IZVESTIA
The conflict in the Communist Party of Russia (KPRF) on the eve of its July 3 congress has reached its climax. While the supporters of party leader Gennady Zyuganov were listening to his report at the plenary session of the KPRF central committee, his opponents held their own plenary session that terminated the powers of Zyuganov and his deputies. They elected Ivanovo (Central Russia) Governor Vladimir Tikhonov to the post of KPRF leader. Zyuganov's supporters denounced the alternative plenary session as illegitimate and promised to expel the dissenters from the party.
This may mean that there will be not one but two KPRF congresses, each of them claiming to be legitimate. The situation in the party is a textbook example of bad management of a political structure that used to have vast potential and any number of possibilities. Now the 322 delegates of the party congress can only vote for the introduction of crisis management.
"Zyuganov has lost the party. Even if he retains in its leadership after July 3, this will not change anything for him or the KPRF," said a member of the party central committee. Yesterday Zyuganov lost one more of his posts when the Co-ordinating Council of the People's Patriotic Union of Russia (NPSR) terminated his powers as chairman for "gross violations of the NPSR charter by erecting barriers to the convocation and normal work of the Co-ordinating Council and attempting to establish a regime of one-man rule in the coalition."
KOMMERSANT
"Moscow is laying bridges to Southeast Asia", is the headline for an article about the ASEAN forum's opening in Jakarta. It is being attended by the foreign ministers of ten member countries and their colleagues from 14 partner countries, including US Secretary of State Colin Powell and Russian Foreign Minister Sergei Lavrov. The forum will spotlight the struggle against international terrorism, in particular piracy in the MoluccaPassage. The ministers will also discuss the results of the six-party talks on the North Korean nuclear programme held in Beijing last weekend, and the situation in Myanmar.
Minister Lavrov evaluates the results of the talks on the North Korean problem as "cautiously positive." Russia believes that the parties must address a block of problems, first ensuring the nuclear-free status of the country, giving it security guarantees and extending economic and humanitarian aid to it.
Sergei Lavrov said the first Russia-ASEAN summit may be held in Malaysia in 2005.
VREMYA NOVOSTEI
The Ministry of Taxes and Duties (MNS) has announced the results of inspection of Yukos' operation in 2001. The tax officers think it owes the budget $3.38 bln. Taking into account the MNS' previous claims, Yukos must pay nearly $7 bln, while the results of inspections of its operation in 2002 and 2003 have not been made public yet. This can be the ministry's reply to the offer of Yukos top managers to "forgive" the company the fines and penalties on the 2000 tax arrears and a part of the overdue debt, which adds up to nearly 65 billion roubles, and to postpone the payment of the remaining 34 bln roubles until 2006 (29 roubles approximately equal $1).
GAZETA
The situation on the Russian stock market has stabilised. Andrei Rozhkov, an analyst with Capital investment group, said the RTS index grew on Thursday by 0.31% to 585.15 points. Investors still want to know what Yukos and the Tax Ministry decide on the mechanism for the oil major to repay its debts. Yukos shares were up slightly (+0.63%), but it was a short-lived rise because the ministry made public its new claims to the company.
The decision of the US Federal Reserve System to raise the discount rate by 25 basic points did not come as a surprise and hence did not have a negative effect on the market. Rozhkov believes that in the next few days the Russian stock market will grow because the new quarter has begun and the volume of liquidity on the market is increasing.
NEZAVISIMAYA GAZETA
Thursday's cabinet session did not include the banking crisis on the agenda, though the ministers discussed the development strategy of the Russian banking sector until 2008. Prime Minister Mikhail Fradkov said, "public deposits in credit organisations have been growing recently," which points to increased public trust in the banking system.
On the other hand, Finance Minister Alexei Kudrin admitted that the people's trust in small banks had diminished and some credit organisations "whose names are widely known" have problems. What the minister said next promises an increase in the number of martyrs: "The Central Bank is acting according to plan."
The development strategy was approved in general and sent back for two weeks' worth of detailed polishing. It is clear that supervision of banks will be strengthened, which can be viewed as a positive decision because it is designed to increase the transparency of the banking system. Bankers approved the document as a whole. The government decided not to allow foreign banks to open branches in Russia. According to Kudrin, "we will certainly return to this question in the future, in 7-8 years."
