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NEWS ON VGTRK

I.  VGTRK and Novosibirsk TV sign agreement.

        An agreement on the Novosibirsk city television and radio broadcasting company [Siberia] joining the single production and technological complex [VGTRK] was signed in Novosibirsk [on 10th February].  Our correspondent has the details.
[Correspondent]
        The chairman of the All-Russian State Television and Radio Broadcasting Company, Mikhail Shvydkoy, and Vitaliy Mukha, the head of the administration of Novosibirsk Region, have agreed that the interests of the state are above everything else as far as the state television company and the regional authorities are concerned.  The setting up of a single information area is an attempt to revive state television and radio broadcasting.  Only 8 per cent of 1,200 broadcasting companies belong to the state now.
[Shvydkoy]
        The state and its taxpayers have the right to have television and radio broadcasting which is free from the interests of various financial or industrial groups.  We have drawn up an anticrisis programme for developing state television broadcasting in Russia.  It will cover two years, 1999 and 2000.  It is being currently examined and analysed in the government.

Russia TV, Moscow, February 10, 1999

II.  Krasnoyarsk governor, VGTRK settle TV dispute.

        A line was drawn [on 9th February] under the dispute which arose recently between [Krasnoyarsk Territory] governor [Aleksandr] Lebed and the head of the All-Russia State Television and Radio Company, [Mikhail] Shvydkoy.  The conflict started after Lebed decided to change the head of local television without agreeing it with Moscow.
        An agreement was signed in Krasnoyarsk [on 9th] on Krasnoyarsk state television. . . .  It noted in particular that [top] personnel changes [at the regional TV company] are subject to joint decisions. . . .
[Correspondent]
        The chairman of the All-Russia State Television and Radio Company, Mikhail Shvydkoy, presented the governor of Krasnoyarsk, Aleksandr Lebed, with a collection of Russian songs from Krasnoyarsk Territory from his personal library.  Aleksandr Lebed decided on the spot to republish it, since the book was printed a long time ago.  This demonstrated a will to find agreement.
        At the same time all the conflicts which had arisen around Krasnoyarsk Television and Radio Company were connected with determining who owns it and who is the chairman of the company.  Lebed and Shvydkoy [on 9th] emphasized that all that had happened was unnecessary confusion resulting from a misunderstanding.  At the same time the talks were difficult, nerve-wrecking at times, but overall constructive.  The long-awaited agreement was signed as a result.
[Lebed]
        We proceeded from one thing:  authority in Russia is either strong or non-existent.  If it is strong, Russia will exist and be strong.  This agreement is a reinforcement of authority in Russia.
[Correspondent]
        The Krasnoyarsk administration agreed that the television company is a subsidiary of the All-Russian State Television and Radio Company.  In his turn, Shvydkoy conceded that Krasnoyarsk Territory has a stake in the regional company.

Russia TV, Moscow, February 9, 1999

III.  Four new VGTRK subsidiary companies set up.

        Nikolay Bordyuzha, head of the Russian president’s administration and secretary of the Security Council, has had a meeting with Mikhail Shvydkoy, chairman of VGTRK [the All-Russian Television and Radio Company].
        The conversation focused on the reorganization of the television and radio company.   Specifically, four new subsidiary companies have been set up within the framework of the unified VGTRK production and technical complex.  The Russia and Kultura (Culture) TV channels, Radio Russia and the Vesti news programme are to become independent unitary state enterprises.  Lev Koshlyakov has been appointed the new deputy chairman of VGTRK.  He used to be senior adviser to the company chairman.  He will head Vesti with the rank of managing director.
        The results of the Kultura channel’s operations will be summed up on [29th December] at a meeting of the Culture and Art Council under the Russian president.

Radio Russia, Moscow, December 29, 1998

IV.  Difficulties of VGTRK centralization.

        VGTRK [All-Russia State Television and Radio Company] Chairman Mikhail Shvydkoy talked to ‘Segodnya’ correspondent Aleksandr Boreyko.
[Shvydkoy]
        Unlike NTV [commercial channel] or ORT [Russian Public TV], VGTRK includes more than just the Kultura [Culture] channel, the Russia channel and Radio Rossii.  It includes around 90 communications enterprises (regional television transmitter centres).  We maintain several technical centres in Moscow alone:  on Yamskoye Pole, on Shabolovka, and the building for the RTR-Signal [Russian Radio and Television] joint-stock company, which was supposed to deal with new technologies in the TV sphere, has not been completed. . . .
        State television used to be set the task of reaching every Soviet person.  And we have inherited 20,000 km of radio relay lines.  We cannot abandon them, but no sensible person would invest in this.  Everything must be modernized, and then perhaps investment will come in . . . .
        One of the main problems is to translate the company’s present situation into a comprehensible, economically transparent situation and to clear the accumulated debts.  We want to centralize all the taxes.  We will pay federal taxes centrally in Moscow for the whole complex. . . .
        I think there will be integrated funding as of 1st January.  But it is important to create a really effective economic system.  We want to create a common bank of TV products, which will make the existence of regional companies far cheaper.
Regions stalling process of centralization
[Boreyko]
        The Ministry of State Property and local registration offices have found that the present procedure for forming the holding company is not in line with legislation.
[Shvydkoy]
        We have reached agreement with the Ministry of State Property about everything, and they realize that all this is legal. . . .  The problem lies in a certain “regionalism” on the part of local leaders and political elites.  They are afraid of losing control over television. . . .  The power of the regional elites is enormous today.  The imbalance among the authorities is turning into a war between channels, both radio and TV. . . .
        Sometimes everything hinges on property.  The regional authorities have provided money to construct or equip a complex.  And they want to retain this property for one simple reason—“if you go bankrupt we will lose our share.”  All these things are regulated.  And I see no particular problem here.  As of 4th December, 26 [regional] companies (VRGTRK) had already been registered.  In some cases there has been a refusal from regional registration offices—the governors are creating a delay.

‘Segodnya,’ Moscow, December 17, 1998

V.  VGTRK slams supervisory councils.

        VGTRK First Deputy Chairman Mikhail Lesin has criticized Communists over their attempts to reimpose parliament’s control on the channel and its editorial policy.  In an interview with the Russian newspaper ‘Kommersant’ on 5th December, Lesin accused the Duma of trying to seize influence over broadcasting ahead of the parliamentary and presidential elections in 1999-2000.  He denied he had been involved in the embezzlement of 182m dollars at VGTRK (All-Russian State Television and Radio Broadcasting Company) and dismissed as illegal the plan of the Communist-dominated Duma to use supervisory councils for denouncing journalists who are not to their taste.  The following are excerpts from the ‘Kommersant’ report; subheadings added editorially:
        Would you watch a channel which does not screen entertainment programmes or films but only public and political broadcasts and live broadcasts of Duma, government and Federation Council sessions?  VGTRK [All-Russian State Television and Radio Broadcasting Company] may become just such a channel.  Everything depends on a decision to be taken by [Prime Minister] Yevgeniy Primakov and the Duma.  VGTRK First Deputy Chairman Mikhail Lesin tells Viktoriya Arutyunova why this may happen.
[Arutyunova]
        When the VGTRK chairman was summoned to the Duma last time, was this to discuss financial irregularities at the company?
Incidents of embezzlement at VGTRK
[Lesin]
        A great many reports and documents exist on the embezzlement of treasury and advertising money at VGTRK.  I have seen one report which, it is rumoured, has been passed on to the government chairman.  It states that I have stolen in the region of 182m dollars.  The report is unsigned and I do not know who prepared it.
[Q]
        Have you already been questioned in connection with this report?
[A]
        It is completely unacceptable to ask questions here.  We “have an opinion.”  My approach is very simple:  If you have other specialists whom you trust—appoint them.  We have received a directive from the government—to set up a supervisory council at VGTRK in the prescribed manner.  That is a nice phrase—“in the prescribed manner.”  Show me this procedure! Deputies write:  We consider it essential to strengthen management at ORT [Russian Public Television] and VGTRK.  In what way?  Financially, by sending in the commissars?  “We do not like this presenter.”  Well, we do not like this deputy.  And?
VGTRK’s legal impasse
[Q]
        What is VGTRK’s financial status?
[A]
        The 1998 budget provided finance for five hours of broadcasting a day at RTR [Russian Television and Radio], for five hours at Radio Rossii [Russia’s Radio] and 4.8 hours at the Kultura [Culture] TV channel.
        The company has got into a difficult legal position.  The VGTRK budget states that the company is a state unitary enterprise which has been established to make a profit.  It is, of course, strange that the budget finances a commercial albeit state-owned enterprise.  I think several deputies will raise this problem during the debate of the 1999 budget.
        But how can we get out of this legislative impasse?  The state might only pay us for the programmes it orders:  In other words, we pay you for making news broadcasts.  But if you want to make an entertainment programme, pay for it yourselves.
[Q]
        But all the disputes about VGTRK are connected specifically with the Duma’s idea that RTR should only be a public and political channel.
[A]
        The situation is the opposite of what it used to be:  When the Communists were in power, we would say behind the scenes that this or that programme cannot be screened.  But when the reformers came to power, the Communists began to say that this or that programme cannot be screened. . . .
Communist plans for supervisory councils criticized
[Q]
        What success has the VGTRK supervisory council had?
[A]
        The latest subject discussed by the council was whether the supervisory council will have the right to summon any journalist and denounce him for immoral behaviour on the air.  My standpoint is that this is illegal.  Journalists cannot be held responsible in this way.  At which point Communist Party of the Russian Federation Deputy Ivanov asked the question:  Why then is a supervisory council needed at all?  That is, all problems are still at the level of gaining influence.
        I am not against the supervisory council.  But it should perform a supervisory function. . . .  The state is for some reason not attempting to set up a supervisory council at [private newspaper] ‘Segodnya’.  It is all a question of influence.  But if the Communists want to have influence they should set up their own mass media organ, put money into it and then influence people.
Seizure of VGTRK assets feared
[Q]
        Is it possible that property will begin to be seized at VGTRK, as is currently happening at ORT?
[A]
        What is happening at ORT is what has already happened once at VGTRK:  The first property seizure occurred at VGTRK one and a half years ago.  It also started with the seizure of vehicles.  Our debt liabilities are actually a little higher than ORT’s.  These are mainly unpaid taxes.  And many penalties were added for 1996.  If these problems are tackled in a crude manner, it is very easy to destroy everything.  The treasury, for example, owes us money for 1997 but this debt to VGTRK has for some reason been “written off.”  But VGTRK’ s debt to the treasury has not.

‘Kommersant,’ Moscow, December 5, 1998

 

Last Updated: 11/20/99

 

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