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VGTRK

I.  Signal from top to discredit Russian prosecutor on tv denied.

        The First Deputy Chief of the Russian president’s administration Oleg Sysuyev has refuted charges that it was, allegedly, he who cued the RTR television and radio channel to air footage discrediting General Prosecutor Yuri Skuratov.  "No one in the presidential administration has given or could give instructions to show on RTR the casette containing compromising material on the Prosecutor General,” Sysuyev said in an interview with Interfax.  According to him, “the decision was adopted by the management of the All-Russia State Television and Radio Company VGTRK, and the reasons for the decisions were made quite clear by VGTRK leader Mikhail Shvydkoi himself.”  “I, personally, abhor the show of this super-frank footage that should not have been televised,” Sysuyev said.  “But as a person elected many times by the people, I have learned well that state officials of such rank have no personal lives.”

Interfax news agency, Moscow, March 19, 1999

II.  Russian state tv company bosses likely to be prosecuted.

        The chief executives of the All-Russia State Television and Radio Company (VGTRK) are likely to be prosecuted soon.  A division of the Prosecutor General’s Office has received orders to check some of VGTRK’s financial operations, law enforcement sources said on Thursday.  The sources said the possible reason for the orders was a video shown on the VGTRK television channel late on Wednesday that jeopardized Prosecutor General Yuri Skuratov.  The prosecution service also identified authors of reports that appeared on the Internet early this year and were qualified as interferences into Skuratov’s private life, the sources said.  They said chances that these people will be prosecuted has risen considerably after VGTRK showed the video.

Interfax news agency, Moscow, March 18, 1999

III.  VGTRK gets enough funds to cover wage bill.

        The VGTRK [All-Russia State TV and Radio Company] has granted budget allocations for 1999 along with all of the other state structures in the country.  The unified technological-production complex set up on the basis of VGTRK, the Media-Holding Company, is expected to live on R1,715,638,600 from the state.  The portion earmarked for a subsidiary of the holding company—its news base, RIA Vesti (formerly, RIA Novosti and APN)—is R22,682,700.  Despite this obviously inadequate budget funding, the agency not only supplies all of the holding company’s television and radio broadcasting companies with news, but has also launched its own programme, “Official Newsweek,” on the RTR channel [Russian Radio and TV].  The presenter is RIA Vesti CEO [chief executive officer] Aleksey Volin, the first deputy chairman of VGTRK.  He was interviewed by ‘Izvestiya’ correspondent Anton Charkin.
[Charkin]        Are you satisfied with your authorized budget?
[Volin]        Authorized budgets have one characteristic feature:  They never satisfy anyone.  I am fully aware, however, that they could not be any larger.  They will cover the meagre wages of our personnel.  That is all.  I know that people cannot produce a competitive product for R1,000 a month.  That is why I believe that the agency should make its own money by selling subscriptions and information services and by leasing some of its facilities.  I am completely satisfied with this arrangement.
[Charkin]        There was also some talk about [Prime Minister Yevgeniy] Primakov’s affection for the agency.
[Volin]        He has never spoken about this publicly, but I think he has some feelings of nostalgia.  In the 1980s, when the agency was still called APN [Press and News Agency], Primakov was one of the regular contributing authors.  I even edited several of his articles that were published abroad.
[Charkin]        The prime minister’s name comes up frequently in discussions of attempts to censor the state media.
[Volin]        During the six months that I have headed the agency, I have not heard a single complaint about our reports from the White House, the Duma, or the Kremlin . . . .
[Charkin]        The programmes “Parliament News Hour” and “Federation” are shown on RTR.
[Volin]        “Parliament News Hour” is a parliamentary TV show.
        “Federation” is sponsored by the Federation Council . . . .  The VGTRK board decided it needed a programme to cover the week’s events in the country with the direct participation of government agencies . . . .
[Charkin] Nevertheless, the show looks like the VGTRK board’s response to Prime Minister Primakov’s criticism of state television for ignoring the “positive activities of the government.”
[Volin]        The prime minister was also speaking as a viewer.  The programme’s 15-per cent share of the Moscow audience proves that the public is interested in what the government is doing.  It is not, I repeat, a mere record of the proceedings of official meetings.  We want to show the thinking and planning behind government actions.

‘Izvestiya’ web site, Moscow, February 26, 1999

IV.  VGTRK’s Anti-Crisis Plan.

        Last week, VGTRK sent the presidential administration its plan of anti-crisis measures for 1999-2000.  Teleskop was able to obtain the text of the anti-crisis program as well as a possible presidential decree on this topic.
        The main part of VGTRK’s proposal focuses on granting the company several loans, as well as tax exemptions and other benefits; voiding the tax arrears of the unified production-technical complex (EPTK) accrued through December 31 1998; establishing a federal fund for support of state electronic mass media, etc.
        The presidential administration has confirmed that documents concerning the extrication of VGTRK from the crisis and a draft of the presidential decree have been received.
        The presidential department for public relations and culture will be reviewing VGTRK’s proposal.  It is not yet known how long it will take for them to prepare their response.
        Duma hearings on the fate of VGTRK are planned for April 6.  Many deputies are dissatisfied with the process of forming a holding company for state electronic mass media.  In their opinion, in fulfilling presidential decree No.  511, the system of state mass media did not stop, but rather accelerated its decline.
        The Duma Committee on Information Policy and Communications is handling preparations for the April hearing.
        Following are excerpts from the text of the plan of anti-crisis measures proposed by VGTRK (EPTK):
Evaluation of the situation, causes and possible consequences of the crisis
        The preconditions for the systemic crisis in the industry were set as early as the beginning of the 1990s, when after the collapse of Gosteleradio, the gradual reduction of the role of state management in the sphere of television and radio broadcasting began.  A great number of different types of state organizations and institutions, all independent from one another, were created from the fragments of the Gosteleradio system.  The unified management system was destroyed, and local and departmental interests began to take prevalence over those of the state.  The budget was splintered into various smaller fragments, and control over its purposefulness and the validity of its use were weakened.
        Despite the fact that television and radio broadcasting was long ago transformed de-facto into an independent economic sector comparable in size to the fuel and energy complex and exclusive in its sociopolitical influence, the function of state management of the sector remained completely unfulfilled.  This created favorable conditions for the development of negative economic processes, especially in the regions, and permitted an enormous number of commercial organizations to enrich themselves using state property.  Chronic under-financing from the federal budget for both state television and radio companies and communications enterprises distributing state television and radio programs aggravated the situation.
        In addition, by virtue of its historical position, the unified technological chain of production and distribution of television and radio programs was artificially broken.  Arterial radio-relay lines and a portion of the tributaries were privatized via the creation of Rostelekom, Elektrosvyaz, and Svyazinvest, and the most profitable and effectively functioning portion of the federal communications network was transferred to those enterprises.  For the most part, state communications enterprises retained only aging technical equipment (for which they had to make discounted rental payments) and the social infrastructure, both of which weighed heavily on the operating budget of the enterprises.
        By spring of 1998, the situation in the industry had reached an almost absurd position.  The absence of budget financing for state tele-radio companies and the companies’ resulting inability to settle their debts to the state enterprises distributing their signal led to demands to cut broadcasting of federal state television programs to four hours per day.
        In an attempt to break the crisis situation in the industry, the President (Decree No.  511 “On the improvement of the work of state electronic mass media,” May 8, 1998) and the Government (Resolution No.  800 “On the formation of a unified production-technological complex of state electronic mass media,” July 27, 1998) decided to create a state electronic mass media holding on the base of VGTRK that would include both broadcasting organizations and enterprises distributing state television and radio programs.  At present, a large portion of the reorganization procedures has been completed.  However, due to problems accumulated even before the reorganization began and the financial crisis that has developed in the country, the question of creating an effectively functioning structure was transformed into a problem of the elementary survival of the system of state tele-radio broadcasting in Russia.
        From 1996-1998, the amount of budget financing of expenditures in the industry stipulated by legislation was only 30-40% fulfilled on average, and this was the case even with the consistent year-to-year reduction of the overall resources (even in ruble terms) allocated to television and radio broadcasting.  During this time, the crisis of non-payments in the industry actively developed.  As of January 1, 1999, the total indebtedness of communications enterprises alone was 1,084.4 million rubles, and most alarming this sum includes payroll debts to the staff of communications enterprises which amount to 171.2 million rubles as of February 1, 1999.  Of the payroll debts, 89.3 million rubles are owed as pure wage arrears; 32.3 million are owed to non-budget funds; 55 million are owed in penalties and fines for late payment into the non-budget funds, and 15 million are owed for loans drawn to pay wages.  Due to non-payment of wages in the summer of 1998, pre-strike social tension arose in the workers’ collectives, and strikes were held in several regions.  Despite the fact that the situation has stabilized, at many enterprises, due to account seizure and the burden of outstanding debts, salaries continue to be paid only after court orders have been issued.
        The debts of communications enterprises to energy providing organizations reached 336.7 million rubles, and the brunt of this problem is that in the 1999 budget, such resources are practically unforeseen.  Many enterprises have been warned by energy suppliers that their electricity will be shut off and set limits on the amount they can use.  Penalties and fines are accumulating which are also not covered by the budget.
        Debts to budgets at all levels comprise 319.5 million rubles.  Announcements are made weekly that the tax services and legal executives are seizing and auctioning property.
        Of course, all this time enterprises in the industry were not only waiting for aid from the state, but were actively developing commercial activity.  Frankly speaking, the industry survived only thanks to commercial revenues.  However, the events of August 1998 brought a colossal collapse of the advertising market (for example, VGTRK’s monthly revenues in the pre-August period were $4-5 million, but now do not exceed $300-500,000).  Considering all of the above, it’s necessary to take into account that television and radio broadcasting have a large hard-currency component in the cost of their production and distribution of programs (i.e., imported technology, parts and equipment, including simple videocassettes, acquisition of television and radio productions, films, etc.).  In addition, the industry is extremely energy-intensive, and electricity costs, as is well known, are constantly rising.  The situation sometimes becomes paradoxical:  the cost of the electricity used for a transmitter exceeds the fixed state tariff for the service provided by the transmitter.
        If decisive extraordinary measures are not undertaken, it’s not difficult to predict the further unfolding of events.  The crisis “critical mass” has already accumulated, and in the near future the process will be moving to the “unmanageable” stage.  By the end of 1999, daily broadcasting by federal mass media will drop to 2-3 hours, audience reach will decrease from 98% to 40-50%, time-zone broadcasting (repeat broadcasts in different time zones) will be cut, and many tele-radio companies and communications enterprises will go bankrupt and their property will be seized.  The activity of the industry seems completely paralyzed, and processes of forced bankruptcy and privatization are underway.  The process is becoming irreversible; the state is completely losing its position on the electronic mass media market (along with the absence of any serious state print media on the national level), and the function of social-ideological dialogue with society is moving into the hands of private structures that are deciding the fate of the Russian state at the end of 1999 and in mid-2000.
Main tasks of the anti-crisis program, measures for overcoming the crisis
        The main tasks of the proposed program are:

  • To stop the development of crisis phenomena in the sector, and to move all the processes in a manageable direction
  • To restructure assets with the goal of avoiding loss-making and ineffective production cycles and blocks of social infrastructure
  • To consolidate financial inflows, take inventory of existing revenue sources, and identify new potential sources of financing (on the federal and regional levels)
  • To optimize expenses and reduce non-production (overhead) costs
  • To achieve real manageability of the industry with the goal of securing a regime of legality and observance of citizens’ rights during the election campaigns of 1999-2000
  • To fulfil the objectives of the anti-crisis program, it’s necessary to carefully set up cooperation with state power.  This must be implemented in two main ways:  in laying out and agreeing on the tasks and in garnering state support of enterprises in the unified production-technical complex (EPTK) of state electronic mass media.
  • To implement cooperation in the sphere of laying out and agreeing on the primary tasks, first and foremost those of a political and ideological character, state powers should create a precise and effective mechanism for direct and two-way cooperation with VGTRK (EPTK), which will be able to actively develop model and actual political tasks.

        The function of state support targets three main categories:
        1) Strategic political support, including in the regions, through both the levers of political influence and the executive bodies subordinate to the federal government
        2) Support on a legislative and normative level, and the publication of the corresponding decrees and resolutions
        It’s important to note that at the time the decision was made to create EPTK (May 1998), macroeconomic indicators and the dynamics of the advertising market allowed confident confirmation of the possibility of reduction of state expenditures on the industry in the next year to year-and-a-half and of the industry’s perspective move to self-sufficiency.  However, the events of August 1998 changed the situation at its roots; the advertising market collapsed, and the cost of television and radio production rose sharply (inasmuch as, as was already noted, almost the entire production-technical base and most expenditure items are imported).  In the situation that has arisen, the construction of EPTK is impossible without state economic support.  The state must decide carefully:  either provide active support to the industry, or decline the idea of creation of a capable state instrument for a dialogue with society.
        3) Economic support.  For the industry to survive, for reorganization, and to achieve the stated goal, it’s necessary to implement the following concrete measures.  (It’s important to note that the proposed measures do not require serious financial expenditures from the state budget but are aimed primarily at the stabilization of the current situation and creation of normal working conditions in the industry for the coming few years with the goal of the industry’s independent move to self-sufficiency.):
        Since by decision of the president and the government reorganization of the cultural institutions into a unified state enterprise is underway, the tax base of all enterprises will be fundamentally altered.  Tax payments are rising sharply, mostly property taxes, which are used primarily for distribution of state television and radio programs.  So, enterprises must pay the state for distribution of state programs, which is an unsound situation.  The majority of enterprises already have large debts to budgets of various levels, which arose due to under-financing from the state budget and the fact that the cost of the transmission services they provide to the state is higher than the state-fixed payment they receive for these services.  So that the state does not end up playing the role of the “strangler” of its own state enterprises and finally acts as an effective owner and manager, it is necessary to grant the EPTK enterprises the status of budget organizations and write off their debts to the budget accrued up until December 31 1998.  Here, it is necessary to take into account that in many regions, property seizures have become more common on the part of the tax authorities, which often are used by local administrations as instruments to put political pressure on regional television and radio broadcasting.
        Despite the fact that the majority of state tele-radio companies have already been functioning for quite a long time, the conditions of ownership, which changed sharply after August 1998, are leaving their mark on these stations’ activity.  Not having the opportunity to take advantage of the benefits of the two-year tax exemption under the Law “On Mass Media” as newly created commercial tele-radio companies, state broadcasters find themselves on an uneven playing field.  To resolve this problem, it’s necessary to grant tax credits to the EPTK enterprises for the next two years and a special investment tax credit for five years.
        Since in the process of reorganization in compliance with the decisions of the president and the government EPTK enterprises are changing their status, it is necessary to carry out re-registration of all licenses and permissions that they had.  In compliance with the procedure set forth by the bodies responsible for the issuance of such licenses and permissions, such re-registration takes place on a paid basis.  However, such a procedure incurs additional expense to the federal budget, and the revenues received by the authorized bodies from re-registration are used, as a rule, to support themselves and their departments.  In addition, the absence of financing for these objectives leads to a delay in the completion of legal registration of EPTK enterprises, and their activity becomes illegal de-facto.  We consider it necessary to establish that re-registration and issuing of licenses and permissions to EPTK enterprises take place free-of-charge.
        Many EPTK enterprises are practically “city-creating” enterprises.  They are simply not in a position to support the enormous number of social infrastructure buildings on their balances, from little settlements set up like cities to clubs and medical-convalescent centers, which leads to their dilapidation and collapse and increases social unrest.  It’s necessary to speed up the process of transferring these buildings to local self-management bodies.
        As has already been stated, the state-fixed prices for transmission services do not allow EPTK enterprises to cover even their production costs, especially for electricity and fuel.  At the same time, all broadcasters that have the status of “national” channels, including ORTV and the fully commercial company NTV, are allowed to pay transmission companies at state prices.  To prevent the activity of EPTK enterprises from being inherently unprofitable, it’s necessary to return to the granting of 50% benefits on payment of fuel and electrical energy (this system existed until January 1, 1998).
        Previously, all communications enterprises, in accordance with the State Communications Commission Resolution “On the procedure for granting electric communication service on the general use network in the Russian Federation,” had the right to free-of-charge electric communication services.  Despite the fact that all the enterprises that entered the EPTK still retain responsibilities of state importance, including state security tasks, broadcasting of state programs, fulfillment of mobilization tasks, organization of notification in emergency situations, and provision of communications in a particular period (for example “Uzor” and “Volna”), the State Communications Commission, after these enterprises are no longer subordinate to it, intends to introduce a paid procedure for granting of communications services.  We consider it necessary to preserve the previous procedure of free-of-charge provision of communications services.
        Article 426 of the Civil Code of the Russian Federation provides a definition of public contract, which means a contract concluded by an organization and establishing its responsibility in sale of a product, fulfillment of work, or provision of services, and that such an organization, due to its type of activity, must perform the service for anyone who asks.  This includes services of state television and radio broadcasting provided to the populace by EPTK enterprises.  It has been proposed to the EPTK enterprises providing such services that they conclude the appropriate public contracts, but subject the prices for these services to state regulation.  It’s important to note that subscription payment is not a variety of tax or tariff required by law.  It is payment by the populace actually using the service, and the decision to levy payment is in the competence of the organization providing said public services.
        With the goal of consolidating financial resources and seeking out new revenue sources, it is proposed to create a non-commercial organization—a federal fund for support of state electronic mass media, financed by both budget allotments and non-budget revenues.  It is proposed that this would include instructing the appropriate executive organs to transfer to the fund equipment and other property, previously considered federal property for legal reasons (confiscated as contraband, etc.), that could be used in the process of production and distribution of television and radio programs.
        In addition, it is necessary for EPTK enterprises to have concrete financial support for stabilization of the economic situation and dealing with the crisis of non-payments in the form of a credit in the amount of 500 million rubles guaranteed by one of the state companies.  It’s also necessary for the state to provide guarantees for attraction of external loans in the amount of $290 million to update the industry’s material-technical base and acquire imported television and radio programs.
        It’s necessary to return once more to the question of inclusion of the state enterprise Kosmicheskaya Svayz (GPKS) in the EPTK, which was postponed and as such not resolved by the government in July of 1998.  Today, the entire technological chain of distribution of television and radio programs looks as follows:  distribution in the regions and the placement of programs on the air is performed by state EPTK enterprises, but provision of signal from the center to the regions is either handled by joint stock companies (Rostelekom, Electrosvyaz), or by GPKS, an enterprise under the auspices of the State Communications Commission.  Taking into account that the Commission, aside from GPKS, does not have a single subordinate state enterprise (all the others were privatized), to preserve state interests in the sphere of distribution of television and radio programs it is necessary to implement the rational transfer of GPKS into the EPTK.  In addition, it is worth taking into account that GPKS is a profitable enterprise with good prerequisites for organization of investment projects, and its participation in EPTK could favorably influence the overall financial position of the industry.
Predicted results and conclusions
        In this way, the undertaking of the above-described measures will allow stabilization of the industry, will prevent its collapse, and will allow the state to act as a leader in the market of influence over social consciousness.
 Implementation of economic measures together with political support will allow the industry to reach the break-even point in the next 2-3 years.  The necessary structuring will be achieved, allowing on one hand the security of state control, and on the other the highest economic efficiency.
        An additional advantage of the EPTK, in comparison with analogous commercial “informational holdings” built by various financial groups, will be the presence of its own distribution network that will without doubt sharply raise the efficiency of its activity and provide the state with a total instrumentation of sociopolitical influence on a qualitatively new level, with which none of the commercial structures will be able to compete.
        In addition, expenditures on functioning of state mass media will be cut, and the efficiency of investment will and, most importantly, the returns from activity in the “ideological sector” will be raised.  Most importantly, double expenses will be eliminated:  on distribution of programs by local TV companies and VGTRK, on maintenance of field offices and the processing of information from VGTRK and RIA Vesti, on the production of programs, and use of the material-technical base and communications.  The revenues received by subsidiaries and affiliates of VGTRK will remain within the industry, which will allow a rise in the target use.  The goal of modernization of the distribution network will become realizable.
Presidential Decree (Draft)
On primary measures for support of the EPTK enterprises of state electronic mass media

        In the interests of stabilizing the economic position of EPTK enterprises, guaranteeing the constitutional rights of citizens to receipt of full and objective information, and developing national, interregional, and international informational exchange, I resolve:
        1.  To establish that EPTK enterprises:  Federal state enterprise VGTRK; its affiliates and subsidiaries shown in appendices No.  1-4 to Government Resolution No.844 of July 27, 1998; and also the enterprises included in the EPTK in accordance with point 10 of this Decree, enjoy full tax and other benefits, including benefits on customs payments and payments into state non-budget funds, set for budget organizations created by the state organs of the Russian Federation for the performance of managerial and social-cultural functions.
        2.  Due to current economic circumstances, to annul the federal tax and duty debts of EPTK enterprises accrued through December 31, 1998.
        That the government of the Russian Federation shall compile a list of said debts in the required form.
        That the tax and customs organs of the Russian Federation, tax police organs, and state non-budget fund organs halt recovery of debts from EPTK enterprises for the given period and release their arrested property.
        3.  To grant to EPTK enterprises, under guarantee of the government of the Russian Federation, the following:
        A tax credit on all forms of taxes, customs duties, and fees and other required payments paid to the budget of the Russian Federation and state non-budget funds, in the amount of 1.8 billion rubles, within the active period from January 1 through December 31, 1999, with no accrual of interest on the amount of the debt.
        A tax credit [covering the same payments] in the amount of 2.9 billion rubles for the period from January 1 through December 31, 2000 with no accrual of interest on the amount of the debt.
        An investment tax credit on profit tax paid into the budget of the Russian Federation, in the amount of 4 billion rubles for the period from January 1, 1999 through December 31, 2004, with interest calculated on the debt at the rate of one half of the refinancing rate of the Central Bank of the Russian Federation.
        That the Finance Ministry, the Customs Committee, and the organs of the corresponding state non-budget funds shall sign the appropriate agreements with VGTRK within one month.
        To recommend to state organs of the various administrative-geographical subjects of the Russian Federation and to organs of local management to grant EPTK enterprises the applicable tax credits on taxes and duties paid to the budgets at the applicable levels.
        To establish that the sums of the tax credits granted to EPTK enterprises by organs at local and other levels of power can be taken into account in the settling of accounts between budgets at various levels.
        That the Finance Ministry, upon granting of said tax credits to EPTK enterprises by local managerial bodies and administrative bodies at other levels, grant said bodies equivalent tax credits in their payments to the federal budget.
        4.  Establish that processing, reprocessing, and prolongation of licenses and permissions necessary for EPTK enterprises to perform their core activity, including licenses for transmission, broadcasting, design of technological equipment, for construction and production of works, for permission to use means of communication, is performed free-of-charge, including payments of services under control of licensing activity and usage fees.
        5.  That, in the first half of 1999, the organs of executive power of the administrative entities of the Russian Federation shall provide the transfer of objects of social infrastructure under the direction of the EPTK enterprises to local management organs.
        6.  That the federal energy commission and regional energy commissions shall establish a 50% discounted tariff for electric and fuel energy for EPTK enterprises for the period from January 1, 1999 through December 31, 2002.
        7.  That the State Committee on Communications and Information guarantee the provision of electrical services on the general use electric communications network.
        8.  That EPTK enterprises broadcasting on electronic mass media shall conclude free-of-charge public contracts for provision of state television and radio broadcasting to the populace.
        To establish that the system of time-based payments by which payment for state television and radio broadcasting services to the populace is made is subject to state regulation that is implemented by the FSTR.
        That the FSTR will within one month develop and approve a price list of time-based prices for state television and radio broadcasting services, taking into account the possible differentiation of prices depending on the amount of services granted and on the actual economic conditions of the concrete region, including a calculation of the actual cost of the services granted and the ability of the purchasing power of the population.
        To establish that the minimum and maximum rates are equal to .1 to .5 minimum monthly wages from each subscriber.
        9.  That the FSTR and VGTRK shall establish a noncommercial organization—The Federal Fund for Support of State Electronic Mass Media (The Fund).  To establish that the chairperson of the Fund is appointed and dismissed by the head of the FSTR upon presentation of a claim by the chairman of the VGTRK.
        That the sources of compilation of the means of the Fund are:
        Allocations from the federal budget and by decision of the organs of state power of individual administrative-geographical entities and local management organs—allocations from budgets at the applicable levels.
        Funds attracted via issue and distribution of bonds and other securities of the Fund by procedures established by acting legislation.
        Voluntary donations, charitable contributions, and other sources not prohibited by acting legislation.
        That the Finance Ministry and the Ministry of Taxes and Duties, and the State Customs Committee establish a procedure for transfer, by decision of a court or decree of a customs organ, of federally-owned property that can be used in the process of production and distribution of television and radio programs to the Fund for subsequent transfer to EPTK enterprises.
        To establish that the means of the Fund are to be used for support and development of EPTK enterprises.
        10.  That the Government of the Russian Federation shall:

  • Grant VGTRK a target loan for stabilization of its economic situation in the amount of 500 million rubles for a period of three years, under guarantee of one of the state companies.
  • Provide government guarantees for the attraction by VGTRK of external financing in the amount of $290 million, with the goals of modernizing the production-technical base and wholesale purchase of imported television and radio productions.
  • Establish a procedure for use of portions of the funds received through the paying back of debts by developing countries for additional financing of EPTK enterprises in an amount not less than $30 million per year.
  •  Add to the list of EPTK enterprises approved by Government Resolution No. 844 with the following organizations:
     Kosmicheskaya Svyaz RIA Vesti

        Within three months, bring legal acts into agreement with this Decree.
        11.  That the State-Legal Directorate of the Presidential Administration shall present a proposal for introduction of changes to the decisions of the President in connection with this Decree coming into effect.
        12.  That this Decree will come into affect from the moment of its publication.

President of the Russian Federation B.  Yeltsin
Teleskop, February 24, 1999, available at <
http://www.internews.ru/crisis/anticrisis.html>.

 

Last Updated: 11/20/99

 

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