CHECHNYA, CRIME LIMIT RUSSIA’S PRIVATIZATION EARNINGS.

TheRussian Federation has earned only 300 billion rubles this yearfrom privatization instead of the 1.8 trillion it expected, thedeputy director of the State Property Administration toldMoscow television May 23. Sergei Belyayev said that a majorreason for this shortfall is that Western investors arereluctant to enter the market because of corruption, crime, andthe war in Chechnya. The optimistic Russian budget deficitestimates have assumed a much higher income from privatizationsales. Another development that threatens to bust the budget ismounting tax evasion, Nezavsimaya gazeta reported May 23. Thepaper noted that Moscow lacks the necessary legislation to goafter many tax cheats.

Moscow Enters Eurobond Market.