Post-Soviet Media Law & Policy Newsletter


Issue 15     Benjamin N. Cardozo School of Law     February 27, 1995

“Russian Public Television” Emerges; Temporary Ban on Advertisements Imposed

Russian Public Television

    Vladislav Listyev, the prominent television anchorman, has been elected General Director of Russian Public Television, the newly reorganized Ostankino. The Board of Directors, which named Listyev, also made Aleksandr Yakovlev the Chairman of the Board. This is a case, unlike musical chairs, where the dancers, remain the same, but the institutions change and alter, but the tried and true always find a seat. Listyev has vowed to convert Ostankino—smarting from competition from RTV and NTV—into its former position as “the most powerful, most widely watched and most competitive Russian television channel. Listyev was the host of the popular quiz show “Chas Pik,” among other successes.

    The appointment of Listyev suggests that there is some movement in the “privatization” of Ostankino announced late last year. But as part of the new structure, a “Trustee Council” for Russian Public Television was announced with President Yeltsin as the head and State Duma Speaker Ivan Rybnkin as deputy chair of the Council. It is unclear what obligations (either for the contribution of capital or the absorption of expenses) that the 49% private stockholders would have in the new Ostankino. One story concerning structure claimed that the governmental share would be distributed as follows: Ostankino would enter into an arrangement with Russian Public Television in which the assets of Ostankino would be exchanged for 9% of the new company’s stock. The Television Technical Center and ITAR-TASS would receive 3% each, presumably, also, in exchange for assets with 36% going to the Committee for State Properties.

    Igor Shabdurasulov, who represents the government on the board of directors, and appears to be an active participant in policy-making, claimed that the state’s burden would be reduced by half. Shabdurasulov also said that there would be a transition period from February 1 to April 1 during which the company would “create the artistic and commercial structures needed” for its transformation.

    Apparently one of those transition measures is the temporary abolition of advertising from the First Channel’s programming. Shabdrasulov told Tass on February 21 that starting April 1, the day when RPT is scheduled to replace the state-run Ostankino, commercials will be banned, at least temporarily. The function of the ban is to “determine the proper correlation between the advertising on the one hand and the interests of economic development and moral criteria on the other.” This announcement, somewhat unexpected, can be seen to place a greater financial burden on the investors and the government. It will also benefit NTV and RTV which will be left temporarily with the exclusive right to show commercials. Shabdrasulov said, however, that advertising will probably reemerge on RPT after the reorganization.

Newsprint Woes

    The New York Times, far from Moscow, has begun to sing, for itself, the same song of rising costs of newsprint and shortages of supply that has long been sung in Moscow. According to Derk Sauer, publisher of The Moscow Times, a ton of newsprint now costs about $540 per ton, about three times the rate just two or three years ago. The Moscow Times reported that newsprint shortages meant that Komsomolskaya Pravda curtailed Vladivostok distribution for three weeks in December. A bill that passed the Duma in the summer of 1994 would exempt publishers from customs duties on newsprint obtained abroad, but the bill still has not been signed into law by President Yeltsin.  Ironically, Russian publishers are buying newsprint and even publishing abroad for cost reasons, at the same time that Russian newsprint is being increasingly exported to European markets. According to government statistics, 597,000 tons of newsprint were exported in 1994 compared with 482,000 in 1993 and 148,000 in 1992. Production is said to have fallen from 3.6 million tons in 1992 to 2.2 tons in 1994.

Information Tribunal

    On February 13, Anatolii Vengerov, the Chair of the President’s Judicial Chamber on Information Disputes, announced that the Chamber would hold hearings to determine whether the government press services should be officially criticized for disseminating misinformation in relationship to the Chechen conflict. Vengerov stated, at a press conference, that he rejected the contention, earlier in the disturbance over Chechnya, that Russian journalists had been bought with Chechen money. Vengerov stated that the Chamber would hold a special inquiry on the credibility of the official information sources.

Yeltsin’s State of the Union

    President Yeltsin, in his address to a joint session of the Federal Assembly on February 17, concluded his speech with a paean to the role of the Russian mass media. “In the past few years, the press has become an influential mechanism for the protection of democracy. This is no honorary title, this is a heavy burden.” It goes without saying, he said, that “Russian authorities are still learning to operate under the conditions of free expression of opinions. Sometimes they lack patience.” On the other hand, “One cannot agree with some publications’ attempts to turn mass media freedom into freedom from responsibilities before society.”

Advertising Legislation

    On January 25, the United States Foreign Commercial Service issued a cable about the draft law banning tobacco and alcohol advertising and limiting commercial breaks in certain television programs (movies, educational and religious programs, children’s programs and live broadcasts). According to the USFCS, “the tough bill has been condemned by advertising agencies, which argue that if a product is legal to manufacture, it should be legal to advertise. The advertising bill passed its first reading in the Duma on December 14 by a vote of 233–37, eight votes (according to the FCS) of the requisite minimum.