GOVERNMENT REDUCES PRICE FOR ROSNEFT.

Prime Minister Sergei Kirienko yesterday announced fresh terms for the auction of Rosneft, the last big oil company still in state hands. The government hopes the sale will produce a much needed injection of cash, having been seriously embarrassed last week when the company failed to attract any bidders at the US$2.1 billion starting price the government had set. Kirienko named a new starting price yesterday of US$1.4 billion for a 75 percent stake in the company.

President Boris Yeltsin is due today to hold a meeting with Russia’s top businessmen: The meeting was originally set for the end of last week but was postponed without explanation. A Kremlin spokesman denied yesterday that the meeting was linked to Russia’s financial crisis.

RUSSIA STRUGGLES TO MEET SPACE STATION OBLIGATIONS.