There is an independent air about Saratov, capital of one of Russia's leading reformist regions. The Volga river city, 500 miles south-east of Moscow, is proud of its 400-year history as a trading centre at the crossroads of the ancient routes between Siberia and central Asia.

An agricultural and industrial region covers an area the size of Belgium and its government, which supports a rash of experimental policies including land privatisation, boasts "ministries" rather than departments. The independence extends to the city's 11 universities and higher education colleges: the federal education ministry may be located in Moscow, but its influence is barely felt these days.

"Personally I don't believe in Moscow at all," declared Alexander Slepukhin, vice-rector for academic affairs at Saratov Technical University. "Only the universities here in Saratov can help each other; regional and local self-reliance and support is the key to our future."

But his words - unthinkable a few years ago when Moscow had a vicelike grip - are not those of one resigned to Dunkirk-like survival against the odds.

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Slepukhin welcomes last month's appointment of Vladimir Filippov as new federal education minister. Filippov, the rector of Moscow's People's Friendship University, promises a stronger voice for universities within the government but no one is kidding themselves that he will be able to swing more money or resources their way, Slepukhin said.

"The current economic crisis has had very little impact here. Since October 1994 the federal ministry has paid only for staff salaries and student stipends and we've not received a penny for heating, light, maintenance or repairs. We've had to develop new ways of finding the funds to cover the rest of our needs."

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The financial crash of August, when the rouble slumped against the dollar, halved the value of Saratov Tech's tuition receipts from the 600 students who pay annual fees of 7,400 roubles - worth more than $1,200 when paid before the summer, but less than $500 today.

But a strong relationship between the university and its bankers has safeguarded its foreign currency accounts, where money from European programmes such as Tempus/Tacis is held. "The banks know we're running several international courses and are receiving funds in dollars and Deutschmarks," Slepukhin said.

The university has two Tempus programmes in institutional management and economics education reform, with a third on energy savings technology in the offing. It works with other universities through a regional association of rectors and promotes links with industry through its vigorous science park.

Saratov state's Volga Teknika science park involves 30 university-supported small businesses producing more than 70 products. Last year, the science park, which receives a quarter of its budget from the federal ministry, turned over $6 million.

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Tight university finances are circumvented by a sophisticated system of barter between regional public sector institutions - universities, power companies, government suppliers etc, and science park members, such as a macaroni manufacturer, which sell goods to the university at a discount for profitable retail through campus shops.

Valery Adamov, deputy of credit and business reform in the regional economics ministry, said the science park's role was critical both to the university's future and that of the region.

"The governor sees developing innovation technology as one of the most important economic tasks of the region. The government understands that without the development of science there will be no tomorrow for Saratov."