Heavy fighting in Chechnya has left 23 rebels and 14 soldiers dead in the last week. Since October, 1999, 3,500 soldiers and 11,000 rebels have died. Many civilians have died as well. Russia currently has some 40,000 troops in Chechnya. 

Russia has begun construction of two warships for China. The destroyers, costing $500 million each, are to be delivered in 2005.