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Gold/Mining/Energy : Gold Price Monitor
GDXJ 90.47+0.5%Nov 6 4:00 PM EST

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To: goldsnow who wrote (21431)10/12/1998 1:46:00 PM
From: Alex  Read Replies (3) of 116752
 
NEW SPECULATION ABOUT YELTSIN'S HEALTH...
Yeltsin appeared fatigued upon his arrival in Tashkent on 11 October (see below). He was described as "pale and unsteady" by Russian media, and Uzbek President Islam Karimov reportedly helped support Yeltsin as the two were reviewing the Uzbek presidential guard. Russian presidential spokesman Dmitrii Yakushkin said Yeltsin was suffering from a cold and was coughing after "a rough [three-and- a-half-hour] flight" from Moscow. Shortly after Yeltsin's arrival in Kazakhstan on 12 October, it was announced the president is cutting short his visit to that country by one day. BP

...AS CALLS FOR RESIGNATION MULTIPLY
According to Ekho Moskvy, Russian television stations did not show Karimov assisting Yeltsin as they walked. However, NTV carried coverage of Yeltsin's health, commenting on the dramatic narrowing of his base of support and questioning whether he will be "allowed" to remain in office another two years. "Nezavisimaya gazeta" declared that the issue of Yeltsin's resignation has become a key question of Russian political life. While earlier that subject was discussed only by the opposition, "the taboo has finally been lifted." The newspaper concluded that the opposition, "having gained support from the street and from regional elections," needs only "to come to an understanding with the remnants of the oligarchs." Together, they may arrange for some special agreement to be signed between the executive and legislative that would severely limit Yeltsin's powers for the duration of his term. NTV is owned by Vladimir Guzinskii's Media-Most holding company, and "Nezavisimaya gazeta" receives financial support from Boris Berezovskii's LogoVAZ group. JAC

RUSSIA ASKS EU FOR HUMANITARIAN AID
As the Russian delegation to the IMF/World Bank talks returned to Moscow having received only a promise to conduct more negotiations, Prime Minister Yevgenii Primakov concluded talks on 9 October with European Commission Chairman Jacques Santer without any pledge of new loans. Santer told journalists that new loans were not discussed because Russia needs to draft its economic plan without "any outside interference." Reuters reported that Primakov asked Santer for food aid to be provided on a humanitarian basis and that Santer is examining the proposal. According to Interfax on 10 October, U.S. Secretary of Agriculture Dan Glickman said that the U.S. will resume exports of grain and meat to Russia, despite an unpaid debt of $50 million, and begin extending humanitarian assistance. JAC

RUSSIA CONTINUES TO WARN NATO
Russian policymakers continue to voice fears about a second Cold War in connection with possible NATO air strikes against Yugoslavia (see "RFE/RL Newsline," 9 October 1998). Foreign Minister Igor Ivanov told Russian Public Television on 11 October that "by taking one reckless step" in Kosova, "we may destroy irrevocably everything we have been building with great effort for the last few decades." However, Ivanov ruled out the possibility of a "forcible reply" from Russia. The previous day, NTV reported that Defense Ministry representatives announced they will resume weapons sales to Yugoslavia in the event of a NATO attack. The newscast concluded that "we should not discount the possibility that as soon as a bomb falls on Yugoslavia, the Serbs will receive anti-aircraft missiles from Russia on credit. These will most likely be modern S-300 [air defense] missiles." JAC

ECONOMIC PLAN TO EVOLVE PIECEMEAL?
State Duma Budget Committee head Aleksandr Zhukov told Ekho Moskvy on 9 October that the emergency budget for the fourth quarter does not need to be approved by the Duma. The previous day, Vadim Gustov, first deputy prime minister, told reporters that the government will submit its draft budget by the 14 or 15 October. "Kommersant- Daily" published one draft version, which envisioned a budget deficit of 103.3 billion rubles ($6.5 billion) in the worst case and 34.4 billion rubles in the best. Finance Minister Mikhail Zadornov told Russian Television on 11 October that the nation's economic problems are so complex that the government is having difficulties drawing up a comprehensive program to tackle them. He admitted that a long-term program may require three months to complete. JAC

COAL STRIKE ENDS
Coal miners in the city of Vorkuta ended a three-month long strike on 11 October, according to Interfax. Miners at the Vorgashorskaya mine resumed shipping coal to their customers, after 44 million rubles ($2.8 billion) in back wages were transferred and ownership of the mine changed hands. The Primakov government has made the payment of back wages a centerpiece of its economic policies. A spokesman for the Communist Party's Moscow City Committee told Interfax that miners who had been picketing a government building in Moscow had left the city because the police had forcibly removed them and dropped them off at a railway station. JAC

US-RUSSIA STEEL BATTLE BREWING
U.S. steel companies petitioned the U.S. Commerce Department and U.S. International Trade Commission to impose duties on steel from Russia, Russian Television reported on 10 October. According to the television station, the nation's metal exports are its "last hope" because of the decline of world oil and gas prices. ITAR-TASS reported that Russian steel exporters could face an increase in tariffs of up to 200 percent. Mikhail Tarasenko, head of the Russian Metallurgical Union told reporters on 9 October that the U.S. does not have grounds to impose anti-dumping tariffs on the import of Russian metals since the prices on exported metals are higher than on the Russian domestic market. The "Moscow Times" reported on 7 October that Russian steel sells for about $263 per ton, compared with the U.S. price, which dropped from $480 per ton last year to $320 in July. JAC

CHUBAIS TO RETURN?
A last-minute meeting between Prime Minister Yevgenii Primakov and Anatolii Chubais, former presidential envoy to international financial institutions, unleashed speculation in the Russian press on 8 October that Chubais will be invited to return to the government. The press went on to comment that the Russian government delegation that conducted talks with the IMF and World Bank must have failed miserably (see "RFE/RL Newsline," 8 and 9 October 1998). "Kommersant-Daily" proposed on 10 October that Primakov will wait to invite Chubais until a default on the foreign debt appears inevitable, thus eroding likely Duma opposition. After his meeting with Primakov, Chubais denied that he has been offered a political post. JAC

VOTERS SELECT MAYORS
Yurii Lebedev, former presidential representative to Nizhnii Novgorod, and Alexander Korobeinikov, incumbent chairman of the Lipetsk City Council, have been declared winners of mayoral elections in their respective cities, according to preliminary results of mayoral elections held on 11 October throughout Russia. ITAR-TASS reported the next day that elections in Kaliningrad and Sovetsk attracted the requisite minimum number of voters and were declared valid. Yurii Savenko, acting city administration head and Anatolii Khlopetskii, director-general of the Transrailwest Company, will compete in run-off election in Kaliningrad, while Vyacheslav Svetlov, deputy chairman of the city council, and Nikolai Nikolaev, director of the Sandorgaz Company, will compete in Sovetsk. A second round will be held in those cities on 25 October. JAC

CHURCH ELICITS POLITICIANS' PROMISE
Patriarch Aleksii II of Moscow and All Russia hosted a forum for top Russian politicians on 9 October at which they pledged to start working together to ease the nation's economic crisis. According to Interfax, forum participants included State Duma chairman Gennadii Seleznev, Federation Council chairman Yegor Stroev, First Deputy Prime Minister Vadim Gustov, Moscow Mayor Yurii Luzhkov, armed forces chief of staff Colonel-General Anatolii Kvashnin, a number of regional governors including Kemerovo head Aman Tuleev, and Duma faction leaders such as Communist Party head Gennadii Zyuganov. JAC

12-10-98

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