Report on the Implementation of the Russian Officer Resettlement Certificate Program

The Russian Officer Resettlement Certificate Program in
Serpukhov Oblast 
The Russian Officer Resettlement Certificate program in the Oblast of Serpukhov started on May 16, 1995.  At the
time of the of the program suspension on May 31, 1995, 23 officers had received certificates.  This represents 23
percent of the 100 officers who would have been housed under the terms of the MOU which was signed on April 12,
1995.
Site Selection:
In Moscow Oblast the city of Serpukhov was selected to participate in this program, primarily because one of the
offerors, CEDO, had over 60 units that were ready for occupancy within three or four months.  Serpukhov is very
close to Moscow and is accessible by commuter train.  The administrative center, Moscow, was not considered for
the implementation of the program, because the city would not agree to the eligibility criteria specified in the MOU. 
The Oblast administration did not participate in the implementation of the program, because the housing of 60
officers was considered too small a project for active participation of the Oblast administration.  The Oblast
administration did, however, agree to uphold the terms of the MOU, and agreed to support the city administration. 
The pricing was supplied by the municipal Department of Construction’s  Pricing Center.  
Bank Selection:
None of the ISBs had affiliates or branches in Serpukhov, though Moscow has offices of all the ISBs.  We were
looking for a bank that could take an active role in the implementation of the program, one that was immediately
accessible to the officers, and a bank that could have regular contact with the administration of Serpukhov.  Unikom
Bank was selected on the recommendation of the administration of the city of Serpukhov and approved by
Tveruniversalbank and Minstroi.
The subcontract signed between the bank and Abt Associates provided that Serpukhov Unikom Bank would receive
$ 1,000 for every processed officer.  For the 22 officers who have closed on their units, the bank has received $22,000
in payment.
A modification to the subcontract was signed adding a new task : verification of officer occupancy of their units. 
The bank received $1,000 to do this additional work.  To date they have verified that 7 officers have moved in.  
Pricing:
The Department of Construction for the municipality sent us pricing data and the pricing projections were done by
Abt Associates Inc.  The amounts paid for the redemption of certificates are listed below:
Number of
certificates
Amount Paid*
Total_22_100.00%_The_table_below_lists_the_number_of_officers_who_fall_into_each_of_the_three_eligibility_categories._Officers_and_their_category_classifications'>Total Paid
9
$24,111
$216,999.00
13
$25,000
$325,000.00
Total
22
$541,999.00
Average price per
unit
$24,636.32
         *
The prices listed below are all for new units since all 
the officers chose to have new units.

February 8, 1996
83
The tables below list the country of demobilization and the source of the lists for all the officers who received
certificates.
Country of Demobilization
Country
Number of officers
Percentage
Latvia
16
72.73%
Lithuania
2
9.09%
Estonia
3
13.64%
Belarus
1
4.55%
Total
22
100.00%
Source of List
Source of officers
 Number of
Percentage
Ministry of Defense
21
95.45%
Local waiting list
1
4.55%
Total
22
100.00%
The table below lists the number of officers who fall into each of the three eligibility categories.
Officers and their category classifications
Category
Number of officers
Percentage
First
21
95.45%
Second
0
0.00%
Third
1
4.55%
Total
22
100.00%
Certificate extensions and cancellations
Within one month of receiving their certificates, officers had to find a housing unit, negotiate the price, and sign a
presales contract  with the offeror or owner of the unit.  This contract defined the terms and conditions of the sale,
and committed both the buyer and the seller to complete the purchase transaction within three months.
Occasionally the officers were unable to sign the presales contract within one month of having received their
certificates.  The bank, on behalf of the officers applied to Abt associates Inc.  to have the one month deadline for
signing the pre-sale contract extended, and Abt Associate gave the bank the decision after consulting with USAID. 
Usually an extension was requested if the officer was unable to return from the Baltics in time to sign the pre-sale
contract.  When an officer was granted such an extension, the officer still had to sign the final closing contract
within four months of  receiving the certificate.  
If the builder was unable to complete the unit on time, or if the builder backed out of the pre-sales contract, the
officer would be granted an extension of the four month deadline to close on a unit.  Again an application for

February 8, 1996
84
extension was submitted by the bank and the decision reached after consulting with USAID.  Of the two buildings,
one was not completed on schedule, and the officers who purchased units in that building received extensions.
Of the officers who received certificates in Serpukhov
1 certificate was canceled
0 officers had their one month search period extended
15 officers had their four month certificate duration extended.
Issues
Non-ISB banks
The fact that no ISB were available required a more thorough review of the bank’s proposal.  Tveruniversalbank was
advised as were the administrations of Serpukhov.  Initially a site without an ISB was given  a lower priority,
however, with the large number of units immediately available, we decided to work  with Unikom Bank after receiving
approval from Tveruniversalbank and Minstroi.
Shared participation contracts and its repercussions vis-a-vis BTI registration.
The main developer in Serpukhov signed shared participation contracts with the officers.  The shared participation
closing contract was stamped by the Bureau of Technical Inventory  (BTI)  after the offeror had been paid its money. 
In Serpukhov, the bank was notified early in the program to require a BTI stamp on the closing contract prior to
making a payment.
Free Propiskas
The city of Serpukhov and the Moscow Oblast administration  refused to issue the officers  propiskas (residence
permit) free of charge.  Although the MOU stated that all officers would receive a free propiska, the city and Oblast
tried to impose a propiska  fee on the officers.  Without the propiska residents of a city are unable to get jobs, their
military pensions, hospital care, or any additional municipal services.  Although the city has waived its 70% of the
propiska fee, the Oblast has not yet done so.
The attached tables provide information on certificate issuance and closings in the Oblast of Serpukhov.

February 8, 1996
85
CERTIFICATE PROGRAM FOR RESETTLED OFFICERS : SERPUKHOV
Date 
Period
Ends
Number 
of Certs.
Issued
Presales
Agreements
Certs.
Canceled
Cases  
Sent to
Reviewers
Cases
Approved by
Reviewers
Units
Purchased 
(closed)
May 19
7 
0 
0 
0 
0 
0 
May 26
23 
20 
0 
0 
0 
0 
June 0
23 
22 
0 
0 
0 
0 
June 09
23 
22 
0 
0 
0 
0 
June 16
23 
23 
0 
0 
0 
0 
June 23
23 
23 
0 
0 
0 
0 
June 30
23 
23 
0 
7 
0 
0 
July 07
23 
23 
0 
7 
7 
0 
July 14
23 
23 
0 
7 
7 
7 
July 21
23 
23 
0 
7 
7 
7 
July 28
23 
23 
0 
7 
7 
7 
Aug 04
23 
23 
0 
7 
7 
7 
Aug 11
23 
23 
0 
7 
7 
7 
Aug 18
23 
23 
0 
7 
7 
7 
Aug 25
23 
23 
0 
7 
7 
7 
Sep 08
23 
23 
0 
7 
7 
7 
Sep 15
23 
23 
0 
7 
7 
7 
Sep 22
23 
23 
0 
7 
7 
7 
Sep 29
23 
23 
0 
22 
22 
7 
Oct 06
23 
23 
1 
22 
22 
7 
Oct 13
23 
23 
1 
22 
22 
22 
TOTAL
    
ESTONIA
3 
3 
0 
3 
3 
3 
LATVIA
17 
17 
1 
16 
16 
16 
LITHUANIA
2 
2 
0 
2 
2 
2 
LOCAL
1 
1 
0 
1 
1 
1 

February 8, 1996
86
Cert. 
Number
Officer’s Name 
Demob.
Date
Country of
Demob.
Source of List
Cert.
Issuance
Date
Presale
Date
Closing
Date
Rank
Military
Branch
Purchase Price
Se-001
Deev Aleksandr
Vladimirovich
2/20/92
Latvia
MOD
5/16/95
5/17/95
10/11/95
Mitchman
Navy
$24,111.00
Se-002
Urmanov Ilya
Borisovich
8/28/94
Latvia
MOD
5/16/95
5/17/95
10/11/95
Senior
Lieutenant
Ground Forces
$24,111.00
Se-003
Prigoda Svetlana
Vitalyevna
10/25/93
Latvia
MOD
5/16/95
5/18/95
7/13/95
Contract
Officer
Air Defense
$25,000.00
Se-004
Ustinov Ruslan
Valentinovich
8/15/94
Latvia
MOD
5/16/95
5/17/95
10/11/95
Senior
Lieutenant
Air Force
$24,111.00
Se-005
Simkin Anatoly
Fyodorovich
2/6/93
Lithuania
MOD
5/16/95
5/19/95
10/11/95
Major
Ground Forces
$24,111.00
Se-007
Klevakin Viktor
Alekseevich
5/16/94
Latvia
MOD
5/16/95
5/19/95
7/13/95
Colonel
Ground Forces
$24,111.00
Se-008
Katrich Anatoly
Tikhonovich
3/8/93
Latvia
MOD
5/23/95
5/23/95
10/11/95
Warrant Officer
Air Defense
$25,000.00
Se-009
Mikhailovskaya Olga
Innokentyevna
8/14/94
Latvia
MOD
5/23/95
5/24/95
10/11/95
Contract
Officer
Ground Forces
$25,000.00
Se-010
Mandich Vitaly
Gennadyevich
12/17/92
Lithuania
MOD
5/23/95
5/23/95
7/13/95
Senior
Lieutenant
Ground Forces
$25,000.00
Se-011
Torbeev Ivan
Ivanovich
1/2/93
Estonia
MOD
5/23/95
5/25/95
7/13/95
Chief Warrant
Officer
Air Defense
$25,000.00
Se-012
Arinin Ivan
Yegorovich
7/9/92
Latvia
MOD
5/23/95
5/23/95
10/11/95
Colonel
Air Defense
$25,000.00
Se-013
Kryuchkov
Aleksandr
Vasilyevich
9/27/93
Latvia
MOD
5/23/95
5/23/95
10/11/95
Captain
Navy
$25,000.00
Se-014
Novikova Larisa
Nikolaevna
12/25/93
Latvia
MOD
5/23/95
5/23/95
10/11/95
Senior Seaman
Navy
$24,111.00
Se-015
Anufrienkova Yulya
Valeryevna
10/11/93
Belarus
Local
5/23/95
5/23/95
10/11/95
Sergeant
Ground Forces
$24,111.00
Se-016
Ronzhin Vladimir
Nikolaevich
12/29/93
Latvia
MOD
5/23/95
5/23/95
7/13/95
Major
Air Force
$25,000.00
Se-017
Batalova Natalya
Aleksandrovna
4/8/94
Latvia
MOD
5/23/95
6/5/95
10/11/95
Mitchman
Navy
$24,111.00

Cert. 
Number
Officer’s Name 
Demob.
Date
Country of
Demob.
Source of List
Cert.
Issuance
Date
Presale
Date
Closing
Date
Rank
Military
Branch
Purchase Price
February 8, 1996
87
Se-018
Shaverina Valeriya
Ivanovna
4/23/94
Latvia
MOD
5/23/95
5/24/95
10/11/95
Mitchman
Navy
$25,000.00
Se-019
Sidorova Irina
Vladimirovna
4/23/92
Estonia
MOD
5/23/95
5/23/95
10/11/95
Warrant Officer
M. of Internal
Affairs
$24,111.00
Se-020
Starovoitov
Aleksandr
Yevgenyevich
4/30/94
Latvia
MOD
5/23/95
5/24/95
10/11/95
Mitchman
Navy
$25,000.00
Se-021
Mikhailova Nina
Nikolaevna
4/25/94
Latvia
MOD
5/23/95
5/24/95
10/11/95
Mitchman
Navy
$25,000.00
Se-022
Gamzatov Gadis
Abakarovich
3/10/93
Latvia
MOD
5/23/95
5/23/95
7/13/95
Major
Ground Forces
$25,000.00
Se-023
Borodyaev Mikhail
Frantsevich
11/23/92
Estonia
MOD
5/23/95
5/24/95
7/13/95
Chief Warrant
Officer
Strat. Missle
Forces
$25,000.00

February 8, 1996
88
The Russian Officer Resettlement Certificate Program in
Smolensk Oblast 
The Russian Officer Resettlement Certificate program in the Oblast of Smolensk started on April 21, 1995.  At the
time of the of the program suspension on May 31, 1995, 66 officers. had received certificates.  This represents 51
percent of the 130 officers who would have been housed under the terms of the MOU which was signed on March 3,
1995.
Site Selection:
In Smolensk Oblast the city of Smolensk was selected to participate in this program because there were 60 units that
were immediately available, and about a hundred more that would be ready within four months.  Since many officers
had written to the Duma, requesting to have Smolensk included in the program, we knew that there would be no
shortage of available officers.
Bank Selection:
None of the ISBs had affiliates or branches in Smolensk.  Bank Titan and Sberbank were approached and issued
RFPs.  These two banks which have a strong regional presence submitted their proposals, and although not ISBs,
the oblast administration was enthusiastic in its support for either bank.  Sberbank was selected after reviewing their
proposal ; in addition to being the bigger of the two banks, Sberbank was eager to participate in recruiting realtors
and builders for this program.  This in addition to their role as specified in the RFP made Sberbank the stronger
candidate.  Sberbank was selected on the recommendation of the administration of the Oblast of Smolensk and
approved by Tveruniversalbank and Minstroi.
The subcontract signed between the bank and Abt Associates, Sberbank would receive $ 1,000 for every processed
officer.  For the 66 officers who have closed on their units, the bank has received $66,000 in payment.
A modification to the subcontract was signed adding a new task : verification of officer occupancy of their units. 
The bank will receive $ 1,000 dollars to do this additional work.  To date they have verified that 37 officers have
moved in. 

February 8, 1996
89
Pricing:
The Department of Construction for the Oblast sent us pricing data and the pricing projections were done by Abt
Associates Inc.  The amounts paid for the redemption of the certificates are listed below:
Number of
certificates
Amount Paid*
Total_66_100.00%_The_tables_below_lists_the_number_of_officers_who_fall_into_each_of_the_three_eligibility_categories._Officers_and_their_category_classifications'>Total Paid
1
$10,800
$10,800.00
4
$13,500
$54,000.00
13
$19,500
$253,500.00
1
$21,200
$21,200.00
23
$23,000
$529,000.00
1
$23,500
$23,500.00
2
$24,700
$49,400.00
21
$25,000
$525,000.00
Total
66
$1,466,400.00
Average price per
unit
$22,218.18
* The prices listed are for both new and existing units.
The tables below list the country of demobilization and the source of the lists for all the officers who have closed on
their units.
Country of Demobilization
Country
Number of officers
Percentage
Latvia
25
37.88%
Lithuania
2
3.03%
Estonia
38
57.58%
Kirghizstan 
1
1.52%
Total
66
100.00%

February 8, 1996
90
Source of List
Source of officers
 Number of
Percentage
Ministry of Defense
64
96.97%
Local waiting list
2
3.03%
Total
66
100.00%
The tables below lists the number of officers who fall into each of the three eligibility categories.
Officers and their category classifications
Category
Number of officers
Percentage
First
64
96.97%
Second
1
1.52%
Third
1
1.52%
Total
66
100.00%
Certificate extensions and cancellations
Within one month of receiving their certificates, officers had to find a housing unit, negotiate the price, and sign a
presales contract  with the offeror or owner of the unit. This contract defined the terms and conditions of the sale,
and committed both the buyer and the seller to complete the purchase transaction within three months.
Occasionally the officers were unable to sign the presales contract within one month of having received their
certificates.  The bank, on behalf of the officers applied to Abt associates Inc. to have the one month deadline for
signing the pre-sale contract extended, and Abt Associate gave the bank the decision after consulting with USAID. 
Usually an extension was requested if the officer was unable to return from the Baltics in time to sign the pre-sale
contract.  When an officer was granted such an extension, the officer still had to sign the final closing contract
within four months of  receiving the certificate.  Since most of the available units were at or near completion, the
officers were able to sign the pre-sales contract soon after receiving their certificates.  
If the builder was unable to complete the unit on time, or if the builder backed out of the pre-sales contract, the
officer would be granted an extension of the four month deadline to close on a unit.  Again an application for
extension was submitted by the bank and the decision reached after consulting with USAID.
Of the officers who received certificates in Smolensk
0 certificates were canceled
1 officer had his one month search period extended
28 officers had their four month certificate duration extended.
Issues
Non-ISBs 
The fact that no ISBs were available required a more thorough review of the bank’s proposal.  Tveruniversalbank
was advised as were the administrations of Smolensk.  Initially a site without an ISB  was given  a lower priority,
however, with the large number of units immediately available, we decided to work with Smolensk Sberbank after
considering the two proposals that we received and receiving approval from Tveruniversalbank and Minstroi.
The attached tables provide information on certificate issuance and closings in the Oblast of Smolensk.

February 8, 1996
91
CERTIFICATE PROGRAM FOR RESETTLED OFFICERS :  SMOLENSK
Date 
Period
Ends
Number 
of Certs.
Issued
Presales
Agreements
Certs.
Canceled
Cases  
Sent to
Reviewers
Cases
Approved by
Reviewers
Units
Purchased 
(closed)
Apr 21
32 
0 
0 
0 
0 
0 
Apr 28
32 
26 
0 
0 
0 
0 
May 05
48 
26 
0 
0 
0 
0 
May 12
52 
44 
0 
0 
0 
0 
May 19
60 
58 
0 
5 
5 
0 
May 26
61 
61 
0 
5 
5 
0 
June 02
66 
61 
0 
5 
5 
0 
June 09
66 
61 
0 
5 
5 
0 
June 16
66 
66 
0 
7 
7 
0 
June 23
66 
66 
0 
7 
7 
0 
June 30
66 
66 
0 
7 
7 
0 
July 07
66 
66 
0 
7 
7 
0 
July 14
66 
66 
0 
7 
7 
7 
July 21
66 
66 
0 
7 
7 
7 
July 28
66 
66 
0 
8 
8 
7 
Aug 04
66 
66 
0 
31 
30 
7 
Aug 11
66 
66 
0 
52 
50 
7 
Aug 18
66 
66 
0 
52 
51 
7 
Aug 25
66 
66 
0 
63 
63 
40 
Sep 08
66 
66 
0 
64 
64 
48 
Sep 15
66 
66 
0 
64 
64 
48 
Sep 22
66 
66 
0 
65 
65 
51 
Sep 29
66 
66 
0 
65 
65 
51 
Oct 06
66 
66 
0 
66 
66 
51 
Oct 13
66 
66 
0 
66 
66 
51 
Oct 20
66 
66 
0 
66 
66 
65 
Oct 27
66 
66 
0 
66 
66 
65 
Nov 03
66 
66 
0 
66 
66 
65 
Nov 10
66 
66 
0 
66 
66 
65 
Nov 17
66 
66 
0 
66 
66 
66 
TOTAL
    
ESTONIA
38 
38 
0 
38 
38 
38 
LATVIA
25 
25 
0 
25 
25 
25 
LITHUANIA
1 
1 
0 
1 
1 
1 
LOCAL
2 
2 
0 
2 
2