WHAT THE RUSSIAN PAPERS SAY

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MOSCOW, June 16 (RIA Novosti)

VREMYA NOVOSTEI

Russia may become the 11th observer at the 57-member Organisation of the Islamic Conference (OIC), set up in 1969, by the end of this year, or, at the very latest, by next spring. But first the OIC should determine the criteria for granting the status. Today the organisation, which has met for a 31st session in Istanbul, will set up a special commission for this. Russia's Foreign Minister Sergei Lavrov is attending the session for the first time.

But nobody is surprised after President Vladimir Putin visited the OIC summit in Malaysia in October last year. Two months before going to Malaysia, Putin said Russia would work for membership in the main international organisation of Muslims, initially with the observer status.

According to the national population census of 2002, there are at least 14.5 mln Muslims in Russia, or 10% of the country's population. Ravil Gainutdin, head of the Board of Muftis of Russia, thinks there are 20 mln Muslims in Russia.

Muslims welcome Russia's policy of rapprochement with the OIC, as Lavrov's colleagues tell him in Istanbul. The joint international conference "Islam: international community and the struggle against extremism," which is to be held in Moscow this autumn, points to a special attitude of Russia to the problems of the Muslim world. Besides, the country has accumulated "unique experience of coexistence of Christianity and Islam," says the Russian Foreign Ministry. There will be 2 bln Muslims in the world by 2030, or twice the current figure. Islamic countries have 65% of the world's hydrocarbons.

OIC Secretary General Dr Abdelouahed Belkeziz said in Istanbul that Muslims have been split, humiliated and depressed by their impotence, and hence need reforms. But they think reforms in their explosive region should be carried out not by American methods but gradually.

"Russia is worried by the growing alienation between the West and the Islamic world, with examples of this alienation becoming more frequent in the past years," said official spokesman of the Russian Foreign Ministry Alexander Yakovenko.

GAZETA

Prime Minister Mikhail Fradkov has determined the format of the Council on Competitiveness and Enterprise, which is substantially broader than the format of its predecessor, the council on enterprise. The new council of businessmen has been reinforced with officials and scientists, which is logical. The new structure will deal not with dialogue between business and the authorities, but with the federal task of upgrading the competitiveness of the Russian economy. The first session of the new council may be held in June.

Fradkov proclaimed the task of raising the competitiveness of the Russian economy as the main task of the government immediately upon the approval of his nomination to the post of premier. No methods of attaining this goal have been offered so far, but at least we know the people who should help the premier in doing this. The membership of the new council has been increased from 31 to 43.

Council member Valery Draganov, chairman of the State Duma committee for the economic policy, hopes that the change of the format would benefit the council. "The old council was a kind of club; I hope conversation will be more open in the new structure," he said. "I hope the council sessions will not degenerate into endless discussions of ways to improve Russia or growing grass on the Moon."

A council member told this newspaper that the first session may be held in June, when President Vladimir Putin is expected to meet with businessmen. This meting in the Kremlin may determine the issues for discussion in the government.

IZVESTIA

Gazprom management has announced its plans to reduce export gas deliveries to the CIS countries this year, because many of them do not honour their financial obligations. Some will be cut off from the pipe because of debts, others, for their obstinacy. On June 15, ten days before the annual shareholder meeting, Deputy chairman of the Gazprom board Alexander Ryazanov and director general of Gazexport Alexander Medvedev spoke about the situation in the export deliveries of Russian and Central Asian gas to the CIS.

The work of Gazprom on these markets cannot be described as good or stable. Though it exports gas to most CIS countries at lower prices than to Europe, many of them have accumulated big debts in the past years and are not in a hurry to repay them. Gazprom management intends to inform shareholders that gas deliveries to the CIS and Baltic countries will be reduced from 52.30 bln cu m (2003) to 49.86 bln cu m this year.

Gazprom's most difficult partner among former Soviet republics is Belarus, which can blame itself for getting less gas this year. Deliveries to Ukraine, the other major provider of Russian gas to Europe, will be slashed, too.

The Baltic countries, on which Gazprom's export deliveries do not depend, will have to buy gas at higher prices. Lithuania, Latvia and Estonia now buy gas at higher prices than the CIS countries - at $80-85 per 1,000 cu m. European consumers buy Russian gas at more than $120 per 1,000 cu m and Gazprom plans to raise prices for the Baltic countries to this level.

KOMMERSANT

Despite the reduction of the refinancing rate and the norm of deductions to the Obligatory Reserves Fund (FOR) by the Central Bank, the situation on the market of inter-bank crediting has not improved. On Tuesday, rates jumped compared to the past week because of tax payments, and the limits for medium and small banks have not been opened. Second-row banks suggested a method of saving the market: exchange "white" lists and create a mortgage centre.

Board chairman of Alfa Bank Rushan Khvesyuk says, "Being aware of the complicated situation on the banking market, Alfa Bank is ready to help Russian banks that have the liquidity problem by buying their long-term credits. This will increase their liquidity and help them to repay their counteragents."

Some other major banks have confirmed readiness to buy good credits.

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