UNCLASSIFIED
     It
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     SG1A
     IAGE:0001
       REF: MK1602112193 MOSCOW NEZAVISIMAYA GAZETA RUSSIAN 16
     FEB///OF STATE PROPERTY.
     TEXT:
          ((TEXT)) A VISIT TO YEKATERINBURG AND TYUMEN IN JANUARY,
     CONVERSATIONS WITH THE LEADERSHIPS OF REGIONS AND MAJOR ENTERPRISES
     IN INFRASTRUCTURE INDUSTRIES, AND DISCUSSIONS OF QUESTIONS RETARDING
     THE NORMAL DEVELOPMENT OF THE ECONOMY MADE IT POSSIBLE TO ELUCIDATE
     AT LOCAL LEVEL IMPERFECTIONS PROMOTING THE COMMISSION OF LAW
     VIOLATIONS VERGING ON CRIMES IN THE DEFENSE AND ENERGY COMPLEXES.
          ONE GENERAL UNHEALTHY TREND WHICH WAS NOTED 'IS WHEN STATE BANK
     STRUCTURES ALLOW UNJUSTIFIABLY LONG DELAYS IN THE TRANSFER OF FUNDS
     FROM CONSUMERS OF OUTPUT. ENTERPRISES ARE THEREBY ARTIFICIALLY
     UNCLASSIFIED
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     COUNTRY: RUSSIA
     SUBJ: TAKE 2 OF 2 -- 'EXTRACTS' FROM BARANNIKOV CRIME REPORT

     
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    PREVENTED FROM BOTH PAYING THEIR WORKERS AND EMPLOYEES ON TIME AND
    PLANNING INVESTMENT AIMED AT STABILIZING AND EXPANDING PRODUCTION.
    THIS GIVES RISE TO DISSATISFACTION AMONG ORGANS OF POWER AT ALL
    LEVELS AND CREATES ALL KINDS OF CORRUPT POLITICAL CLANS WHICH PREY
    ON THE AMORPHOUSNESS OF POWER AND THE OBSOLETE LEGISLATIVE BASE.
    HERE TOO THE CONDITIONS ARE CREATED THAT ENABLE VARIOUS KINDS OF
    PRIVATE FIRMS AND ASSOCIATIONS TO FLOURISH, OFFERING THEIR SERVICES
    IN THE PURCHASE OF, SAY, OIL FOR LARGE SUMS IN CASH. IN OTHER
    WORDS, THE CONDITIONS FOR "LAUNDERING" CAPITAL OBTAINED BY
    MIDDLEMEN.
    HEREIN LIES THE MOST FUNDAMENTAL PROBLEM NOT ONLY FOR RAW
    MATERIALS REGIONS, BUT ALSO FOR THE MIGHTY INDUSTRIAL REGIONS OF
    SIBERIA, THE NORTH, AND THE FAR EAST. FROM THE VIEWPOINT OF THE
    PROSPECT OF SAFEGUARDING RUSSIA' ECONOMIC SECURITY, THESE REGIONS
    ARE EXTREMELY VULNERABLE.
    PLEASE DO NOT NUMBER OUR DEPARTMENT AMONG THE DIEHARD
    CONSERVATIVES. THE SECURITY MINISTRY IS PERHAPS BETTER EQUIPPED
    THAN ANY INNOVATOR TO PRODUCE ARGUMENTS TO JUSTIFY THE INEVITABILITY
    OF AND NECESSITY FOR REFORMS. BUT IT MUST BE OBSERVED THAT THE
    EMPHASIS ON CHAOTIC PRIVATIZATION HAS LED IN A NUMBER OF CASES TO A
    CRISIS IN THE MECHANISMS FOR MONITORING THE UTILIZATION OF STATE
    PROPERTY. THE RESPONSIBILITY FOR ITS INEFFICIENT AND EVEN SELF-
    SEEKING UTILIZATION HAS BECOME TOTALLY INDISTINCT.
    WE HAVE IDENTIFIED THE FOLLOWING AMONG THE PRIORITIES RECEIVING
    CLOSE ATTENTION FROM ORGANIZED CRIMINAL GROUPS, ECONOMIC AND
    POLITICAL SPECULATORS ((AFERISTOV)), AND ALSO SPECIAL SERVICES: RAW
    MATERIALS, TECHNOLOGY, AND SEMIFINISHED GOODS CONTAINING NUCLEAR
    COMPONENTS.
    I HEREBY AFFIRM THAT DESPITE VARIOUS KINDS OF SPECULATION ON THE
    "NUCLEAR THEME," THE SECURITY MINISTRY IS IN POSSESSION OF THE
    INFORMATION AND IN CONTROL OF THE SITUATION. FALSE REPORTS OF THE
    MASS LEAK OF NUCLEAR COMPONENTS ARE INSPIRED BY PEOPLE WHO WOULD
    LIKE TO BRING RUSSIA AND ITS POTENTIAL UNDER SO-CALLED INTERNATIONAL
    CONTROL, AND ALSO TO REDUCE OUR COMPETITIVENESS. BUT PREVENTIVE
    MEASURES ARE EXTREMELY NECESSARY. WE ARE ALREADY ON THE BRINK OF
    SEEING OUR CONTROL GO OFF BALANCE.
    ORGANIZED CRIME IS ALREADY DEALING IN THE RUSSIAN GENE POOL.
    HEALTHY RUSSIAN CHILDREN WHO HAVE BEEN PLACED IN CHILDREN'S HOMES BY
    FORCE OF CIRCUMSTANCES HAVE BECOME AN OBJECT OF CRIMINAL
    INTERNATIONAL TRADE.
    THERE IS A "BRAIN DRAIN" TOWARD CRIMINAL STRUCTURES. THE
    SECURITY MINISTRY HAS INFORMATION THAT IN THIS SPHERE THERE IS
    INTEREST IN: PSYCHOACTIVE PHARMACEUTICALS; TECHNIQUES OF HYPNOSIS,
    ~
    LONG-TERM PROGRAMING OF THE HUMAN PSYCHE, AND CONTROL OF THE
    INDIVIDUAL'S BEHAVIOR AND CONDITION; AND THE UTILIZATION FOR
    C
    CRIMINAL PURPOSES OF INDIVIDUALS WHO POSSESS EXTRAORDINARY
    CAPABILITIES.
    cc
    THERE IS ANOTHER ASPECT OF THE PROBLEM THAT REQUIRES FULL
    CLARITY. RUSSIA HAS ALREADY BEEN DRAWN INTO THE SPHERE OF UNIFIED
    CRIMINAL FORMATIONS WITHIN THE BOUNDS OF THE CIS AND IS ON THE BRINK
    OF BECOMING INVOLVED IN THE UNIFIED SPHERE OF ACTIVITY OF ORGANIZED
    UNCLASSIFIED
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         CRIME IN EUROPE AND THE WORLD. I THEREFORE RESOLUTELY SUPPORT THE
         INITIATIVE ON CREATING A CIS INTERSTATE ORGAN TO COMBAT ORGANIZED
         CRIME. THE RIGHT THING TO DO WOULD BE TO CREATE SHARED INFORMATION
         AND RESEARCH SYSTEMS AS A PRIORITY, AND AT THE NEXT STAGE MORE
         MOBILE JOINT SUBUNITS, AND POSSIBLY JOINT INVESTIGATIVE
         ((POISKOVYKH)) SUBUNITS, AND TO IMPROVE COORDINATION OF OPERATIONS
         AT RUSSIA'S ENTRY AND EXIT POINTS.
              I HAVE DELIBERATELY AVOIDED GIVING FIGURES CHARACTERIZING THE
         LEVEL OF CAPABILITY OF RUSSIA'S SECURITY ORGANS AND BORDER TROOPS.
         THAT WOULD TAKE TOO LONG. AND THE RUSSIAN FEDERATION SECURITY
         MINISTRY ISSUES SUCH INFORMATION REGULARLY. I WILL ONLY SAY THAT
         THE NUMBER OF CASES ACTUALLY INVESTIGATED WHICH FALL WITHIN THE
         "ABSOLUTE COMPETENCE" OF THE SECURITY ORGANS HAS INCREASED 150
         PERCENT.
         SG1A
         UNCLASSIFIED
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