RUSCO up 16

Doug Henwood dhenwood at panix.com
Thu May 20 15:33:44 PDT 1999


EastWest Institute

Russian Regional Report

Vol. 4, No. 19, 20 May 1999

Russian Cohesion Index: -26 (up 16 this week)

Disintegration............L....T............0..............Democratic Federalism

(T = this week; L = last week; 0 = 17 March)

*****See the RRR website (http://www.iews.org/rrrabout.nsf) for a graphic

display of the Russian Cohesion Index since 17 March.*****

+++++ Yeltsin and the State Duma resolved their differences peacefully, avoiding a destabilizing impeachment process and quickly confirming Prime Minister-designate Sergei Stepashin. This temporary peace is the best plausible resolution for the crisis brewing last week and paves the way for calm elections. (+20)

+++++ Stepashin made clear that he would try to work with the legislature, including all members of the Federation Council. It is too early to tell how well they will work together, but it seems like a promising start. (+1)

+++++ Some factories, like the Perm Cellulose and Paper Combine, are benefiting from increased domestic production and the need for more packing materials on the local market. Factory managers are taking advantage of the additional revenue to improve product quality. (+1)

----- Rising gasoline prices in places like Yekaterinburg are leading to stockpiling and fears of higher costs for all products. This could be the beginning of a new trend as oil producers shift more production to export markets to take advantage of higher prices. (-3)

----- Vladivostok failed in its 16th attempt to elect a city council. Once again bad politicians prevent this region from achieving its vast economic potential and hinder democratic development. (-2)

----- Unexplained irregularities may deligitimize the elections in Karachaevo-Cherkesiya, leading to more violence. The situation in the entire North Caucasus region continues to deteriorate. (-1)



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