KOMMERSANT
The budget reform was in the focus of the president and the government's attention yesterday. Vladimir Putin met Finance Minister Alexei Kudrin and Tatyana Nesterenko, Federal Treasury chief, to discuss problems related to the treasury system's development. Vice-Premier Alexander Zhukov presided over a meeting of the commission for making budget spending more effective, writes Kommersant.
The budget reform is designed to ensure the effective use of budget funds. It is also expected to streamline budget spending, which will allow all domestic resources to be mobilised to ensure the needs of the population and the economy.
The budget planning reform is also expected to streamline the regional and local budgets. Regions and municipal entities will have to hold accounts at the Federal Treasury. The state will thereby be in control of financial flows in regions and municipal entities.
The provinces are not happy about the prospect. For six months they have been trying to persuade the Finance Ministry that the transfer of their accounts to the Federal Treasury runs counter to the Constitution, writes the paper.
NEZAVISIMAYA GAZETA
The Yukos oil major forwarded a letter to the Justice Ministry yesterday saying it might stop production in the next few days. The company said it had been forced into such a radical measure by the bailiffs, writes Nezavisimaya Gazeta.
Yukos affiliates, Yuganskneftegaz, Samaraneftegaz, and Tomskneft, have received official letters prohibiting them from assigning their assets or taking other actions aimed at changing the assets' status. Oil is considered to be part of the companies' assets, according to Yukos legal advisers.
Justice Minister Yury Chaika, for his part, described the company's letter and a relevant statement as an attempt to blackmail authorities. The bailiffs are acting in strict compliance with legislation and their actions have not been appealed against or challenged to date, the minister has said.
Experts believe the suspension of oil production may have serious technological and financial consequences, but doubt that Yukos will go that far. They are treating the Yukos statement as part of the company's arrangements for bankruptcy. If Yukos declares itself bankrupt, its shareholders will preserve certain control over their assets, writes the paper.
VEDOMOSTI
The Sukhoi aircraft maker leads the Russian defence sector in terms of sales. Last year alone, Sukhoi aircraft and weaponry accounted for 50% ($2.4 billion) of the overall sales of Rosoboroneksport, Russia's biggest arms dealer. In the next five years, the company intends to supply $8 billion worth aircraft, according to the newspaper.
Sukhoi aircraft accounted for 95% of Rosoborneksport's exports, which were worth $1.5 billion in 2003.
Experts believe Sukhoi can boost its sales further above all exporting aircraft to China, writes Vedomosti.
ROSSIISKAYA GAZETA
Russians are rather indifferent towards problems facing the banking sector.
As few as 30% of Russians have bank accounts, while the majority of them (58%) do not have any savings at all. The bulk of those who do have savings prefer to invest them in real estate.
According to an opinion poll conducted by Rossiiskaya Gazeta, 30% of the respondents believed that recent developments in the banking sector had only minor implications for the national economy. 26% of respondents said the panic had been exaggerated by the media. And only 7% of those surveyed were worried by the banking crisis.
The paper writes that 27% of respondents continue to trust the Savings Bank, 6% prefer dealing with foreign banks, and as few as 2% - with private Russian banks.
