UNEMPLOYMENT GROWS IN PRIMORSKY KRAI

21,790 persons applied to employment bureaus in Primorsky Krai during the first quarter of 2004 (+7.1% on the first quarter of 2003).

By data of the Federal Employment Agency's office in Primorky Krai, there were 40,964 jobless persons registered in the region as of April 1, with an average unemployment rate at 3.7%. In Lesozavodsk, Khankaisky and Chernigovsky Raions this rate went up by 23-33%. 10,300 job vacancies were available in employment bureaus as of late March.

Nearly 90% of these vacancies offer jobs in urban areas. In some areas, there are 50-80 candidates per one vacancy and 166 to 195 candidates in Anuchinsky, Khorolsky and Olginsky Raions. - Yury ROGOV.

AMUR OBLAST, YAKUTIA SUM UP RESULTS OF COOPERATION

Results of the agreement and protocol on trade, economic, research, technical and cultural cooperation signed between Amur Oblast administration and Yakutian government in November 2002 were summed up in Blagoveshchensk.

As spokesman for the regional administration informed, the meeting was attended by Amur Oblast governor Leonid Korotokov, Yakutia's minister of economic development Viktor Yefimov, department heads and company representatives.

Deputy governor Alexander Migulya stated in his report some facts and figures on cooperation of the two regions. Amur Oblast's companies delivered 80 million rubles worth of produce to Yakutia in 2003. Amur Trade House was opened in Yakutsk. Over 440,000 tons of coal was delivered from Yakutia to Amur Oblast during heating season (20% of total demand).

More than 2,300 Yakutian tourists traveled to China via Amur Oblast's travel agencies in 2003. Charter air flights Yakutsk - Blagoveshchensk - Harbin and Yakutsk - Blagoveshchensk - Pattaya were opened thanks to joint effort.

Lack of coordination in food and fodder grain deliveries and in procurement of breeding cattle for Yakutia was highlighted as an outstanding concern.

Viktor Yefimov noted that the good neighbourly relationships between the two regions bring more and more fruits both due to geographical factors and efforts taken by both regional governments. Leonid Korotkov named this cooperation lively and invited everybody to exert maximum effort for its full realization. A new impulse will be generated in autumn at a meeting of governor Leonid Korotkov and Yakutian president Vyacheslav Shtyrov who are expected to prolong the agreement on cooperation for another 3 years. - Yevgeny ITAROV.

BAILOUT PROCEDURES EXTENDED FOR DALMOREPRODUCT

The federal arbitration court of Far Eastern District rejected an appeal placed by the Bank of Moscow on the court decision concerning DalMoreProduct's bankruptcy.

Primorsky Krai court's decision of 3 December 2003 on extending bailout procedures for half a year remained in force.

The Bank of Moscow is one of DMP's largest creditors. Its representatives believe that bailout procedures should be extended because there no reason to expect that this will reinstate the debtor's solvency. However, the federal district court, upon examining the case, ruled that the first instance court's decision was lawful and based on available evidence: DMP bailout manager's report (as of 22 October 2003) and minutes of the creditors' meeting (of 30 October 2003) as well as written and verbal explanations given by bailout manager Alexander Sukach.

Court took into account DMP's positive dynamic in production and existing conditions for its development. In particular, the company holds quotas for 46,838 tons of aquatic biological resources and produces fish by its own catchers.

NOTE: Bailout procedures were introduced in DMP on 23 October 2002. According to the financial restructuring plan, all debts to creditors will be cleared off within 6 years. DMP's total debt is about 4 billion rubles as of today. The list of creditors is led by OOO DMP-Trawlers, with the Bank of Moscow going second. The new extension ordered by court will expire on 23 April. - Yevgeny ITAROV.

MAGADAN WILL PLAY BOWLING

A new entertainment facility, Cosmic-Bowling, will open in Magadan in coming July.

Its owners bought equipment produced by American company "Brunswick". It will have 7 lanes available for lease at 150 to 900 rubles per lane depending on time of the day.

The entertainment centre will also include a discotheque, bar for adults and children, recreation areas. - Yulia PROKHOROVA.

FISHING INDUSTRY MORE EFFICIENT IN PRIMORSKY KRAI

Despite last year's fish quota reductions by 25%, local fishing companies improved their performance in terms of practically all economic and social indicators.

The fishing industry's total output was valued at 14.6 billion rubles, with fish and seafood production totaling 608,400 tons. Total area occupied by aquaculture plantations grew by 28% and reached 8,000 hectares. Over 5.5 billion rubles was deducted in taxes to budgets of all levels (+17.7% on 2002). Average monthly salary in the industry grew by 27.3% and reached 6,626 rubles by the end of 2003.

Primorsky Krai produces more than 300 fish product types, 12 of which were awarded diplomas of the national contest "Russia's 100 Best Products," say officials of the regional administration's fisheries committee. - Yevgeny ITAROV.

DALSVYAZ' SHARES COME BACK TO TRADING FLOOR

As spokesman for Dalsvyaz communication operator informs, the Russian Trading System started quoting its shares again on 12 April.

State registration numbers of stock offerings are 1-01-30166-F-008D and 2-01-30166-F-008D. Dalsvyaz' ordinary and preferred shares are included in the "B" quotation list. Tradings in Dalsvyaz shares were stopped on 24 February due to conversion of 10-ruble face value into 20-ruble value in accordance with its general meeting's decision to double the charter capital. - Yevgeny ITAROV.

VOSTOCHNY PORT WILL HOLD ANNUAL MEETING ON 30 APRIL

The board of OAO Vostochny approved 15 candidates for seven seats in the new board to be elected at the forthcoming annual general meeting.

By ZR's data, the list includes 5 serving board members: Severstaltrans' chief adviser Valery Bochkov (chairman), Severstaltrans' transport group specialist Sergei Shurenkov, OOO Transkhimexport board chairman Alexey Vorotnikov, OOO Neva-Metaltrans executive director Alexander Ignatenko and deputy minister of proprietary relationships Sergei Kosarev.

Other candidates are Eduard Chovushian, deputy director general of Tuapse Commercial Sea Port, Mikhail Konyshin, director general of OOO Transkhimexport, Sergei Rozhkov, executive director of OOO Transpromresource (all three have been nominated by OOO Transkhimexport and Alexey Vorotnikov), and seven state-nominated candidates: Oleg Danilov, lead specialist of the Ministry of Proprietary Relations, Alexander Kiselev, head of the Marine Administration of Vostochny Port, Serik Zhusupov, sea ports department head of the Transport Ministry, Gennady Sharov, lead specialist of the Ministry of Proprietary Relations, Elena Koroleva, deputy department head of Russian Federal Property Fund's Far Eastern inter-regional branch, Ivan Nadeyin, head of Primorsky Krai administration's transport department, and Lev Panchenko, chairman of Primorsky Krai administration's transport department.

Shareholders will also make alterations to the charter, approve the 2003 yearly report, yearly accounting documents, profit distribution estimate, dividend payment, elect the auditing commission and approve the auditing firm "Gross Audit" auditor for 2004, approve remuneration and compensations for the board and auditing commission members.

The board of directors recommended shareholders to approve dividend for 2003 at 68.6 rubles per each preferred share and 9.63 rubles per each ordinary share with a face value of 250 rubles. - Olga DOBROLYUBOVA.

VLADIVOSTOK AIR TO BUY TU-204-300 LINER

OAO Vladivostok Air is in talks with Aviastar-SP through a leasing company on purchasing two mid-range passenger liners Tu-204-300 and hopes to start commercially operating them in the first quarter of 2005.

By words of Vlad Air's first deputy director general Igor Bagelfer all necessary documents will be signed in the coming few days.

Therefore, Vlad Air may become the first air carrier using Tu-204-300s, eyed by many Russian airlines but not certified so far by governmental authorities.

Igor Bagelfer explained that they intend to buy the planes "under a financial leasing scheme," however, did not name the company negotiating with Aviastar-SP. The specialized Internet publication AviaPort.Ru reports, citing a "source in the aircraft manufacturing industry," that this is the leasing company Ilyushin-Finance.

By Bagelfer's words, the deal will total about $70 million to be paid by installments during 10 years.

"We assume certain risk by starting payments for the aircraft which have not been certified as yet. But we have reasons to believe that they will be certified," he noted and added that, upon performance analysis of the new liners, Vlad Air will make a decision regarding a third Tu-204-300.

Vlad Air has been looking for a long while for airplanes capable of nonstop flights from Vladivostok to Moscow and back. It believes that Tu-204-300 with a seating capacity of up to 166 passengers is the best alternative. Vlad Air currently operates flights to Moscow with stopovers in Siberia.

However, it may happen that the new liners will fly to the Russian capital not very long. When industrialized nations put in effect air engine noise restrictions in 2006, Vlad Air plans to move its Tu-204-300s to the Vladivostok - Tokyo flight to be opened on 17 July.

The company intends to buy two Tu-154Ms and lease a third one in 2004 which will bring its flotilla of long-distance liners up to 12 units.

"ZR" FILE: Vladivostok Air's charter capital is 499,937,028 rubles with 51% belonging to the state. Sales proceeds totaled 3 billion rubles in 2003 and net profit grew to 150 million rubles (57.5 million in 2002). Up to 20% of net profit will be paid in dividend.

As Bagelfer noted, Vlad Air's "international operations drastically declined in the first half of 2003 due to SARS fears, but the dynamic recovered to positive in the year's latter half."

Alexander Alexeyev, head of Vlad Air's press service, informed that international operations grew by 3-10% in 2003 and are anticipated to grow by another 43% in 2004, mainly on routes to/from China.

Vlad Air specialists believe that there are chances to lure over part of small-time importers tired from ill-organized performance of land border crossings. Bagelfer says they could increase flight frequency to Mudanjian up to several flights a day if necessary. - Anton DOROSHEV.

COMMUNICATION OPERATOR MAKES PROFIT

OAO Dalsvyaz summed up results of its performance in 2003. Revenues totaled 981 million rubles (+5% on 2002) and net profit, calculated in accordance with Russian accounting standards, grew by 64%.

Earnings from provision of communication services grew by 29% and reached 6.7 billion rubles, of which mobile phone services grew by 45% (191 million rubles) and earnings from new communication services - by 41% (307 million rubles).

Plans for this year are even more impressive. Dalsvyaz anticipates that sales receipts will be 1,293 million rubles in 2004 (+32% on 2003) and net profit will grow more than five-fold (up to 1,317 million rubles).

As Konstantin Voloshin, Dalsvyaz deputy director general in charge of economic and financial issues, said at a press conference held on FINAM news agency's website, the company expects to receive 800 million rubles by selling assets and at least 400 rubles by providing services. "I believe our profitability will increase up to 18%," he noted.

Dalsvyaz' investment plan for 2004 was approved at 3,379 million rubles (+77.4% on 2003). These resources will be used for elaboration and expansion of multi-services providing wide-band access based on DSL technology and radio access. Dalsvyaz also plans to use satellite services for cost reduction and improving quality of services. This project is currently at the engineering stage.

By words of Vladislav Ilchenko, Dalsvyaz deputy director general on business development, its segment in the regional Internet services market exceeds 70%. They plan to hold a dominant position in the market through 2006 and cover at least 65%.

During the online press conference, Dalsvyaz' top managers made comments on the sale of a 50-% stake in Primtelefon to MTS rather than to Vympelcom who had offered a much higher price.

"The board was guided by the following considerations: MTS made an unconditional offer specifying the amount ($31 million) without any additional conditions of reservations. Vympelcom's offer contained a number of additional conditions that were unacceptable for the company and could considerably reduce the declared price," said Alexander Zheludkov, Dalsvyaz deputy director general on corporate development.

Despite its withdrawal from Primtelefon, Dalsvyaz intends to continue mobile phone business in Primorsky Krai, said Konstantin Voloshin. As was reported earlier, it shows interest in ZAO Acos belonging to RTC-Leasing.

Dalsvyaz managers informed that 62 million rubles will be paid in dividend for 2003 (48 million a year ago). - Oleg KLIMENKO.