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RFE/RL Newsline, Vol. 2, No. 124, 98-06-30Radio Free Europe/Radio Liberty: Newsline Directory - Previous Article - Next ArticleFrom: Radio Free Europe/Radio Liberty <http://www.rferl.org>RFE/RL NEWSLINEVol. 2, No. 124, 30 June 1998CONTENTS[A] TRANSCAUCASUS AND CENTRAL ASIA
[B] SOUTHEASTERN EUROPE
[C] END NOTE
[A] TRANSCAUCASUS AND CENTRAL ASIA[01] ALIEV ALLY TO CONTEND AZERBAIJANI PRESIDENTIAL POLLNizami Suleymanov, chairman of the pro- government Independent Azerbaijan Party, told a news conference in Baku on 29 June that he will run in the presidential elections scheduled for October, Turan reported. He explained his decision by saying that "only Allah is indispensable," and that alternatives exist to the incumbent, Heidar Aliev. At the same time, he added that he has no doubts that Aliev will be re-elected. He said that the opposition parties' plan to boycott the poll was an acknowledgment of defeat. Suleymanov ran as a presidential candidate in June 1992, against Azerbaijan Popular Front chairman Abulfaz Elchibey. He won 38 percent of the vote on the strength of a pledge to end the war in Nagorno-Karabakh within three months. LF[02] EX-PRESIDENT SUMMONED BY AZERBAIJANI INTERIOR MINISTRYAzerbaijan Popular Front Party chairman Abulfaz Elchibey was summoned to the Interior Ministry's Department to Combat Organized Crime on 29 June, Turan reported. Elchibey linked the summons to the criminal case recently opened against a member of the Azerbaijan Popular Front Party in connection with a draft document confiscated during a search of the editorial offices of the opposition newspaper "Chag." The authorities have termed the document subversive. LF[03] ARMENIA TO EXEMPT SMALL BUSINESSES FROM INCOME TAXIn a bid to boost budget revenues and preclude tax evasion, the Armenian government has drafted legislation extending the so-called system of "fixed payments" to more categories of small businesses, thereby exempting them from income tax, RFE/RL's Yerevan bureau reported. Under that law kiosks, open-air markets, and some services sector outlets will pay a fixed amount of money to the state, depending on their location and size. Finance and Economy Minister Eduard Sandoyan told the parliament on 29 June that the measure will not only increase budget revenues but will also expand the tax base by cracking down on tax evasion among owners of small businesses. Sandoyan also sought approval for a 25 percent increase in fixed payments for those businesses already operating under the system to bring their contributions into line with inflation. LF[04] NAGORNO-KARABAKH TO HOLD LOCAL ELECTIONSThe government of the unrecognized Nagorno-Karabakh Republic has reaffirmed its intention to hold elections to local self-government bodies, RFE/RL's Stepanakert correspondent reported on 29 June. Those elections will take place on 27 September. A government directive specifically instructs local authorities to cooperate with the Nagorno-Karabakh Central Election Commission in ensuring a free and fair vote. Previous presidential and parliamentary elections in Nagorno-Karabakh were not deemed legitimate by the international community because the disputed region's ethnic Azerbaijani minority, who fled during the early years of the conflict, was unable to participate. LF[05] ARTICLE CLAIMS KARABAKH IS READY FOR UN MEMBERSHIPAn article published in "Nezavisimaya gazeta" on 30 June lists the reasons why the author considers Nagorno-Karabakh qualifies for UN membership. The article points out that the December 1991 referendum on independence from Azerbaijan took place in accordance with existing Soviet legislation. It also says that, as a non- UN member, Karabakh is deprived of the opportunity to defend itself by diplomatic, as opposed to military, means. An article published by the same author in "Nezavisimaya gazeta" in January similarly called for the "decolonization" of Karabakh and for the creation of a permanent security corridor linking the enclave with Armenia. That article argued that only international recognition could provide adequate security for the Karabakh population. LF[06] NATO CALLS KAZAKHSTAN 'RELIABLE PARTICIPANT'Klaus Naumann, chairman of NATO's Military Committee, began a two-day visit to the Kazakh capital Astana on 29 June, RFE/RL correspondents and Interfax reported. Naumann met with Kazakh Defense Minister Mukhtar Altynbayev. Meeting with parliamentary deputies, Naumann said that NATO is interested in stability in Central Asia and that Kazakhstan is a "reliable participant" in the alliance's Partnership for Peace program. Naumann held discussions with Altynbayev on the military exercises scheduled for September in Kazakhstan, Kyrgyzstan, and Uzbekistan as part of the NATO program. BP[07] JAPAN TO HELP UPGRADE AIRPORT IN KAZAKH CAPITALKazakh Foreign Minister Kasymjomart Tokayev on 29 June announced that Japan will lend Kazakhstan more than 22 billion yen (some $150 million) to improve the airport in the Kazakh capital, Interfax and ITAR-TASS reported. The Astana airport was built more than 30 years ago. According to ITAR-TASS, it "does not correspond to international standards of civilian aviation." BP[08] ISRAELI DELEGATION ARRIVES IN KAZAKHSTANAn Israeli delegation led by Minister of Industry and Trade Natan Sharanskii arrived in Almaty on 29 June, RFE/RL correspondents and Interfax reported. Sharanskii, who is also the co-chairman of the Israeli-Kazakh Economic Commission, said he hopes trade between the two countries can be increased, Interfax reported that in recent years, Israel has exported farm produce worth $1 billion to Kazakhstan. Sharanskii said trade will improve once Kazakh producers have more information about "borrowing, business plans, or mortgage mechanisms." The Israeli delegation is scheduled to leave for Uzbekistan on 30 June. BP[09] GLASNOST FOUNDATION APPEALS TO UZBEK PRESIDENT OVER JAILED JOURNALISTThe Glasnost Defense Foundation has appealed to Islam Karimov to ask for a revision of the verdict against journalist Shadi Mardiev. A copy of the letter, obtained by RFE/RL's Uzbek Service, claims two of the five charges on which Mardiev was convicted are based on the former criminal code. Mardiev was accused of extortion and slander by the Samarkand regional deputy prosecutor following a broadcast the journalist made last November. A Syr-Darya district court sentenced him to 11 years earlier this month. The Glasnost Defense Foundation claims Mardiev was convicted because of his political criticism. It wants Karimov to ensure a full and unbiased investigation into his case. BP[B] SOUTHEASTERN EUROPE[10] SERBS LAUNCH OFFENSIVE TO RETAKE MINESerbian security forces launched an offensive on 29 June to retake the strategic mining town of Belacevac, near the Kosova capital of Prishtina. Fighting initially centered around the town's coal mine, which supplies two nearby power plants and has been controlled by Kosova Liberation Army (UCK) forces since last week. Detonations and gunfire continued on 30 June. The area around the town was sealed off, and Serbian police and Yugoslav army troops, backed up by armored personnel carriers, moved into the area. Several buildings in the town were reported to be ablaze. Hundreds of civilians from Belacevac and the nearby towns of Hade and Lismir have fled the area. There are no independent reports of casualties. The situation in the central Kosovar town of Kijeva is unchanged (see "RFE/RL Newsline," 29 June 1998). PB[11] EU WAITING FOR COMPLIANCE FROM BELGRADEEU foreign ministers have called on Yugoslav President Slobodan Milosevic to immediately implement the pledges he made in Moscow (see "RFE/RL Newsline," 16 June 1998), including an halt to offensives against civilians, Reuters reported on 30 June. The statement, issued after a meeting in Luxembourg, stressed support for Kosova to be given "a large degree of autonomy" by Belgrade. The foreign ministers also adopted a ban on flights by the Yugoslav state airline, JAT, to EU countries. However, a date for the ban was not agreed upon. The foreign ministers were divided over whether to allow UCK members to take part in peace negotiations. British Foreign Secretary Robin Cook said negotiations should be held with ethnic Albanian leader Ibrahim Rugova, the "legitimate elected leader." PB[12] ANNAN URGES ACTION WITH UN MANDATEUN Secretary-General Kofi Annan on 29 June urged the international community to move swiftly in Kosova in order to avoid a "second Bosnia." Annan, speaking in Vienna, said the UN Security Council would have to approve any military action in the Serbian province. He also said he is willing to travel to Yugoslavia if the situation calls for it. In Moscow, the Russian Foreign Ministry said that it cannot support NATO military action in Kosova and that Moscow expects efforts to find a political solution to "bear fruit." PB[13] UCK SPOKESMAN SAYS RUGOVA OUT OF TOUCH WITH PEOPLEJakup Krasniqi, a spokesman for the UCK, said on 28 June that Kosova shadow state President Ibrahim Rugova does not have enough "political capital" to assume control over the UCK, Belgrade-based Radio B92 reported. Krasnici said that Rugova has lost touch with Kosovar Albanians and that the UCK will never be controlled by a man who has made so many accusations against it. Rugova recently told Western officials that he will seek to gain some influence over the UCK (see also "RFE/RL Newsline," 22 June 1998). Krasniqi said the UCK has some 30,000 troops organized into three brigades. PB[14] RUGOVA ADVERSARY SAYS UCK CONTROLS HALF OF KOSOVAAdem Demaci, leader of the Parliamentary Party of Kosova and a rival of Rugova, said on 27 June that UCK forces control 50 percent of Kosova, the independent news agency Beta reported. Previous reports have estimated that the UCK has control over 30-40 percent of the province. Demaci, in an interview published in the Croatian newspaper "Jutarnji List," said the UCK troops control all of the main roads in Kosova. He added that UCK forces are not attempting to take over towns. Demaci said Rugova's policy of non- violence has failed. Rugova and his supporters "follow fiction" but the UCK "is a factor that has helped us return to reality," he commented. PB[15] MACEDONIAN PREMIER GLOOMY ABOUT KOSOVABranko Crvenkovski said in Washington that there is "not much room for optimism" over the crisis in Kosova, an RFE/RL correspondent reported. Speaking after a meeting with U.S. Deputy Secretary of State Strobe Talbott, Crvenkovski said that there is still hope for finding "a political solution" and that Belgrade must give ethnic Albanians "substantive autonomy." Ethnic Albanians make up some 25 percent of Macedonia's population. Crvenkovski is to meet with U.S. Vice President Al Gore, Defense Secretary William Cohen, as well as World Bank and IMF officials during his visit. PB[16] MONTENEGRO ASKS PRIVATE BROADCASTERS NOT TO SIGN CONTRACTS WITH BELGRADEThe Montenegrin government on 27 June asked all private radio and television stations not to sign any contracts with the federal Yugoslav authorities. The government's Information Office issued a statement saying that "Montenegrin radio and television stations have no obligation toward the federal government." It added that Belgrade's recent demand that they sign contracts to rebroadcast a federal program was "yet another unconstitutional attempt to centralize the information environment in the federal Yugoslavia," RFE/RL's South Slavic Service reported. FS[17] MONTENEGRO DEFIES BELGRADE OVER PREVLAKAMontenegrin Foreign Minister Branko Perovic told the daily "Pobjeda" on 26 June that his government is ready to open a border checkpoint with Croatia on Prevlaka Island even without a final settlement over the island's border. He added that Belgrade rejected an offer to open the checkpoint but had not consulted Podgorica over the issue. Meanwhile, the UN General Assembly has appointed Graham Roger Williams from New Zealand as commander of the 28- member monitoring mission on Prevlaka, RFE/RL's South Slavic Service reported. FS[18] BOSNIAN SERB PARTY ELECTS NEW LEADERThe Serbian Democratic Party's General Assembly on 28 June elected Dragan Kalinica as chairman. Kalinica replaces Aleksa Buha, who resigned the previous day. Buha, a close associate of indicted war criminal and Bosnian Serb leader Radovan Karadzic, said he resigned because the party has "not supported his model of party leadership." Tanjug quoted party members as saying that Buha is unsatisfied that his party nominated Momcilo Krajisnik, rather than him, as a candidate for the presidency of Bosnia- Herzegovina, RFE/RL's South Slavic Service reported. FS[19] EUROPEAN OFFICIALS PUSH FOR ALBANIAN CONSTITUTION COMPROMISERepresentatives of the Council of Europe's Parliamentary Assembly, the European Parliament, and the OSCE's Parliamentary Assembly were in Tirana on 29 June to push for closer cooperation between the government and the opposition in drafting a new constitution. After meeting with those officials, Democratic Party Deputy Chairman Genc Pollo admitted that his party has not kept an earlier promise to become actively involved in the drafting process. His party has demanded a veto in the parliamentary drafting commission, but commission chairman Sabri Godo of the Republican Party has rejected that proposal, "Koha Jone" reported. FS[20] ALBANIAN PRESIDENT DEMANDS PARLIAMENT ACTION OVER CONTRABANDRexhep Meidani on 29 June presented to the parliament the results of an investigation into customs evasion and smuggling, which show a considerable drop in revenues from customs duties in the first four months of 1998 compared with the last four months of 1997 (see "RFE/RL Newsline," 25 June 1998). Parliamentary speaker Skender Gjinushi demanded that the parliamentary commissions for finance and the interior launch investigations into the matter and make recommendations to restructure the customs, police, and judicial systems, "Koha Jone" reported. FS[21] ROMANIAN PREMIER SKEPTICAL ABOUT SPEEDY NATO MEMBERSHIPPrime Minister Radu Vasile, addressing a forum of his party's youth organization in Calimanesti on 27 June, said it is "unlikely" that Romania will be invited to join NATO next year and "more realistic" to view membership as "possible" between 2000 and 2003. He said that NATO membership remains a "major target" of Romanian policy but that "the hysteria" that accompanied Romania's bid for membership in 1997 must be avoided. Vasile added that he does not believe his National Peasant Party Christian Democratic (PNTCD) is able to win the next elections on its own and that statements by PNTCD members in favor of early elections are "inopportune." He argued that the PNTCD must accept the idea that in the year 2000 it will also need a coalition in order to rule, RFE/RL's Bucharest bureau reported. MS[22] FORMER SECURITATE AGENTS SOUGHT IN TOP LEADERSHIPThe Supreme National Defense Council on 29 June announced it has asked the Romanian Intelligence Service (SRI), the Foreign Intelligence Service (SIE), the Interior Ministry, and the Defense Ministry to report within 10 days whether any member of the council had links with the communist secret police. The same day, the Chamber of Deputies unanimously passed a resolution demanding that the SRI do the same for its members within two weeks. Also on 29 June, Democratic Party deputy Adrian Vilau, whose former links with the Securitate were recently revealed, resigned as chairman of the chamber's commission overseeing the activity of SIE. MS[23] ROMANIA TO REDUCE MILITARY FORCESDefense Minister Victor Babiuc told journalists on 29 June that Romania's military forces will be cut this year by some 10,000 troops. At the end of the process, he said, the total number of troops will be reduced to150,000. In other news, on 29 June the parliamentary group of the Hungarian Democratic Federation of Romania in the Chamber of Deputies submitted a draft law for setting up a Hungarian- language university in Cluj. MS[24] YELTSIN RECONFIRMS RUSSIAN POSITION ON TRANSDNIESTERIn a message to his Moldovan counterpart, Petru Lucinschi, Russian President Boris Yeltsin has reconfirmed that Moscow wants the sides involved in the Transdniester conflict to "strictly abide by the May 1997 memorandum on normalizing relations between Moldova and the Transdniester and the March 1998 Odessa summit accords," Infotag reported on 29 June. Yeltsin's message was delivered to Lucinschi by Igor Morozov, the Russian representative at the Chisinau- Tiraspol negotiations. MS[25] WESTERN EUROPEAN UNION OFFICIALS IN BULGARIAParliamentary chairman Yordan Sokolov on 29 June told a WEU delegation that Bulgaria will comply with any decision taken by the international community on the Kosova conflict, an RFE/RL correspondent in Sofia reported. The delegation is also scheduled to meet with Foreign and Defense Ministry officials and tour military installations in Plodviv and Karlovo. The WEU is the military arm of the EU. MS[C] END NOTE[26] CHUBAIS TRIES TO JOLT ELECTRICITY SECTORby Stephanie BakerWith its glass walls and high-tech security, the new headquarters of Komienergo, the regional electricity company in Russia's Far North, seem extravagant for a company saddled with debts and struggling to make ends meet. But the company's management said looks are deceiving. Ivan Medvedev, Komienergo's financial director, says: "We built this place through barter." Since the company was collecting only 10 percent of its bills in cash, building a new headquarters through bartered goods made sense. The local timber mill could not pay its electricity bill in cash but had plenty of wood to spare. Cement and other construction materials acquired through such creative barter transactions also were used. Although the building continues to raise eyebrows among locals, it stands as a symbol of Russia's cashless economy, which has given rise to inefficiencies and financial abuses. It is also a symptom of the company's messy financial state, where barter reigns supreme and debts pile up. Komienergo's accounts receivable as of 1 June 1 stood at a staggering $1.7 billion rubles ($280 million) or about half of total sales, with federal and local budgets the biggest debtors by far. But the company owes almost as much to its suppliers and to the government in taxes. Like many in Russia, managers at Komienergo are counting on the country's best-known reformer, Anatolii Chubais, to pull out his financial wand. After being fired as first deputy prime minister in March, Chubais was appointed in late April to take over as chief executive of Russia's giant electricity company Unified Energy Systems (EES), which owns a controlling stake in Komienergo and almost all of the country's regional utilities. The appointment came after months of behind-the-scenes wrangling and intense opposition from the State Duma, which balked at Chubais's running a company that allows him to wield political influence over the regions in the run-up to parliamentary elections. At the helm of Russia's largest company by sales and its most traded stock, Chubais would seem to have his hands full. But Russia's financial crisis has pulled him back into the government yet again to negotiate an emergency stabilization loan from the IMF. The job of running state-controlled EES puts Chubais at the center of the biggest structural problem facing the Russia: non-payments. EES is at the hub of a vicious circle of unpaid bills totaling some $96 billion, which is choking the economy and putting a break on investments. EES and its subsidiaries are owed roughly $21 billion, including massive unpaid bills by government-funded organizations. It, in turn, has built up unwieldy debts to state budgets and suppliers, such as gas monopoly Gazprom. EES currently owns the national electricity grid, operates 34 power plants, and holds controlling stakes in 70 regional utilities that have a monopoly on local distribution. Under reforms outlined in a presidential decree, Russia's power generating facilities will be separated from transmission, but Chubais has said the transformation will take two to three years. At present, competition is being smothered. Instead of independent power stations competing to supply power on a national grid, prices are set by local regulators. While a wholesale market for power exists at the national level, regional utilities often block industries from tapping other cheaper sources of electricity by charging high transmission fees. There is also a web of opaque financial deals carried out in barter and unregulated promissory notes. If Chubais can sort out the company's financial mess and make EES more transparent, it could help spur economic growth. In his words: "All transformations in EES will directly affect the Russian economy as a whole." If he fails to make headway at EES, economists say, Russia is more likely to remain stuck in first gear, dragged down by insolvent companies that cannot pay their bills. Chubais is relying on devising a new strategy for implementing a restructuring plan that languished under his predecessor, Boris Brevnov, who was pushed out by the company's Soviet-era directors after less than a year on the job. Analysts said that unlike Brevnov, Chubais has the political muscle to push through reforms, such as raising electricity tariffs for households, breaking up regional monopolies, and turning off non-paying customers. While many of the proposals are not new, Chubais has for the first time outlined a blueprint for restructuring the electricity sector and distributed it to investors and regional leaders for comments and suggestions. His strategy to implement the plan relies heavily on the political and administrative skills he honed in the government. Using both a carrot and stick, Chubais has said he will force the federal government to pay its bills to local utilities that agree to implement tough reforms. Given Russia's overall economic difficulties, the task is huge and time is short. Prime Minister Sergei Kirienko has given Chubais until the fall to make palpable improvements at EES. But most analysts say he cannot be expected to turn around the lumbering electricity giant in six months. The author is an RFE/RL Moscow-based correspondent. 30-06-98 Reprinted with permission of Radio Free Europe/Radio Liberty
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