Izvestia: Publishing Rights versus Property Rights

By Maxim Kniazkov and Olga Onischenko. Maxim Kniazkov is a former foreign correspondent with the Soviet news agency Tass. He is now senior partner with Yellow & Blue Associates, a. Washington consulting firm. Olga Onischenko is a. Ukrainian journalist. | The Christian Science Monitor, August 7, 1992 | Go to article overview

Izvestia: Publishing Rights versus Property Rights


Maxim Kniazkov and Olga Onischenko. Maxim Kniazkov is a former foreign correspondent with the Soviet news agency Tass. He is now senior partner with Yellow & Blue Associates, a. Washington consulting firm. Olga Onischenko is a. Ukrainian journalist., The Christian Science Monitor


THIS is a conflict in which emotions run high. Journalists accuse the Russian parliament of infringing on freedom of press. The parliamentarians retort that their goal is only to take back what they say rightfully belongs to them. Neither side is willing to back down, and, in all likelihood, the dispute will end up in Russia's already overburdened Constitutional Court.

At the heart of the squabble is the leading Russian newspaper, Izvestia, which for a number of years now has been consistently advocating political and economic reforms. It has unofficially allied itself with Russian President Boris Yeltsin and his entourage.

For years before that, Izvestia belonged to the Soviet parliament, which, on paper at least, was the supreme power in the old Soviet Union. But after the coup of last August, its editors proclaimed the paper independent and have operated it as such ever since.

In July, however, the Russian parliament voted to bring Izvestia under its control. Since the parliament is perceived to be an institution opposed to Mr. Yeltsin and his team, the Yeltsin camp cried foul, accusing the deputies of attempting to strangle Russian democracy.

These concerns were largely echoed in the West, including the United States. But what has so far been overlooked is that behind this trivial liberal-conservative bickering lies a crucial issue that still has not found its solution in Russia. It is the issue of property rights.

Our sources say that the proclamation of Izvestia's "independence" proceeded as follows. Soon after the failed August coup, its journalists gathered in a conference room and pronounced their paper an independent entity. They applied at the Ministry of Information for a registration certificate and received it soon thereafter. For a while, it seemed that the matter was closed. But in reality it wasn't, and here's why.

Izvestia, like any newspaper, is constituted not only of journalists. It also has valuable assets. Izvestia's numerous assets include prime real estate occupying a whole block in downtown Moscow, a modern printing plant, a publishing house, an impressive fleet of trucks and cars, out-of-town recreational facilities, and computers.

In their reformist euphoria, the Izvestia editors have never bothered to ask themselves a simple question: Who owns the chairs they are sitting on? The real problem is that, short of proper privatization, their declaration of independence looked more like a revolutionary takeover.

Indeed, what is Izvestia now in business terms? A private company? But, then, who owns it? If it is a public company, where is the exchange on which the paper's stock is traded? Who are its major stockholders who are supposed to sit on the board of directors?

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