TITLE:                   SAKHALIN REGIONAL UPDATE

SUBJECT COUNTRY(IES):    RUSSIA

POST OF ORIGIN:          RUSSIA

SERIES:                  INTERNATIONAL MARKET INSIGHT (IMI)

ITA INDUSTRY CODE:       ZEC

DATE OF REPORT (YYMMDD): 991206

DELETION DATE (YYMMDD):  201206

AUTHOR:                  ELENA SABIROVA, BISNIS REPRESENTATIVE IN YUZHNO-SAKHALINSK

APPROVING OFFICER:       RICHARD STEFFENS

OFFICER'S TITLE:

NUMBER OF PAGES:         14

SUMMARY

Though legally classified as an "Extreme North" territory
(denoting a remote region with extreme natural conditions that
make for difficult living conditions and economic activity), the
Sakhalin region is currently the most promising region in the
Russian Far East.  It is the first place in Russia to produce
results out of the Production Sharing Agreements (PSAs) signed
between Russia and multinational consortia to develop oil and
gas fields.  The 1998 economic crisis did not have a significant
negative impact on investment, signaling that the region is
still attractive to international companies.  The following
report gives a general overview of the region, a brief
description of the oil and gas development status, as well as
tips for travelers coming to the region for the first time and
basic information on how to establish a business.  End Summary.

INTRODUCTION TO THE SAKHALIN REGION

The Sakhalin and Kuril Islands are situated in the Russian Far
East, north of Hokkaido, Japan, and surrounded by the Sea of
Okhotsk and Sea of Japan.  Sakhalin is the largest island in the
region and by far is the most developed.  The length of
Sakhalin from north to south is 948 km; with the greatest width
being 160 km and the smallest width at 26 km.  The total area of
the island is 76,400 sq. km.  Approximately 2/3 of the territory
is covered by mountains, the highest mountain being Lopatin
Mountain - 1609 m. high.  The climate differs very much from
north to south because of the significant length of the island.
In the central and northern parts of the island, the winter is
severe (average temperature in January is -12F(; record low is
-65F().  In the south, the winter is milder, average for January
is 21F(, but with a lot of snow and snowstorms. Forests occupy
87% of the region's territory, with the approximate amount of
timber available at 650 million cubic meters.  They are not only
rich in wood products, but also fur animals.  The sea around the
island is rich in fish, sea animals and other natural resources.

The Sakhalin economy is based on fish, fish-processing, forest
and oil and gas industries. The island is the third-largest
producer of fish products in the Russian Far East.  Seafood and
timber are exported mostly to Japan as well as to other
Asia-Pacific countries. According to 1999 data of the Shelf
Department and Committee for Natural Resrouces of the
Administration of the Sakhalin Region, proven reserves of
hydrocarbons in four offshore projects total 1400 mmt oil and
2.3 bcm gas, with another 2.6 billion barrels oil equivalent
estimated in areas yet to be leased.  Discovered onshore
reserves are 60-70% depleted, though opportunities abound for
secondary/tertiary recovery and workover.  Small  onshore
deposits are still being discovered.

The city of Yuzhno-Sakhalinsk, called oYuzhnoo by its citizens,
is the capital of the Sakhalin Region, with about 180,000
inhabitants, almost 1/3 of the regional population. The other
two strategic cities of the region, ports of Korsakov and
Kholmsk, are located 35 and 100 kilometers fromYuzhno-Sakhalinsk.

The majority of the population has very low income.  According
to recent data from the Sakhalin Regional Administration for
Labor, the average necessary minimum monthly income was
calculated to be about US$ 55. One out of three inhabitants of
Sakhalin and the Kurils lives on less than that amount. Ten per
cent of the local population have incomes that exceed the
calculated minimum by ten times or more, but the number of such
people has not grown recently because of 1998 economic crisis
and resulting inflation.

BRIEF OVERVIEW OF MAIN INDUSTRIES

The Sakhalin economy is based on fishing, fish-processing and
forestry industries; the local food-processing industry is also
increasing its output.  The food-processing sector includes
fishing, meat and dairy, flour milling, baking, confectionery,
liquor producing and brewing industries as well as enterprises
producing non-alcoholic beverages and local mineral water.  The
local timber industry is stocking up for export, with the major
foreign customer being neighboring Japan. Coal production,
stagnant for a time, is shifting from shaft-mines to open-cast
mines, lowering costs and improving export competitiveness. Once
transport problems are solved, there could be an improved
outlook for medium-quality brown coal exports.

Fishing and Fish-Processing
Local companies are very interested in cooperation with U.S.
companies, in addition to traditional cooperation with Japan and
South Korea.  Major areas of interest for business with U.S.
companies include u 1) leasing of fishing vessels;  2)
establishing long-term projects for new processing and packaging
technologies.  The U.S.-Russia joint-venture, Tunaicha, is very
successful in selling its products (mostly abroad), utilizing
American technology (equipment and cans), while the facilities,
raw materials (fish) and labor are Russian.  Tunaicha's product
is exported via Korea to Britain.  Thirty percent of goods
manufactured by the company are sold on the Russian market, 70%
are exported.  The company has current and potential customers
in Japan, Moscow, Germany and Israel. Tunaicha is a good example
of a fishing industry joint-venture that the local fishermen
would like to establish with U.S. companies u U.S. technology
and equipment; Russian labor and resources.

Timber Industry
The local timber-processing industry lacks wood-processing
equipment.  The Regional Administration Timber Department seeks
cooperation with U.S. companies on burned timber salvage and
processing.  In 1999 Sakhinles, a firm with foreign investment,
stocked 150,000 cubic meters of timber; timber-cutting equipment
was purchased in Japan, South Korea and the U.S.  There are no
joint-ventures with China yet, but one enterprise from
Heilungjian province is participating in burned timber salvage
and processing in the Tymovsk district.  Recently,
representatives from China visited Sakhalin to negotiate a
multi-branch industrial entity on Sakhalin (including pulp and
paper mills).

PUBLIC AND PRIVATE SECTOR ATTITUDES TOWARDS
DOING BUSINESS WITH FOREIGN FIRMS

Sakhalin region foreign economic activity is focused on economic
ties with Japan, South Korea, USA and China and trade and
natural resource utilization (oil, gas and timber).  According
to Mr. Yelizaryev, Head of the Foreign Economic Relations
Department of the Sakhalin Region, the trade turnover is
distributed as follows:

I u South Korea (commodities, food products)
II - United States (oil and gas industry equipment, food
products)
III u Japan (equipment, processing technologies)
IV u Germany

Imports to Sakhalin in 1998 (in thousands of US dollars)
TOTAL   - 491,250.8
South Korea u 295,973.7
USA u 99,388.0
Japan u 20,668.0
China u 2,559.4

Foreign Investment in 1998 (in thousands of US dollars)
TOTAL u 136,092
USA u 115,515
Japan u 1,275
South Korea u 231
China u  0


Main Imports to Sakhalin Region in 1998 (in thousands of US
dollars)


TOTAL                              FROM USA
        Amount          Cost
Amount          Cost
Meat and meat products, tons    13012.4
19551.7 9835.1  14075.6
Dairy products, tons             687.4
1557.8   213.9    397.1
Vegetables, tons                       2497.2
546.2       284.0         183.3
Fruits, tons                      5999.1
4694.0  2526.5   2408.0
Cereals, tons                             5999.7
1995.0  5690.1   1935.3
Flour, tons                          13995.2
5764.0  8945.6   3838.2
Ready food products, tons                2805.5
5117.0  2279.9   4255.0
Different food products, tons     1806.3
2271.0   356.5   675.3
Ferrous metals, tons               2641.3
1245.0   154.8    186.1
Ferrous metals goods, tons              10460.4
17388.0         2153.4   7512.9
Equipment                              ---
29033.5 ---     18904.0
Electric machinery, audio equip    ---
9707.2  ---      6494.9
Vehicles                               ---
4331.3  ---      1419.1
Optical and photo equipment        ---
13294.4 ---      8475.1
Furniture                              ---
22883.3 ---     13856.8

Trade with China is significant; however, the commodities
imported from China are of low quality and despite low prices,
demand can fluctuate.

Most joint-ventures in the region are with Japanese companies,
though South Korea is a primary trading partner. Cooperation
with the U.S. started later, but the number of Russian-American
(as well as Russian-Korean) joint-ventures is increasing
(reaching half the total, according to Administration).  Major
projects with U.S. participation are oil and gas development
(the oSakhalino oil projects).   American investment in the
local oil and gas industry has reached US$ 1 billion.

At the end of 1998, the local Duma passed a regional law oOn
Foreign Investmento, similar to laws passed in recent years in
Novgorod, Primorsky Krai, and other regions.  These laws lay
down the legal basis for defending foreign investor rights and
granting tax holidays or other incentives that make their
regions more attractive to foreign investment. On Sakhalin,
political views toward foreign investors vary; the current
administration has been fairly open.

After the August 1998 economic crisis in Russia, trade with the
U.S. significantly decreased.  Ties with the Republic of Korea
proved more stable, mostly due to pricing.  The price of U.S.
goods is increased by transportation costs, Russian customs and
certification fees, which make goods unaffordable to most of the
local population.

STATUS OF MAJOR U.S. INVESTMENT PROJECTS

Geological surveys have shown that there are at minimum 1000 mmt
oil and 3600 bcm gas on the Sakhalin offshore shelf, 25 and 57
times as much as onshore.  The difficult Sakhalin offshore
drilling conditions (ice, depth, seismic factors) require
expensive technologies, which is why Russia began tendering
Sakhalin offshore leases to foreign consortia.  Currently,
several offshore projects involve significant U.S. investment.
The total expected volume of investment could exceed USD 40
billion over the next forty years. The Russian partner in these
projects is Rosneft and the local subsidiary Rosneft
Sakhalinmorneftegas.

Sakhalin-1
(Exxon -30%, Sodeco (Japan)-30%, SMNG-Shelf - 23%, Rosneft - 17%)
Expected total investment - US$12 billion

Sakhalin-2
Sakhalin Energy u consortium of subsidiaries of Marathon -
37.5%, Mitsui - 25%, Royal Dutch Shell - 25% and Mitsubishi -
12.5%
Expected total investment - US$10 billion

Sakhalin-3, Kirin Block
Mobil, Texaco and Rosneft u 33% each
Expected total investment - US$15 billion

Sakhalin-3, Ayyash and Eastern Odoptu Blocks
Exxon, Rosneft, Rosneft-SMNG
Expected total investment - US$ 13.5 billion

Sakhalin-4
ARCO u 49%, Rosneft u 25.5%, Rosneft-SMNG u 25.5%
Expected total investment uNot defined yet

Recent exploration drilling seems to show that Sakhalin-I will
become a gas project. The primary task is to find potential
long-term gas buyers and study pipeline transport options.
Marketing of Sakhalin I gas will continue, focused primarily on
Japan and China. However, as of now, no development date has
been announced for Sakhalin-1 and Sakhalin-3 and they remain in
the appraisal stage.

The first phase of Sakhalin-2 development is the Vityaz
production complex, consisting of the Molikpaq ice-resistant
production platform, 2-km subsea pipeline, and a SALM/FSO
offloading scheme using the 274-m long double-hulled 158,000 ton
deadweight oOkhao tanker built by Daewoo, on the Astokh oil
feature.  First phase export of product will be via shuttle
tankers, prior to planned pipeline construction.   In July 1999,
Vityaz produced first oil.  The Zima Highlands housing complex
for oil consortia employees has begun accepting residents, and a
new six-story office building for Sakhalin Energy is scheduled
for completion by year's end 1999.

In 1998, Rosneft and Rosneft-SMNG were included in the
Sakhalin-3 project, a necessary condition for the Russian State
Duma to approve a PSA. The partners formed an operating company
called Pegastar Neftegaz.  Delays in implementing changes to the
February 1999 PSA Law make it unlikely that Pegastar will
appraisal wells in the year 2000.

ARCO Sakhalin Inc. (Sakhalin-4) opened a representative office
in Yuzhno-Sakhalinsk in February 1999.  To date, ARCO has
entered into an agreement with Rosneft and Rosneft-SMNG to
explore for oil and gas in the highly-promising 71,000-acre
Astrakhan Block off the northwest coast of Sakhalin.  Appraisal
drilling is expected to begin in 2000.  ARCO has been acquired
by BP Amoco, which has been named as a potential partner for
Rosneft in the Sakhalin-5 project.

All Sakhalin oil and gas projects are required to contract with
Russian companies when possible under the terms of their PSAs.
Therefore, foreign companies that partner with a Russian company
can be in a more advantageous position for being awarded a
contract. The contracting procedures are the same as practiced
elsewhere in the world: companies should get on the vendors list
(by submitting an application and providing information on
capabilities).  This information is entered on a vendors
database.  When projects have a contract corresponding to
company expertise, they will receive an opportunity to bid.

BUSINESS ETIQUETTE

The first and the most important recommendation would be to plan
meetings well before actual arrival on the island.  Meetings can
be arranged by a colleague or a business support service
organization, such as the American Business Center
Yuzhno-Sakhalinsk.  Local officials appreciate when
businesspeople come prepared with a specific topic in mind.
They are bombarded with requests for meetings and the more
specific you are, the better chance you will have a useful
meeting.  Once contact has been made, promised follow-up should
be completed.

Note: Sakhalin is GMT +10, one day ahead of the U.S.

CHAMBERS OF COMMERCE AND BUSINESS ASSOCIATIONS

The local Sakhalin Chamber of Commerce, which has relationships
with several chambers in the U.S., is a non-official business
association of small and medium-size Sakhalin companies.  The
Chamber provides a range of services to local and international
companies, including cargo expediting and documentation
services. According to the Head of the Sakhalin Chamber of
Commerce, Mr. Yuri Bimayev, the Chamber produces an official
shipping document upon cargo examination.   If the cargo is
damaged or lost during shipment, it is much easier to make an
insurance claim with a legal document signed by Chamber
experts.  Other services include court of arbitration and due
diligence.  The Chamber keeps a non-official register of local
companies' reliability.

The Association of Sakhalin Fish Industry Enterprises (ARS)
unites small and medium-sized fishing enterprises in order to
protect their professional rights and interests.  Other tasks of
the Association include coordination of local fishing company
activity;  introduction of new technologies for fishing and fish
processing;  and participation in scientific research and many
other goals.  The Association includes 98 companies with 157
vessels, primarily involved in coastal fishing.  The
administration of the ARS is very interested in developing
business ties with U.S. businesses (currently they work
primarily with Japanese companies) in vessel leasing and new
technologies of fish-processing.

COSTS OF MAINTAINING AN OFFICE

The costs of maintaining an office in Yuzhno-Sakhalinsk are
lower than in the U.S. and Moscow.  The basic price for office
space in the city varies from 3 to 12 rubles per square meter
per day, depending on the city district and quality of the
building.  Rates can be stated in U.S. dollars, but payment must
be made in Russian rubles.  For U.S. companies requiring a
short-term office while setting up permanent office space, one
option is to locate in a fully equipped carrel available at the
American Business Center.

There are several office space options.  The most expensive
office facilities in the city cost several hundred U.S. dollars
per month per square meter.  The Sakhincenter building offers
conference room services, a concert and an exhibition hall.  An
American-style restaurant is located on the first floor, and
parking is available.  The Mitinoku Sakhalin Building opened
officially in May 1999 in Yuzhno-Sakhalinsk.  The facility was
built to Japanese standards, and has its own power generator,
water and heating system, a cafe, and a parking lot.

Less expensive facilities can be found in Yuzhno-Sakhalinsk for
about US$ 70 u US $150 per month.  These usually have lower
standards and security can be less reliable.

Some companies choose to build their own office buildings.  A
major oil consortium is building a multi-story office building
which meets seismic standards.

The city of Yuzhno-Sakhalinsk suffers from constant power
outages, which compels many  companies to buy generators.
Autonomous heating systems (boilers) are cheaper than municipal
supply. Water quality in the city is poor, and it is a good idea
to have a separate well for the building.  Companies purchase
bottled water for coffeemakers and drinking.  Acquiring
telephone service is another problem. The cheapest provider of
international telecommunications is the local company
Sakhalinsviaz, which claims that it install a line as soon as it
is paid for. However, companies cannot rely on speedy service -
it can take as a week or a month for a line to be installed.
Two other providers are Sakhalin Telecom (prices higher than
Sakhalinsviaz), and the Kriljon Company (Russian-American JV).

Office furnishings and equipment may either be imported,
purchased locally, or purchased in Moscow. A wide variety of
U.S., South Korean, Japanese, and Chinese imported goods are
available locally.    Prices for furniture and office equipment
are quite high on Sakhalin, due to the remoteness of the region.

AIR TRAVEL

The only fast and reliable transportation to Sakhalin is by
air.  Currently, there are several options u directly to
Sakhalin from Alaska on Reeve Aleutian Airways; via Khabarovsk
and Vladivostok on Aeroflot, or to SAT/Asiana flights via Seoul.

1)  The Reeve Aleutian flight via Anchorage and
Petropavlovsk-Kamchatski is the most direct flight from the
U.S., though the most expensive option.   A one-way ticket costs
approximately US$ 1000. The flight takes approximately 7 hours
(Anchorage-Yuzhno).

2)   Unfortunately direct service to Sakhalin on Aeroflot will
be cancelled after December 1999.  This used to be the cheapest
way to fly.

3)  Regular flights to Seoul are provided by Asiana airlines and
SAT (Sakhalinskije Aviatrassy Airlines), about US$ 400 one-way
and US$ 600 roundtrip.  From Seoul you have a choice of flights
to the U.S., including Los Angeles, New York and other cities,
one-way ticket price would be about US$ 1000, roundtrip u US $
1300.

TAXIS

Taxi services are developing in Yuzhno-Sakhalinsk and there are
several official taxi depots.   Private cars wait at the airport
to offer rides into town: avoid these situations for safety
reasons.  Most companies on the island can send a car out for
you.  For taxi service in Yuzhno-Sakhalinsk, call: 42-64-20,
5-43-79 or 72-33-92.

HOTELS

Hotel rooms are usually at premium on Sakhalin during the summer
drilling period, when the majority of foreign visitors come to
Yuzhno-Sakhalinsk. Make reservations before coming to the island
to avoid being stranded or forced to stay in a hotel of lesser
standards.

The cost of a room in western-style hotels is very high, from
$110 to $250/night, compared to a oRussian styleo hotel from
about $35/night. The First Class western style hotel market in
Yuzhno-Sakhalinsk consists of three hotels:  the Santa Resort
Hotel, the Sapporo Hotel, and the Natalya.  Though these hotels
would not be considered luxurious by western standards, they are
5 star in the Sakhalin market. The Santa Resort Hotel,
constructed in 1993, is a modular construction from a U.S.
supplier; the accommodations are typically American.  The Santa
has nine 2-room suites, five mini-suites, and 75 standard rooms
(including two rooms with accommodations for the disabled). The
Sapporo Hotel started out as the "Hotel Sakhalin", a Russian
hotel owned and operated by the regional government. The
Russian-Japanese joint venture undertook a major remodeling and
upgrade of the hotel.  In the Natalya Hotel, the rooms are full
suites with kitchens and have been remodeled with furnishings
from Korea and Japan.

The next option for travelers is to stay in mid-class Russian
style hotels.  Hotel facilities and furnishings most likely have
not undergone renovation since being constructed.  They tend to
be clean and offer basic amenities, such as TV, refrigerator,
and teapots in each room. Prices for this class of hotel ranges
from $30-$70/night.  Hotels in this class include the Lada Hotel
(the best in this category), Eurasia-Intertrans (rooms more
expensive), and Rybak (small rooms, level of service lower than
in the first two).

FOOD SERVICE

In recent years, two large entertainment centers were built,
while older ones were repaired and upgraded their services. The
most expensive and "fashionable" places in the city are the
"777" and "Holiday",  multi-facility centers with restaurants,
bars and saunas.  The 777 has a restaurant, a bar, beauty salon,
fitness center, and food store.  In the 777, you can choose
between European, American and Japanese cuisine; a menu in
English is available.  The "Holiday" includes two restaurants
(one with Japanese cuisine and another with European and Korean
cuisine), a night club, disco club with two bars, casino with
general and VIP-halls, saunas, and jacuzzi.  Other restaurants
such as the Sakhalin-Sapporo hotel bar, Slavianka restaurant,
and Heineken bar are also popular with foreign workers on the
island.  Recently opened in the Sakhincenter is Pacific Caf ,
offering American-style service and food, also very popular
among the expatriate community.

CONTACT INFORMATION

Welcome to Sakhalin region at
http://www.sakhalin.ru/Engl/WelcomEn.shtml

LOCAL COMPANIES AND ORGANIZATIONS

REGIONAL ADMINISTRATION
39, Kommunistichesky Ave
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-4242-421402
Fax:  +7-42422-36081
Mr. Igor Pavlovich Farkhutdinov, Governor of the Region

DEPARTMENT OF FOREIGN ECONOMIC RELATIONS
32, Kommunisticheski Ave.
Yuzhno-Sakhalinsk, Russia 693009
Tel:  +7-4242-727494
Fax:  +7-4242-727493
Mr. Vitaly Nikolayevich Yelizarjev, Head of the Department

SAKHALIN ADMINISTRATION TIMBER INDUSTRY DEPARTMENT
49 Kommunisticheski Ave.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-42422-37580
Fax:  +7-42422-36865
Mr. Konstantin Mikhailovich Yershov, Head of the Department

DEPARTMENT OF FISHING AND THE KURIL ISLANDS
76, Kommunisticheski Pr.
Yuzhno-Sakhalinsk, Russia 693000
Tel: +7-4242-722746
Fax:
+7-4242-723991
Mr. Vladimir Pavlovitch Godunov, Head of the Department

TUNAICHA WARDS COVE JV
1-b, Kommunistitcheskii Ave.
Yuzhno-Sakhalinsk, Russia 693000
Tel/Fax +7-42422-33661
Mr. Anatoly Ivanovich Filipov

SAKHINLES
49, Kommunisticheski Ave.
Yuzhno-Sakhalinsk, Russia 693000
Tel: +7-4242-725500
Fax:  +7-4242-725512
Mr. Alexander Vladimirovich Drozdkov, General Director

SAKHALIN OIL AND GAS DEVELOPMENT PROJECTS

SAKHALIN ENERGY, Moscow office
12/14 Malaya Pirogovskaya Str.,
Moscow, Russia 119435
Tel. +7-095-9561750
Fax. +095-9561760
Ms. Nadezhda Guseinova, Secretary

SAKHALIN ENERGY
32, Kommunisticheskii Pr., # 536,
Yuzhno-Sakhalisnk, Russia 693009
Tel +7-4242-727324
Fax + 7-4242-727325
E-mail TLuzan@SakhalinEnergy.ru
Mr. David Loran, Sakhalin Region Manager

EXXON NEFTEGAS LTD.
32, Kommunisticheskii Pr., # 623
Yuzhno-Sakhalinsk, Russia 693009
Tel + 7-4242-727160, 727161, 727162
Fax (in the U.S.) u 713-507-8895
Mr. Larry Kennedy, Operations Manager

MOBIL
32, Kommunisticheskii Pr., # 606
Yuzhno-Sakhalinsk, Russia 693009
Tel +7-4242-727517
Fax +7-4242-462751
Int'l fax: +7-5044-62751
tel\fax US access: 1-214-905-4822
E-mail: david_l_simerka@email.mobil.com
Mr. David Simerka, Head of the Representative Office

ARCO SAKHALIN INC.
234, Lenin Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel.  +7-4242-725520
Fax  +7-4242-725524
E-mail: dinty@mail.arco.com
Mr. William Dinty Miller, Regional Director

HOTELS AND RECREATION FACILITIES

SANTA RESORT HOTEL
3 Venskaya Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-50441-65550; +7-42422-56567
Fax:  +7-50441-65555

NATALYA HOTEL
38, Anton Bujukly St.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-50441-62700
Fax:  +7-50441-62701

SAPPORO HOTEL
181, Lenin Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-42422-36629
Fax:  +7-50441-65001

LADA HOTEL
154, Komsomolskaya Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-42422-38094
Fax:  +7-42422-31837

EURASIA HOTEL
54, Vokzalnaya Str.
Yuzhno-Sakhalinsk, Russia
Tel:  +7-4242-714978
Fax:  +7-4242-714466

RYBAK HOTEL
51 K. Marx Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-4242-723768

BUSINESS ASSOCIATIONS

SAKHALIN CHAMBER OF COMMERCE
156 Lenin Str., Office 23
Yuzhno-Sakhalinsk,  Russia 693000
Yuri Yevgenjevich Bimayev, President
Tel/Fax:  +7-4242-722548

ASSOCIATION OF SAKHALIN FISH INDUSTRY ENTERPRISES (ARS)
241B Komsomolskaya Street
Yuzhno-Sakhalinsk, Russia 693023
Tel:  + -4242-428950
Fax:  +7-4242-425613
Int'l fax: +7-50442-62155
Mr. Alexander Vereschak, Executive Director

AMERICAN BUSINESS CENTER, YUZHNO-SAKHALINSK
32 Kommunisticheskii Pr., # 517A,
Yuzhno-Sakhalinsk, Russia 693000
Tel\Fax: +7-4242-727124; 727125
Int'l tel.:  +7 509 95 1545
Int'l fax: +7 509 95 1540
E-mail abcsakh@fraec.org
Mr. Michael Allen, Director

OFFICE BUILDINGS

SAKHINCENTR - INTEROFFICE
32 Kommunistichesky Ave.,
Yuzhno-Sakhalinsk, Russia 693000
Tel: +7-4242-727016
Fax:  +7-50995-1332
Mr. Mikhalil Mikhailovich Ryabtsev, General Director

Representative of SAKHINCENTR in the U.S *
Los Angeles, CA
Tel: (805) 758-4522
Mobile: (805) 501-3058
Mr. Alexander Ryabtsev

MITINOKU BUILDING
234, Lenin Str.,
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-4242-721407
Fax:  +7-4242-721402
Mr. Mikhain Yurjevich Tranichnikov, Head of the Commercial
Department

COMMUNICATIONS

JSC SAKHALINSVJAZ
220 Lenin Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel: +7-4242-722520
Fax: +7-4242-771420
E-mail: sakhalinsvyaz@sakhalin.ru
Mr. Alexander Pavlovich Mazunin, General Director

ST MOBILE (A CABLE AND WIRELESS COMPANY)
213A, Komsomolskaya Str.
Yuzhno-Sakhalinsk, Russia 693016
Tel.  +7-42422-55569
Fax  +7-4242-462805
E-mail: mobile@sakhalin.ru
Mr. Roderick Stanley, General Director

SAKHALIN TELECOM MOBILE (A CABLE & WIRELESS COMPANY)
213A, Komsomolskaya Str.
Yuzhno-Sakhalinsk, Russia 693016
Tel:   +7-4242-461000
Fax:  +7-4242-461029
E-mail: s_telecom@sakhmail.sakhalin.ru
Mr. Pavel Akhmanajev, General Manager

KRILJON COMPANY
32, Kommunisticheskii Pr., office 616
Yuzhno-Sakhalinsk, 693000
Tel:  +7-4242-727440
Int'l fax: + 7-50995-1642
E-mail: kriljon.marketing@snc.ru
Contact: Mr. Anatoly Tonkonogov, Director

AIRWAYS TICKETS

SAKHALIN AIR SERVICES
49, Kommunisticheski Ave.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-42422-37969;  37482
Fax:  +7-4242-426411

REEVE ALEUTIAN AIRWAYS
(Currently moving to the new office. Contact information not
available)

HOBBY INTERNATIONAL
32, Kommunisticheski Ave.
Sakhlincenter Hall
Tel:  +7-4242-727156
Fax:  +7-4242-725241

BARS AND RESTAURANTS

777 SERVICE CENTER
71 Chekhov Str.
Yuzhno-Sakhalinsk, Russia 693000
Tel:  +7-42422-30247
Fax:  +7-50441-62438
Contact:  Ms. Tatyana Anatolyevna Shulga, Manager

HOLIDAY PALACE
21, Dzerzhynskogo Str.
Tuzhno-Sakhalinsk, Russia 693000
Tel\Fax:  +7-50441-63031

PACIFIC CAF+
32, Kommunisticheski Ave.
Sakhincenter, First Floor
Tel:  +7-4242-727008