Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (14101)	7/4/1998 1:28:00 PM
From: goldsnow	Respond to of 116764

Russia Arms Sales Earn Needed Cash LESLIE SHEPHERD Associated Press Writer MOSCOW (AP) - Undeterred by protests and possible sanctions, Russia is barreling ahead with arms sales and nuclear projects in some of the world's most volatile regions, earning badly needed cash but straining relations with the United States. Russia has been accused recently of providing missile technology to India, Iran and Iraq. It's selling an anti-aircraft missile system to Cyprus and fighter planes to China and is building a nuclear power plant in Iran. The United States and Israel, the most vocal critics of Russia's increasingly aggressive sales, fear the arms will fuel tensions in already jittery regions - even though Washington supplies weapons to other nations in some of the same areas. One big worry is that Iran may use Russian nuclear power plant technology to advance its suspected atomic weapons program. Those fears took on new urgency when Pakistan and India, longtime rivals in the same region, joined the nuclear arms club. Russia also has spoken out against arms proliferation - including nuclear ones. But at the same time, Moscow is attracted to the money and the opportunity to regain some of the influence the Soviet Union wielded as a superpower. ''First of all, it's money,'' said military analyst Pavel Felgenhauer, who writes for the respected newspaper Segodnya. ''Second of all, it's money, and third of all, also money.'' Weapons bring big dollars into Russia's empty coffers and jobs to depressed regions that are just as dependent on the military industry today as they were in the Soviet era. ''This creates a lot of political pressure to sell to anyone,'' Felgenhauer said. This year Russia expects to export $3.5 billion worth of weapons to 58 countries, an increase of $1 billion over 1997, according to the state arms trading company, Rosvooruzheniye. It hopes to export at least $5 billion annually by 2000, and possibly more. Russia says it is doing nothing wrong. And many Russians see a double-standard in Washington's protests. The Russians note the United States sells weapons to countries in potential hot spots, including Israel, Taiwan, Greece and Turkey. ''If America can sell to everyone, why can't we sell to everyone?'' asked Felgenhauer. Russia has denied some of the recent reported arms deals, including U.S. claims it was helping India build a sea-launched ballistic missile capable of carrying a nuclear warhead deep into Pakistan. It said other arms sold were for defensive purposes, such as the $200 million anti-aircraft missile system for the Greek portion of the divided island of Cyprus. Nuclear projects like the power plant under construction in Iran are said to be for purely peaceful purposes. However, Russia acknowledges Iran has tried to obtain technology for long-range missiles. Moscow says all the efforts were rebuffed, but the U.S. Senate recently voted to impose sanctions on Russia for allegedly sharing missile technology with Iran. A Russian think tank, PIR-Center for Policy Studies, said recently that 800 Russian gyroscopes used to guide missiles to their targets were intercepted in 1995 en route to Iraq, in violation of U.N. sanctions. Russia initially denied involvement, but later said the equipment was exported without government permission, raising questions about how much control the Kremlin has over the arms and nuclear stockpile inherited from the Soviet Union. Protests from Washington have had some effect. President Boris Yeltsin said he has cracked down on the export of ''dual-use'' technology that can be used for both military and civilian purposes. The Russian security service has distributed a list of foreign companies that may be trying to help other nations develop nuclear arms. ''It's good to hear these intentions being articulated,'' said Alistair Millar at the British American Information Council, a Washington think tank that concentrates on arms issues. ''However, one has to look at this realistically and question whether (Yeltsin) really has effective control to actually make the changes he recommends, so one should always take this with an optimistic pinch of salt.'' Millar said the West would have more clout if it weren't creeping toward Russia's borders by expanding NATO. ''(The Russians) don't feel as constrained as they perhaps would have done if they weren't facing the prospect of a military alliance moving onto their borders,'' he said. dailynews.yahoo.com

To: goldsnow who wrote (14101)	7/4/1998 1:33:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116764

Russia Privatizing Runs Into Trouble MOSCOW (AP) -- The largest planned privatization in Russia's history ran into more trouble Friday when Royal Dutch-Shell said it was no longer interested in buying the state-controlled oil company, NK Rosneft. Analysts say the cash-strapped Russian government has few other likely bidders for 75 percent of Rosneft, the country's fifth-largest oil company, and may have to further slash the asking price or cancel the sale. The government already canceled one attempt to sell Rosneft this spring, when bidders said the $2.1 billion asking price was too high. It lowered the price to $1.6 billion in early June, but the Russian stock market has fallen 25 percent since then. ''It is enough to give anyone second thoughts about whether they should participate in this,'' said Per Mellstrom, head of research at Brunswick Warburg brokerage in Moscow. ''I think the consequences of this may be that the price will have to be cut further.'' Shell had been expected to bid for Rosneft with two Russian companies -- natural gas monopoly RAO Gazprom and oil giant AO Lukoil. The government opened bidding last week, and planned to close it July 16. Neither Gazprom nor Lukoil appear to have the cash to proceed on its own. Gazprom chief executive Rem Vyakhirev said last month that his company's participation depended on Shell's actions. Shell blamed the depressed outlook for oil prices, which it said ''does not justify a bid under current conditions.'' Shell also cited the present difficult financial circumstances in Russia, which it said would require Shell to finance a major part of the bid. A consortium led by British Petroleum Co (NYSE:BP - news). PLC had earlier indicated interest in bidding for Rosneft in conjunction with Sidanco, Russia's fourth-largest oil producer. BP refused to comment on its plans Friday. biz.yahoo.com