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RFE/RL Newsline, 02-01-04
CONTENTS
[01] RUSSIAN PRESIDENT SACKS RAILWAYS MINISTER
[02] ACCUSED 'NATO COUNTRY' SPY FILES APPEAL TO RUSSIAN SUPREME COURT
[03] FEDERATION COUNCIL SPEAKER AGREES TO DISCUSS PASKO CASE PUBLICLY
[04] TV-6 WINS ANOTHER LEGAL VICTORY IN MOSCOW...
[05] ...BUT GOES OFF THE AIR IN OMSK AND LIPETSK
[06] ANOTHER MILITARY FIGURE LANDS IN UPPER HOUSE
[07] DUMA LEADER CRITICIZES PUTIN'S FEDERATION REFORMS
[08] FBI AND MVD WORK TOGETHER TO ARREST ACCUSED SWINDLER
[09] MVD BREAKS UP SYNDICATE FOR MAKING FALSE IDENTITY PAPERS
[10] RUSSIA INKS DEAL TO SUPPLY DESTROYERS TO CHINESE NAVY
[11] RUSSIAN SHIPBUILDING INDUSTRY STAYING AFLOAT
[12] FAR EASTERN PROVINCE EMPLOYS MORE CHINESE WORKERS
[13] MORE FEDERAL WORKERS CONTEMPLATED FOR THE REGIONS
[14] IT'S ALL DOWNHILL FOR MOSCOW OFFICIALDOM
[15] CHECHEN PRESIDENT EXTENDS HIS TERM IN OFFICE
[16] RUSSIAN TROOPS CLAIM TO INFLICT HEAVY LOSSES IN CHECHEN BATTLE
[17] AZERBAIJANI COURT SENTENCES VOLUNTEERS FOR CHECHEN CAUSE
[18] AZERBAIJANI JOURNALIST TO FACE LIBEL CHARGE
[19] AZERBAIJANI OPPOSITION PARTY PROTESTS IMMINENT EVICTION FROM ITS
[20] OSCE EXTENDS MONITORING OF GEORGIAN BORDER
[21] NEW BLOW TO GEORGIAN ELECTRICITY SUPPLIES
[22] DETAINED KAZAKH POLITICIAN BEGINS HUNGER STRIKE IN UZBEK JAIL
[23] KYRGYZSTAN CALCULATES FINANCIAL LOSSES FROM SMUGGLING
[24] POLL INDICATES KYRGYZ PREFERENCE FOR RUSSIAN-LANGUAGE MEDIA
[25] TAJIKISTAN APPOINTS NEW AMBASSADOR TO AFGHANISTAN
[26] BELARUSIAN PRESIDENT CRITICIZES LETHARGY IN CREATING UNION WITH
[27] BELARUS TO CHARGE PATIENTS FOR SOME MEDICAL SERVICES
[28] BELARUS GETS $30 MILLION FROM RUSSIA
[29] UKRAINIAN PRESIDENT SIGNS 2002 BUDGET INTO LAW
[30] IMF POSTPONES MEETING ON RELEASE OF LOAN TO UKRAINE
[31] ESTONIA'S CAPITAL LOWERS 2002 BUDGET
[32] LATVIA'S 2001 BUDGET DEFICIT SMALLER THAN PLANNED
[33] LITHUANIAN GOVERNMENT SETS UP CRISIS PREVENTION COMMITTEE
[34] POLISH PREMIER SPEAKS WITH POPE ABOUT FOREIGN POLICY, EU
[35] CZECH BUDGET DEFICIT AMOUNTS TO RECORD SHORTFALL
[36] CZECH OPPOSITION PARTY FILES SUIT OVER DEAL TO RECOVER RUSSIAN
[37] ABOUT 1,000 SUSPECTS FREED UNDER NEW CZECH PENAL GUIDELINES
[38] SLOVAK APPLICATIONS 'TRICKLE IN' FOR HUNGARIAN DESCENT STATUS
[39] RIVAL CAPITAL MARKET LICENSED IN BRATISLAVA
[40] HUNGARY'S PROSECUTOR-GENERAL AIMS TO END POLITICAL SCANDAL IN
[41] MORE ROMA FROM HUNGARY GRANTED ASYLUM IN FRANCE
[42] GERMANY SET TO TAKE KOSOVA JOB?
[43] SERBIAN LEGISLATOR SAYS GERMAN LIKELY TO HEAD UNMIK
[44] UN CALLS ON KOSOVARS TO HAND IN FAKE EUROS
[45] YUGOSLAV AUTHORITIES SHUT DOWN FOUR BANKS
[46] BOSNIAN SERB GENERALS TO GO TO HAGUE?
[47] SARAJEVO COURT SENTENCES BOSNIAN SERB
[48] POWER SHORTAGES IN MONTENEGRO
[49] CROATIAN GOVERNMENT TO TACKLE ECONOMIC ISSUES
[50] HEAVY SNOW STORMS BLOCK ROADS AND CRIPPLE POWER SUPPLIES IN
[51] PLANNED ANTI-RUSSIFICATION DEMONSTRATION IN MOLDOVA HITS SNAGS
[52] MOLDOVAN TEACHERS PROTEST RUSSIAN-LANGUAGE COURSES
[53] BULGARIAN FOREIGN MINISTER TO VISIT IRAN
[54] BULGARIAN PRIME MINISTER LOSES VOTER CONFIDENCE
[55] EURO INTRODUCTION EXPECTED TO BRING HIDDEN MONEY TO LIGHT IN
[56] BULGARIAN BORDER POLICE STEPS UP CONTROLS
[57] There is no end note today.
4 January 2002
RUSSIA
[01] RUSSIAN PRESIDENT SACKS RAILWAYS MINISTER
By presidential decree Vladimir Putin on 3 January fired Railways
Minister Nikolai Aksenenko, who for the last several months has been at
the center of a criminal investigation into massive corruption, Russian
news agencies reported. According to the presidential press service,
Putin's move was initiated by Prime Minister Mikhail Kasyanov, who
presented the president with material related to the investigation
released that day by Prosecutor-General Vladimir Ustinov. Reportedly,
the material clearly demonstrates that Aksenenko is to blame for tax
evasion in his agency worth many millions of dollars, as well as his
personal misuse of over $1 million. Gazeta.ru commented the same day
that behind the affair is the fight between the pro-presidential "St.
Petersburg team" and their allies in power agencies versus holdovers
from former President Boris Yeltsin's regime, one of whom Aksenenko was
one. The website opined that the Railways Ministry's position as the
third-largest Russian natural monopoly, behind Gazprom and Unified
Energy Systems (EES), led to a fight between the two groups for control
over the ministry's enormous cash flows and assets. Remarkably, the
website added, EES head Anatolii Chubais and Kasyanov were until
recently two of the chief defenders of Aksenenko's "reputation." VY
[02] ACCUSED 'NATO COUNTRY' SPY FILES APPEAL TO RUSSIAN SUPREME COURT
Igor Sutyagin, the researcher from the Institute of USA and Canada who
is accused of espionage for "a NATO country" and whose trial has been
suspended pending further investigation (see "RFE/RL Newsline," 28
December 2001), submitted an appeal to the Russian Supreme Court on 3
January, RIA-Novosti reported. In the appeal Sutyagin wrote that the
state prosecution failed to specify in its case what exact data he
allegedly handed over to foreign special services, and what particular
damage it caused to Russia's national security. Moreover, Sutyagin
claimed that the Kaluga Oblast Court that heard the case failed to
disprove his statement that all information he exchanged with his
foreign colleagues was obtained from open sources. In conclusion,
Sutyagin asked the Supreme Court to release him from custody until the
additional investigation is completed. VY
[03] FEDERATION COUNCIL SPEAKER AGREES TO DISCUSS PASKO CASE PUBLICLY
In his interview with NTV broadcast on 28 December, Sergei Mironov said
he is ready to meet "very soon" with members of human rights and
environmental organizations to discuss the case of Grigorii Pasko. The
military journalist was found guilty of "high treason in the form of
espionage" by the military court of the Pacific Fleet in Vladivostok on
25 December and sentenced to four years imprisonment (see "RFE/RL
Newsline," 28 December 2001). Mironov said that problems related to
Russia's ecological security are very acute and should discussed
"loudly and openly." He added that in the context of ecological
security he is ready to discuss "concrete steps to help Pasko." VY
[04] TV-6 WINS ANOTHER LEGAL VICTORY IN MOSCOW...
A Moscow court ruled on 3 January that Yevgenii Kiselev's earlier
appointment as general director of TV-6 was valid (see "RFE/RL
Newsline," 15 May 2001). TV-6 minority shareholder LUKoil-Garant sought
to have Kiselev's appointment last May declared invalid, according to
Interfax. LUKoil-Garant has 30 days to appeal the decision. JAC
[05] ...BUT GOES OFF THE AIR IN OMSK AND LIPETSK
Meanwhile, television viewers in Omsk saw TV-6 for the last time at the
end of December, RFE/RL's Omsk correspondent reported on 3 January.
Several months ago, the leadership of the Moscow Independent
Broadcasting Company (MNVK), which controls TV-6, canceled its
agreement with local television company Agava for rebroadcasting TV-6's
programs. Local observers connect TV-6's disappearance from local
airwaves with the larger plan by oblast authorities to monopolize
regional television. In Lipetsk Oblast, TVK, the local channel that
currently owns the rights to rebroadcast TV-6, went off the air at the
end of December due to a legal dispute over control of the company,
lenta.ru reported on 31 December. TVK journalists have charged that the
station's takeover is motivated by upcoming gubernatorial elections
(see "RFE/RL Newsline," 12 September 2001). JAC
[06] ANOTHER MILITARY FIGURE LANDS IN UPPER HOUSE
Admiral Vyacheslav Popov, the former commander of the Northern Fleet,
has agreed to represent Murmansk Oblast in the Federation Council,
Interfax reported on 3 January. Popov will join a host of other former
military officials in the upper legislative house, such as former First
Deputy Defense Minister Valerii Manilov (Primore), former Baltic Fleet
officer Nikolai Tulaev (Kaliningrad), former Defense Ministry official
Major General Aleksandr Kalita (Ulyanovsk), and former air force
General Vasilii Klyuchenok (Tambov). Popov's candidacy was expected to
be confirmed at the 4 January meeting of the oblast's legislature.
Popov was dismissed last December (see "RFE/RL Newsline," 3 and 4
December 2001). Joining Popov on the council will be Boris Nikolskii,
most recently the first deputy mayor of Moscow, who will represent the
Moscow mayoral administration; Yurii Kovalev, a former State Duma
deputy; and Yurii Gurdin, the former general director of Siblesprom,
polit.ru reported on 30 and 28 December. Kovalev and Gurdin will
represent Tomsk Oblast's legislature and executive respectively. JAC
[07] DUMA LEADER CRITICIZES PUTIN'S FEDERATION REFORMS
In an interview published in "Respublika Tatarstan" on 27 December,
Oleg Morozov, the leader of the Russian Regions group in the State
Duma, charged that the current system for interbudgetary relationships
between Moscow and regions smacks of "feudalism," RFE/RL's Kazan bureau
reported on 28 December. According to Morozov, the current system suits
only those regions that rely on federal subsidies to fund more than 60
percent of their expenses. Morozov added that the strengthening of
vertical power is unavoidable, but noted that it is still unclear which
model of a federative state will emerge from that process. In addition,
he said the institution of presidential envoys was created without the
necessary legal groundwork. Morozov also criticized the existing
process for forming the Federation Council and called for elections for
that body. JAC
[08] FBI AND MVD WORK TOGETHER TO ARREST ACCUSED SWINDLER
In a joint operation of the FBI and the Russian Interior Ministry,
Moscow police on 3 January arrested Gennadii Vostretsov, also known as
Gennadii Arzhanik, who is accused of obtaining through different fraud
activities over $3 million from the citizens of Russia and the United
States, RTR reported. Vostretsov allegedly started his machinations in
Russia when he created a fictitious company for the import of baby
food, according to RTR. After collecting money from his potential
customers, he emerged in the United States, where he attempted to
continue his fraudulent activities. He eventually arrived in Moscow
with a scheme to collect money for a nonexistent Russian-American film
project, but was detained by the Interior Ministry after it received a
tip from the FBI. VY
[09] MVD BREAKS UP SYNDICATE FOR MAKING FALSE IDENTITY PAPERS
An Interior Ministry spokesman announced that the office of the
agency's Directorate for Combating Organized Crime has disrupted the
activity of a criminal syndicate for fabricating identification papers
of various Russian state and public institutions, RIA-Novosti reported
on 28 December. The syndicate was operating from Makhachkala,
Daghestan, and produced over 60 types of forged documents including
identification cards of members of the State Duma, the
Prosecutor-General's Office, as well as university diplomas and pension
cards. The spokesman noted the very high quality of the false identity
papers, and did not exclude their possible use by members of criminal
and terrorist groups. VY
[10] RUSSIA INKS DEAL TO SUPPLY DESTROYERS TO CHINESE NAVY
Upon arriving in Moscow on 3 January, Zhou Wei, the head of the
Procurement Bureau of the Chinese People's Liberation Army, met with
Rosoboroneksport First Deputy Director Sergei Chemezov and signed a
contract under which Russia will provide two new destroyers to the
Chinese navy, gazeta.ru reported. The destroyers belong to the same
956E class as the two ships Russia sold to China in 1999-2000. Chemezov
said the "big new contract testifies to the extension of bilateral
military cooperation," but he failed divulge how much the deal is
worth. VY
[11] RUSSIAN SHIPBUILDING INDUSTRY STAYING AFLOAT
Russian maritime companies began the construction of 33 new ships in
2001, about half of which will be produced at domestic shipbuilding
yards, Interfax quoted a Transport Ministry spokesman as saying on 28
December. The spokesman specifically noted that several Russian oil
companies have begun constructing their own fleets; for example, LUKoil
is manufacturing a series of 10 icebreaker oil tankers to transport
hydrocarbons across the Arctic Ocean. VY
[12] FAR EASTERN PROVINCE EMPLOYS MORE CHINESE WORKERS
The Jewish Autonomous Oblast administration has decided to increase the
number of foreign workers that it allows in its region by one-third,
Interfax-Eurasia reported on 3 January. However, the number of
applications for work continues to exceed the number of permits.
According to the agency, authorities in the oblast's capital,
Birobidzhan, has received more than 2,000 applications from foreign
workers, and some 1,868 permits have been granted, mainly to Chinese
citizens. The timber industry is expected to employ many of the
additional foreign workers. JAC
[13] MORE FEDERAL WORKERS CONTEMPLATED FOR THE REGIONS
The Transportation Ministry is considering opening representative
offices in each of the seven federal districts, Interfax reported on 3
January. According to the agency, the envoys for the Southern and Urals
federal districts have suggested to the ministry that they open such
offices in their areas. JAC
[14] IT'S ALL DOWNHILL FOR MOSCOW OFFICIALDOM
Prime Minister Kasyanov and almost half of his cabinet ministers will
take vacations during the first half of January, polit.ru reported on 3
January. Kasyanov, who will spend some of his vacation skiing in
Slovenia, will be gone until 14 January. Deputy Prime Minister Aleksei
Kudrin also intends to go skiing, according to "Izvestiya" on 29
December. President Putin too is an avid skier, having spent a vacation
last year skiing in Khakasia. "Argumenty i Fakty" reported last year
that in addition to Kasyanov and Putin, Defense Minister Sergei Ivanov
and Security Council Secretary Vladimir Rushailo both like to spend
time on the slopes (see "RFE/RL Newsline," 4 January 2001). During
former President Yeltsin's tenure, tennis became the sport of choice
among Kremlin officials. JAC
[15] CHECHEN PRESIDENT EXTENDS HIS TERM IN OFFICE
Aslan Maskhadov has issued a decree extending by one year his five-year
presidential term that was due to expire on 27 January 2002, according
to "Kommersant-Daily" on 27 December. Maskhadov explained that at the
beginning of the current war in Chechnya the State Defense Committee
banned all elections and referendums for its duration. Russian
presidential aide Sergei Yastrzhembskii commented in Moscow the same
day that as a result of Maskhadov's decision, the Chechen president's
legitimacy "has now dropped to a level below zero." Maskhadov has also
reportedly issued decrees stripping Vakha Arsanov of the post of
Chechen vice president and demoting field commander Ruslan Gelaev for
tactical errors during the retreat from Grozny in February 2000.
Arsanov has the reputation of an Islamic radical and is believed to be
implicated in kidnappings for ransom. LF
[16] RUSSIAN TROOPS CLAIM TO INFLICT HEAVY LOSSES IN CHECHEN BATTLE
Up to 100 Chechen fighters have been killed in a special operation in
the villages of Novye and Starye Atagi, Chiri-Yurt, and Tsotan-Yurt in
Chechnya's Kurchaloi district south of Grozny that began on 30
December, Russian agencies reported on 3 January, quoting a Russian
military spokesman. LF
TRANSCAUCASUS AND CENTRAL ASIA
[17] AZERBAIJANI COURT SENTENCES VOLUNTEERS FOR CHECHEN CAUSE
After a six-week trial, Azerbaijan's Court for Serious War Crimes
handed down sentences on 3 January of between three and five years
imprisonment to three young Azerbaijanis who underwent military
training with the objective of joining the Chechen fight for
independence from Russia, Turan reported (see "RFE/RL Newsline," 8
November 2001). Two other accused on the same charges were released
after giving a written pledge not to leave their place of residence,
and seven more received suspended sentences of between one and four
years. The defense counsel for the accused had argued that the case
should be closed, as there was no evidence that the accused had
committed any crime. Also on 3 January, the National Security Ministry
announced that on 29 December it detained four more Azerbaijanis who
planned to travel to Chechnya to fight there as mercenaries. LF
[18] AZERBAIJANI JOURNALIST TO FACE LIBEL CHARGE
Eynulla Fatullaev, a journalist with the recently closed independent
newspaper "Milletin sesi," was taken by police from his home to a Baku
district court on 3 January and informed that the criminal case for
libel brought against him by Ramiz Mekhtiev, the head of the
Azerbaijani presidential administration, will begin on 8 January, Turan
reported. Meeting in Baku on 3 January, the Council of Editors of
leading media outlets issued a statement condemning Mekhtiev's decision
to proceed with the libel charge in the wake of President Heidar
Aliev's decree outlining measures to liberalize the conditions under
which the media operate (see "RFE/RL Newsline," 3 January 2002). LF
[19] AZERBAIJANI OPPOSITION PARTY PROTESTS IMMINENT EVICTION FROM ITS
HQ
Leading members of the opposition Musavat Party staged a picket on 3
January outside the Baku Mayor's Office and the Economic Development
Ministry, Turan reported. The ministry owns the building in Baku where
Musavat has its headquarters, and warned the party last month that its
lease will not be renewed when it expires. LF
[20] OSCE EXTENDS MONITORING OF GEORGIAN BORDER
In compliance with a decision last month by the OSCE's Permanent
Council (see "RFE/RL Newsline," 17 December 2001), five unarmed
monitors began patrols of the border between Georgia and Ingushetia on
3 January, Caucasus Press reported. A team of some 40 OSCE observers
began monitoring the Georgian-Chechen border in February 2000. LF
[21] NEW BLOW TO GEORGIAN ELECTRICITY SUPPLIES
Heavy snowfalls in Karachaevo-Cherkessia on 2 January damaged the
Kavkasioni powerline via which Georgia is currently receiving
additional electricity supplies from Russia to compensate for the
disabling of two units of the thermal power station that provides
electricity for much of Tbilisi (see "RFE/RL Newsline," 28 December
2001), Caucasus Press and ITAR-TASS reported on 3 January. At present,
Tbilisi is supplied with only 300 megawatts of the total 600-650 it
needs. To make up the shortfall, Georgia will receive 130 megawatts per
day from Armenia until 10 January, and a further 100 megawatts a day
from Azerbaijan, Caucasus Press reported on 4 January. LF
[22] DETAINED KAZAKH POLITICIAN BEGINS HUNGER STRIKE IN UZBEK JAIL
Oral Saulebay of the Azat movement is being held in detention in
Tashkent, having been charged with organizing an unsanctioned mass
gathering, a charge that carries a prison sentence of up to three
years, RFE/RL's Kazakh Service reported on 3 January (see "RFE/RL
Newsline," 2 January 2002). Saulebay has begun a hunger strike to
demand a meeting with Kazakh Embassy personnel. LF
[23] KYRGYZSTAN CALCULATES FINANCIAL LOSSES FROM SMUGGLING
The revenues lost to Kyrgyzstan as a result of smuggling during the
first 10 months of 2001 exceeded the entire annual state budget for
that year, according to data compiled by the presidential Commission on
Economic Crimes and reported by RFE/RL's Bishkek bureau on 3 January.
Those losses totaled 15 billion soms ($31.5 million), while the annual
budget totaled 11 billion soms. Contraband alcohol amounted to 4
billion soms and smuggling of oil and gasoline accounted for a further
4 billion soms. LF
[24] POLL INDICATES KYRGYZ PREFERENCE FOR RUSSIAN-LANGUAGE MEDIA
A survey conducted in November 2001 by the Bishkek-based M-Vector
agency of some 1,200 people aged between 15-50 indicated that the two
most popular TV stations in Kyrgyzstan are Russia's ORT with an average
daily audience of 250,000 and RTR (125,000), followed by the
independent Kyrgyz TV station Pyramid (85,000), whose programs are
primarily in Russian. Radio listenership follows a similar pattern:
Evropa Plus and Radio Rossii have an average audience of 110,000 and
70,000 listeners respectively, followed by Hit-FM with 25,000
listeners. The most popular newspapers are the Russian-language daily
"Vechernii Bishkek," the independent "Delo Nomer," and Russia's
"Komsomolskaya pravda." LF
[25] TAJIKISTAN APPOINTS NEW AMBASSADOR TO AFGHANISTAN
Farhod Mahkamov, a member of the staff of the Tajik Embassy in
Tashkent, has been appointed ambassador to Afghanistan by a
presidential decree signed on 4 January, Asia Plus-Blitz reported.
Tajikistan thus becomes the first Central Asian state to name a
diplomatic representative in Kabul after the downfall of the Taliban.
LF
CENTRAL AND EASTERN EUROPE
[26] BELARUSIAN PRESIDENT CRITICIZES LETHARGY IN CREATING UNION WITH
RUSSIA
Alyaksandr Lukashenka said on 4 January that although "the aims of the
Belarusian-Russian union" are defined, the "tactics" for the
construction of the union "are not yet agreed upon," Interfax reported.
Lukashenka, speaking at the start of a government meeting, said that
adopting the Union Constitutional Act is of "crucial importance"
because it lays out the principles on which the union will be based and
defines how its bodies will function. Lukashenka said the economic
aspects of the union are the most important, and that Russia is
"guilty" of dragging its feet in approving previous agreements. He
stated that a single economic space has not been created, as planned,
and cited the single tax policy and common import/export tariffs as
issues that have yet to be settled. PB
[27] BELARUS TO CHARGE PATIENTS FOR SOME MEDICAL SERVICES
Alyaksandr Tsybin, an official in the Belarusian Health Care Ministry,
said on 4 January that the introduction of payments for certain health
care services "will not shock the Belarusian people." Tsybin, in an
interview with the newspaper "Zviazda," said the new system of paid
medical care will be introduced over the next decade and will amount to
"about 30 percent of the total financing" of health care in Belarus. He
said the Belarusian government is working on a list of services that
will be offered by the state only upon payment by the patient. PB
[28] BELARUS GETS $30 MILLION FROM RUSSIA
The Belarusian Finance Ministry said on 4 January that it has received
the second tranche of a $100 million credit line from Russia, Interfax
reported. The credit was established as part of preparations for the
creation of the Belarus-Russia Union. The money is being loaned to
Belarus at the benchmark LIBOR (London Interbank Offered Rate) rate
plus 0.75 percent. A first portion of the loan, $30 million, was sent
to Belarus in August and the final tranche of $40 million is to be sent
to Minsk later this year. PB
[29] UKRAINIAN PRESIDENT SIGNS 2002 BUDGET INTO LAW
Leonid Kuchma signed the 2002 budget for Ukraine into law on 3 January,
Infobank reported. Andry Chyrva, the deputy head of Kuchma's
information department, said the president also sent a letter to
parliament speaker Ivan Plyushch that urges the deputies to consider
the government's proposals to strengthen macroeconomic stability and
broaden the tax base. Kuchma also called on the parliament to ensure
that the budget is a "realistic" one. PB
[30] IMF POSTPONES MEETING ON RELEASE OF LOAN TO UKRAINE
Lorenzo Filiuoli, the IMF's senior permanent representative in Ukraine,
said on 4 January that a meeting scheduled for next week to determine
whether a $370 million tranche should be disbursed to Ukraine has been
postponed, Infobank reported. Filiuoli said the 9 January meeting of
the IMF's board of governors was postponed to allow the IMF to clarify
whether Ukraine is meeting its commitments, which include: enacting the
government-submitted budget; completing an audit of Naftohaz Ukrayiny;
raising electricity tariffs; strengthening oversight of the banking
industry; and refunding VAT arrears. PB
[31] ESTONIA'S CAPITAL LOWERS 2002 BUDGET
The Tallinn city government approved on 3 January a new 2002 city
budget, which is 700 million kroons ($39.6 million) lower than the 5.2
billion budget proposed in November by former Mayor Tonis Palts of the
Pro Patria Union, ETA reported. New Mayor Edgar Savisaar said the
amount of planned loans will be reduced from 1.5 billion kroons to 395
million kroons. Other changes to the budget include the reduction of
funds for the renovation of schools from 339 to 207 million kroons, and
for road repairs from 226 to 116 million kroons, while funding for
housing construction will be increased from 48 to 145 million kroons.
SG
[32] LATVIA'S 2001 BUDGET DEFICIT SMALLER THAN PLANNED
The State Treasury announced on 3 January that preliminary calculations
indicate that the state budget for 2001 will have a deficit of 74
million lats ($116 million), BNS reported. A budget deficit of 91.5
million lats was originally planned, but was later reduced to 79
million lats in an agreement with the International Monetary Fund. The
main reason for the most recent reduction was better-than-expected
results in the social insurance sphere in 2001, in which revenues were
513 million lats and expenditures 525 million lats. A deficit of 28
million lats had been anticipated. SG
[33] LITHUANIAN GOVERNMENT SETS UP CRISIS PREVENTION COMMITTEE
The cabinet decided on 3 January to establish a Crisis Prevention
Committee as another step in implementing an effective crisis
management system that meets NATO standards, BNS reported. The
committee will consist of deputy defense, interior, social security and
labor, environment, agriculture, foreign, economy, and finance
ministers. The committee will meet at least once a month to discuss
information on hazardous phenomena and potential threats. The
Lithuanian Crisis Management Center, whose headquarters in central
Vilnius began functioning on 1 January, will operate 24 hours a day and
provide information to the committee. The Crisis Management Committee,
which was created by the government at the end of last year and is made
up of defense, interior, foreign, economy, and finance ministers, is
the leading institution in Lithuania's new crisis management system. It
will have the authority to make decisions and develop measures to head
off disasters, as well as to present recommendations for further action
to the president, prime minister, and parliament chairman. SG
[34] POLISH PREMIER SPEAKS WITH POPE ABOUT FOREIGN POLICY, EU
The Vatican's press office said Pope John Paul II and visiting Prime
Minister Leszek Miller spoke primarily about international affairs and
European integration during Miller's 40-minute audience on 3 January,
PAP reported. Miller told reporters after the meeting that the Roman
Catholic Church's support for European integration could be of great
importance in the run-up to a referendum on Polish membership in the
European Union. Miller also announced on behalf of himself and
President Aleksander Kwasniewski that he invited the pontiff to visit
his native Poland. AH
[35] CZECH BUDGET DEFICIT AMOUNTS TO RECORD SHORTFALL
Finance Minister Jiri Rusnok announced an estimated state budget
deficit of nearly 68 billion crowns ($1.9 billion) in 2001, agencies
reported on 3 January. The figure is the highest in the country's brief
history, the daily "Mlada fronta Dnes" added on 4 January, and
represents about 7,000 crowns ($197) per citizen. The ruling Social
Democrats far exceeded the 49 billion crown deficit envisaged in the
2001 Budget Act, something that Rusnok blamed on unexpectedly low
revenues and the high cost of state-bank bailouts, dpa reported. Rusnok
told Czech Radio on 3 January that last-minute cuts prevented an even
larger shortfall, which was worsened by borrowing to cover losses at
the state's workout bank, Konsolidacni Banka, among failed credit
unions, and as a result of drought. International financial
institutions and the country's central bank have cautioned Prague that
growing state deficits are a threat to the Czech economy. AH
[36] CZECH OPPOSITION PARTY FILES SUIT OVER DEAL TO RECOVER RUSSIAN
DEBT
The Freedom Union filed a suit with the Prague High Court in December
to challenge the classified status of a roughly 20 billion crown
contract with a little-known firm to help recover Soviet-era debts, CTK
reported on 3 January. "The whole financial transaction including the
selection of the Falkon Capital company, is not transparent and raises
many [questions]," party Chairwoman Hana Marvanova said. The public has
a constitutional right to be informed of such state activities, she
added, according to CTK. Under the deal, Falkon Capital was reportedly
to pay 20 billion crowns to the Czech government by the end of 2001,
after which the government would hand over Russian debt claims worth a
nominal $2.5 billion (92.5 billion crowns). The Finance Ministry argues
that such international agreements are classified and subject to
business confidentiality. Both the Russian side and Falkon insisted on
the confidentiality clause, other media have reported. AH
[37] ABOUT 1,000 SUSPECTS FREED UNDER NEW CZECH PENAL GUIDELINES
Roughly one-fifth of the nearly 5,000 suspects in custody in the Czech
Republic have been released in the past month to comply with new legal
requirements that demand a trial within three months, CTK reported.
Under the amended Penal Code, accused criminals who cooperate with
authorities cannot be jailed indefinitely while awaiting court
proceedings, which in the Czech Republic can take years. The move was
accompanied by changes that should help authorities provide speedier
investigations and justice proceedings. AH
[38] SLOVAK APPLICATIONS 'TRICKLE IN' FOR HUNGARIAN DESCENT STATUS
Applications for the so-called "Hungarian licenses" have gradually
started flowing in to Hungarian officials in Slovakia since the
Hungarian Status Law granting privileges took effect on 1 January,
TASR-Slovakia reported on 3 January. The consular department in
Bratislava reported five inquiries early on 2 January, CTK reported,
while TASR said a consulate in Kosice had received 20 applications by
the following day. Only Hungarian embassies and consulates are
accepting the applications thus far, though there are plans to
distribute the forms through Hungarian compatriot organizations in the
coming days. AH
[39] RIVAL CAPITAL MARKET LICENSED IN BRATISLAVA
RM-System Slovakia received a license from financial authorities on 28
December to create a Slovak Securities and Stock Exchange (SBCP),
TASR-Slovakia reported on 3 January. The SBCP should start operating as
a stock exchange on 14 January, leaving it to compete with the existing
Bratislava Stock Exchange (BCPB). "It is up to the market to choose,"
TASR quoted the director of the Finance Ministry's Financial Markets
Division, Frantisek Palko, as saying. The transformation of RM-System
to a stock exchange came about as a result of legislation allowing for
a public securities market on the basis of the membership principle,
and follows aborted talks between the potential rivals on some kind of
joint participation. AH
[40] HUNGARY'S PROSECUTOR-GENERAL AIMS TO END POLITICAL SCANDAL IN
JUDICIARY
"A prosecutor must never enter the political arena, even when speaking
in his capacity as the president of a prosecutors' association,"
Prosecutor-General Peter Polt was quoted as saying on 3 January by
"Nepszabadsag." Polt made the comments in response to a statement
issued by leaders of the National Society of Lawyers and two chambers
of lawyers in late December warning of political threats to the
independence of the judiciary. A scandal resulted after Polt revoked
the appointment of one of the statement's signatories, Andras Hegedus,
as a senior prosecutor. As a consequence, Hegedus announced that he
will leave the legal profession in the interest of judicial
independence. Opposition Socialist and Free Democrat politicians
alleged that the action against Hegedus is part of a campaign to
intimidate the opposition. MSZ
[41] MORE ROMA FROM HUNGARY GRANTED ASYLUM IN FRANCE
The French Refugees Office has granted asylum to three Roma adults and
eight minors from the Hungarian village of Zamoly, the Roma group's
defense lawyer, Christine Mengus, told "Nepszabadsag" on 3 January. The
Zamoly Roma arrived in Strasbourg in July 2000 to apply for asylum,
claiming persecution in Hungary. The group's spokesman, Jozsef
Krasznai, said 37 people, including 15 adults and 22 children out of
the original 46-member group, have been granted refugee status in
France, while several others have departed for Canada. Meanwhile,
Florian Farkas, the president of the Hungarian National Gypsy
Authority, said emigration will not solve the problems of the Roma,
while Antal Heizer, the deputy president of the Office for Ethnic
Minorities, denied that Roma are subjected to state persecution in
Hungary. MSZ
SOUTHEASTERN EUROPE
[42] GERMANY SET TO TAKE KOSOVA JOB?
Germany is preparing to put forward a candidate to head the UN civilian
administration in Kosova (UNMIK) following the sudden departure of
Denmark's Hans Haekkerup, who alienated many Albanians and his own
staff, Reuters reported from Prishtina on 4 January (see "RFE/RL
Newsline," 3 January 2002). Speculation centers on Michael Steiner, a
former foreign policy adviser to Chancellor Gerhard Schroeder who is
regarded as able and knowledgeable. Steiner is also widely viewed as
arrogant and abrasive, which cost him his last job in November 2001
after he insulted some German military officers. Another possible
candidate is Klaus Reinhardt, a retired general and a former NATO
commander in Kosova. An unnamed Western diplomat told the news agency:
"The Germans are pushing. I'm guessing that consensus will form fairly
rapidly around someone like Steiner." PM
[43] SERBIAN LEGISLATOR SAYS GERMAN LIKELY TO HEAD UNMIK
In Belgrade on 4 January, the daily "Blic" quoted Gojko Savic, a
Serbian member of the Kosova legislature's presidency, as saying that
Haekkerup's successor will most likely be a German. Savic did not
mention any name. Germany currently does not hold any major post in the
Balkans. Austrians head the EU Balkan Stability Pact and the High
Representative's Office in Bosnia, while a French diplomat represents
the EU in Macedonia. Having cut what many Germans regard as a poor
figure in providing concrete help in Afghanistan, the Schroeder
government may now be anxious to show that is able to successfully take
on responsibilities abroad. PM
[44] UN CALLS ON KOSOVARS TO HAND IN FAKE EUROS
UN police have appealed to Kosovars to destroy or hand in to police
thousands of envelopes containing color copies of euro banknotes, which
were distributed as part of an information drive by the daily "Zeri,"
AP reported from Prishtina on 4 January (see "RFE/RL Newsline," 3
January 2002). The problem is that the sample banknotes are not marked
"specimen" to show that they are just examples and not the real thing.
There is no question of any criminal intent by the newspaper, but
police fear that some people might mistake the samples for authentic
currency. PM
[45] YUGOSLAV AUTHORITIES SHUT DOWN FOUR BANKS
National Bank Governor Mladjan Dinkic said in Belgrade on 3 January
that he has "no choice" but to close four state-run banks that employ
some 8,500 people, RFE/RL's South Slavic and Albanian Languages Service
reported. Beogradska Banka, Beobanka, Jugobanka, and Investbanka became
insolvent by giving credits to state-run companies over many years,
which were never repaid. Personal and corporate savings accounts will
be transferred to a postal savings network. Yugoslav President Vojislav
Kostunica will discuss the situation with Dinkic on 4 January, but
Dinkic stressed that he intends to do no more than inform the president
of the reasons for his decision. Serbian Finance Minister Bozidar
Djelic will also take part in the talks. PM
[46] BOSNIAN SERB GENERALS TO GO TO HAGUE?
Reuters reported from Banja Luka on 3 January that Generals Vinko
Pandurevic and Dragomir Milosevic may soon turn themselves in to The
Hague-based war crimes tribunal, which has indicted them for war crimes
in conjunction with the 1992-1995 Bosnian war. It is not clear whether
Republika Srpska President Mirko Sarovic played a role in encouraging
the two men to give themselves up, RFE/RL's South Slavic and Albanian
Languages Service reported. Several international and local media say
that Sarovic spoke to the two men in Belgrade, but his office denies
that he did so. If the two generals give themselves up, it will help
alleviate some international pressure on the Republika Srpska and will
increase their chances of favorable treatment in The Hague. Pandurevic
has been indicted in conjunction with the 1995 Srebrenica massacres,
while Milosevic -- no relation to the famous Serbian family -- faces
charges stemming from the 1992-1995 siege of Sarajevo. PM
[47] SARAJEVO COURT SENTENCES BOSNIAN SERB
A court in the Bosnian capital sentenced Goran Vasic to 4 1/2 years
imprisonment on 3 January for mistreatment of prisoners of war at the
Medjarici camp during the 1992-1995 conflict, Deutsche Welle's Bosnian
Service reported. The court acquitted him of charges of murdering
Bosnian Deputy Prime Minister Hakija Turajlic in 1992, saying that it
does not consider Vasic innocent but lacks evidence to convict him. The
judge released Vasic provisionally because he has already spent three
years in prison and promised to return to complete his sentence after
his appeal is over. PM
[48] POWER SHORTAGES IN MONTENEGRO
Power company authorities reimposed power cuts on 3 January following a
five-day holiday relaxation of the "reductions," RFE/RL's South Slavic
and Albanian Languages Service reported from Podgorica. Officials of
Elektroprivreda Crne Gore called the electric power situation in the
republic "alarming." Blackouts and power shortages are no strangers to
much of the former Yugoslavia and to Albania. Improving the reliability
of power supplies is a top priority for the Albanian government in
2002, Deutsche Welle's "Monitor" reported. PM
[49] CROATIAN GOVERNMENT TO TACKLE ECONOMIC ISSUES
The government announced on 3 January that the first two years of its
four-year term were difficult but that the worst is now over, RFE/RL's
South Slavic and Albanian Languages Service reported. Prime Minister
Ivica Racan will concentrate his efforts in 2002 on maintaining a
growth rate of about 4 percent and on reducing unemployment, which
stands officially at 400,000, or one-fourth of the work force. PM
[50] HEAVY SNOW STORMS BLOCK ROADS AND CRIPPLE POWER SUPPLIES IN
ROMANIA
Heavy snowfalls and strong winds have rendered dozens of state
highways, local roads, and railways impassable throughout much of
Romania, and have isolated and crippled power supplies in several
villages in the north of the country, National Radio reported on 4
January. The largest city cut off by snow is Suceava in the northeast,
while strong winds closed harbors on the Black Sea and several ports on
the Danube River. In addition, areas of the Danube Delta and the
artificial channel linking the Danube River and the Black Sea across
Dobrudja were closed to navigation. However, all Romanian airports were
open and functional on 4 January. LB
[51] PLANNED ANTI-RUSSIFICATION DEMONSTRATION IN MOLDOVA HITS SNAGS
Popular Party Christian Democratic (PPCD) parliamentarians and Chisinau
City Hall are engaged in a squabble over the venue for a proposed
public meeting on 9 January to protest the "Russification policies
promoted by the Moldovan government," Flux reported on 4 January. While
the PPCD parliamentary group has requested that it be treated as a
"meeting of voters" and allowed to be held in the Grand National
Assembly Square, the Chisinau City Council has dealt with the meeting
according to the Law on Public Assembly and on 3 January granted
permission for it to be held in the National Opera Plaza. Upon hearing
the news, PPCD Chairman Iurie Rosca blasted the municipal authorities'
"subordination" to the government, and announced that the meeting will
be held in the Grand National Assembly Square anyway, according to the
agency. LB
[52] MOLDOVAN TEACHERS PROTEST RUSSIAN-LANGUAGE COURSES
In response to the Education Ministry's decision to require the
compulsory teaching of Russian language courses in primary schools (see
"RFE/RL Newsline," 28 December 2001), which is to begin on 9 January,
138 teachers in Chisinau have signed a petition to protest the
decision. Education Minister Ilie Vancea declared during a radio show
broadcast by National Radio on 2 January that "no one will force
students to study the Russian language," and that the decision "can be
modified if it is not accepted by the public." LB
[53] BULGARIAN FOREIGN MINISTER TO VISIT IRAN
Foreign Minister Solomon Pasi was expected to arrive in Iran on 4
January for a visit that will last until 6 January, Bulgarian media
reported on 3 January. A group of deputy ministers and a business
delegation will accompany Pasi, who is to meet Iranian President
Mohammad Khatami as well as parliament speaker Hojatoleslam Mehdi
Karrubi. According to the Bulgarian Foreign Ministry, the talks will
focus on the development of joint energy projects and transport
corridors connecting Europe and Asia. The fight against terrorism as
well as measures against drug trafficking will also be on the agenda.
Pasi will be the first Bulgarian foreign minister to visit Iran in 10
years. UB
[54] BULGARIAN PRIME MINISTER LOSES VOTER CONFIDENCE
Simeon Saxecoburggotski has lost much of the voter confidence that
brought him to power in June 2001, the daily "Novinar" reported on 3
January. A recent opinion poll showed that while in September some 68
percent of the voters supported Saxecoburggotski, his December rating
fell to about 46 percent. Nevertheless, Saxecoburggotski's party, the
National Movement Simeon II, still leads the polls, followed by the
Bulgarian Socialist Party. The Union of Democratic Forces (SDS) came in
third. Analysts ascribe the loss of confidence largely to the growing
poverty in the country, which during the hard winter has been felt more
painfully. According to the poll, some 80 percent of the population
does not have any savings, about half has to cut expenses, and about 7
percent believes that it lives in misery. UB
[55] EURO INTRODUCTION EXPECTED TO BRING HIDDEN MONEY TO LIGHT IN
BULGARIA
As in other Eastern and Southeast European states, Bulgarian financial
experts believe that the introduction of the euro will bring forth huge
amounts of so-called "mattress money," the daily "Dnevnik" reported on
3 January. According to estimates of the Bulgarian National Bank,
Bulgarian citizens hold money from the 12 states of the eurozone worth
about 400 million euros ($360 million). International financial
institutions, however, place the sum much higher -- between 500 million
and 1 billion euros ($450 to $900 million). During the past few months
many citizens opened euro bank accounts in order to deposit their
foreign currency savings. Others had their German marks, Greek
drachmas, or Italian lira exchanged for Bulgarian leva or U.S. dollars.
UB
[56] BULGARIAN BORDER POLICE STEPS UP CONTROLS
The Bulgarian Border Police have asked the Turkish government for
cooperation to step up controls along their common border, "Monitor"
reported on 4 January. Bulgaria has already reinforced its border
patrols in an effort to prevent the rising number of illegal immigrants
from entering the country. According to the head of the Border Police,
Colonel Valeri Grigorov, over the past two years Bulgaria has also
improved its technical equipment for surveillance of the border. UB
END NOTE
[57] There is no end note today.
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