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Russia's tourism chief agrees to head Nickel giant

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MOSCOW, 29 (RIA Novosti) - The head of the Russian state tourism agency has consented to a provisional offer from Norilsk Nickel to become chief executive of the metals giant, the agency said on Tuesday.

Vladimir Yegorov, press secretary of Rostourism, said Vladimir Strzhalkovsky, a longtime acquaintance of Prime Minister Vladimir Putin, had decided to quit as the agency's chief and had received offers from state and private companies.

The offer from Norilsk Nickel is of interest to the agency chief, Yegorov said.

"A final decision will be made by the board of directors of Norilsk Nickel," Yegorov said. The board is scheduled to convene on August 8.

Russian business daily Vedomosti, which is published jointly with The Wall Street Journal, said on Tuesday that the offer to Strzhalkovsky was made by Vladimir Potanin, a Russian billionaire who heads the Interros holding company and also chairs the Norilsk Nickel board of directors.

"Under conditions where the state is displaying an ever-increasing interest in private business, it is becoming a necessity to have a strong lobbyist in the company," Vedomosti quoted a source close to Interros as saying.

According to Vedomosti, the appointment of Strzhalkovsky should calm down investors and show that the situation in the company is under control.

Analysts say Norilsk Nickel's move is timely given the scandal unfolding around Russian mining giant Mechel.

Putin put pressure on the company last Thursday, saying Mechel sold raw materials abroad in the first quarter of 2008 at half the price of domestic sales.

The premier said the Federal Antimonopoly Service and the Investigation Committee under the Russian Prosecutor General's Office must look into Mechel's activities.

Mechel shares dropped 45.6% as trading opened on the RTS stock exchange on Friday following Thursday's 33% plunge in the ferrous metals company's ADRs on the New York stock exchange.

The company's stock crept up on the RTS at midday on Monday after Kremlin aide Arkady Dvorkovich said: "We hope recent events will be a lesson for both the Mechel company and the entire Russian market."

However, fresh criticism of "a steel company" from Putin on Monday caused Mechel shares to plummet further.

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