WHAT THE RUSSIAN PAPERS SAY

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MOSCOW, September 10 (RIA Novosti)

NOVIYE IZVESTIA

Beslan Funeral Repasts Coincide With New York Tragedy Anniversary

Over the last three years, the residents of New York, Madrid, Moscow and Beslan have realised how vulnerable they are. This realisation came unexpectedly and left a lasting impression. Tragedy has brought us closer together. Individuals who sympathetically watch TV reports about terrorist attacks today may become the victims on TV tomorrow. This transformation happens in an instant.

At a time when all terrorists seem to be intent on their own deaths, too, and little known "Brigades" and "Armies" rush on the Internet to claim responsibility for hostage taking crises and murders, the enemy must be visible.

The rally of millions of Spaniards in the wake of the terrorist bombings in Madrid when the authorities were deciding who was responsible for the death of 200 train passengers - Islamic radicals or separatists - was probably the most successful anti-terrorist operation.

Fewer people take to the streets in Russia, however. The newspaper suggests that Russians have probably grown tired of terrorist blasts and have to economise their strength to survive. People in Rome demonstrate instead of Russians.

It does not matter who will be the first to put an end to the orgy of terrorism and fear that accompanies it - the authorities or society. It is important that people in New York, Beslan and other cities whom the tragedies have brought closer together should be willing to recognise each other in the period of peace that will ensue.

KOMMERSANT

President Putin Appoints Kvashnin as Siberian Envoy

President Vladimir Putin appointed Anatoly Kvashnin, ex-chief of the General Staff, as his envoy to the Siberian Federal District yesterday, simultaneously discharging him from the army. The replacement of ex-diplomat Leonid Drachevsky, who had not distinguished himself as envoy, with the general falls into line with the effort to "mobilise the nation" to counter "the intervention of international terrorism" and create " new anti-crisis system of administration", which the president declared in the wake of the Beslan tragedy.

The new envoy is expected to focus on efforts to prevent terrorist acts. Local governors are not really afraid that Mr Kvashnin will interfere in local political and economic affairs. It will take at least a year for General Kvashnin to study the situation in the district and make an in-depth analysis of the socio-economic problems facing it, according to the newspaper's sources in a Siberian region's administration.

VEDOMOSTI

Toyota Confirms Plans To Build Car Plant In Russia

Toyota will adopt a final decision on whether or not to build a plant in Russia when sales in the country exceed 50,000 cars a year, which is the company's usual approach. The corporation is gradually approaching the figure. Over 21,000 Toyota cars, including Lexus models, were sold in Russia in the first 6 months of this year.

Hiroshi Okudo, chairman of Toyota's Board of Directors, made a public statement yesterday for the first time confirming the company's preparations for building a plant in Russia. "Russia is the only large country where Toyota has no production facility so far. We should therefore take more intensive efforts in this direction," said Mr Okudo. The company has not yet adopted a final decision, but has begun looking for a site.

Experts approve of the Japanese carmaker's intention. Indeed, foreign car making companies whose sales in Russia are far less impressive than Toyota's have already opened facilities in this country. Even competitors admit that Toyota's appearance on the Russian market will be very timely. "The Russian market is developing briskly. More than a million cars are sold here every year. As few as six other countries can boast this figure," said Pavel Leshakov, press secretary of Avtotor, a company that assembles some Kia, BMW, Land Rover and GM models. "The Japanese should hurry up or they will be too late," he said.

An official from Russia's AvtoVAZ car manufacturer believes the opening of a Toyota plant in Russia will be good news for the country's automobile industry as many foreign spare parts producers will appear on the Russian market following Toyota's lead.

IZVESTIA

Politicians and Experts Comment on President Lukashenko's Possible Re-Election

Valery Khomyakov, director general of the Council for National Strategy: Unfortunately, Belarussian society will be positive about prolonging Lukashenko's political life. It is unfortunate because there are no serious opposition leaders in Belarus, and because Lukashenko has been manipulating integration sentiments for ten years, backing off every time when it came to the crunch. Therefore, the Russian authorities should force Lukashenko to make some steps toward rapprochement with Russia.

Boris Nemtsov, former co-chairman of the SPS (Union of Right Forces): If Lukashenko is re-elected, further developments will be as follows. Opposition politicians will be banned from participating in elections, and newspapers will be closed. Lukashenko is hopeful that the Russian authorities are busy with other things now. According to Mr Nemtsov, Vladimir Putin indirectly opposed Lukashenko's candidacy when he said that, as a guarantor of the Constitution, he was against constitutional amendments.

Stanislav Shushkevich, former Belarussian leader: Now people will hardly protest against Lukashenko's candidacy. Although, according to some estimates, merely 25% of the population are ready to vote for him, he could not have chosen a better moment for holding the referendum - at a time when terrorist attacks are taking place all around the world, everything is calm in Belarus. He is fully aware that the administrative resource is as large as ever, and it will not be difficult to rig the referendum.

Vremya Novostei

Russia Promotes MiG to the Chilean Market

Chilean Defence Minister Michelle Bachelet arrived in Russia for a three-day visit yesterday. Before meeting Sergei Ivanov, she visited the Mikoyan Design Centre of the Russian Aircraft Building Corporation, MiG. Valery Toryanin, the head of the corporation, told the Chilean guest that the MiG-29 was originally designed as a fighter for conquering the skies, but now it is a multi-purpose aircraft.

Although the aircraft has not changed on the outside in 20 years, everything has been transfigured completely inside. Besides the radar, the aircraft is fitted out with the optical guidance system allowing it to hit targets despite strong radio interference. The MiG-29 is armed with six air-to-air missiles, four air-to-surface missiles, and missiles that can penetrate 1.5m-thick concrete covers. The optical guidance system, including a laser distance-measuring instrument, means the pilot does not have to target. The MiG-29 is unique because it "forgives" many pilot mistakes. It is the only one among light fighters in the world where a pilot is not restricted in terms of firing.

Sergei Chumachenko, acting marketing director of the corporation, believes that the ten F-16 US aircraft are not enough to renew the Chilean aircraft fleet. Plus, outdated F-5 aircraft need be replaced in 2006 with at least 20 new aircraft. Chile has also indicated its plans to diversify its fleet and not to focus on US aircraft purchases alone.

KOMMERSANT

Russians Bought Record Levels of Currency in July

Yesterday, the Central Bank published updated information about cash currency circulation. The mass sales of rubles that were conspicuous in April-June acquired a threatening scale in July.

According to the Central Bank, the population bought $6.9 billion within a month, setting an absolute record.

The balance of individual currency operations reached $3.1 billion, which is 1.8 times more than in the previous month. It also became a record high figure in December 1997 when the balance of currency operations reached $3.5 billion. This July, the level of imported currency hit $3.4 billion, which was the highest figure since December 1997 when $4.5 billion were imported. At the time, the world was in the midst of the Asian financial crisis, and Russia was actively bracing itself for the events of 1998.

July was the consecutive fifth month when increasing net currency imports were registered. Already in June - the first time since 1998 - the balance of individual currency operations exceeded $1.2 billion.

The Central Bank puts this down to the increasing demand for seasonal tourist needs and "intensive discussions of Russian banking problems in the press." Analysts note that some ruble deposits were withdrawn and converted into cash dollars.

The purchase of cash dollars negatively affects the banking system and hits many macro-economic indices hard. For example, in August, consumer prices grew by 0.4% as compared to the deflation of the previous year. Worse still, "the decrease in ruble assets spurs capital outflow, raises imports and spoils the quality of economic growth due to decreased investment activity," said Yevgeny Gavrilenkov, economist at the Troika-Dialog investment company.

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