ATTRACTING AND REPELLING FOREIGN INVESTMENT.

Direct foreigninvestment fell 25 percent from the fourth quarter of 1994 tothe first quarter of 1995, Interfax reported June 2. During thelatter period, the West invested only $20 million. Moscow desperatelyhopes to attract more funds, but officials acknowledged that Westerninvestment will fall short of hopes this year. In the metals areas,the West will invest less than $1 billion. Moscow had expected$5-7 billion, and needs $3 billion to operate at current levels.As a result, gold production will not take off at all. The governmenthas promised more tariff concessions to foreign firms, but onJuly 1 Moscow imposed new and higher duties on oil and gas exportedby foreign firms than that by Russian ones.

2800 Firms Won’t Be Privatized.