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08/03/1998 08:29:52 PRESS DIGEST - Russia - Aug 3

MOSCOW, Aug 3 (Reuters) - The following are some of the

leading stories in Russian newspapers this morning. Reuters has

not verified these stories and does not vouch for their

accuracy.

SEVODNYA

- Prime Minister Sergei Kiriyenko vowed last week that the

national railways would remain under state control.

- Lack of results from Kiriyenko's weekend meeting with

Chechen leader Aslan Maskhadov may undermine the latter's

position vis-a-vis the local opposition.

- Moscovites have been paying more for energy and heat since

August 1, boosting their monthly spending on communal services

to 21 percent from 17 percent.

VREMYA

- The head of Russia's association of diamond producers was

shot dead on Saturday. This section of the economy, mainly still

in state hands, has not been affected so far by criminal claims,

says the paper.

- Implementation of the government's anti-crisis measures

will lead to a considerable rise in prices of consumer goods.

- International creditors seem to be underestimating the

seriousness of the problems Russia inherited from its past.

- Russia will try to convert breakaway Chechnya into a free

economic zone.

--Tatyana Ustinova, Moscow Newsroom, +7095 941 8520.

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