Russia provides another 12 billion to bail out AvtoVAZ

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MOSCOW, December 11 (Itar-Tass) -- Russian Prime Minister Vladimir
Putin said at a government meeting on Thursday he would sign a resolution
shortly to provide another 12 billion rubles to bail out AvtoVAZ carmaker.
Earlier the government provided 25 billion rubles to debt-ridden
AvtoVAZ.
First Deputy Prime Minister Igor Shuvalov said the new 12 billion
rubles will go as an interest-free loan to Russian Technologies State
Corporation, one of the three major stockholders of AvtoVAZ, to be used
for increasing the authorized capital of the carmaker. Thus, the Russian
Technologies will increase its current 25 percent stake.
Other stakeholders, including French Renault, are expected to follow
suit.
"We expect other stakeholders to adequately participate with their
technologies and monetary means depending on their capabilities in order
to ensure technical modernization of AvtoVAZ," Shuvalov said.
He said the 12 billion rubles will help the carmaker repay debts to
suppliers and creditors. The money will allow the enterprise to decrease
financial losses this year.
Shuvalov said AvtoVAZ can get more funds on certain conditions. "We
believe it necessary to condition the provision of additional funds to
bail out AvtoVAZ by the final decision on technical modernization and by
commitments that other stockholders will take, including Renault-Nissan.
Such decisions will be submitted for your approval later," Shuvalov told
Putin.
He also said the agreed general program to develop domestic car
industry will be submitted to the government in the first quarter of 2010.

.Government approves investment program for Russian Railways.

MOSCOW, December 11 (Itar-Tass) -- The Russian government approved the
investment program of the Russian Railways Company (RZD) for 2010 that
comprises close to 271 billion rubles against 250.2 billion this year.
Prime Minister Vladimir Putin said at a government meeting on Thursday
RZD will spend 450 million on anti-terrorist measures, 426.5 million on
fire safety and 2.5 billion on traffic safety.
"The state and major companies with state equity have to invest into
security and safety," Putin said.

.Russia earmarks 45.2 billion to bail out aircraft corporation.


MOSCOW, December 11 (Itar-Tass) -- Russian Prime Minister Vladimir
Putin said on Thursday the government decided to earmark 45.2 billion
rubles to bail out the United Aircraft Corporation (UAC).
Deputy Prime Minister Sergei Ivanov specified UAC will receive 13.587
billion rubles for the production of civilian aircraft and 31.7 billion to
repay debts, including 7.7 billion to repay accrued interest.
"The UAC has received a new package of orders and has formed the
package of contracts up to 2014," Ivanov said and specified they include
27 Tu-204 and 57 An-148 passenger aircraft, and 32 amphibious Be-200
aircraft.
Ivanov recalled UAC credit portfolio comprises 163 billion rubles.
"37.7 billion will be used to repay due debts to banks, including 7.7
billion of a contribution through VEB to repay interest and subsidize loan
rates," he said.
Ivanov estimated "UAC is capable of repaying most debts, close to 100
billion rubles, itself".

.Russia to double incentives to unemployed risking new business.

MOSCOW, December 11 (Itar-Tass) -- Prime Minister Vladimir Putin said
on Thursday payments to unemployed who will risk launching their own
business in 2010 will double if they hire another jobless person.
"It is necessary to strengthen the incentives," Putin told the
government.
In 2009 lumpsum 58.8 thousand rubles (2000 dollars) were paid to the
unemployed as a start-up capital for a new business. "Many people used the
opportunity. In 2010 the payment will double on condition a job will be
offered to another unemployed as well," Putin said.
The prime minister said additional support is envisaged for graduates
and handicapped people. Employers will get 30 thousand rubles for hiring a
handicapped person, while graduates from institutes and vocational schools
will get longer paid practice at enterprises to receive practical
experience.

.Underwater earthquake registered on Kamchatka coast.

PETROPAVLOVSK-KAMCHATSKI, December 11 (Itar-Tass) -- An underwater
earthquake force 5 Richter scale was registered overnight on the eastern
coast of Kamchatka. The local geophysical service said there were no
injured or damage and no tsunami threat was declared.
The epicenter was 51.5 kilometers under the sea bed and 163 kilometers
away from Petropavlovsk-Kamchatski where tremors reached force 2.
In the meantime, weathermen warned a new cyclone is approaching the
Russian Far East and heavy snow will fall in Primorye, Khabarovsk, Amur
and Sakhalin regions. The speed of wind in the Tatar Strait was forecast
at 17-24 meters per second.
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