanistan, where a U.S.-led coali-
                                                                                               “We must not be daunted by the in-        last month.                                         tion ousted the Taliban regime in late
                                                                                           tention of terrorists to halt the recon-          “Why were these people, who loved               2001 and 11,500 American troops re-
                                                                                           struction effort and cause confusion,”        Iraq and worked without regard for the              main.
                                                                                           he said.                                      danger, killed? The incident is all too                 The official did not know why the
                                                                                               He gave no clue as to when troops         painful. Whatever the reason, we can-               boy was being released from U.S. cus-
                                                                                           might be sent.                                not forgive the perpetrators,” the lib-             tody, but the military has said previ-
                                                                                               South Korea would go ahead with           eral Asahi Shimbun newspaper said in                ously that the main purpose of the de-
                                                                                           plans to deploy more troops in Iraq de-       an editorial.                                       tention mission is intelligence gather-
                                                                                           spite the shooting of four South Korean           South Korea’s Roh has committed                 ing.
                                                                                           civilians on Sunday, Foreign Minister         to send more troops to Iraq to join 675                 The United States holds about 660
                                                                                           Yoon Young-kwan told a briefing.              medical and engineering troops but                  prisoners from 44 countries at the base
                                                                                               “The issue of the troop deployment        faces a tough decision on whether to in-            in eastern Cuba but the government de-
                                                                                           plan to Iraq will not be affected and         clude combat forces in the larger group.            clines to provide a breakdown of their
                                                                  ANTHONY PHELPS/REUTERS   there is no change to our original plan,”         Prime Minister Goh Kun said last                citizenship, ages or the reasons they are
                                Peter Jackson — writer, director and producer of           said Yoon, who is a member of South           week the contingent could be 3,000                  being held. The government has not
   Lord of the Lei              the Lord of the Rings series — celebrates at the
                                premier of The Return of the King on Monday.
                                                                                           Korea’s National Security Council and         strong and was unlikely to be just non-             charged them or given them access to
                                                                                           attended an emergency session earlier.        combat troops.                                      lawyers.
Real Estate                                                                                                                                                                                                TUESDAY, DECEMBER 2, 2003
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                                                                                                                                                                                                                                                                                                                   REAL ESTATE AGENCY
                                                                                                  4                                                                                                                         10   Admiralteysky                35 B. Morskaya Ul.            $144/sq. m.
                                                                                                                                                                                                                                                                                                                        RENT A FLAT
                                                                                                                                                                   14                                                       11   32 Nevsky                    32 Nevsky Pr.
                                                                                                        5−6       11−12
                     26                                               3                                                        22                                                                                           12   30 Nevsky                    30 Nevsky Pr.                 $400/sq. m.          For short or long-term period
                                                                                                                                         20                                                                                                                                                                       Special offer for ISIC clients
                                                                                                                                                                                                                            13   Griffin House                21 Razyezzhaya Ul.
                                                                                             17                                                        7                                                                                                                                                  
                          9−10                                                                                                                                                                                              14   IGB 3                        63 Ul. Zhukovskogo
                                                                                                                                                                                           24                                                                                                                      333 00 40, 970 41 64
                                                                          2                                                                                                                                                 15   Goldex                       36 Shpalernaya Ul.            $300/sq. m.
                                                                                                                                                                                                                            16   Inform-Future                12 Tambovskya Ul.
                                                   VOZNESENSKY PROSPEKT

 25                                                                                                                                 23                                                                                      17   Mariinsky                    58 Nab. Reki Moiki            $360/sq. m.        PRESTIGE HOTEL
                                                                                                                                         13                                                                                 18   Tavrichesky                  51 Shpalernaya Ul.            $280/sq. m.
                                                                                                                                                                                                                            19   Mikhailovsky                 5 Marsovo Polye                                 Modern city-center inn
                                                                                                                                                       16                                                                   20   Turgenev House               38 Nab. Reki Fontanki         $400/sq. m.
                                                                          i Fo                                                                                                                                              21   Sweden House                 1 M. Konyushennaya Ul.        $420/sq. m.
                                      z   hna
                                                                                                                                                                                                                                                                                                              Tel./fax: (+7 812) 328-5338,
                          Nab                                                                     27                                                                                                                        22   54 Nevsky                    54 Nevsky Pr.
                                                                                                                                                                                                                                                                                                                  328-5011, 328-4228
                                                                                                                          28                                                                                                23   Razezzhaya 5                 5 Razezzhaya Ul.              $180/sq. m.
                                                                                                                                                                                                                            24   7 2-aya Sovetskaya           7 2-aya Sovetskaya Ul.

 1                                                                                                                                                 4                                               FOR LEASE           21                  ADMIRALTEYSKY DISTRICT                                              The best of office
                                                                                                                                                                                                SWEDEN HOUSE
                                                                                                                                                                                                  SKANSKA                   25   j-plaza 4                    3 Rabochy Per.            $300/sq. m.              space on our
                                                                                                                                                                • Number One location and building                          26   Admiralty House              3 Konnogvardeysky Blvd. $360/sq. m.
  1 Artilleriiskaya Ul.                                                                                                                                         • Office 216 sq. m
                                                                                                                                                                • Apartment, 2 bedrooms
                                                                                                                                                                                                                            27   IGB 2                        10 Serpukhovskaya Ul. $300/sq. m.                interactive map!
  • International management
                                                                                                         Northern                                                                  Call S. Zinovieff & Co.: 325-7333
                                                                                                                                                                                            No Agency Fees!
                                                                                                                                                                                                                                                              93a Nab. Obvodnogo Kanala $275/sq. m.
                                                                                                                                                                                                                                                              79a Moskovsky Pr.         $240/sq. m.
          • 24-hour security                                                                           Capital House                                                                                                                                                                                          Go to
       • 100+ parking spaces                                                                                                                                                      The best way to be noticed                              VASILEOSTROVSKY DISTRICT
                                                                                                       36 Nab. Reki Moiki                                                         is to allocate your company
         • Conference room                                                                                                                                                                on the map of
                                                                                                                                                                                                                                                              13 4-aya Liniya, V.O.
                                                                                                                                                                                                                                                              54 Maly Pr., k. 2, liter A1   $192/sq. m.
                                                                                                                                                                                                                                                                                                                 Call 325-6080
       European Properties Ltd.                                                                              346-8040, 346-8010
      Tel.: 324-2300. Fax: 324-2301
                                                                                                                                                  Tel.: 325−6080
                                                                                                                                                                                                                            32   Elizavetinsky                14 13-aya Liniya, V.O.        $305/sq. m.        to find out more
                                                                                                                                                                                                    33   Centrako                     103 Bolshoy Pr., V.O.
Real Estate                                                                                               TUESDAY, DECEMBER 2, 2003
                                                                                                                                                                                             find it here.

 To advertise, call Anna Brun or Kristina Hendrikson at 325-6080.                              E-mail:                                                                                   Every Tuesday and Friday

                                                                                                                             938-0970,     Dmitr y.   E-mail:       floor, elevator. Stylish and reno-      tem. Renovated in August 2003.
ST. PETERSBURG REAL ESTATE AGENCIES                                                    TWO-ROOM                    ; Tel.: 325-        vated. Furnished and equipped.          Tel.: 999-0644
                                                                                                                             3838,     NEVSKY       PROSTOR         Entrance from the street,
                                                                                       APARTMENT                             AGENCY,             concierge. $2,000 per month,           Kamennoostrovsky Pr. Total area:
                                                                                                                                                                    negotiable.      Tel.:   03-2034,       110 sq. m. Security, parking,
                                                                                                                         NAB. REKI MOIKI. TOTAL AREA: 100           Marina, Tel.: 970-1925, Irina,          air conditioners, jacuzzi. First time
                                                                                                                          SQ. M. TWO BEDROOMS, SPA-       , 325-3838           for rent. $2,000. Tel.: 919-8333
                                                                                                                          CIOUS LIVING ROOM, FUR-                   NEVSKY PROSTOR AGENCY,                  ZAN. E-mail:
                                                                                      10 Canal Griboedova                 NISHED, EQUIPPED, TOP FLOOR,    
                                                                                   • High speed internet access           SAFE ENTRANCE. SECURE PARK-
                                                                                         • View of Canal                  ING. K-KESKUS: Tel.: 937-7533,        Nevsky Pr. Charming apar tment.                  FIVE-ROOM
                                                                                        • Secure entrance                 967-2283                               Tastefully renovated and fur-
                                                                                    • Short or long-term rental                                                  nished. Security. Shor t and long-              APARTMENT
                                                                                                                         MALAYA KONYUSHENNAYA UL.                term lease. $1,750 per month.
                                                                                            Call today!                   View of Kazan Cathedral. Total         Tel.: 326-2626, PENNY LANE
                                                                        325-1306               area: 160 sq. m. Western stan-
                                                                                                                          dard. Furnished and equipped.         1     Stremyannaya Ul. Close to
                                                                                 Millionnaya Ul. $35 inclusive com-       Satellite TV,   fireplace, CCTV.          Radisson SAS Hotel. Third floor.            12 Canal Griboedova
                                                                                  mission.      Tel.:    970-3334,        Daily rent is possible. $700 per          Elevator. Fully equipped, satellite         • Western management
                                                                         t.htm                 month, $40 per day. Tel.: 312-            TV. $1,500 per month. Western                  • Fully furnished
                                                                                                                          0290, 596-4332, 969-6600                  management. Tel.: 903-2034,                • Canal Griboedova view
                                                                                 Italianskaya Ul. Near Grand Hotel                                                  Marina, Tel.: 970-1925, Irina. E-            • High speed Internet
                           Apartments FOR RENT                                     Europa. Rooms: 35 + 30 sq. m.         Nab. Kanal Griboedova. Total area          mail:; Tel.:
                                                                                                                                                                                                                      Call today!
                                                                                   Kitchen/bar: 40 sq. m. View of         ñ 100 sq. m. Stylish apar tment-          325-3838, NEVSKY PROSTOR
                                          in the center                            Ploshad Iskustv. Western stan-         studio. Original design. Sauna,           AGENCY,    325-1306
                                    office 320-1888                                dard. Jacuzzi. Satellite TV.           jacuzzi, video obser vation, alarm
                                                                                   Secured parking. Any terms.            system. $1,500. Tel.: 919-83-33.      Elite apar tment near Tavrichesky          BOLSHAYA KONUSHENNAYA Ul.
                               mobile: 967-2283, 937-7533                          $650 per month or $40 per day.         ZAN E-mail:         Park on Ul. Radishcheva. Second           Three bedrooms, big living room,
                                                                                   Tel.: 323-0981, 592-9747                                                       floor. Furnished and equipped.            two bathrooms, kitchen and din-
                                                                                                                         Nab. Kanal Griboedova, corner of         24-hour security, parking. $1,800         ing room. All furniture and equip-
    Nevsky                  • Apartments for rent and sale • Business premises
                                • Cottages and ground areas • Consulting
                                                                                 Italianskaya Ul. corner of Nab.
                                                                                   Reki Fontanki. Rooms: 30 + 28
                                                                                                                          Nevsky Pr. Two bedrooms: 25 +
                                                                                                                          35 sq. m. Livingroom: 40 sq. m.
                                                                                                                                                                  per month.      Tel.: 903-2034,
                                                                                                                                                                  Marina, Tel.: 970-1925, Irina, E-
                                                                                                                                                                                                            ment. Quiet convenient place,
                                                                                                                                                                                                            secure entrance. Secure parking.
    Prostor                          325-3838
                                                                                   sq. m. Kitchen: 40 sq. m.
                                                                                   Western-standard.          Jacuzzi.
                                                                                                                          Third floor. Two bathrooms,
                                                                                                                          jacuzzi. Furnished and equipped.
                                                                                                                                                                  mail:; 325-
                                                                                                                                                                  3838      NEVSKY        PROSTOR
                                                                                                                                                                                                            K-KESKUS: Tel.: 937-7533, 967-
                                                                                   Satellite TV, fireplace. Furnished
                                                                                   and equipped. View of Fontanka
                                                                                                                          Satellite TV. View of Canal and
                                                                                                                          Church on the Spilled Blood.
                                                                                                                                                                                                           Luxur y   apar tment.       Metro
                                                                                   River. Secure entrance, parking.       Parking. Secure. Any terms. Tel.:     Elite apar tment at 30 Nab. Reki            Vladimirskaya, close to Nevsky.
                                                                                   $550 per month, $35 per day.           592-9747, 150-2933                      Moiki. Two-bedroom, with en               Security. Two bathrooms, dish-
                               Apartment rentals • Central location                Tel.: 341-6018, 312-0290, 969-                                                 suite bathrooms. Modern Italian           washing and washing machines,
                                                                                   6600                                  Nab. Reki Fontanki corner of             furniture. Satellite TV. Secure           satellite TV, video, fully furni-
       COLLIERS                 • Any duration • All price ranges                                                         Italianskaya Ul. Rooms: 30 + 27         entrance. For shor t-term rent.           shed. Globus Ltd. Tel.: 325-
       INTERNATIONAL               Tel.: 118-3618, fax: 118-3616                 Nevsky Pr. $45/night. E-mail:            + 30 sq. m. View of Fontanka            Western management. Tel.: 970-            8248,      320-8745.      E-mail:
                                   E-mail:     , Tel.: 910-        River and Anichkov Bridge. Two          1925, Irina. E-mail: rent@spb-  
                                                     8643, Tel.: 279-0779                    bathrooms.     Jacuzzi.  Sauna.; Tel.: 325-3838,
                                                                                                                          Furnished and equipped. Secured         NEVSKY PROSTOR AGENCY,                   Admiralteyskaya    Naberezhnaya.
                                                                                 Bolshaya Morskaya Ul. Original           yard. Concierge. Any terms. Tel.:                        Total area: 200 sq. m. Ceiling
 To advertise, please call Anna Brun at 325−6080                                  design. Rooms: 34 + 28 sq. m.           592-9747, 150-2933                                                                height: 4,5 m. Two bathrooms.
                                                                                  Kitchen: 40 sq. m. Furnished and                                                                                          Concierge. View of    St. Isaak
        or Petersburg Svyaz at 275−7270.                                          equipped. Sauna, satellite TV,         Naberezhnaya Reki Moiki. View of               FOUR-ROOM                           Cathedral and Admiralteystvo.
                                                                                  close to Hotel Astoria. Parking.        river. Total area: 150 sq. m. Hall:                                               $2,000. Tel.: 8-911-938-7267.
                                                                                  Any terms. $600 per month. $40          50 sq. m. Bedroom: 25 sq. m. and              APARTMENT                           ZAN. E-mail:
                                           Bathroom: 25 sq. m. Jacuzzi,           per day. Tel.: 150-2933, 592-           30 sq. m. Two bathrooms, jacuzzi,
ACCOMMODATION                              sauna. Furnished and equipped.         9747                                    shower cabin, chimney. Home           2-aya    Sovetskaya Ul. Spacious
   WANTED                                  Satellite TV. View of St. Isaac's                                              appliance, video obser vation, door     three-bedroom apar tment. Par tly                PROPERTY
                                           Cathedral, near Astoria Hotel.        Nab. Reki Moiki. Tranquil view of        intercommunication system. Tel.:        furnished. Two full bathrooms.
                                           Secure entrance. Any terms.            Moika River. Western Standard.          934-6657. Isaenko Elena. E-mail:        Renovated. All amenities. Superb                 FOR SALE
Fully equipped apar tment. Centre.         $1,100 per month, $70 per day.         Stylish design. Modern furniture.                    condition.   Tel.:    326-2626,
  400      euro.    812-332-1360,          Tel.: 596-4332, 312-0290, 969-         Equipped kitchen. Wall aquarium.                                                PENNY LANE                               Karavannaya Ul. Elegant studio
  Polina, E-mail:          6600                                   Bathroom with heated floor. Two        Malaya Konushennaya Ul. Western                                                    apartment, 50 sq. m., ready to
                                                                                  WCs. Satellite TV. Daily rent is        Standard. Elegant living room,        MALAYA KONUSHENNAYA Ul. Total               move in. Contact Natalia at 812-
                                         Nevsky Pr. Two-bedroom. Modern.          possible. Tel.: 949-41-99; 966-         fireplace. New Italian furniture.      area: 140 sq. m. Two bedrooms,             118-3618     N.Bastrakova@col-
ACCOMMODATION                             $100/night. Tel.: 943-8975              2321.     Real Estate of St.            Two bedrooms. Two bathrooms:           living room: 40 sq. m. study, fully
                                                                                  Petersburg Agency. www.euroa-           jacuzzi, shower. Satellite TV.         equipped kitchen. Two bath-
Apar tments. From $35 inclusive                                                                      Secure entrance. Voice system at       rooms, sauna. Furniture by                Nab. Reki Moiki. Two-bedroom
 commission. Tel.: 970-3334.                     COTTAGES                                                                 the entrance. Daily rent is possi-     request. Safe entrance, top floor,         apar tment and attic. Secure t.htm                                                         NAB. REKI MOIKI. FULLY FUR-              ble. Tel.: 949-4199, 966-2321.         elevator. Nice view, bright. K-            entrance, great view of canal.
                                         Elite     cottage.    Kavgolovsky        NISHED AND EQUIPPED, EVERY-             English.    Real Estate of St.         KESKUS: Tel.: 937-7533, 967-               Tel.: 118-3618. Olga.   E-mail:
B&B Rinaldi. Center, all modern            reser ve. 600 sq. m. Security,         THING IS NEW. LIGHT, QUIET,             Petersburg Agency. www.euroa-          2283                             
 conveniences, best deals. Tel.:           swimming-pool, sauna, jacuzzi,         COMFORTABLE, SECURE CLEAN     
 +7-812-973-5140.           E-mail:        six bathrooms. Tel.: 324-3151,         ENTRANCE. K-KESKUS. TEL.:                                                     Bolshaya Konushennaya Ul. Total            FONTANKA near Nevsky Pr. Two-;           934-6657                               937-7533, 967-2283                     Karavannaya Ul. Stunning apar t-        area: 160 sq. m. Western stan-             bedroom apar tment 80 sq. m.
                                                                                                                          ment. 85 sq.m. Furnished. All          dard. Modern design. Nice living           Renovated, view of the canal.
B&B Rinaldi. Center, all modern          Elite representative house in neo-      Nab. Reki Fontanki. Riverside loca-      amenities. Western renovation.         room, three bedrooms. New furni-           Euro 110,000. Contact Olga at
 conveniences, best deals. Tel.:           classic style on the shore of the      tion. Studio. Furnished and             Excellent condition. Entr y-phone.     ture. Kitchen with all home appli-         +7-812-118-3618.      E-mail:
 +7-812-973-5140.           E-mail:        Finnish    Gulf. One hour from         equipped. Satellite TV, security.       Terrific location. Tel.: 326-2626,     ances. Satellite TV. Two bath-   ;           Helsinki. Equipped with the            $1,200 per month. Shor t and            PENNY LANE                             rooms: jacuzzi, shower. Secure
                                           telecommunication system for           long-term.    Tel.:   326-2626,                                                entrance. Tel.: 949-4199, 966-            Location, location and location
Apar tment. Center. Reser vation. E-       home appliance and security.           PENNY LANE                             Nab. Reki Moiki. Lovely apar tment.     2321. Real Estate of St.                   again! Prestigious two-stor y
 mail:,              Garage, terrace, sauna. Tel.: 934-                                             140 sq. m. Two bedrooms.               Petersburg Agency. www.euroa-              of fice/retail   premises       at
 Tel.: +7-812-939-7956                     6657,     Isaenko Elena. E-mail:      9 NAB. REKI FONTANKI. Third floor.       Furnished. Equipped. Magnificent                                9 Millionnaya Ul. Total area 186
                                                     Furnished studio apar tment.           view. Security. $2,500 per month.                                                 sq. m. Balcony, fireplace, view of
Ser viced apar tments on Ploshad                                                   Satellite TV. Fully fitted kitchen.    Tel.: 326-2626, PENNY LANE            Mokhovaya Ul. Center. 160 sq. m.            Marsovo        Pole.       E-mail:
 Iskusstv. Tel.: 325-8930                                                          Safe entrance, parking. Shor t or                                             Best conditions: parking, securi-, Tel.: 325-
                                                ONE-ROOM                           long-term rent. $1,200 per            8    Pushkinskaya Ul. Close to          ty, special water refine, working          3838       NEVSKY       PROSTOR
                                                                                   month. Tel.: 970-1925, Irina, Tel.:       Nevsky Prospect and quiet. Third    chimneys, automatic heating sys-           AGENCY,
      APARTMENT                                 APARTMENT                          938-0970,      Dmitr y.     E-mail:
                                                                         , 325-3838
       FOR RENT

                                                                                                                         Time to expand your horizons
                                         Malaya Sadovaya Ul. Western stan-         NEVSKY PROSTOR AGENCY,
                                          dard.      Modern        design.
Nevsky Pr. $50 per night. Tel.: 969-      Kitchen/dining room: 35 sq. m.
 3624,              bedroom: 20 sq. m. Attractive fur-     94 Nevsky Pr. Third floor. Western
                                          niture. Satellite TV. Spacious          style. Fully equipped. Satellite TV.
Two, three, five-rooms flats with         bathroom: jacuzzi, shower. Voice        Secure entrance from the street.
 view of Neva. Tel.: 932-5415.            entering-system. Daily rent is          Shor t or long-term rent. $1,500
 Olga                                     possible. Tel.: 949-4199; 966-          per month. Western manage-                                                                                      • Fortunately, the search for real−estate
                                          2321. English speaking. Real            ment. Tel.: 970-1925, Irina, Tel.:                                                                                markets no longer requires a perilous
RENT-A-FLAT near    Nevsky Pr.            Estate of St. Petersburg Agency.        938-0970,        Dmitr y.   E-mail:
 from $400 per week. Fully fitted,          ; Tel.: 325-                                                                                   voyage on the open sea.
 furnished.    Any     duration.                                                  3838,       NEVSKY        PROSTOR                                                                               • Now, everybody with an interest in real
 Tel.: +7-812-118-3618. COL-             Naberezhnaya Kutuzova. One-room          AGENCY.
 LIERS INTERNATIONAL                      apar tment $1,000 per month.                                                                                                                              estate can find all the information they
                                          Area: 53 sq. m. View of Neva.          Manchesterskaya Ul. Total area:                                                                                    need in one place − The St. Petersburg
Flats.   Nevsky   Pr.  Moyka.             First floor. Entrance from the          96m sq. m. Security, parking.
  Kazanskaya. Any terms. Tel.:            street, fiber optics. Western           Shower. Minimum furniture. First                                                                                  Times Real-Estate Catalogue − without
  325-8653, 322-2559                      standard.     Tel.:  934-6657.          time for rent. $800. Tel.: 919-                                                                                   ever having to leave the office.
                                          Isaenko       Elena.     E-mail:        8333         ZAN.       E-mail:
Two-level apartment on MILLION-           
                                                                                                                                                                                                  • The Real−Estate Catalogue is published
 NAYA UL. Four-room apar tment.                                                                                                                                                                     twice a year in October and April and
 Total area: 170 sq. m. Deluxe.          18 NAB. REKI MOIKI. A studio
 Near the Hermitage. View of the          apar tment     close    to   the            THREE-ROOM                                                                                                    allows you to reach 40,000 readers
 Neva River. Kitchen with bar: 40         Hermitage. 70 sq. m. Furnished                                                                                                                            through the elaborate distribution sys−
 sq. m. Jacuzzi, sauna. Secure            and equipped. Satellite TV. View             APARTMENT                                                                                                    tem established by The St. Petersburg
 entrance. Parking. European fur-         of the Church on the Spilled
 niture. $900 per month, $50 per          Blood. $1,000 per month.               27 Bolshaya Morskaya Ul. Quiet                           PRECISE. RELIABLE. INDEPENDENT.                           Times newspaper, which covers main
 day. Tel.: 312-0290, 341-6018,           Negotiable. Tel.: 903-2034,             and cozy two-bedroom apar tment.                                                                                  business centers, hotels, corporate
 969-6600                                 Marina, Tel.: 970-1925, Irina. E-       Recently renovated. Satellite TV.
                                          mail:, 325-         Shor t or long-term rent. $1,200             To advertise or to get more information call                         offices, as well as high−end bars,
NAB. REKI MOIKI. Rooms: 34 + 32           3838      NEVSKY       PROSTOR          per month. Western manage-                             Anna Brun at 325−6080.                                     restaurants and casinos.
 + 40 sq. m. Kitchen: 40 sq. m.           AGENCY,              ment. Tel.: 970-1925, Irina, Tel.:
                                                                                                                                                                 Tell the world about your business

Classifieds                                                                                              TUESDAY, DECEMBER 2, 2003
                                                                                                                                                                 by advertising in
                                                                                                                                                                         For additional information, call Anna or Kristina
                                                                                                                                                                          at (812) 325-6080. E-mail:

 To advertise, call Anna Brun or Kristina Hendrikson at 325-6080.                            E-mail:                                                                                   Every Tuesday and Friday

                                                                               Russian studies. Tel.: 315-5278;          marriage.   Children welcome.
 The SAS Christmas Calendar is now open for check-in!                           940-8120,      Luda.     E-mail:         Please reply with photo to                                MARRIAGE AGENCIES

 24 days of great fun and unbeatable offers...                                              VISAS                               GREETINGS
                                                                                                                                                                                                  We invite all foreign men
 Choose your destination!                                                                                               Happy bir thday to
                                                                                                                         Tatiana Turikova                                                   on our socials December 5 and 7
                                                                                THE CHEAPEST WA  Y                                                                                              at the night club “Papanin””
                                                                                                                         You make this
                                                                               TO GET A RUSSIAN VISA.                    a great place                                                           (Moskovsky Prospect 111)
                                                                                    3/21 Nalichnaya Ul.
 Find out more on                                                 Tel.: 322-3122
                                                                                                                         to work!                                                              and December 9 in Novgorod.
                                                                                                                                                                                                       Over 40 000 women
                                                                                  E-mail:              St. Petersburg                                                                     on our database
                                                                                                                           Times staff
                                                                                                                                                                                                          +7 (812) 140 39 79
     JOBS WANTED                                 DRIVERS                       Business invitations and registration    Best wishes                                                                   US +1 (602) 553 81 78
                                                                                for foreigners. Tel.: 8-905-218-         for
                                        English speaking driver. Comfortable    6686.                                    Katerina
 I want                                  minibus/car as and when required.                                               on her
   to be appointed to the place of...                                                                                                                            Matchmaking & Introduction Agency           The largest marriage
                                         Tel.: 942-9924.                                                                 birthday.
   I am...                                                                        CARS FOR SALE                          Good luck and be happy!!!
                                                                                                                                                                   VICTORIA                                    agency Fortuna
                                                                                                                                                                                                                  In the center of the city
   My education is...                             GUIDES                       Toyota Carina E, 1995 (in Russia                                                                                            4/2 M. Konyushennaya, 7 days a week.
   My diplomas are...                                                            since Nov. 1999). 1.8 l (107 HP).                                                                                          117-6136; 989-0042
   My working experience is...          English. Greek. Tel.: 567-2255,          ABS. Green metallic. 188,000 km.        LOST AND FOUND                            973-6338           (24 hours)         
                                         Yelena. E-mail:            Radio, CD changer. Electric win-
   I speak... languages                                                          dows, electric mirrors. Alarm sys-     Lost your passport? Found a purse
                                                                                                                                                                                                           Happy marriage & free choice!
   My personal qualities are...         Guide/Interpreter/Driver.     Car.
                                         English. Tel.: 934-5784, Gennady.
                                                                                 tem.      Immobilizer.       Central
                                                                                 lock. Airbag, winter tires. $7,200.
                                                                                                                          full of money or a poor lost puppy?
                                                                                                                          Post any notice in classifieds.                 Dolls                            Saint Petersburg Agency
                                                       Tel.: 949-4885. E-mail: kalin@           Tel.:      325-6080,         e-mail:   Matchmaking & Dating Agency
 On this place your personal                                                                                                                                        Center of the city
                                                                                                                                                                 We speak English and German
  resumes can be                                                                                                                                                                                            325-9791 (daily, 10 a.m. – 8 p.m.)
                                               LANGUAGE                                                                                                          11-555-01 (24 hours)                
 Put your                                                                          MATH LESSONS                              MOVING SALE
  mini resumes
                                                                               Math lessons for schoolchildren.         MOVING     OUT?   THE MAJORITY           Matchmaking & dating agency
  in December and get two
                                        Russian   lessons.     Tel.:  585-      Only in Russian. Tel.: 553-7150.         OF YOUR UNWANTED GOODS WILL
                                                                                                                                                                 W                                                 Egoist
  free publications
                                         3698. Yevgenia. E-mail: jevgenija@
                                                                                                                         BE SOLD AFTER SEVERAL PUBLICA-
                                                                                                                         TIONS IN CLASSIFIEDS. TEL.:
                                                                                                                         325-6080.     E-mail:  annav@
                                                                                                                                                                                                              Matchmaking & Dating Agency
                                                                                                                                                                                                                  11 a.m. - 12 a.m.

                                        Russian lessons. Guide, interpreter,                                                                            116-9030                           932-12-00
                                         visa suppor t. Tel.:+7-812-939-       Free six-day holiday for Christmas in                                                      (24 hours, English)     
                                         7956,                      E-mail:      Prague for appreciative lady. Tel:
                                                  178-3834, John.                                 FOR SALE
                                                                                                                                                                                                              Matchmaking & Dating agency
                                        Russian lessons. Tel.: 567-2255,       Australian man, well educated, pro-      A CHANGE IN DECOR...? OR A NEW            The St. Petersburg Times
                                         Yelena. E-mail:           fessional, 50’s, divorced, financial-     WARDROBE PERHAPS? DON’T
                                                                                                                                                                 does not take responsibility
                                                                                ly secure, non smoker, non drinker        TRASH     YOUR   OLD   STUFF.                                                 
                                        Russian lessons. Olga. Tel.: 155-       seeking an intelligent, attractive        CLASSIFIEDS CAN SELL IT. TEL.:             for the information
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                                                                                                     A P P O I N T M E N T S
  ST. PETERSBURG BANK                                   The Interfax 100 third quarter results for    GUP FUEL AND ENERGY COMPLEX                            Last Friday Governor Valentina              and perception.
      Former director of the St Petersburg          2003 has ranked Alfa Bank 4th by volume of            Alexander Suesoev has been appointed          Matvienko commented to journalists that “the          Former Marketing Director Igor Karpov
  Branch of Alfa Bank Vitaly Ryabov has been        assets and the St. Petersburg Bank is ranked      Director General of the GUP Fuel and Energy       work of the Fund was inefficient, that fi-       is to head the new Baltica Overseas PR Sec-
  appointed Vice-president of the St. Peters-       44th.                                             Complex. Mr. Suesoev was formerly the head        nances are not all clear and transparent.        tion.
  burg Bank.                                                                                          of Lonas Technology, an engineering com-          That’s why I considered it absolutely neces-          Baltika is to merge its factories in St. Pe-
      The appointment has been approved by the      BALTGOSENERGONADZOR                               pany dedicated to the building and rebuilding     sary to strengthen the management of the         tersburg, Tula, Rostov, Samara and
  Russian Federation Central Bank authorities.          Former Director for Economics of              of energy projects.                               Fund”.                                           Khabarovsk as well as other 30 subdivisions.
      As informed on a previous communique,         “Lenenergo’ Ltd Igor Golovach has been                Mr Suesoev replaced Alexander Veksler              She added that, “a financial analysis of    Baltika is owned by Baltika Beverages Hold-
  Mr. Ryabov joined Alfa Bank as a director in      appointed Director of ‘Baltgosenergonad-          as head of GUP ‘TEK St. Petersburg’ in Au-        the Fund will be carried out since we can pre-   ing. The company’s turnover for 2002 was $
  1997 but had taken early retirement.              zor’.                                             gust 2002.                                        sume that the means allocated for its adminis-   900 million.
      Last September, St. Petersburg and                ‘Baltgosenergonadzor’ was created by the          ‘TEK St. Petersburg’ provides heating for     tration have been overestimated. Here there is
  Leningrad Oblast region authorities carried an    Ministry of Energy of the Russian Federation      2.5 million inhabitants and to 6000 residential   room for savings”.                               COMMITTEE FOR EDUCATION
  investigation among Alfa Bank clients amidst      for ‘the reorganization of government bodies      homes. The company’s market share in the                                                               Ex-chairperson of the St. Petersburg
  allegations of improper financial activities.     in charge of energy supervision’ as per GU        heating market is near to 45%.                    BALTIKA                                          Committee for Culture, Olga Ivanova, is to
      Alfa Bank carried its internal enquiry into   “Peterburgosenergonadzor” and GU “ Lenob-                                                               Andrei Rukavishnikov has been ap-            head the town’s Committee for Education.
  the involvement of employees of its St. Pe-       gosenergonadzor” which were merged into           ST. PETERSBURG TERRITORIAL                        pointed Marketing Director of Baltika. Mr.           As informed in a statement by the gover-
  tersburg branch in illegal returns of VAT.        the FGU “Government Energy Supervision            FUND FOR COMPULSORY MEDICAL                       Rukavishnikov was previously Marketing Di-       nor dated 3rd November 2003, Nadeshda
       A bank statement last September ex-          for the Baltic Region” – or “Baltgosenerg-        INSURANCE                                         rector of Dilain – a Russian distributor and     Kyshenkova has been appointed chairperson
  plained that Mr. Ryabov’s dismissal at the        onadzor”.                                             Yuri Mikhailov has been appointed Di-         manufacturer of IT equipment.                    of the Committee for Culture.
  time took place after an enquiry among the            Mr. Golovach joined Lenenergo in 1998         rector of the St. Petersburg Territorial Fund         According to Mr. Rukavishnikov, “the
  bank’s employees regarding illegal returns of     and has held the posts of Deputy Financial        for Compulsory Medical Insurance. Mr.             building up stage of production capacity has     Please e-mail information to
  VAT to some clients, although not directly        Director, Chief-deputy of financial depart-       Mikhailov was formerly a vice-president of        been successful, now, the competition  
  linked to it.                                     ment and Director for economics.                  Menatep SP Bank.                                  switches onto the consumers’ unique niche
22   y    Tuesday, December 2, 2003                                                          S       P      O       R       T      S                                                                  The St. Petersburg Times

Herminator Returns to Form in Super-G                                                                                                                                                        SWIMMING
                                                                                                                                                                                             Continued from Page 24
By Steve Keating                                                                                                                                                                             land, 14 hours and 30 minutes later.
REUTERS                                                                                                                                                                                          Because of the stormy weather, she
LAKE LOUISE, Alberta — The key                                                                                                                                                               had swum 35 miles in crossing the 21-
to Hermann Maier’s remarkable come-                                                                                                                                                          mile-wide channel. Yet her time for the
back from a life-threatening motorcycle                                                                                                                                                      crossing stood for 24 years before it was
accident is not remembering how he be-                                                                                                                                                       eclipsed in 1950 by Florence Chadwick,
came the World Cup’s most dominant                                                                                                                                                           who negotiated 23 miles in 13 hours and
skier but rather forgetting.                                                                                                                                                                 20 minutes.
   But the double Olympic champion                                                                                                                                                               Two tug boats accompanied Ederle,
has not forgotten how to win, and col-                                                                                                                                                       one filled with relatives and friends, and
                                                                                                                                                                                             the other with reporters and photogra-
               SKIING                                                                                                                                                                        phers, some of them seasick. A phono-
lected his 43rd career victory Sunday in                                                                                                                                                     graph played lively tunes to buoy her
vintage ‘Herminator’ fashion, attacking                                                                                                                                                      spirit, and those in the boats sang, too.
the Whitehorn Mountain course to cap-                                                                                                                                                            But Ederle said her well-wishers
ture the first super-G of the World Cup                                                                                                                                                      needed to be buoyed more than she
season.                                                                                                                                                                                      did.
    “It’s different from before,” ex-                                                                                                                                                            “I had to keep joking with them to
plained Maier. “I have to forget every-                                                                                                                                                      keep their spirits up,” she recalled. “I
thing before my accident. I have a dif-                                                                                                                                                      remember they sang endlessly: ‘Let Me
ferent physical situation.                                                                                                                                                                   Call You Sweetheart,’ ‘Sweet Rosie
    “I have problems with the nerves in                                                                                                                                                      O’Grady’ and ‘After the Ball Is Over.’
my leg, sometimes I cannot feel things.                                                                                                                                                      But when the storm was fiercest, they
This is a problem sometimes, especially                                                                                                                                                      all looked as if they were going to a fu-
when I’m gliding.                                                                                                                                                                            neral. Every time I stopped, they
    “This is my comeback year,” he said.                                                                                                                                                     jumped and said, ‘What’s the matter,
“Next year, I hope to compete at the                                                                                                                                                         Trudy? Everything OK?’”
highest level if I am not to old.                                                                                                                                      MIKE BLAKE/REUTERS        During some of the toughest mo-
    “For me, the only important thing at       Austria’s Maier cutting a turn while on his way to winning the Men's World Cup Super-G race in Lake Louise, Canada on Sunday.                 ments, her trainer, fearful of her well-
the moment is to train.                        Flachau, Maier quickly established him- joyed a perfect weekend in Park City, Olympics and world championships as                             being, tried to get her to give up, “but
    “I don’t think about that [the overall     self as the sport’s dominant racer.          winning Friday’s giant slalom and Sat- well as World Cup victories in every dis-                 I’d just look at him and say, ‘What
World Cup title] at the moment but I               He became a national hero and urday’s slalom.                                        cipline.                                             for?’” she recalled.
think the race is wide open.                   sporting celebrity in North America,            After a second place in the opening         “Pernilla is for sure my role model. I                At the ticker-tape parade, the
    “For me it is just to get back in          Europe and Asia.                             giant slalom in Soelden, Austria, in Oc- will try hard to do as well as her —                    crowds shouted, “Hello, Miss What-
shape, find my rhythm.                             But all his World Cup victories, his tober, Paerson leads the overall cup hopefully even better,” said Paerson,                           For!”
    “You never know what could hap-            three overall World Cup titles, two standings with 280 points to nearest ri- who won her first World Cup title, in gi-                            She was little affected by the fame
pen but my goal is to stay healthy and         Olympic gold medals and two world val Martina Ertl’s 177.                                ant slalom, last season.                             that followed. She remained what one
move up.”                                      championships are now relegated to              The flying start to the season has al-      “I’m already getting close to her                 writer called her, “an almost old-fash-
    While Maier insists his comeback           history as the Austrian embarks on lowed her to steal a march on the two with the two gold medals, my silver and                              ioned girl in a world of flappers.” Soule,
has a long way to go before it is com-         what he terms his second career.             women she fears most — Croatia’s reign- my two bronze medals I have clinched                     who toured with Ederle in a swimming
plete, a quick glance at the overall                                                        ing overall champion Janica Kostelic, since 2001 and my 13 World Cup wins                        exhibition, recalled her as “a sweet per-
standings would indicates otherwise.                                                        who is sidelined by a thyroid problem, but there is still much to do to equal her.               son — thoughtful, kind. She even wrote
    His 18th career super-G win has pro-                                                    and Italian Karen Putzer, who missed To win in all disciplines is incredible.                    poetry.”
pelled him to third in the overall rank-           Sweden does not have the Alpine the trip to Utah because of a hip injury.            You have to work out so hard all the                     Ederle eventually quit touring when
ings with 180 points, just 24 behind           skiing muscle of Austria or Switzerland         Paerson, whose father Anders is the time.”                                                    the stress got too much.
team mate Michael Walchhofer and 33            yet for more than a quarter of a century Swedish head coach, hails from the                 Despite her strong early lead in the                  Ederle was a champion swimmer
adrift of current leader American Bode         the country has maintained a big pres- northern town of Tarnaby, which also season’s standings, Paerson, who won                              before her Channel swim, holding a
Miller.                                        ence in the World Cup.                       produced Stenmark, and she became the giant slalom world title in St Moritz                      string of world records at various dis-
    “Maybe I’m more relaxed and not                Ingemar Stenmark remains the most the youngest winner in women’s World in February, is not yet thinking about                             tances. At the 1924 Olympics in Paris,
so nervous anymore,” said Maier, when          successful technical skier in World Cup Cup history when she triumphed in a overall World Cup victory.                                        she was hobbled by the stress of travel
asked if the accident had changed him.         history, Pernilla Wiberg took up the slalom in California’s Mammoth Moun-                   “It will definitely be my main goal               and turned in a disappointing perfor-
“It’s easier now.”                             Swedish cause on the women’s team in tain in 1999, at the age of 17.                     after the Turin 2006 Olympics when I’ll              mance — by her standards — of one
    “I start a new career today.”              the 1990s and now Anja Paerson is fly-          Paerson, who has already won two have more experience and a stronger                          second-place finish, one third-place fin-
    If Maier’s new career is even half as      ing the blue and yellow flag.                world titles, attributes her early success technique in the speed events,” said                  ish and a first on a relay team.
spectacular as his pre-accident career,            Stenmark’s record for the most ca- to her desire to keep up with the boys Paerson, who has never placed higher                                In 1925, she swam the 21 miles from
then the 30-year-old Austrian would            reer wins — 86 achieved between 1975 when she was little.                                than 11th in the super-G.                            the tip of Manhattan to Sandy Hook,
still be ranked among the top World            and 1989 — has never been challenged.           “It goes back to the years when I           Paerson may try to pick up some                   New Jersey, in seven hours, 11.5 min-
Cup skiers.                                    Barely had the slalom and giant slalom was a child and when I competed with points in speed events later in the sea-                          utes, bettering the record held by men.
    Before nearly losing his right leg in      expert retired than Wiberg began win- my cousins,” she said.                             son, though she will skip next week-                     That same year, she made her first
an horrific accident, Maier had became         ning races.                                     “I was often the only girl in a group of end’s two downhills and a super-G in                 try at the English Channel, saying later
the toast of Austria and the skiing                Now Wiberg, the overall World Cup boys in Tarnaby and I challenged them Lake Louise, Canada.                                              that she failed only because a worried
world for his aggressive winning style.        champion in 1997, has herself retired all the time when we played together. I               Instead, Paerson is heading home to               trainer grabbed her when she briefly
    A former bricklayer and ski instruc-       from racing to combine a business ca- also have an older sister and I tried hard prepare for the next technical events —                      began coughing. As soon as someone
tor discovered by the Austrian team            reer with motherhood and Paerson has to beat her when we skied together.”                two slaloms and a giant slalom in Vratna,            touched her, she was disqualified.
while serving as a fore-runner for a 1996      taken up the cause.                             Paerson was long an admirer of Slovakia, and Spindleruv Mlyn, Czech                               Her hearing hadn’t been good since
World Cup race in his hometown of                  The 22-year-old Paerson has just en- Wiberg, who won six gold medals at Republic, from Dec. 11 to 13.                                     a childhood bout with the measles, and
                                                                                                                                                                                             hours spent in the water aggravated the
                                                                                                                                                                                             problem. By the 1940s, she was deaf.
TENNIS                                         himself and to his fans.
                                                   He came out swinging, sometimes
                                                                                                                                                                                                 Out of the spotlight, she taught deaf
                                                                                                                                                                                             children to swim — “since I can’t hear
Continued from Page 24                         wildly, in his first service game. It con-                                                                                                    either, they feel I’m one of them” —
                                               tained two aces but also two double-                                                                                                          and participated in some business ven-
seemed to be having problems with the          faults, and it was clear that the right-                                                                                                      tures. Giving few interviews, she lived
sun serving from the south end of the          handed Philippoussis had hurt his right                                                                                                       quietly in Queens for many years.
court. Ferrero exploited a combination of      shoulder. When Ferrero served, Philip-                                                                                                            “I have no complaints,” Ederle said
four double-faults and a series of weak sec-   poussis chipped his returns and charged                                                                                                       in one interview in the 1950s. “I am
ond serves to grasp a string of set points.    to the net. He took a 40-0 lead but again                                                                                                     comfortable and satisfied. I am not a
    Six times Philippoussis saved himself,     squandered the first two break points.                                                                                                        person who reaches for the moon as
but for Ferrero the seventh set point was      When Ferrero hit a forehand long to                                                                                                           long as I have the stars. God has been
the charm, and he took                                              hand Philippoussis                                                                                                       good to me.”
the game and the ini-                                               the game, his reaction
tiative. For the next                                               was to put his hands
two sets, Philippoussis
                            Ferrero and                             on his knees and bow
was a man drowning          Philipoussis were                       forward in exhausted                                                                                                         MELBOURNE, Australia (AP) —
slowly on the sun-dried                                             relief. He let out a                                                                                                     Australian Leisel Jones broke the wom-
land of Rod Laver           barely able to                          yowl of pain and re-                                                                                                     en's 100-meter breaststroke short-
Arena. Ferrero broke
again in the third set
                            walk by the end of                      lief when he hit the
                                                                    stretching forehand
                                                                                                                                                                                             course world record at a World Cup
                                                                                                                                                                                             meet on Friday.
and twice as he raced       the fourth set.                         volley that clinched                                                                                                         Jones broke Swede Emma Igel-
through the fourth set                                              the next game.                                                                                                           strom's world mark by two-hundredths
to level the match.                                He won the match with a backward-                                                                                                         of a second, finishing in 1 minute, 5.09
    In a battle of two exhausted heavy-        stretching overhead volley. As the ball                                                                                                       seconds to beat fellow Australian
weights, Ferrero’s sounder basic game          struck the sweet spot in the racket,                                                                                                          Brooke Hanson (1:05.45) and Ameri-
was holding up better.                         Philippoussis gave himself up to gravity                                                                                                      can Amanda Beard (1:06.00) in the 25-
    At the end of the fourth set, the two      and joy, tumbling to the grass and wav-                                                                                                       meter pool at the Melbourne Sports
men reeled to the sideline and collapsed       ing his arms and legs.                                                                                                                        and Aquatic Center.
on towels as cornermen worked on                   “At the end I was completely                                                                                                                  Igelstrom set her mark of 1:05.11 in
their battered bodies while the captains       numb,” he said. “I felt as if I wasn’t                                                                                                        March at Stockholm, Sweden.
barked encouragement. Somehow,                 playing but watching from the side.”                                                                                                              In the women's 200-meter back-
Philippoussis rose from the ground the             It was Australia’s 28th title, second                                                                                                     stroke, Margaret Hoelzer and Lindsay
stronger. Yet never can a man have won         only to the United States, which has                                                                                STUART MILLIGAN/REUTERS   Benko led the United States to a 1-2
a set, 6-0, and caused so much agony to        won the Davis Cup 31 times.                   Mark Philippoussis urging himself on against Spain’s Ferrero in the Davis Cup final.            finish.
Tuesday, December 2, 2003                                                                   S       P      O       R      T       S                                                  The St. Petersburg Times          y    23


Skating Fixing Denied
                                              Russia to Meet Spain in Group A, Euro ‘04
                                              By Mike Collett
s PARIS (AP) — A reputed Russian              REUTERS

mobster told a French sports daily that       LISBON, Portugal — Russia will face
he had no role in fixing figure skating       Portugal, Spain and Greece in next
results at the 2002 Winter Olympics in        summer’s European Championships as
Salt Lake City.                               Georgy Yartsev’s side was placed in one
    “I have nothing to do with this af-       of the toughest of the groups in the
fair,” Alimzhan Tokhtakhounov was             draw made in Lisbon on Sunday.
quoted as telling L’Equipe in an inter-          A fascinating draw also saw rivals
view published Friday. He also said he        Germany and Holland lining up against
was not involved in organized crime.
    “All the media portrayed me as a                        SOCCER
dangerous criminal, but I am just a sim-      each other in Group D and defending
ple and honest citizen who never asked        champion France, meeting England
anything of anyone,” he said.                 early on in Group B.
    Tokhtakhounov spent nearly a year             Russia’s group of death sees the
in a Venice, Italy prison on U.S. charges     team start on the opening day of the
that he helped secure a gold medal for        tournament, June 12, against Spain in
Russia in the pairs competition at Salt       the Algarve before facing host Portugal
Lake City in exchange for a victory by        in the 65,000-seat stadium in Lisbon
the French ice dancing team of Marina         four days later. The final group game
Anissina and Gwendal Peizerat.                will be against Greece on June 20.
    In June, Italy’s highest court over-          Judging by Russia’s recent form
turned Tokhtakhounov’s extradition or-        against supposedly minor teams — de-
der to the United States, and he left         feats against Albania and Georgia in
prison. L’Equipe said he returned to          the qualifiers and a loss to Japan at the
Moscow.                                       last World Cup — playing the big teams
                                              may be no worse than playing in an                                                                                                                               JOSE MANUEL/REUTERS

                                                                                            The president of Euro 2004 Gilberto Madai receiving the European championship trophy from UEFA in Lisbon on Sunday.
Flyers Win 5-1                                easy group.
                                                  Yartsev seemed to embrace the             making that section the toughest quar- trating just on that match.                        The third outstanding match-up in
s UNIONDALE, New York (AP) —                  team’s image as underdogs. “Portugal          tet of the four opening round groups.         "It would be a mistake for us to be the opening phase sees the Netherlands
John LeClair had a goal and an assist         and Spain are obviously the favorites in          Sweden, Bulgaria, Denmark and looking for revenge against Spain for drawn against Germany whose rivalry
during Philadelphia’s five-goal second        the group, and we and Greece are the          Italy were drawn together in group C, the friendly defeat in September," he has become increasingly intense since
period, lifting the Flyers to a 5-1 victory   outsiders, so I think that takes the pres-    which should give Italy, beaten by said. "We have to play Greece and Rus- West Germany beat the Netherlands 2-
over the New York Islanders and               sure off us,” he said Sunday.                 France in the 2000 final, a relatively sia before Spain so it's important we 1 in the 1974 World Cup final after the
stretching their unbeaten streak to 12            "My only worries are that my play-        straight-forward path to the quarter-fi- concentrate on those matches com- Dutch took the lead in the opening
games on Saturday night.                      ers are not injured and that they are as      nals.                                      pletely."                                  minute.
    LeClair tallied a power-play goal         fit as possible because our new league            UEFA and the local organizing com-        Greece won away in Spain in the             The Netherlands stunned the Ger-
3:47 into the second to tie it at 1 and       season starts in late February or early       mittee, determined to keep the threat of qualifying group and finished ahead of mans, hosts of the 1988 European Cham-
start the barrage. Mark Recchi put            March and we would not have played            hooliganism to a minimum and desper- the Spaniards who had to go through pionships, when they knocked them out
Philadelphia in front 1:50 later, and         all that many games by June — maybe           ate to avoid a repeat of the fighting that the playoffs.                              in the semi-finals with a late winning goal
Donald Brashear, Simon Gagne and              eight or 10.                                  marred the England-Germany match in           The prospect of France meeting in Hamburg before going on to win the
Justin Williams followed to send the              "However, I'm hoping we finalize          the small venue of Charleroi in Belgium England will capture the imagination of final against the Soviet Union.
collapsing Islanders to their fifth           friendlies against France, Denmark and        in Euro 2000, switched the venues of fans on both sides of the English Chan-              Two years later the teams were in-
straight loss.                                Romania and also play a mini-tourna-          two matches after the draw.                nel.                                       volved in a turbulent encounter at the
    The Flyers — 10-0-2 since a loss at       ment with Serbia and Montenegro, Be-              The Netherlands-Germany match,            France last met England in a com- World Cup in Italy when current Ger-
New Jersey on Oct. 30 — were led by           larus and Georgia in May which will           originally slated to take place in the petitive match in the 1992 European man coach Rudi Voeller was sent off
their power play. Philadelphia, which         help our preparations enormously,"            small northern city of Aveiro, will now Championship in Malmo, Sweden along with Dutchman Frank Rijkaard.
entered with the NHL’s second-best            Yartsev said.                                 take place in Oporto on June 15, while when the sides drew 0-0. Since then the            The two sides play in their opening
unit, was 2-for-6 with the man advan-             Russia beat Wales to the Euro 2004        England's match against Croatia on French have won both the World Cup group D game on June 15. The Dutch
tage and is 24-for-91 this season.            finals with a dramatic 1-0 play-off, sec-     June 21, was moved from Coimbra to (1998) and European Championship and the Czechs also meet again in that
                                              ond leg win in Cardiff ten days ago.          Lisbon.                                    (2000) with many of their top players section after qualifying together from
Milan Tops Juve                                   Championship holders France will
                                              face England, Switzerland and Croatia
                                                                                                Aveiro will now stage the Czech Re- performing in England.
                                                                                            public-Latvia match, while Coimbra            French defender Marcel Desailly of
                                                                                                                                                                                  the same group this time.
                                                                                                                                                                                      The Germans, Dutch and Czechs
s MILAN, Italy (Reuters) — Inter              in group B with the France-England            will be the venue for the France- Chelsea, said: "This draw is neither easy will have a tough time competing for
Milan recovered from their midweek            match scheduled for the Stadium of            Switzerland game.                          nor very hard. It's in between. We'll see. two places into the quarter-finals.
Champions League mauling by Arsenal           Light in Lisbon on June 13.                       A cheer went up from the audience Our group is not so bad since the first             Whoever does get through is likely
to hand Italian champions Juventus                French coach Jacques Santini said:        at the draw ceremony when Portugal two qualify. For sure, we'll talk about it to face Italy or Sweden as the probable
their first defeat of the season with a       "It will be like a derby match as there       were paired with Spain in what will be at Chelsea."                                   qualifiers from Group C.
shock 3-1 win at the Delle Alpi stadium       are so many French players in the En-         the most eagerly awaited match for the        England's Swedish team boss Sven-           If Portugal and Spain qualify by
Saturday.                                     glish premier league."                        host nation's fans.                        Goran Eriksson said: "Our first game knocking out Russia and Greece from
   Argentine striker Julio Ricardo Cruz           In another derby, the Netherlands             Spain beat Portugal 3-0 in a friendly against France... it's a big, big game. It group A and France and England fol-
struck twice as Inter put their 5-1 home      will renew their often over-intense ri-       in Guimaraes in September but Portu- will be difficult, but beautiful."               low form and qualify from group B, two
defeat by Arsenal behind them with a          valry against Germany in group D.             gal's Brazilian coach Luiz Felipe Scolari     France will also renew their rivalry intriguing quarter-finals will follow as
superb display to end Juve’s 11-month             Their group is completed by the           warned his players it would be danger- with Croatia, who they beat in the semi- the winners and runners-up from those
unbeaten home record in Serie A.              Czech Republic and debutants Latvia,          ous to go into the tournament concen- finals of the 1998 World Cup.                   two groups face each other.

Baltimore Ravens Rout San Francisco 49ers
In Lopsided 44-6 Win That Augers Well
By David Ginsburg                             rection next week against Cincinnati,         which has been on a roll since breaking
THE ASSOCIATED PRESS                          which beat Pittsburgh to remain tied          a drought of eight quarters without a
BALTIMORE — The defense                       with the Ravens atop the division.            touchdown against Seattle.
returned to form, the offense matched            The Bengals beat Baltimore in                  “Our mentality was to come out and
the standard it set one week earlier,         Cincinnati earlier this season, and the       prove that last week wasn’t a fluke,”
and the special teams were spectacular.       Ravens have been itching for the re-          said Anthony Wright, who threw two
   It added up to the most lopsided vic-      match.                                        touchdown passes.
tory in the history of the Baltimore             “Now we can focus on Cincinnati.               The return of quarterback Jeff Gar-
                                              Everybody else is out of the way,”            cia did nothing to change the fortune of
AMERICAN FOOTBALL                             Lewis said.                                   the 49ers (5-7), who fell to 0-6 on the
Ravens, a 44-6 rout of the San Fran-             One week earlier, the Ravens trailed       road. Back from a three-game absence
cisco 49ers on Sunday that served as a        Seattle by 14 points at halftime and by       with a sprained ankle, Garcia went 14-
perfect tuneup for next week’s clash for      17 in the fourth quarter before rallying      for-29 for 112 yards with a career-high
first place in the AFC North.                 to win. Baltimore (7-5) took a far easier     four interceptions before being pulled
    Ray Lewis returned an interception        path against the 49ers, building a 24-6       early in the fourth quarter.
29 yards for a touchdown to cap a 17-         halftime lead before coasting.                    “It’s like a bad nightmare. All four
point flurry in the second quarter, and          “Our offense is definitely setting a       interceptions, one way or another, were
the rejuvenated Ravens cruised past the       trend,” said Gary Baxter, who had a           deflected,” Garcia said. “When it
road-weary 49ers.                             key interception. “They’re setting a          started to go downhill, it went downhill
    “This is a complete game for us, the      standard to do that every week. And           fast. We couldn’t find a way to stop the
kind of game we’re capable of having,”        that’s what we want them to do.”              steam.”
Ravens coach Brian Billick said. “It’s           It’s the first time in team history Bal-       It was San Francisco’s worst loss
what we’re going to need the rest of the      timore reached 40 points in consecutive       since a 41-3 defeat against Jacksonville
way to get done what we want to get           games. The four interceptions helped,         in September 1999.
done.”                                        as did a kickoff return by Lamont                 “It was an embarrassing game,”
    That would be a return to the play-       Brightful and three field goals by Matt       49ers coach Dennis Erickson said. “We
offs following a one-year absence. Bal-       Stover.                                       didn’t play well in all aspects, starting                                                                             JOE GIZA/REUTERS

timore can take a huge step in that di-          But also give credit to the offense,       with me.”                                   Baltimore Ravens' Terrell Suggs chasing San Francisco 49ers Jeff Garcia on Sunday.
Sports                                    T U ES DAY, DE CE M B E R 2 , 2 0 0 3                                                                                                                                     PAG E 2 4

Chelsea Hits Top of English Premiership Pioneer

LONDON — Chelsea stormed to the
summit of the English Premiership when
a controversial penalty gave them a 1-0
victory over Manchester United at Stam-
ford Bridge while previous leaders Arse-
nal were held to a 0-0 draw by Fulham.
                                                                                                                                                                                        Dies at 98
    Frank Lampard’s 30th minute spot-                                                                                                                                                   By Polly Anderson
kick was enough to secure a crucial vic-                                                                                                                                                THE ASSOCIATED PRESS

                                                                                                                                                                                        NEW YORK — Gertrude Ederle, who
             SOCCER                                                                                                                                                                     was the toast of America and Europe in
tory that sent Russian billionaire Ro-                                                                                                                                                  1926 when she became the first woman
man Abramovich’s Chelsea a point                                                                                                                                                        to swim the English Channel, died Sun-
clear of the Gunners who dominated                                                                                                                                                      day. She was 98.
their match at Highbury but were foiled                                                                                                                                                     Ederle had spent the last several
by a goalkeeping masterclass from                                                                                                                                                       years living at a Christian Health Care
Dutch veteran Edwin Van der Sar.
   It was United’s most experienced                                                                                                                                                               SWIMMING
campaigner, skipper Roy Keane, who                                                                                                                                                      Center about 25 miles northwest of
handed Chelsea a huge psychological                                                                                                                                                     New York City, said Martin Ward,
edge in the championship battle by up-                                                                                                                                                  whose wife is one of Ederle’s 10 surviv-
ending Joe Cole in the area after half                                                                                                                                                  ing nieces and nephews.
an hour.                                                                                                                                                                                    In a roaring decade when Ameri-
   Lampard made the most of his for-                                                                                                                                                    cans cheered daredevils, few were as
mer West Ham team-mate’s endeavor                                                                                                                                                       celebrated as Ederle, who was 20 when
by stepping up to send Tim Howard the                                                                                                                                                   she made her historic swim on Aug. 6,
wrong way from the spot and leave                                                                                                                                                       1926.
United coach Alex Ferguson question-                                                                                                                                                        “People said women couldn’t swim
ing the decision.                                                                                                                                                                       the channel,” Ederle told The Associ-
   “First of all the player was not in                                                                                                                                                  ated Press in a 2001 interview marking
control of the ball and he was going                                                                                                                             STEPHEN HIRD/REUTERS   the 75th anniversary of her feat. “I
away from goal a bit,” said Ferguson.         Chelsea's Frank Lampard (l) contesting the ball with Manchester United's John O'Shea during their match in London on Sunday.              proved they could.”
   “It is an amazing decision to make in      of injured superstar Michael Owen as sheikhs by ending a run of five straight               Leeds’ victory was enough to drag                 When she returned to her native
a game of that nature. It’s disappointing     they came from a goal down to beat defeats.                                             them level on points with Wolves, who             land, there were celebrations, recep-
but, you know, you’ve not got a top ref-      Birmingham 3-1 and leapfrog over their         A ninth-minute strike by James Mil- drew 1-1 at home to Newcastle.                         tions and a roaring ticker-tape parade
eree today so these things can happen.”       opponents to sixth in the table.           ner was enough to secure a 1-0 win over          Alan Shearer rescued a point for the          for her in New York, where she was
   Chelsea boss Claudio Ranieri ac-               Finnish star Mikael Forssell gave Charlton and give Eddie Gray his first visiting Magpies after an embarrassing                       born in 1905. She met President Calvin
knowledged that the title race was far        Birmingham a 33rd-minute lead but victory since taking over as caretaker blunder by goalkeeper Shay Given had                             Coolidge, was paid thousands to tour in
from over.                                    that was cancelled out when Matthew manager following the sacking of Peter gifted Wolves the lead.                                        vaudeville, played herself in a movie
   “I continue to think about my job          Upson fouled Florent Sinama-Pongolle. Reid.                                                 Given was left red-faced after rush-          (“Swim, Girl, Swim”) and had a song
day-to-day but of course I want to be             Steven Gerrard converted the               It was only Leeds’ third victory of ing from his box in the 27th minute only               and a dance step named for her.
the first horse in the race.                  penalty and Liverpool went on to claim the season but they remain bottom of to fluff his clearance and leave Nathan                           Only five men had succeeded in
   “So far so good, but the league is         all three points with second half goals the table because their goal difference Blake with a clear run for his first goal                 swimming the channel before her, and
very long. Now we are top. I hope we          from Harry Kewell and Emile Heskey.        is worse than fellow strugglers Wolves.      of the season.                                    she beat the record by more than two
will still be top in May but I think all          A relieved Gerard Houllier saw his         But a battling display will nevertheless     But four minutes later Shearer swept          hours.
three teams could change position.”           Liverpool side move into their highest have given the Elland Road faithful rea- home his 12th Premiership goal of the                         “I thought it was marvelous, and I
   Arsenal had a hatful of chances to         Premiership position for almost three son to hope on a day which brought good season from Lomana LuaLua’s pass.                           thought only Gertrude could have done
beat Fulham but were unable to find a         months.                                    news off the pitch with confirmation that        Aston Villa moved out of the relega-          it,” another top swimmer from the era,
way past Van der Sar.                             “The table looks a lot healthier now, a takeover of the club is imminent.           tion zone with a 1-0 win over                     Aileen Riggin Soule, said in a 1999 in-
   The Gunners’ boss Arsene Wenger            but to be fair we should have been in this     Sheikh Abdul Rahman bin Muba- Southampton thanks to a goal from vet-                       terview. “She had the stubbornness.”
refused to be too downcast at his side’s      position before, we have lost about six rak al-Khalifa, a member of Bahrain’s eran striker Dion Dublin while Les Fer-                         Ederle swam the choppy, treacher-
loss of two crucial points.                   points we should have got,” said Houllier. royal family and a Leeds fan of 25 years dinand and Marcus Bent scored for Le-                 ous stretch under adverse conditions,
   “I am not frustrated. I am very                In Sunday’s other match, Chinese in- standing, confirmed that he was co-or- icester as they came away from Fratton                    battling rip tides, cross currents, driving
happy with our performance — it was           ternational defender Sun Jihai scored dinating a group of Gulf investors who Park with a 2-0 win over Portsmouth.                         rain and mountainous seas, as well as a
just a matter of scoring goals which we       an own goal which gave Middlesbrough are planning to take over the cash-                    Vratislav Gresko’s first goal in En-          constant threat of floating debris, poi-
know we can do. We played well and            a 1-0 win at Manchester City.              strapped club.                               glish football earned Blackburn a 1-0             sonous jellyfish and sharks. She left
they defended and just refused to play,”          On Saturday, Leeds celebrated the          “I’m delighted for the players and the win over Spurs.                                     Cape Griz-Nez, France, at 7:05 a.m. and
the Frenchman said.                           prospect of being rescued from their fi- supporters of the club because they are            Everton went down 2-0 at Bolton to            stumbled ashore at Kingsdown, Eng-
   Liverpool shrugged off the absence         nancial misery by a consortium of Gulf the people that really matter,” said Gray. slip into the bottom three.                                               See SWIMMING, Page 22

Philipoussis Clinches Davis
Cup Victory for Australia
By Peter Berlin                               sis set the agenda. He served more aces
NEW YORK TIMES SERVICE                        (21 to Ferrero’s 9) and hit more winners
MELBOURNE, Australia — Mark                   (64-48, by the scorekeeper’s estimate).
Philippoussis put the Australian crowd        But he also served more double-faults
through a wild emotional ride before          (16-2) and made more unforced errors
beating Juan Carlos Ferrero, 7-5, 6-3, 1-     (35-18). Against the energetic, green-
6, 2-6, 6-0 Sunday to give the host Aus-      and-gold-clad Philippoussis, the pallid
tralians a 3-1 victory in the three-of-five   Ferrero, dressed in white, looked like a
Davis Cup final.                              ghost for most of the first two sets.
    In the opening singles Friday, Fer-           Philippoussis had a set point in the
rero started strongly against Lleyton         10th game after Ferrero served the first
                                              double-fault of the match. In the 12th
              TENNIS                          game, Philippoussis raced to a 0-40 lead
Hewitt before collapsing and losing in        but squandered the first two break points
five sets. Philippoussis started sluggishly   before putting away a forehand volley.
against Carlos Moya, and a late surge             Philippoussis allowed Ferrero two
could not save him from a four-set loss.      break points in the fifth game of the next
    The pattern was reversed for both         set, but survived. He broke the Spaniard
men Sunday. Philippoussis found his           to love in the eighth game, then raced to
range and his emotional focus from the        40-0 in the next game, wasted all three set
first game. He also set a pattern that        points, the second with a double-fault, but
was to continue for much of the match.        steadied to win the game and the second
Despite thumping three aces, he still         set. The momentum was with Australia.
had to survive a break point and three            It swung emphatically in Philippoussis’
deuces before holding serve.                  first service game of the second set. He                                                                                                                              WILL BURGESS/REUTERS

    Throughout the match, Philippous-                               See TENNIS, Page 22     Australia’s winning team: Todd Woodbridge (l), Wayne Arthurs, captain John Fitzgerald, Mark Philippoussis and Lleyton Hewitt.

Рег. ПИ № 2-4536, выдан Северо-Западным региональным управлением Роскомпечати 01.07.2000. Отпечатано в ФГУП «СПб Государственный газетный комплекс». 198216, СПб, Ленинский пр., 139. Заказ № 543. Тираж 20000 экз.

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