LOCAL NEWS

2 NATIONS CLAIM WAR HERO

The life of a man whose achievements in battle and at making peace are claimed by both Russia and Finland, even though he fought against the Soviet Union, will be celebrated in the city of his youth on Tuesday.

The 600 exhibits of the Finnish exhibition that opens on Tuesday in the State Hermitage Museum will tell the city more about Finland's national hero Carl Gustav Mannerheim, who last year, more than 50 years after his death, topped a poll of Finland's greatest personalities.

CITY TOBACCO FIRM JTI HIT WITH $85M BACKDATED TAX BILL

A leading St. Petersburg employer and taxpayer and the largest Japanese investor in Russia, Japan Tobacco International, is under investigation by the federal police for alleged tax debts totaling about $85 million dating back to 2000.

REPORT: DARKIN SEEKS PUTIN'S NOD

MOSCOW - Primorye Governor Sergei Darkin has reportedly become the first regional leader to ask President Vladimir Putin for his endorsement, and he might resign if he does not get it.

Following a provision in the law that eliminated gubernatorial elections and went into effect Jan.

IN BRIEF

Square for Sobchak

ST. PETERSBURG (SPT) - A square named after former St. Petersburg mayor Anatoly Sobchak will appear in the city soon, Interfax reported Thursday quoting Legislative Assembly deputy Alexei Kovalyov, head of the city's naming commission.

NATIONAL NEWS

CHERNOBYL HUNGER STRIKE IN 3RD WEEK

A group of 10 men who took part in the clean up of the 1986 Chernobyl nuclear accident and who have been on hunger strike in Sestroretsk for the last 13 days were joined by a fellow "liquidator" from Saratov on Sunday.

The group are demanding higher compensation for the damage they suffered to their health from the radiation.

TOW-AWAY FIRMS BUSY

With City Hall about to hold a tender next month for a single contractor to handle removals of illegally parked cars in the city, contractors hoping to be chosen have been busy removing such cars.

IN BRIEF

Second Nenets Round

NARYAN-MAR (SPT) - The last gubernatorial elections in Russia held in the Nenets region north of Arkhangelsk on Sunday failed to produce an outright winner and a second round will be held Feb. 6, Interfax reported Monday.

Alexander Barinov, the federal inspector in the region won 22.

LOCAL BUSINESS

CHUBAIS BLASTS STATE FOR CLIMATE OF FEAR

MOSCOW - Unified Energy Systems CEO Anatoly Chubais lashed out at Prime Minister Mikhail Fradkov's government last week for not addressing what he called the worst crisis of confidence for businesses "in 15 years."

Aggressive tax probes and a lack of predictability by officials has created "tensions" that must be alleviated for businesses to continue to develop, Interfax quoted Chubais as saying at the Council on Competitiveness and Entrepreneurship's first meeting of the year.

The council, whose members include Cabinet members and top executives from major state-owned and private companies, is charged with advising the government on ways to improve Russia's economic competitiveness.

IT FIRMS HOPE FOR 'SILICON VALLEY'

Software companies are eager to take advantage of the expected increase in government support for the IT industry and jump-start the developement of a high-tech park in St.

IN BRIEF

Electrolux Wants Plant

ST. PETERSBURG (SPT) - Electrolux, the Swedish consumer appliances manufacturer, is looking for a place to build the company's second plant in Russia after its first, a 9-million euro washing machines factory, will open in St.

A WEEK IN THE MARKET

Monday: RTS Surges

The RTS Index nearly hit 600 as it grew 1.14 percent Monday to finish on 599.99 points. With trading volumes increasing as much as by 25 percent, as calculated by AK&M analytical agency, there were a number of strong showings by major oil and banking shares.

BANKS GIVE CREDIT TO THE MARKET'S POTENTIAL

The consumer credit market hit figures of more than 3 trillion rubles ($107 billion) in 2004, showing dramatic growth across the consumer banking, car and home appliances, retail sales and insurance sectors.

Analysts predict further market expansion this year, but slower, and a lowering of interest rates.

IN BRIEF

World Standard Cards

ST. PETERSBURG (SPT) - Russky Standard bank will replace all its domestic credit cards with the internationally accepted MasterCard Electronic system from next year, Kommersant reported last week.

BEHIND THE SMILE THAT GREETS INVESTORS

Alexander Prokhorenko is one of the first men foreign investors meet when they come to start their business in St. Petersburg.

A former secretary of Leningrad State University's young communist organization, a member of staff at the Soviet Union's Culture Center in Finland, responsible for the image of the U.

FINNS ADVISED ON BRIBERY IN RUSSIA

HELSINKI - Finnish authorities criticized a leading trade body on Friday for publishing a book giving advice on bribery for Finns doing business in Russia.

TAXING QUESTIONS:
CHANGES FOR BUSINESS IN 2005

Two trends dominated Russian tax practice in 2004. President Vladimir Putin's goal to double the gross domestic product intensified Federal Tax Service efforts to raise collections by any means available. Meanwhile, Russian legislative authorities continued their policy of liberalization of the existing tax system to stimulate economic growth.

THE CHINESE QUESTION

The Asian element has always had an important place in Russia, which lost a significant amount of its European territory in the 20th century and moved toward the East.

OPINION

BUILDING COOPERATION, PREVENTING PROLIFERATION

In a recent confidential report that was leaked to the press, the International Atomic Energy Agency said that while Iran was guilty of breaching certain international safeguards, almost two years of inspections had uncovered no proof of any illicit weapons programs.

RESPONSE TO PROTESTS BODES ILL FOR LIBERAL REFORMS

The way that the authorities at all levels are reacting to pensioners' protests regarding the replacement of in-kind benefits with cash shows that the present regime is unlikely to carry out fully fledged liberal reforms.

WORLD

IN BRIEF

Man Found in Cave

TOULOUSE, France (AFP) - A 48 year-old Frenchman who went missing last month has been found emaciated but alive in an underground cave system where he spent 35 days in pitch blackness eating nothing but wood and clay.

Jean-Luc Josuat-Verges, a care-worker from Vic-en-Bigorre in the foothills of the Pyrenees, left home on Dec.