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The latest news and stories from Russia. Stay tuned for updates and breaking news on defense, politics, economy and more.

Digest of the Russian press, November 18

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(RIA Novosti does not bear any responsibility for the articles published in the Russian papers)

Vedomosti

www.vedomosti.ru

- The European Union plans to get more commercial companies involved in implementing state projects. It would have taken the EU at least 30 years and 600 billion euros to build the transport infrastructure in the united Europe if not for cooperation between governments and private entrepreneurs. The latter's involvement, PricewaterhouseCoopers experts say, will cut EU expenses considerably. Russia has impressive prospects for cooperation in this sphere, which is only hampered by a lack of related legislation and mutual trust.

- Russia's AST publishing house, which is produces books by best-selling authors like Boris Akunin and Sergei Lukyanenko, may launch new magazines. AST can acquire 50% of Nexion Publishing, which publishes a popular business magazine and a science edition, by the end of the year.

- Former arms dealers may take over Russia's largest carmaker, AvtoVAZ. The post of chairman of the plant's board of directors could go to an official from Rosoboronexport, the state-owned arms exporter. However, talks on the matter will end no earlier than Monday morning, a source said.

- Inflation over the first nine months of 2005 reached 9.3% and is expected to be above 11% at the end of the year against the planned rate of 7.5%-8.5%. Experts agree the factors responsible for high inflation will persist. Commentary by Vladislav Reznik, chairman of the State Duma's committee on lending organizations and financial markets and senior member of the ruling United Russia party.

Vremya Novostei

www.vremya.ru

- Russian President Vladimir Putin will meet with South Korean President Roh Moo-hyun on the sidelines of the APEC forum in the South Korean city of Busan tomorrow. South Korea's Minister of Foreign Affairs and Trade Ban Ki-moon, answers questions on Russian-Korean cooperation.

- "This incident could paralyze museum exchanges." Mikhail Piotrovsky, director of the Hermitage museum and head of the presidential council on culture, urges international legal protection for the world's best collections.

Izvestia

www.izvestia.ru

- Colonel Valentin Kryzhanovskiy of Ukraine's Security Service: "Russian officers foiled Yushchenko's assassination." Kryzhanovsky accused Ihor Drizhchaniy, head of Ukraine's Security Service, of corruption, extortion, and contraband and fled the country fearing for his life. In fact, an attempt on his life was made immediately after the scandalous news conference. The security services have failed to track him down so far. Media reports suggested he might have been kidnapped. But the newspaper found the missing colonel and interviewed him.

Kommersant

www.kommersant.ru

- The draft 2006 budget envisages an increase in allocations to regions. But the regions are not happy and are urging radical changes in the tax and economic polices.

- John Barry, head of energy giant Shell's Russian division for three years, has been transferred to the concern's branch in the Netherlands as vice-president responsible for unconventional oil sources and technology to raise output. Interview with Barry before he left Moscow.

- Ireland's Celtic Resources Plc has made another attempt to regain control over the Nezhdaninskoye gold deposit in Yakutia, Central Siberia. A Russian court, acting on a suit from a Celtic minority shareholder, banned the shareholders' meeting of the rival Yuzhno-Verkhoyanskaya (YuVGK) mining company, which was due to take place today. A court in Yakutia simultaneously upheld the British company's complaint against YuVGK's activities, which stripped Celtic of control over the deposit.

- America's IDT announced yesterday it would sell Korbina Telecom to a consortium of Russia's private investors for $146 million. The buyers are organizations close to Viktor Vekselberg's Renova investment holding, according to a source.

Nezavisimaya Gazeta

www.ng.ru

- India will not buy Russian nuclear submarines. However, India's military exports from Russia could come to $10 billion by 2007. India's defense minister gives an interview following a meeting with President Putin. He tells about the development bilateral military-technological cooperation and developments on India's borders with Pakistan and China.

- Russia's state statistics service Rosstat has changed its calculation methods to make up to the shortfall for economic growth targets. The World Bank has published a report on global economic development in 2006. The WB said GDP of the developing nations, Russia among them, would grow an average of 5.9% in 2005, i.e. 1.5% less than in 2004.

- The $4.8 billion-Kryvorizhstal deal is in danger over disagreements between Ukraine's national bank and Mittal Steel over the rate of the national currency. The buyer, which had planned to pay 50% of the sum in November, failed to do so.

- The reform of Russia's education system, which has been pursued over the past decade, has not improved, but rather worsened the latter. Commentary by Professor Vadim Avanesov.

Rossiiskaya Gazeta

www.rg.ru

- Russia's federal program for the destruction of chemical weapons focuses on social aspects, i.e. problems facing people living near storage and disposal facilities. Viktor Kholstov, deputy head of the federal industry agency, comments on the program.

- Natural Resources Minister Yury Trutnev tells the paper about a new bill on natural resources and when it will be passed.

- The World Bank issued a report on unemployment in Russia and job creation in the country. One of the authors of the report comments on the situation on Russia's labor market.

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