BISNIS - NIS Consumer Products Report
29 SEP 95
FM AMCONSUL ST PETERSBURG

NORTHWEST RUSSIA ROUNDUP

1. SUMMARY: THE FOLLOWING IS A SUMMARY OF RECENT POLITICAL AND ECONOMIC DEVELOPMENTS IN ST. PETERSBURG AND ELSEWHERE IN NORTHWEST RUSSIA BASED ON OBSERVATIONS OF CONSULATE STAFF, CONVERSATIONS WITH LOCAL OFFICIALS, AND PRESS REPORTS. WE NOTE THAT WE CANNOT VOUCH FOR THE ACCURACY OF LOCAL JOURNALISTS AND THEREFORE URGE READERS TO TREAT THE INFORMATION WITH CAUTION. END SUMMARY.

CONTINUING CAMPAIGN AGAINST ILLEGAL VENDORS

2. AUTHORITIES CONTINUED THEIR CAMPAIGN TO CLEAN UP THE CITY MARKETS BY RAIDING THE "HAY MARKET", ONE OF ST. PETERSBURG'S MANY OPEN AIR VEGETABLE MARKETS. THE PRESS DESCRIBED CONDITIONS IN THE MARKET (WHICH IS LOCATED IN THE NEIGHBORHOOD THAT WAS THE SETTING FOR DOSTOEVSKIY'S NOVEL CRIME AND PUNISHMENT) IN LURID TERMS CALLING IT ONE OF THE MOST FILTHY AND CRIME INFESTED AREAS OF THE CITY, A REFUGE FOR BUMS, THIEVES AND VIOLATORS OF THE PASSPORT REGIME. SELLERS ALLEGEDLY USE FALSE WEIGHTS AND SCALES AND SELL UNSANITARY FRUITS AND VEGETABLES. ONE VENDOR WAS SHORT-WEIGHTING GOODS BY AS MUCH AS A KILOGRAM. HOWEVER, THE MARKET REMAINS POPULAR, ESPECIALLY AMONG PENSIONERS, BECAUSE OF ITS LOW PRICES. VENDORS THEMSELVES, ACCORDING THE NEWS REPORTS, FACE EXTORTION BY CRIMINAL GANGS, BUT FEAR TO TURN TO POLICE AUTHORITIES BECAUSE THEY ARE SELLING GOODS WITHOUT A LICENSE. 3. A CONTACT IN THE LOCAL ANTIMONOPOLY COMMITTEE CONFIRMED THAT ORGANIZED CRIME CONTROL OF THE LOCAL MARKETS WAS A PROBLEM AND ADDED THAT THERE WERE ALLEGATIONS OF DRUG DEALING AT THE "HAY MARKET". (COMMENT: THE "HAY MARKET", LOCATED ONLY A FEW BLOCKS FROM ST. ISAAC'S CHURCH AND THE ASTORIA HOTEL, APPEARS TO BELONG IN THE THIRD WORLD. RAMSHACKLE STALLS SURROUNDED BY MUD AND PILES OF GARBAGE NEVERTHELESS ATTRACT CROWDS OF SHOPPERS, A SAD COMMENT ON HOW FAR THE RETAIL MARKET HAS TO DEVELOP.)

PSKOV HOPELESS: HOSPITAL FACES CRISIS

4. IN WHAT HE DESCRIBED AS A GESTURE OF DESPAIR, THE CHIEF PHYSICIAN OF THE PSKOV OBLAST HOSPITAL, VIKTOR ANTONOV, HAS APPEALED TO THE PROCURATOR OF PSKOV OBLAST TO USE HIS INFLUENCE WITH THE OBLAST ADMINISTRATION TO GET HELP IN OVERCOMING THE HOSPITAL'S SEVERE BUDGET CRISIS. ANTONOV SAID THAT THE HOSPITAL NEEDS 2 BILLION RUBLES TO KEEP OPERATING, AND IF THE MONEY IS NOT FORTHCOMING, IT WILL BEGIN DRAMATICALLY CURTAILING MEDICAL SERVICES AND WHOLE DEPARTMENTS WILL HAVE TO BE ELIMINATED. TO ILLUSTRATE HIS CASE, ANTONOV SAID THAT, THE BLOOD DIALYSIS DEPARTMENT WAS AMONG THOSE THAT WOULD HAVE TO BE ELIMINATED, PUTTING THE LIVES OF 32 LONG-TERM PATIENTS IN JEOPARDY. ANTONOV COMPLAINED THAT HE ALREADY HAS BROUGHT THIS PROBLEM TO THE ATTENTION OF THE OBLAST ADMINISTRATOR, VLADISLAV TUMANOV, SEVERAL TIMES WITHOUT RESPONSE.

ENERGY CRISIS IN ARKHANGELSK...NORTHERN LIGHTS OUT

5. ONLY 6,000 TONS OF FUEL ARE STORED AT THE ARKHANGELSK HEAT AND ELECTRIC POWER PLANT AND PLANT DIRECTOR VLADIMIR SAMOILOV IS CALLING THE SITUATION A DISASTER, ACCORDING TO THE SEVERO- ZAPAD INFORMATION AGENCY. ENERGY CONSUMERS OWE 200 BILLION RUBLES TO THE COMPANY, WITH THE LARGEST DEBTORS BEING THE REGIONS'S DEFENSE ENTERPRISES. ARKHANGELSK GOVERNOR PAVEL BALAKSHIN HAS APPEALED TO PRIME MINISTER CHERONMYRDIN FOR FEDERAL ASSISTANCE IN PAYING THE DEBT.

JUST WHEN YOU THOUGHT IT WAS SAFE...

6. THE NUMBER OF CASES OF DYSENTERY IN ST. PETERSBURG HAS DOUBLED COMPARED TO THE FIRST NINE MONTHS OF LAST YEAR, ACCORDING TO A PRESS STATEMENT BY LOCAL HEALTH AUTHORITIES. FOR THE FIRST EIGHT MONTHS OF THIS YEAR, 8,500 CASES OF DYSENTERY HAVE BEEN REGISTERED, AND 136 PEOPLE HAVE DIED FROM THE DISEASE. AS A PREVENTATIVE MEASURE, SCHOOL CHILDREN WILL BE GIVEN GAMMA- GLOBULIN SHOTS THIS MONTH.

LIVING ON THE EDGE (OF POVERTY) IN ST. PETERSBURG

7. THE SEVERO-ZAPAD NEWS AGENCY REPORTED THAT ACCORDING TO STATISTICS RELEASED BY THE ST. PETERSBURG EMPLOYMENT COMMITTEE, THE AUGUST SUBSISTENCE MINIMUM IN ST. PETERSBURG AVERAGED 299,192 RUBLES (ABOUT $68.00 AT THE CURRENT EXCHANGE RATE). ALTHOUGH VEGETABLE PRICES CONTINUED THEIR SEASONAL PLUNGE, THE SUBSISTENCE LEVEL HAS UP 1.4 PERCENT IN AUGUST IN LARGE PART BECAUSE BREAD PRICES ROSE 16 PERCENT AND SUGAR AND CONFECTIONERY PRICES ROSE BY ABOUT 20 PERCENT. THE COMMITTEE NOTED THAT THE AVERAGE MONTHLY SALARY HAS 472,500 ($107.00).

8. ACCORDING TO THE COMMITTEE, SUBSISTENCE LEVEL FIGURES VARY WIDELY ACCORDING TO THE SEGMENT OF POPULATION. FOR ABLE BODIED MEN, THE AVERAGE FOR AUGUST HAS CALCULATED TO BE 362,872 RUBLES ($82.00) AND FOR WOMEN 308,635 RUBLES ($70.00). FOR CHILDREN UNDER AGE 6 IT IS 241,794 RUBLES ($55.00) AND FOR CHILDREN BETWEEN 7 AND 15, 343,736 RUBLES ($78.00). PENSIONERS, ACCORDING TO THE DATA, CAN SUBSIST ONLY 212,070 RUBLES ($48.00) PER MONTH.

9. DESPITE THE FACT THAT THEIR SUBSISTENCE LEVEL IS CALCULATED TO BE SIGNIFICANTLY LOWER THAN OTHER SEGMENTS OF SOCIETY, PENSIONERS ARE FACING DIFFICULT STRUGGLES THESE DAYS, AS AN ARTICLE IN THE LOCAL NEWSPAPER SANKT-PETERBURGSKIYE VEDOMOSTI POINTS OUT. ACCORDING TO THE AUTHOR, PENSIONERS IN ST. PETERSBURG RECEIVE, ON AVERAGE, 163,000 RUBLES PER MONTH ($37.00), OF WHICH ABOUT 60,000 RUBLES GO TOWARD PAYING FOR RENT, TELEPHONE, AND ELECTRICITY. THUS, PENSIONERS HAVE APPROXIMATELY 100,000 RUBLES PER MONTH (ABOUT 23 DOLLARS) FOR FOOD AND OTHER NECESSITIES.

10. IN AUGUST, ACCORDING TO THE PAPER, PENSIONS WERE NOT PAID ON THE 14TH OF THE MONTH AS USUAL, BUT WERE DELAYED UNTIL THE 18TH, FORCING ADDITIONAL HARDSHIPS ON MANY PENSIONERS. IN ADDITION, THE PAPER NOTES THAT THE LAW ON RAISING THE MINIMUM ALLOTMENT FOR PENSIONERS--ADOPTED BY THE DUMA ON 19 JULY, APPROVED BY THE FEDERATION COUNCIL ON 21 JULY AND SIGNED BY YEL'TSIN ON 27 JULY--HAS NOT YET RESULTED IN ANY ADDITIONAL MONEY TO PENSIONERS.

IF THINGS WEREN'T TOUGH ENOUGH ALREADY...

11. JUST IN TIME FOR SHORTER DAYLIGHT HOURS AND COLDER WEATHER, ST. PETERSBURG DEPUTY MAYOR ALEKSANDR KUDRIN ANNOUNCED AT A PRESS CONFERENCE ON 20 SEPTEMBER THAT AS OF 1 OCTOBER THE CITY REGIONAL ENERGY COMMISSION IS USING THE TARIFFS ON ELECTRICITY AND HEAT BY SOME 40 PERCENT. KUDRIN POINTED OUT THAT EVEN AFTER THE INCREASE, THE TARIFFS ON ELECTRICITY IN ST. PETERSBURG ARE THE LOWEST OF ALL REGIONS IN RUSSIA, NOTING THAT IN ASTRAKHAN THE RATE IS 110 RUBLES PER KILOWATT HOUR, IN MOSCOW 100, AND IN ST. PETERSBURG ONLY 50. THERE IS, MOREOVER, A CEILING ON THE AMOUNT OF THE TAX FOR EACH HOUSEHOLD OF 30 PERCENT OF THE COST OF HOUSING AND COMMUNAL SERVICES. IT MAY NOT BE THE PRICE OF ENERGY BUT OTHER ITS AVAILABILITY THAT CAUSES THE MOST COMMOTION IN ST. PETERSBURG THIS WINTER, HOWEVER, AS THE PAPERS HAVE NOTED THAT THE LOCAL NUCLEAR POWER PLANT IS RUNNING LOW ON FUEL AND LACKS THE FUNDS FOR ADDITIONAL PURCHASES.

CRIME: ITS NOT THE MAFIA, ITS THE SOCIETY

12. A LOCAL NEWSPAPER CITED THE DEPUTY PROSECUTOR OF LENINGRAD OBLAST, DMITRIY MALKOV, ON REASONS FOR THE GROWTH IN CRIME IN HIS REGION. ACCORDING TO MALKOV, MUCH OF THE CRIME PROBLEM IS ATTRIBUTABLE TO THE CHANGE IN THE REGION'S DEMOGRAPHICS OVER THE LAST 25 YEARS, AMONG THE CHANGES IS A LARGE INCREASE IN THE NUMBER OF ALCOHOLICS AND UNEMPLOYED WHICH HAVE CONTRIBUTED TO AN INCREASE IN THE RATES OF SUICIDE, MENTAL ILLNESS, AND MURDER. HE NOTED THAT THE NUMBER OF MURDERS IN LENINGRAD OBLAST WAS 120-140 ANNUALLY DURING THE LATE 1980'S, BUT BY 1993 IT HAD RISEN TO 500. PERHAPS IN AN EFFORT TO CALM LOCAL RESIDENTS, HOWEVER, HE SAID THE NUMBER DOES NOT ACCURATELY REFLECT THE MURDER RATE IN THE OBLAST BECAUSE HUNDREDS OF CORPSES OF PEOPLE MURDERED IN THE CITY OF PETERSBURG ARE DUMPED IN THE OBLAST. HE COMPLAINED THAT HIS DEPARTMENT HAS A SERIOUS PROBLEM OF UNDERSTAFFING, NOTING, FOR EXAMPLE, THAT IN THE TOWN OF GATCHINA, THERE ARE ONLY FIVE PROSECUTORS, FOUR OF WHOM ARE YOUNG WOMEN, AND THAT THEY COME ACROSS MURDER VICTIMS PRACTICALLY EVERY DAY. THEY WORK 12 HOUR DAYS, WITHOUT DAYS OFF AND RECEIVE LOW WAGES.