MOSCOW ADOPTS TAKE-IT-OR-LEAVE-IT APPROACH WITH CREDITORS.

Russian negotiators said that the Western members of the so-calledLondon Club of creditor nations would have to accept Moscow’sterms for debt rescheduling because Russia would not agree toany other, Interfax reported July 5. Economics minister Oleg Davydovsaid that Moscow had no choice but to take this stance: it simplycannot afford to pay the interest rates on debts that were accumulatedlargely by former Soviet president Mikhail Gorbachev. Meanwhile,foreign minister Andrey Kozyrev suggested that Russia should relyincreasingly on its own resources rather than foreign loans.

Massive Capital Flight Continues.