Putin urges to speed up energy facility construction in Siberia

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MIRNY, August 21 (Itar-Tass) -- Prime Minister Vladimir Putin on
Friday urged to speed up the construction of energy facilities in Siberia
following the shutdown of the biggest Sayano-Shushenskaya hydropower plant
because of a major accident.
"The government has decided to accelerate the construction of several
energy facilities and there should be no delays or disruptions at the
construction sites," he told a meeting devoted to the development of
Yakutia.
Putin specified he was talking about the power transmission lines from
Neryungri GRES plant to Tommot and Maya and from Suntar to Olekminsk.
"Only this year 3.5 billion rubles were disbursed for the projects,"
Putin said.
The prime minister promised additional financing to other energy
projects.
"I am expecting from federal ministries and energy companies proposals
on possible additional financing next year of several other energy
objects," Putin said referring to high-voltage transmission lines from
Mirny to Nyurba and from Chernyshevsky to Lensk and Peledui.
"These are promising and important objects that deserve proper
attention," he said.
Putin also urged diamond-depending Yakutia to diversify economy and
said the main problems were "poor diversification of the regional economy,
its mono-industry structure, the high wear and tear of the housing stock
and communal systems, inefficient and costly scheme of energy supplies to
the region."
"I am asking the Regional Development ministry jointly with republican
authorities to submit to the government a draft scheme of complex
development of production forces, transport and energy sector of Yakutia,"
he said.
"The talk is about changing the economic structure of the republic,
about the creation of new industries, such as oil production and refining,
gas production, gas-chemistry, metallurgy and tourism," he added.
Putin recalled that the East Siberia - Pacific Ocean oil pipeline is
going through Yakutia, which "opens possibilities for the creation of a
powerful oil refining complex and for the development of such promising
fields, as Talakan."
He also recalled the Eastern gas program, which aims to expand gas
distribution in Russian regions. "The program is among the biggest
industrial programs in the history of our country," he said.

.Mechel plans to reschedule 30-bln debt for next year.

MIRNY, August 21 (Itar-Tass) -- The Mechel Company plans to get 10
billion rubles through bond placement this year to finance the development
of the Elginskoe coal field in Yakutia and reschedule the remaining
30-billion ruble debt for next year, according to its CEO Igor Zyuzin.
"We plan to receive at least 10 billion rubles for bonds up to the end
of the year and reschedule the remaining 30 billion for next year," he
told a meeting on Yakutia's development chaired by Prime Minister Vladimir
Putin on Friday.
Zyuzin said the company had already received five billion rubles
through the bonds placed in March.
"We have paid close to a billion rubles to subcontractors," he said.
Yakutia's President Vyacheslav Shtyrov said it was important to
develop Elginskoe field as coal reserves in the south of the republic will
be exhausted in ten years.
He asked Putin to again consider financing the project and said "we
have designed a scheme to provide resources to Mechel, which is developing
the project and building a railway to the field."

.Russia's economic performance down in six months.

MOSCOW, August 21 (Itar-Tass) -- Russia's capital investments fell
18.8% on the year in January-July, Prime-Tass reported on Thursday quoting
the Federal State Statistics Service.
In July, capital investments were at 621.7 billion rubles, down 18.9%
on the year and 6.8% on the month, the service said.
In 2008, Russia's capital investments rose 9.1% on the year to 8.607
trillion rubles, the service said earlier.

Industrial prices upped
Prices of Russian industrial producers grew 11.9 percent in the first
half of the year, while inflation comprised 8.1 percent, according to the
Federal State Statistics Service.

Construction down 19%
The volume of construction in Russia fell 19% on the year in monetary
terms to 1.916 trillion rubles in January-July, according to the Federal
State Statistics Service.
In July, the volume of construction fell 17.8% on the year, but rose
2.7% on the month to 357.1 billion rubles, the service said. A total of
278,500 new apartments were built in Russia in January-July.
In 2008, the volume of construction in Russia rose 12.8% on the year
to 4.528 trillion rubles, the service said earlier.

Retail sales down 3.8%
Russia's retail sales fell 3.8% on the year to 8.008 trillion rubles
in January-July, the Federal State Statistics Service said.
In July, Russia's retail sales amounted to 1.208 trillion rubles, down
8.2% on the year.
Manufactured goods accounted for 51% of total retail sales in July,
while foodstuffs accounted for the remaining 49%.
In 2008, Russia's retail sales rose 13% on the year to 13.853 trillion
rubles, the service said earlier.

Incomes down
Real disposable incomes in Russia decreased 0.9% on the year in
January-July, the Federal State Statistics Service said.
Real disposable income excludes taxes and other mandatory payments and
its performance is adjusted for inflation, as measured by the consumer
price index (CPI).
In July, real disposable incomes fell 5.4% on the year and 3% on the
month, the service said.
The average per capita income rose 16% on the year and 3.1% on the
month in July to 18,188 rubles.
The nominal average monthly wage stood at 18,862 rubles in July, up
5.5% on the year and down 2% on the month, the service said.
The real average monthly wage fell 5.8% on the year and 2.6% on the
month in July, the service said.
In 2008, the real disposable incomes of Russian citizens rose 2.7% on
the year, the service said earlier.

Foreign trade down 44%
Russia's foreign trade turnover fell 44.1% in the first half of the
year and comprised 208.282 billion dollars.
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