One third of the fibre optic link between Khabarovsk and Nakhodka has now been pulled says the Russian Minister of Communications, Vladimir Bulgak, commenting on the telecommunications networks of the Russian Far East. Next summer, the under-sea cables will be laid to provide a connection between Japan and South Korea with an international telephone switch that will be installed in Khabarovsk. This eastern portion is scheduled for completion at the beginning of next year at latest. The third portion of the project is a radio relay line from Moscow to Khabarovsk. Last year Moscow’s Rostelecom signed contracts for the import of digital equipment for the link and it is negotiating credits with the Western investors. The last part of the plan, Italy-Turkey-Russia, will provide connections with the southern former Soviet republics. The whole project is scheduled for completion in 1998. In total, the Russian companies invested $68.1m and the Western investors $136m in Russian networks. Bulgak says the Ministry helped introduce more than 1m new domestic telephone numbers last year. Despite investment of hundreds of millions of dollars, the State spent absolutely nothing from its budget on improving telecommunications. All work has been financed by Rostelecom and Western companies. Bulgak said that a year ago Russia possessed only one international telephone exchange in Moscow, capable of supporting 2,900 channels. Now this figure is about 17,200; in 1995 it will increase to 33,000; in 1997, up to 48,500; and by 2005, to 64,000 international channels. The Minister admitted that not all difficulties are yet resolved with Rostelecom’s 50×50 project. The procedures for licensing and certification are still to be developed and customs duties are still high, which in some cases hampers import of Western equipment. However, according to Bulgak, duties on radio transmitting equipment have decreased under the new regime.