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IN BRIEF

Published: May 28, 2002 (Issue # 772)


City Gas Inquiry

MOSCOW (SPT) - Interior Minister Boris Gryzlov has sent a team of law enforcement officials to St. Petersburg to investigate corruption allegations in the city's gasoline market, the ministry's organized-crime department said Wednesday.

The investigation was ordered after the Faeton gasoline company complained to both Gryzlov and the Prosecutor General's Office in April. Faeton accused the city's tax police of giving favors to the St. Petersburg Fuel Co., or PTK, Faeton chief Sergei Fetisov said.

He said the city administration heavily favors PTK and that several former city officials work at the company.

City Eurobonds

MOSCOW (Reuters) - The St. Petersburg administration is planning to issue Eurobonds worth around $110 million this year in order to refinance its outstanding debt, a senior city official said last week.

"In 1997 we issued Eurobonds with a 9.5 percent coupon. ... We now want to issue five- or seven-year Eurobonds," St. Petersburg Deputy Governor Viktor Krotov said at a conference on municipal borrowing in Moscow.

The previous $300-million issue will reach maturity next month and Krotov said that about $110 million of the bonds in that issue remain outstanding.

Tax Shortfall

MOSCOW (Prime-Tass) - The Tax Ministry is experiencing difficulties in meeting the May tax collection target, Tax Minister Gennady Bukayev said last week.

The ministry is expected to transfer 120.8 billion rubles ($3.86 billion) in taxes to the federal budget this month.

The Tax Ministry collected 136.9 billion rubles of taxes in April, or 2.1 percent below the monthly target.

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