idbits, September, October.

On Wednesday (17 Sept.) Russia was granted membership in the Paris Club of creditor nations. placing it in a better position to collect the approximately US$ 37 billion owed to it by the allies of the former Soviet Union, generally poor developing nations.

Statistics Committee reported that GDP remained unchanged for the period January-August in comparison to the same period in 1996. Actually it declined further. In current prices GDP was 1,232 trillion rubles (about $214.3 billion). per capita GDP about 1/6th of the U.S.

Crucial federal accounts transferred to the central bank. away from commercial banks by 1 December 1997. Regional customs authorities will remain with commercial banks, but the right to administer such accounts will be auctioned from the start of next year. Bidding will be open to all commercial banks. The winner will have to pay the state a commission for the right to hold the funds, a fixed fee of half the current average interest on 30- to 60-day T-bills.

Finland's exports to Russia and Estonia grew 17% to FIM 6.2 billion, or 6.3% of Finland's total exports, compared to the same period in 1996

The EU Commission officially proposed putting Cyprus, Poland, Hungary, the Czech Republic, Estonia and Slovenia in the first wave EU accession negotiations, thereby opening the possibility of EU membership sometime after the year 2000.

Exchange rate, T-bill yields and stock market for Russia 18 Sept. 97 RUR/US$ 5,850; average GKO yield 18.2% (18.2%); MT index 992 (+0.3%)

Russian foreign trade, including unofficial trade, totaled $70.8 billion, or 404.4 trillion rubles, in the first half of this year, down 3.3% from the same period of 1996. Of this $54 billion was outside the CIS.

Russian fishing companies in January-July 1997 caught and processed about 3 million tonnes of fish and sea products. 2.3rds of it in the Far East inculuding 1.5 million tonnes of Alaska pollack, 120,000 tonnes of salmon and 45,000 tonnes of crab. Russian ships are also successfully fishing off Africa.

Rosstankoinstrument, a Russian company that coordinates more than 200 machine-tool factories, exported $50 million to China, Southeast Asia and South America in 1996. Output has shrunk 70% and for pressing and forging machinery 90%. The Global situation in machine-tool manufacturing topped $38 billion in 1996 up 5.4% from 1995. Russia used rank fifth below 17th. Russian manufacturers are losing their own domestic market which last year imported $250 million worth of machine-tool instruments from the United States, Germany, Italy and other countries, 65% of market's annual requirement.

President Boris Yeltsin appointed Ramazan Abdulatipov deputy prime minister.

Converting unpaid debts to paper for "Foreigners". The Russian government has passed a resolution under which energy companies will be able to offset their tax debts against the money they are owed by their customers. Bonds to be issued to cover the difference between the two debts.

Deutsche Morgan Grenfell and Renaissance Capital have extended a $200 million unsecured loan to Unified Energy System (UES), the company which runs Russia's national grid.

Russia's legal distilleries in the first half of this year produced 358 million liters of Vodka.

Russia imported 615,000 tons of wheat in the second quarter of this year for $101.1 million, up 104% from the first quarter, most of it from Kazakhstan.

Russia produced 27.33 tonnes of gold in the first half of 1997.

The European Union has rejected a demand by Russia that it be recognized as a market economy.

Russian budget spending in the first half of 1996 was 96 trillion rubles. It topped 220 trillion in the same period this year. A further increase of 68% is expected in the 2nd half.

Moscow's Unexim Bank has placed a three-year 9.825% Eurobond issue on world markets worth $200 million. The bonds were issued by Unexim International Finance BV, a subsidiary registered in the Netherlands. Coupon income on the bonds, with a face value of $100,000, is 400 basis points above yield on three-year U.S. Treasury bonds. (I'd rather have treasury bonds)

Alfa bank Shareholders increased charter capital from 173 billion rubles to 750 billion rubles. Alfa Bank is the 18th olargest bank. Alfa Russia Finance BV, a subsidiary of Russia's Alfa Bank based in the Netherlands, placed a three year $175 Eurobond.

Russia became the World Bank's second largest borrower following China.

Russia's unemployment rate for August was. The steady rise in unemployment appears unabated.

Duma deputies vote to overrule Yeltsin veto of land code. On Wednesday, (24 Sept.) A veto override requires a 2/3 majority; that is, at least 300 representatives' support. The president's Duma representative considered the 304-to-52 vote indecisive because voting rules had been violated as only 184 representatives were actually present when the vote took place.

A confusing agreement on Russia-Chechnya oil pipeline issues. On 9 September Russia and Chechnya agreed on the conditions of transporting Azeri oil across Chechnya to the Black Sea (the 'Northern route') including payment of oil tariffs to the Chechens. For the rest of this year, Russia will pay Chechnya US$ 854,000 for the right to transport 200,000 tonnes of oil across Chechen territory. Rusisa favors building a 290 km stretch of new pipeline at a cost of US$ 200-300 million.