ST. PETERSBURG TV

I.  Industrial concern to finance St. Petersburg TV.

        The Petersburg Television and Radio Company was formed last summer to broadcast in St. Petersburg and Leningrad Oblast on the basis of the former Peterburg-Channel 5.  (Channel 5 was once a national network, but most of it was converted into the new Kultura network.)  The city and oblast authorities took a 51 percent share of the company and three banks took the rest of the stock—Promstroibank (17.5%), BaltONEKSIMbank (17.5%), and Inkombank (14%).  The banks were supposed to supply must of the broadcaster’s working capital.  Following the August 1998 economic collapse, however, the banks are no longer interested in the broadcaster, and city authorities began seeking other sources of financing.  Kommersant Daily (25 February) claimed that the broadcasters new financiers will be the financial-industrial group “Industrial Machines.” That group was formed last summer by uniting the stocks of more than 100 Russian industrial concerns.  It is seeking closer contacts with the St. Petersburg administration, where some of its factories are located.  (Kommersant Daily, 25 February).

EWI Russian Regional Report, March 4, 1999

II.  St Petersburg TV seeks stakeholders.

        The attempts by the poverty-stricken Television and Radio Company [TRK] Petersburg to find a financial partner and stakeholders to replace the Inkombank and St Petersburg’s Promstroybank, who have decided to pull out, have apparently proved to be successful.  The company has promised to name the “lucky person” in a day or two.  According to unconfirmed reports, it is Moscow’s PFG [Industrial-Financial Group] Industrial Machines.
        TRK Petersburg was formed in the summer of 1998 as a result of the reorganization of [State TV and Radio Company St Petersburg] . . . .
        After the August crisis, most commercial structures among the TRK’s stakeholders lost interest in it.  The Inkombank gave up the Petersburg stock in September and the Promstroybank did so in December.  The BaltONEKSIMbank, with the consent of the remaining stakeholders, has deferred the payment of its contribution to the TRK’ s authorized capital.  Petersburg was left without money and staff began to leave the company.  Of 2,500 workers, only 400 are left and they are receiving their pay with a three-month delay.  The channel is broadcasting just nine hours on weekdays and 13 hours at weekends.  The airwaves are being filled mainly with serials and foreign films of average quality . . . .
        Boris Petrov has now submitted his resignation from the post of company general manager and it has been announced that a long-term investor has been found for the TRK.  According to available information, the role of this investor is being filled by Moscow’s Industrial-Financial Group Industrial Machines (it was established last summer by pooling the stakes of over 100 Russian industrial enterprises . . . .).
        According to the information received by ‘Kommersant,’ Industrial Machines have been asked to buy the blocks of company shares which belong to Inkombank and Promstroybank, that is 31.5 per cent of Petersburg’s authorized capital.  Neither side wanted to issue any official comment . . . .
        There will be a meeting of Petersburg’s [current] stakeholders [on 25th February], at which Boris Petrov’s resignation will be accepted.  His duties will most likely be performed temporarily by the company’s first deputy general manager and manager of Petersburg Radio, Irina Prudnikova.  It is possible that the backing of the Industrial Machines will also be announced officially at the meeting.

‘Kommersant,’ Moscow, February 25, 1999

Last Updated: 11/20/99

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