July 31, 1997  
This Date's Issues: 1103 •1104 •1105  1106

Johnson's Russia List [list two]
#1104
31 July 1997
djohnson@cdi.org

[Note from David Johnson:
1. Komsomolskaya Pravda: Nemtsov Defends Svyazinvest Deal.
2. Radiostantsiya Ekho Moskvy: Correspondent Sergey Dorenko
on Privatization Bid. 
3. Sovetskaya Rossiya: Ballot Rigging Claimed in Irkutsk Oblast.
4. Trud: Vladimir Yanchenkov, "Storm Clouds Over the Caucasus...
Enough of Reason and Restraint?"] 


*********

Nemtsov Defends Svyazinvest Deal 

Komsomolskaya Pravda
July 29, 1997
[translation for personal use only]
"Fragment of conversation" from First Deputy Premier Boris Nemtsov
meeting with Komsomolskaya Pravda journalists, reported by Aleksandr Bushev
and Nikolay Dolgopolov; date and place not given: "Boris Nemtsov: Enough
of Building Gangster-Style Capitalism" -- first paragraph is introduction

"Enough of building gangster-style capitalism." So stated the first
vice premier at a meeting with Komsomolskaya Pravda's journalists. He was
talking about the biggest deal -- worth $1.875 billion -- in Russia's
history, which was prepared by the government. It has prompted a backlash
from a highly placed "fraternity."
[Nemtsov] The public sale of 25 percent of the shares in Svyazinvest
was an honest deal. Let me recall the events that led up to it. In April
the government said that the rules for the distribution of budget money
would be the same for everyone. I met with a number of bankers at the time
and said: "Guys! That's it. Enough already. Let us live honestly." They
all replied: "We will." But when it came to an actual deal -- when it
concerned the Tyumen Oil Company (TOC) -- attempts were made to do
everything as it has always been done, and not as well as possible. We
succeeded in scotching those attempts. And I believe that the new
government's first victory was that we managed to hold a successful tender
for the TOC. As a result, instead of $160 million we obtained $810
million. An absolutely gigantic sum. Because it was believed that the TOC
was a bankrupt company: It owed 2-3 trillion to the budget.
As regards Svyazinvest, a far more difficult situation arose. There
was unprecedentedly strong, thuggish pressure on the authorities. 
Inconspicuous pressure, of course. There was blackmail -- including media
blackmail. There were constant threats. And I believe that it was a
gigantic achievement of the government's that we were able to uphold the
rules we proclaimed. And the fantastically high price is a success; it is
the biggest deal in Russia's history. In return for 25 percent of the
shares plus one share -- that is to say, for a block that does not give
control of the company -- we obtained $1.875 billion! We actually managed
to hold everything honestly and openly. And the winner was the one who
paid the most money. I foresee the government, now that it has moved from
words to deeds, stating that from now on there will be no more rule of the
seven banks [allusion to the seven banks alleged to run Russia (they
include LogoVAZ, Uneximbank, Menatep, Most Bank, Alfa, and Stolichnyy
Bank), punning on the historical Rule of the Seven Boyars], now that the
government has imposed honest and open rules for all, they will fight us
bitterly. And in this respect the interests of certain financial
information groups could merge with the interests of the communists and
fascists.
[Komsomolskaya Pravda] And might someone actually take a potshot at
you?
[Nemtsov] That remains to be seen. But there will be a backlash. 
Shall I tell you of what kind?
[Komsomolskaya Pravda] Go ahead.
[Nemtsov] Of the following kind: There will be no direct backlash. 
They will say: You sold it cheap, foreigners bought it - - that is
obvious. Incidentally, Siemens made no applications, unfortunately. If it
had, I would have been happy for it to participate. The price was
enormous. Twenty-five percent was sold
-- and no control of the company was relinquished. The state has 75
percent. They cannot appoint managers or anyone else -- the victorious
investors can do nothing. But they are investing gigantic sums of money. 
I can say that those who are trying to attack us right now offered a
substantially lower sum. We told them: That will not happen. Soon you
will know their names. They are people who are very well known in the
country. [Komsomolskaya Pravda] Who? At least drop a hint.
[Nemtsov] No, I won't. Others will say. The backlash will be
different. From now on they will try to push us aside with methods of a
different kind -- including character assasination. They do not want
honest rules or democratic capitalism. Give them gangster- style
capitalism. I see this Svyazinvest deal as Russia's choice of path. 
Either the authorities will be at the service of semishadowy capital, or
they will establish rules that lead to the normalization of the situation
in the country. By the Svyazinvest auction the authorities have
demonstrated that they not only want to do what they proclaimed back in
April, but are actually doing it.
[Komsomolskaya Pravda] And what will happen with the sale of
Norilskiy Nikel?
[Nemtsov] That too will be honest. Svyazinvest was a litmus test. 
It was a "lice test" for the authorities. I will simply say to you: It is
one thing to say that from now on all banks are equal in our country.... 
It is another thing to take specific steps whereby you encroach on the
absolutely specific interests of powerful structures that control the mass
media. Do you understand? They control it with a simply terrible power! 
These two things -- the deal involving the Tyumen Oil Company and the
Svyazinvest deal - - are a gigantic indicator of what is happening in the
country. From the semigangsterish accumulation of capital the country is
moving to more or less normal, civilized operating conditions. They will
fight us with all the means at their disposal. Right up until we have to
quit, or they take it into their heads to do something else. I have
already said to you: Look how weirdly the interests of the communists and
these same financial structures are coming together. A new configuration
is arising that did not exist just a few weeks ago. You will see: It will
make its mark in no uncertain terms. They will provoke crises in the State
Duma. Certain methods exist for manipulating the Duma with the aid of
financial companies. The situation right now is fairly dangerous, although
outwardly serene. All the signs suggest that all the problems will arise
in the fall.

*********

Correspondent on Privatization Bid 

Radiostantsiya Ekho Moskvy
July 28, 1997
[translation for personal use only]
Interview with Sergey Dorenko, first deputy producer of Russian Public
Television news and information directorate and presenter of the "Vremya
with Sergey Dorenko" program, by Aleksey Venediktov at the Radiostantsiya
Ekho Moskvy studio in Moscow -- live

[Venediktov] It is 1533 in Moscow. Good afternoon. I am Aleksey
Venediktov. We are beginning to discuss a subject that might become the
topic of the day. Ekho Moskvy has learned that an hour ago a first deputy
chairman of the Russian Government demanded that Russian Public
Television's founding statute be brought to him. Our sources at the White
House say he wants to look at the possibility of changing the way Russian
Public Television, which probably does not suit the government, is run. Our
guest today is the presenter of the "Vremya with Sergey Dorenko" program,
Sergey Dorenko. He is also the first deputy producer of Russian Public
Television news and information directorate. Good afternoon, Sergey.
[Dorenko] Good afternoon.
[Venediktov] Today's report and slight threats on the part of the
government after your program on 26 July of the Svyazinvest auction--is
this a surprise for you?
[Dorenko] Who is the first deputy chairman of the government who asked
for the documents? First Deputy Prime Minister Nemtsov is away.
[Venediktov] Our report says a first deputy chairman of the
government.
[Dorenko] First Deputy Prime Minister Anatoliy Chubays, you mean.
[Venediktov] Or Nemtsov.
[Dorenko] Or Nemtsov. No, this is not a surprise for me, since I
think, Alfred Kokh, who as a representative of the State Committee for the
Management of State Property is in charge of 51 percent... [pauses] The big
Kokh wants to put a smaller Kokh in a management position in Russian Public
Television.
[Venediktov] Okay. Let us come back to the causes of this matter. 
You had a report about the Svyazinvest auction in "Vremya" on Saturday. 
One might think everything was okay with the auction. There were two secret
bids, at a certain time the bids were opened, the highest bid was
determined and the winner took all, as it were. What is the problem? At
last we have an honest auction. Sergey?
[Dorenko] At last in a series of auctions we have one which smacks
least of... [pauses] You can describe it as the least filthy one. Yes,
because there are not a lot of questions about it, except for very serious
questions. First, the envelopes are opened at
Can you imagine how eager everyone was? The results are expected
at 1700, the envelopes are opened. They read the contents of the envelopes
for 50 minutes. Can't they understand Russian? Don't they know the
Cyrillic alphabet? What were they up to for 50 minutes? Why was there no
signature of the head of the antimonopoly committee? Why did Kokh write
his resolution of validity on his knee? Were they prepared to deem the
results invalid, just in case? If the winner had not been suitable for
them? This is just a question.

[Venediktov] And the answer?
[Dorenko] This is a question that must be answered by the one who is
giving a news conference today: Chubays or Kokh. And then everything will
be clear. This is the first question. Second, Kokh announced on 27 July
on one of our television channels that this is a commercial secret and he
does not know who is behind the Cyprus- based company. This is a matter of
concern for the whole of Russia. Gentlemen, that way, when you trade your
motherland, you may as well sell it to the Medellin cartel! This is
ridiculous, of course he knows who is behind them. But he pretends that
this is the way they do business in Russia.
[Venediktov] But still, Sergey, both bidders had foreign backing.
[Dorenko] Well, you know, I am not against this auction. I have a
telephone line that works, quite badly, but this is not unusual, it is an
ordinary telephone line. What I am saying is, first, that Svyazinvest was
sold to speculators, to people who have not spent a single moment in their
past lives dealing with communication networks. On the opposite side there
was Telefonica [de Espana SA] --they are from Spain, I simply love
Spain--which some time ago bought the Argentine telecommunication network
which had been totally ruined and turned it into a success story. And whom
do we have here? Speculators! Are you telling me they are
telecommunication experts? Is Boris Yordan a telecommunication expert? 
What about George Soros and Vladimir Potanin? No, they are not
telecommunication experts. A question naturally arises: why are they
selling it to non-experts? I do not think this is particularly profitable.
They are selling this to people whom I would not trust with 20 kopecks. 
These are people with shady backgrounds.
[Venediktov] Okay, we will talk about the successful bidders later. 
They are doing business, buying in this case. If they want to buy shares
in Svyazinvest, why not?
[Dorenko] They have not paid their money yet, but they assure us they
are going to.
[Venediktov] We will talk about money as well. But you are saying
that there has been no reaction from the government. Why? There has been
reaction from the government. First Deputy Prime Minister Boris Nemtsov
announced today that the losers are staging hysterics on television.
[Dorenko] Have you ever seen that when you spray a cockroach with a
special irritant it starts running around like mad? Some people have
started running around, and thus revealed their involvement in all this. 
This means that Nemtsov is involved, otherwise he would not have been
running around like a cockroach. He looks fretful. In my program, I
revealed the scandal over the Cherepovets Azot plant which is not making
payments to Gazprom, but has paid 41 million [no currency as heard] to
offshore companies. Nice and easy, isn't it? Nemtsov should have said: 
hey, guys, you are robbing my industry! But he seems to be in cahoots with
them. Some people from Oneksimbank have said that they have video
recordings of Nemtsov in saunas in Luzhki, the recreation center for the
top Oneksim bosses. Perhaps there is some truth in it? They may have
shown these recordings to him, and he is now afraid. I do not know,
perhaps we should ask Boris Yefimovich Nemtsov: Borya, dear, why are you
fretting? [Venediktov] According to you, Sergey, there were two groups--I
am referring to the Svyazinvest story. There were two groups, two bids. 
One bid, the winning one, was from the International Financial
Company--well, it is obvious that Oneksimbank is involved there. The other
bid was from Alpha, Mostbank, Credit Suisse, and some other companies. The
third part is the government, you named them: Kokh, you named
Nemtsov--people in charge of the state property committee.
[Dorenko] I did not name Nemtsov, but I have just mentioned him. But I
did not mention him in the program. Okay, I will name him once again:
Nemtsov. Nemtsov looks fretful.
[Venediktov] I see. So that is what you think: you think that part of
the government is in conspiracy with one of the groups?
[Dorenko] Let me ask them. You can do without generalizations. One
man kills another one with a knife. You can say: the knife penetrates the
body. You can also say murder. I did not say conspiracy, but the whole
thing smacks of it.
[Venediktov] And this explains the reaction?
[Dorenko] I think so. I think so.
[Venediktov] When we start talking about major auctions, which, as
Prime Minister Chernomyrdin once observed, end in a row every single
time--do you remember him saying this at a meeting of the presidium? 
Alfred Kokh, chairman of the state property committee and deputy prime
minister, assured everyone that this auction would never end in a row
because everything was ever so clean there. And at the end of the day,
does it really matter which money--this 1,875 million [no currency as
heard] will go to our ruined, or half- ruined, or not ruined telephone
network and make it the greatest network of the world?
[Dorenko] Why not then take money from the Medellin cartel? There are
people trading in heroin and they do not know how they can launder their
money. Why not make a tattoo on our foreheads? Why does not Kokh make a
tattoo on his forehead: I want money from the Medellin cartel? If money
does not smell? I will do a tattoo for him myself if he asks me.
[Venediktov] One has the impression that you bear some personal grudge
against Kokh, Sergey.
[Dorenko] No, why against Kokh? He looks a bit fretful, which amuses
me.
[Venediktov] Why does this amuse you?
[Dorenko] Because people whose affairs are in order do not fret. You
see? Such people do not fuss, they do not put up a smokescreen. They react
calmly.
[Venediktov] Another question, quite a natural one. Behind Alfred
Kokh, behind Boris Nemtsov...
[Dorenko, interrupting] We have a second sequel, where Alfred Kokh is
talking about interesting tricks.
[Venediktov] What do you mean second sequel?
[Dorenko] We are continuing our story about the Cherepovets Azot
factory, because we said how Cherepovets Azot had sent $41 million to an
offshore zone, while not paying Nemtsov and Gazprom, while not paying to
the budget and Chubays--the factory is sending money off to an offshore
zone. And now we have a hilarious agreement--just imagine the story:
Cherepovets Azot, a factory, which is paying no one, with shortages, with
unhappy workers, wants to rent an office in Moscow. And for
consultation--if there is an office or not--do you know how much it
pays--just for consultation? Let us say I am asking you: Aleksey, tell me
please, can I rent an office here? About $3 million! I have a copy of this
document. They paid about $3 million for a consultation, and do you know
what kind of advice they were given? They were told: no, do not rent. Do
not rent at all. Can you imagine! You pay 3 million, and are simply told:
no, do not bother.
[Venediktov] I would like to return to my question. Are you certain
that the continuation of the program will be broadcast at its regular time
on 2 August?
[Dorenko] I cannot see any reasons why it should not. It has been
announced in all the published programs.
[Venediktov] And it is still going ahead?
[Dorenko] Yes, it is.
[Venediktov] Could you explain, then, why Boris Nemtsov describes you
and people associated with you as a defeated side?
[Dorenko] I have not played in these Svyazinvest games, so Yefimovich
[rude reference to Nemtsov, using just his patronymic] is wrong here. If
he believes that Russian Public Television has taken any part in it, then
he is wrong again. If he believes that our main shareholder--between me
and the Lord there is Kokh, he is not particularly transparent, so I cannot
see much behind him--Kokh, who has 51 percent of shares [he means the
Russian Government in general], has lost, then I would disagree. Kokh
looks happy enough. I do not know who has lost. What is he getting at
here?
[Venediktov] I think he means Deputy Secretary of Russian Security
Council Boris Berezovskiy.
[Dorenko] Was Berezovskiy involved there?
[Venediktov] Are you asking me?
[Dorenko] I simply do not know anything about this.
[Venediktov] No, he was not involved.
[Dorenko] Why all the fuss then?
[Venediktov] This is a good question, but then we should ask ourselves
another question: why is Russian First Deputy Prime Minister Chubays giving
a news conference today about this? Or at least is going to. A news
conference was announced by your great friend Alfred Kokh, but at the very
last minute they changed it and announced First Deputy Prime Minister
Anatoliy Chubays instead.
[Dorenko] You know, I have no idea what will be said there, all I can
say is that an anti-cockroach spray is already in the air, now we will see
who is going to start running around.
[Venediktov] We seem to have a case of some deliberate plotting here. 
It looks as if the government, or at least some part of it, people who have
been mentioned before, have chosen exclusive business partners for
themselves. I mean Oneksimbank above all. Oneksimbank has recently bought
the Komsomolskaya Pravda daily, Izvestiya daily...
[Dorenko, interrupting] Immediately after they had written about
Chubays. This may have been a pure coincidence, of course. Some flowers
blossom in summer, for example, purely by coincidence.
[Venediktov] And now they have bought Svyazinvest, Russia's
telecommunications monopoly. Can you see a deliberate policy behind all
this, or is this still too vague and unclear? [Dorenko] I will tell you the
following thing: while working in the government Potanin did not resolve a
single issue, not a single one, apart from pumping two-thirds of the budget
over to the Oneksim group. You know, this cannot be done just like that! 
The White House has a great number of offices, documents are staying in the
desk drawers. He could not have done this without assistance. Someone
must have helped him. There were two people, [former deputy head of State
Customs Committee Valeriy] Kruglikov and [former head of the tax service
Vladimir] Gusev, who were biding their time in Oneksim after they had been
expelled from the government. With Oneksim's help two posts of first
deputy heads of the tax service were created on the day Chernomyrdin was
going on leave. Chernomyrdin left on Friday and on Monday Gusev and
Kruglikov turned up as first deputy heads. Such things do not happen just
like that! No doubt, Potanin has some members of the Russian Government in
his pocket.
[Venediktov] It appears that only influential members of the
government can make such decisions?
[Dorenko] Naturally, it cannot be a cleaning lady!
[Venediktov] Nevertheless, from textbooks on social sciences we know
very well that merging financial capital with the state structure is called
financial oligarchy, and there is nothing new or unexpected about that. 
This has taken place, and is still taking place, in many countries. What
strikes you so strongly?
[Dorenko] It is decreasing, however. This was the case in Paraguay. 
Nothing strikes me very much. I simply know that these persons will bring
things to such a state that the people will take up an axe. They will whiz
out of the country in their jets while we, Aleksey, will be held
responsible. I like Aleksandr Livshits for his wisdom, and he said that
people should go shares. So share then! If you give the people 20 copecks
to buy an ice cream, do not think that is enough! If you offer them your
cigarette butt to finish off, it is not enough either! Stealing must have
its limits too. Steal--but leave at least something, goodness gracious!
[Venediktov] So what picture are we getting, Sergey? I am coming back
to this pattern. It seems that in the last two months, right under the
President's nose...
[Dorenko, interrupting] Yes, they are discrediting the entire system
and the President.-
[Venediktov] Wait please, Sergey. I will ask you a question. You like
to ask questions but now you have to give answers. So, if I understood you
correctly, an alliance of friendship, as it were, between Kokh and Potanin,
or Nemtsov, Potanin, and Kokh, for instance, emerged right under the
President's nose, the Prime Minister's nose, and Chubays's nose. Or are
some of the above noses already inside?
[Dorenko] They [the noses] certainly seem to be very much in sympathy
with one another. No, I do not know of anyone else. That is, I do know,
but out of professional competitiveness I will be the first to publish this
in my own program, Okay?
[Venediktov] [laughter] I remind you that our studio guest is Sergey
Dorenko. I should now like to raise another matter, Sergey. Today it was
reported that your correspondent in Belarus, Pavel Sheremet, has been moved
to solitary confinement at the Belarus KGB in Minsk, and that he is no
longer being regarded as a witness but as a suspect. He has not yet been
charged.
Now I am addressing you as an administrator, one of the administrators
of the first channel, of Russian Public Television. How do you view the
current situation with your film crew in Belarus?
[Dorenko] I consider that Sheremet is a hostage. I consider all the
crew to be hostages. I consider that the crew is being used for blackmail,
to exert pressure on Russia. And I consider that the Russian leadership
gave an inconceivable quantity of pretexts to Lukashenka to behave in the
way he behaves.
This is because we--our Foreign Ministry--did not respond to anything.
And when demonstration upon demonstration marched through Minsk, Primakov
and Lukashenka just smiled, and they kissed, they like kissing. Then the
same happened with Stupnikov [Aleksandr Stupnikov, Moscow NTV journalist
expelled from Belarus in March 1997]--the Foreign Ministry did not take a
stand. They took away our correspondent Sheremet's accreditation--and the
Foreign Ministry stayed silent.
Lukashenka even tried to humiliate our Prime Minister, saying, Viktor
Stepanovich, that is the way things are, you know? He was just presenting
his personal point of view, right? He blurted it out. [sentence as heard]
And the Foreign Ministry did not even intercede on behalf of its own
Prime Minister. We gave Lukashenka dozens of pretexts to humiliate us. 
And now he takes hostages--that is what things have come to.
[Venediktov] What does the leadership of Russian Public Television
intend to do, or at least what do you consider the management should do?
[Dorenko] I think that it is necessary to demand action from our own
authorities. There is no point in demanding anything of Lukashenka. You
cannot ask Lukashenka to become somebody else. He is Lukashenka, and you
can see this at first glance. So it is no good asking him.
So, we must call on our leadership to defend Russian companies abroad
and in Russia, to defend its citizens, to defend human rights in an allied
republic, which keeps wriggling out of the union, but, nevertheless, the
treaty is being signed. I think we must demand this only from our
authorities, not from Lukashenka.
[Venediktov] Sergey Dorenko is in our studio. And now the third
subject for today. I now finally turn to your favorite Cherepovets
Combine.
[Dorenko] Yes I do like the Cherepovets Combine.
[Venediktov] I understand. The point is, I think that many people did
not see this report, so will not know what this is all about, nor why that
strange entity, the Oneksimbank, features here again. [Dorenko] The
Cherepovets Combine was privatized, it was a normal polite procedure, a
scandal is not a mandatory component after all. The Interros company--from
Oneksim-- promised $1 billion, MFK promised $250 million and the First
National Banking Trust promised $100 million. It is a chain where a
billion will always win. Later this billion simply left the race, the $250
million left the race too and the $100 million won. The guys in
Cherepovets are all hot waiting for the $100 million to fall upon them. 
Well, they believed they would get the billion too. They are funny people,
with their local Cherepovets accent, you know! So they were waiting to get
the money. And two days before they were to get the money they were either
forced or simply acted in a funny way--they guaranteed 41 million [currency
not specified] which Oneksim gave to an offshore company with an office in
Latvia and yet another office on (?Nevis) island. Latvia did not return
the money--the financial department over there, though, is run by a woman
with a Russian name. And the 41 million... [pauses] it means that Oneksim
sends money abroad not to be returned. It is a way of taking money out of
the country. And it shows that Cherepovets has seemingly received
investments but [Oneksim] takes them away immediately to pay off
Cherepovets's debts to Latvians because they gave guarantees for Latvians
who they do not even know, incidentally, we asked the director and he said
he had no idea. So we have 41 million abroad and 41 million [currency not
specified throughout] presented as investment. And where is the money? On
an offshore account! Great, and the next operation involved $50 million
the following Saturday.
[Venediktov] I am coming back to Oneksim which looks like a devil with
horns and a tail who is hampering Russia's revival?
[Dorenko] No, it is simply irresponsibility, don't you see?
[Venediktov] No I do not.
[Dorenko] Because the workers know about this, Aleksey. They are
human beings, they should not be treated like cattle. They do know about
this. You cannot pull the wool over their eyes indefinitely.
[Venediktov] Sergey, I understand about the workers, but I am asking
you this because the case of Svyazinvest and that of the Cherepovets
Combine feature the same name--Oneksimbank. I have the feeling...-
[Dorenko, interrupting] ...the feeling that it is the way of all
crooks. So what can we do? That is how it is.
[Venediktov] Well, it is my last question perhaps. Clearly the story
of Oneksimbank and Svyazinvest, which is only at the beginning, and the
Cherepovets story which will be continued--they will have strictly
political repercussions too. I repeat the question which you have not
answered. From your point of view, why is the President silent if
everything is so well-known? Why is the Prime Minister silent; after all
some documents must have been submitted to him? Why has Chubays been
silent so far? Mr. Nemtsov and Mr. Kokh have already spoken out. Mr.
Potanin will speak out perhaps. Why are the state's top leaders keeping
silent. Does this mean that they are insiders in this situation?
[Dorenko] I do not know. Perhaps they are simply closing their eyes
to it. If you close your eyes to something then you pretend not to see it
or pretend that it does not exist. It is like children playing hide and
seek, you see, and someone is hiding. I do not know. I am waiting. I am
waiting. Perhaps they are, in fact, studying these documents. No, look
here, that might be going too far and I will tell you why. They are busy,
they are doing something else, they are reviving the homeland and pursuing
the new policy. They will now ask for the papers and these will have to be
analysed and examined. Everything has to be done in a measured fashion,
hasn't it?
The people splashed with the anti-cockroach spray have started jumping
around and it did not take long before that started to happen. I think
that the leadership will study the papers and everyone will be fine.
[Venediktov] The question has already been raised of removing you from
the "Vremya" program. I can remind you that this question was raised for
the first time this year after the business with the former minister of
justice, Valentin Kovalev, and it is quite possible that it will be raised
again after the report you carried on Saturday and after the reaction of
First Deputy Prime Minister Nemtsov. The state, as we recall, holds 51
percent of the shares in your corporation. Are you ready for this?
[Dorenko] I am. I am ready to go. I have left before because people
looked at me sideways and if there is real pressure then I will leave
immediately. My position is a simple one, Aleksey. This is something that
has to be burned out with a red-hot iron, do you see? This is filth and it
disgusts me. But it ought not to exist and I will continue burning it out
with the red-hot iron. Quite simply, this is the job we do.
[Venediktov] Let me remind you that Sergey Dorenko, the anchorman of
the "Vremya," the Saturday edition of "Vremya," and the first deputy
producer of the news program management of the Russian Public Television
channel was live on Ekho Moskvy Radio.

*********

Ballot Rigging Claimed in Irkutsk Oblast 

Sovetskaya Rossiya 
July 29, 1997
[translation for personal use only]
Report by Zhanna Kasyanenko: "Not Protected From Forgery"

According to preliminary figures, at the gubernatorial elections in
Irkutsk Oblast 50.5 percent of the votes were cast for the city's mayor,
Boris Govorin, and 18.5 percent for Sergey Levchenko, a Communist and
director of the "Stalkonstruktsiya" association. In third place was State
Duma Deputy Viktor Mashinskiy. Ivan Shchadov, deputy general director of
"Vostsibugol," who played the patriotic card at these elections, received
just 7 percent of the votes, however. Observers note that in terms of the
amount of money put into his election campaign Shchadov was only slightly
behind the representative of the authorities, Govorin. General Lebed,
whose role in the country's political life today seems to be reduced to
such command performances for a particular candidate, was also working for
him in the oblast. But today the people cannot be seduced with fine
leaflets, touring players, and other highly expensive tricks even if people
beat their breasts and take an oath of the most "thorough- going
patriotism."
But there are things which although incomprehensible at first glance
are natural. If we recall several of the gubernatorial elections which
have already taken place at which the candidates of the authorities have
won a victory over the representatives of the people's patriotic forces
then we can see the following picture: stability and a certain pattern in
the preponderance of votes. In Rostov Oblast, for instance, it was as
though the figure 30 had been set. In the oblast in virtually all cities
and villages, even those known as "historically red," the head of the
acting administration, Chub, invariably collected 30 percent more votes
than the Communist Ivanchenko. In Leningrad a tactical error was evidently
committed in setting up the electronic voting machines recording votes at
the moment the ballot slip is dropped in. And you recall that to
everyone's surprise a man whom the Kremlin did not like at the time won
there: That in the thoroughly "democratic" Leningrad! In Nizhniy Novgorod
Oblast the immutable figure at the elections was 10 percent. And now we
have Irkutsk.
Aleksandr Ivanovich Saliy, a State Duma deputy and member of the
Russian Federation State Duma legislation committee, was present at the
elections in the oblast. He readily resolved our doubts about the strange
uniformity of the election results:
"I will not talk about how the election campaign in Irkutsk was the
dirtiest of all that I have observed. Today it is not the emotional but
the technical aspect of the matter which should concern legislators and all
those who are interested in the observance of voters' rights and of the
laws in general. In my view an electronic method of correction, that is of
falsification, of the election results, which has already been tested
repeatedly, was used in Irkutsk. This method was brought here, as it was
to Russia in general, by the Americans. There were 15 of these
'technicians' at the elections in Irkutsk Oblast. "What is the thrust of
this technology? There is a computer program which on the basis of the most
objective sociological polls and full information about the number of
voters, their social background, age, and so forth, provides absolutely
precise recommendations as to where attention should be directed during the
campaign, how many extra votes must go to the candidate on whom one is
counting. That is the main thing. Each electoral commission formed, as is
the case everywhere, from workers in the administrations and the services
subordinate to them, receives a ready-made formula which says that, for
instance, at such and such a polling place 100 ballot slips must be taken
from the seven other candidates in favor of the main one in order to
receive the percentage points necessary for victory. For instance, for an
advantage of 30 percent 150 ballot slips must be taken away from each
candidate while for an advantage of 10 percent correspondingly fewer votes
must be taken away. The actual process of taking votes from one candidate
and transferring them to another presents no particular difficulty today. 
The system of counting votes 'wholesale' and 'secretly' whereby each teller
knows only his own number and considers only "his own" candidate and the
ballot slips removed from the urn are not declared aloud or recorded on a
board at the first count, makes it possible easily to remove a set number
of votes and just as easily to add on votes. Especially as they are
printed on paper of the most common sort with no protection against forgery
and it is simple to produce copies at any printing plant. When the
commission is staffed by 'like-minded people' or rather by collaborators
who know in advance how many votes must be collected and how many thrown
away, not a single observer will detect the forgery.
"The results of the elections in Irkutsk Oblast force me to speak of
the great likelihood of this mechanical approach toward vote counting. 
Back on Friday, a day before the elections, independent sociological
studies gave the following popularity rating for the main candidates: 23
percent of voters were for Levchenko, 19 percent were for Govorin. But on
Sunday all four rayons of Irkutsk City voted with a precision to within
hundredths of a percent giving Govorin an advantage of 30 percent. 
Obviously the main gamble was on the 'New Russian' and 'democratic'
Irkutsk: After all, the oblast's population is living considerably worse
than the oblast center and in order to anticipate the possible
preponderance of votes in outlying areas, the 'programmed' figure of
slightly over 30 percent was laid down in the city. It is surprising that
the results of the voting in all four rayons of the city -- the wealthy
center, the working districts, the scientific district -- coincided.... 
Any sociologist will tell you that simply does not happen in real life.
"So our task today is to notify everyone of the thrust of this
technology and to erect a barrier on its path in the form of a new law on
basic guarantees for citizens' electoral rights. The law has already been
worked out with a consideration for the new realities and will be examined
by the Duma in the first days of its work."
Aleksandr Ivanovich said that we must not, of course, discount the
election campaigning methods which violated all conceivable and
inconceivable boundaries. For instance, on Sunday, election day, aircraft
and helicopters loitered at low altitude above Bratsk and Irkutsk and from
them through very powerful loudspeakers persistent appeals were made to the
people to vote for Govorin. And some people were thinking: But what if
suddenly instead of issuing appeals they open fire? After all in our
'democratic' state you can expect anything!
A subsidiary of the shameful newspaper Ne Day Bog [god forbid] was
published, wholly devoted to five-year-old libel against Levchenko. Libel,
incidentally, which he has already proven to be libel and which has been
refuted in court. In this connection I recalled my own work on a special
issue of Sovetskaya Rossiya for Irkutsk Oblast and how at the time at
Levchenko's request we decided not to publish the vast amount of
compromising material which we had against his rivals. Sergey Georgiyevich
[Levchenko] said that all the candidates had concluded a "gentlemen's
agreement" not to sling mud at each other and to fight without "a war of
compromising material." Alas, apart from Levchenko himself, no one kept to
this condition. And it was he, the noblest of them all, the one who knew
how to keep his word, who more than anyone was on the receiving end of the
kind of thing you could not imagine in your wildest dreams. Of course a
clear conscience is an unknown concept to Russian politicians today but for
Levchenko it is far more important than the election results. And so when
I talked with him on the telephone the next day, Monday, he was calm,
self-assured, and resolute:
"They say victors are not put on trial? They should not hope for it! 
They will stand trial. For every word of libel. Whatever the rank of the
libelers. And here I will see it through to the end. Yes, I kept my word,
as a real man should. But now, on the same principle, let them not count
on mercy. They will be answerable to the law for everything."
And our headquarters still has a lot to do, Sergey Georgiyevich
continued. In the fall there is the election of the governor of Irkutsk. 
We are starting to prepare....

*********

Moves in Caucasus, Trancaucasus Conflicts Viewed 

Trud
July 29, 1997
[translation for personal use only]
Report by Vladimir Yanchenkov under the "Storm Clouds Over the
Caucasus" rubric: "Enough of Reason and Restraint?"

The new intensification of the situation in the zone of the
Ossetian-Ingush conflict has not yet moved the federal authorities to take
decisive and immediate action. Once again the issue is up in the air, as
it were. As is known, the Security Council has rejected Ingushetia
President Ruslan Aushev's demand for presidential rule to be introduced in
Prigorodnyy Rayon, and there has not yet been a decision on the part of
Boris Yeltsin, who has the final say on this set of problems.
Ivan Rybkin, secretary of the Russian Federation Security Council, and
Vyacheslav Mikhaylov, minister for nationalities affairs and federal
relations, visited North Ossetia's Prigorodnyy Rayon last Friday. It is
proposed that Mikhaylov will be entrusted with the duties of the federal
power's representative in the conflict zone.
Vyacheslav Mikhaylov is known as a quite experienced politician, who
in recent years has participated repeatedly in the settlement of regional
conflicts.
But will the new appointment overcome the deadlock in the problem of
pacification and of returning the refugees and displaced persons? In Ruslan
Aushev's opinion, it will not change the situation in the conflict zone. 
The Ingushetia president believes that Mikhaylov "must ex officio tackle
the resolution of this problem. Someone else is needed here, someone
endowed with broad powers and having direct access to the Russian
Federation Government and the president."
Ruslan Aushev has advanced a new proposal while a stand on resolving
the Ingush-Ossetian conflict is being worked out in Russian Government
circles. He conveyed to Ivan Rybkin his view on the expediency of sending
into the conflict zone a peacekeeping force consisting of Russian
Federation MVD [Ministry of Internal Affairs] subunits stationed in the
North Caucasus.
Meanwhile a session of the founding forum of Chechnya's sociopolitical
parties and movements was held in Groznyy last Saturday. It was convened
by the "Islamic Order" union of political forces, whose leader is Movladi
Udugov, first vice premier of the republic. Addressing the forum, Udugov
declared that "Chechnya's enemies" have supposedly drawn up a plan under
which the conflict in Chechnya must continue to "smolder...." According to
him, "the incidents in North Ossetia, Ingushetia, and Dagestan are being
provoked for the purpose of making these republics quarrel with Chechnya."
The intensity of political problems in the Transcaucasus is not easing
either. The Geneva round of the Georgian-Abkhazian talks on settling the
conflict in Abkhazia ended virtually without a result. Foreign Minister
Irakli Menagharashvili, leader of the Georgian delegation, declared that
"it was not possible to make any progress because of the Abkhazian side's
unconstructive position."
Abkhazian President Vladislav Ardzinba in turn accused pro- Georgian
forces of "putting on a show." He came out resolutely against attempts by
representatives of the countries united in the so-called "Friends of
Georgia" group (the United States, Germany, France, and Britain) to
participate in the talks despite the Abkhazian delegation's objections. In
Ardzinba's opinion, there has not been a precedent in world practice
whereby a group of states which publicly proclaims itself to be a supporter
of one of the sides in a conflict has acted as an "intermediary." In this
situation Abkhazia's leader does not rule out the possibility that he might
ask his "brothers in the North Caucasus" and the friendly peoples of
certain CIS countries to set up a "Friends of Abkhazia" organization.
Meanwhile, the question of the Russian peacekeeping force's continued
presence in Abkhazia remains open. A joint session of the Security Council
and of the leadership of the country's parliament was held behind closed
doors last Saturday under the chairmanship of Georgian President Eduard
Shevardnadze. It has been learned from reliable sources that no specific
decision was adopted. But the majority of the session participants tended
toward an extension of the Russian peacekeeping force's mandate, which
expires 31 July.

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