The New York Times

Thursday, June 10, 1999

Russian Economy Disappoints Soros

By The Associated Press

MOSCOW (AP) -- American financier-philanthropist George Soros said Thursday he was disappointed with the way Russia's economy has unraveled over the past year and that he was scaling back his assistance as a result.

``Because of the capacity of the (Soros) foundation and the magnitude of the problems that Russia faces because of the economic and political crisis, I had to increase my financial support, I would say, beyond my financial capacity,'' Soros said at the end of a four-day visit.

Soros said he was cutting back his aid to Russian scientific and educational projects.

Soros earlier criticized the Russian government's failure to keep its promise and match his contributions.

``I think that really everything will depend on the clarification of the political situation, and it is my hope that perhaps out of the elections some clarity will emerge,'' Soros told reporters.

Russia is to elect a new parliament in December and a new president in a year's time. President Boris Yeltsin cannot run again after his current term expires.

Soros is by far Russia's largest private donor, spending more than $350 million on charitable projects in the past decade.

Over the past five years, Soros has spent nearly $76 million to support science and education, doling out grants to 18,000 teachers, 1,500 full professors and 1,500 assistant professors. He also has assisted more than 3,000 graduate students and 6,000 undergraduates.