[March 11, 2006]

Moscow press review for March 10, 2006

(Interfax News Agency Via Thomson Dialog NewsEdge)MOSCOW. March 10 (Interfax) - The following is a digest of Moscow newspapers published on March 10. Interfax does not accept liability for information in these stories. POLITICS & ECONOMICS

The government's national projects, construction of pipelines and roads, as well as changes in taxation, rather than oil, will help Russia maintain 6% economic growth, according to socioeconomic projects for 2007-2009 drafted by the Economic Development and Trade Ministry (Vedomosti, p. A1).

Prime Minister Mikhail Fradkov warned at Thursday's cabinet meeting that he would view the failure to meet inflation targets as incompetence on the part of the relevant ministers. But analysts think high inflation is more likely to lead to the dismissal of Fradkov himself (Kommersant, p. 1; Vedomosti; Vremya Novostei).

An arbitration court judge from the Moscow region has filed a petition with the Constitutional Court challenging the way judges are appointed in Russia, saying the system has "corrupting potential." Experts think the challenge might be backed at the government level (Vedomosti, p. A1).

There were 1,285 mergers and acquisitions in Russia last year, worth a record $59 billion, according to Mergers.ru. The most money was spent on companies in the oil, gas and steel industries, while the largest number of M&A deals was in the service sector (Vedomosti, p. B1).

The new list of the world's richest individuals, published by Forbes magazine, includes 33 Russian billionaires, seven more than last year, with a combined fortune of $172.1 billion. The wealthiest Russia, Roman Abramovich, is eleventh on the list with $18.2 billion (Vedomosti, p. A1).

OIL & GAS
Yukos appears to be on the verge of collapse after a senior
managerin Moscow declared a mutiny against the embattled oil company's London- based CEO, amid accusations of theft and new legal threats against company managers (Moscow Times, p. 1; Kommersant, p. 1; Vedomosti). METALS & MINING

The Magnitogorsk Iron & Steel Works (MMK) said Thursday that it is considering buying a steelmaker in India to tap into the lucrative Asian metals market (Moscow Times, p. 7). BANKING, FINANCE & INSURANCE

Vneshtorgbank paid $577 million for a 75% stake in St. Petersburg's Promstroibank, almost $200 million more than thought by market players and more than has been paid for any other Russian bank. But the deal was still profitable for Russia's second biggest bank (Vedomosti, p. B1).

Interview: Sergei Kharlamov, deputy head of Russia's Federal Financial Markets Service (Vremya Novostei). RETAIL & CONSUMER MARKET

Argentina on Thursday imposed a six-month ban on beef exports due to rising domestic prices for meat. Russian importers think the move will lead to beef shortages and price increases of at least 25% in Russia (Kommersant, p. 1). REAL ESTATE & CONSTRUCTION

A U.S. investment fund managed by Moore Capital has bought a 20% stake in RosEvroDevelopment, becoming the first foreign fund to take an interest in a Russian real estate development company (Vedomosti, p. B1). TELECOMMUNICATIONS, MEDIA & TECHNOLOGY

The Russian government agency responsible for regulating the media is seeking to shut down a popular, independent online news agency in the Altai region called Bankfax after an anonymous reader posted a reprint of a caricature of the Prophet Mohammed on its forum and called for the destruction of Islam (Moscow Times, p. 1).

The Walt Disney Company plans to invest in production of
cartoons
in Russia. The company has also announced it will open a
Russian
division to oversee all Disney projects in the country. This
is thefirst case of a major western studio centralizing its business in Russia (Kommersant, p. 13). AUTOMOTIVE & ENGINEERING

Russia's Cabinet on Thursday approved a plan to develop the country's ailing farm machinery industry that calls for wide-ranging measures, including allocating money from the state infrastructure fund and improving conditions for farm equipment leasing (Moscow Times, p. 5; Kommersant, p. 15). [RU ASIA EUROPE EEU EMRG PRESS MCE MRG PUB REGS BNK MET REA CRU POL]

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