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.