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24 August 2005 11:07
Public utilities in Russian Far East face bankruptcy

Housing utilities in the [Russian] Far East are still in a state of systemic crisis in spite of some financial recovery, the Russian president's envoy to the Far East Federal District Konstantin Pulikovskiy says. 
Most of the housing utilities in the region are in a state of bankruptcy and have no operating assets. The average salary of a housing utilities worker makes up just 48-67 per cent of the average salary in the Far East. Repeated wage arrears have a negative impact on staffing in the utilities sector. The regional housing utilities have just 73 per cent of the regular number of engineers and technicians.
The sector's 2004 accounts payable have carried on into 2005 and make up R32,8bn. "The lack of funding in the sector stems from violation of the federal housing payment standards, large arrears in housing and service fees, long-standing and overdue accounts receivable as well as from a lack of federal funding to adjust the regions' budgets," Pulikovskiy says.
The regional housing utilities' accounts receivable make up R22.6bn, including R2.2bn in benefits and subsidies. On average, only 86 per cent of fees is actually paid to the utilities sector in the Far Eastern Federal District. In Koryak Autonomous Area just 54 per cent of fees is paid.

Source: Interfax news agency, Moscow
BBC Monitoring


[BBC Monitoring]
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