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RFE/RL Newsline, 02-01-09
CONTENTS
9 January 2002
RUSSIA
PROSECUTOR-GENERAL'S OFFICE SEARCHES OFFICES OF GAZPROM SUBSIDIARY
Officers from the Prosecutor-General's Office searched the premises and
seized documents of the petrochemical company Sibur, a subsidiary of
Gazprom, in Moscow on 8 January, Russian agencies reported. Three
people, including Sibur President Yakob Goldovskii and CEO Vyacheslav
Sheremet, have been arrested. According to a member of the
investigating team, the search came as the result of a scandal
surrounding Sibur following the company's failure to make good on
promissory notes worth some $120 million. However, "Kommersant-Daily"
commented the same day that the company, which has estimated annual
revenues of approximately $1.2 billion, is at the center of a struggle
between the new and old guard within Gazprom, and that the
Prosecutor-General's Office is acting as a tool in the fight against
the proteges of former Gazprom President Rem Vyakhirev. VY
'GOLDEN ADA' EMBEZZLER RELEASED FROM MOSCOW PRISON
Andrei Kozlyonok, one of the diamond traders who was convicted last
year of embezzling Russian government funds through the San
Francisco-based Golden ADA front company in the early 1990's, was freed
from a Moscow prison on 8 January, Russian news services reported.
Kozlyonok was sentenced last year to six years in prison for his role
in embezzling $187 million worth of state funds via the diamond- and
gold-trading company in a high-profile trial that implicated several
top officials from the Yeltsin administration (see "RFE/RL Newsline,"
18 May 2001). However, Kozlyonok's sentence was reduced in November
2001 to four years, and he was released because his time spent in
pretrial detention was subtracted from the prison term. VY
MOSCOW COURT REFUSES TO ORDER PROBE INTO THEFT OF NEARLY 6 BILLION
RUBLES
The Moscow City Court has thrown out as illegal the verdict of a court
of lower instance to further investigate the fate of 5.8 billion rubles
($160 million) that disappeared from the assets of the Central Bank,
polit.ru reported on 8 January. As a result of the decision, the
criminal case against Aleksandr Alekseev, the head of the Moscow branch
of the Central Bank who was accused of siphoning funds (see "RFE/RL
Newsline," 25 October 2001), has been suspended. According to the news
website, the Moscow court found no crime in Alekseev's actions, only
negligence. VY
EXPERT SAYS RUSSIA WOULD FOLLOW SUIT IF U.S. RESUMED NUCLEAR TESTING
Mark Urnov, the head of the Center for Political Technologies and known
for his close ties with the Kremlin, said that Russia would not object
if the U.S. were to resume nuclear weapons testing but continue
dialogue with Russia on the reduction of strategic weapons, strana.ru
reported on 8 January. He also said that reducing the countries'
nuclear arsenals to the proposed level of 1,500-2,000 warheads would
require an analysis of the reliability and safety of the remaining
nuclear munitions. Thus, if the United States were to conduct nuclear
testing, Russia would likely do the same, according to Urnov. In any
event, the resumption of nuclear testing would not cause any
international complications because such testing is the subject of
bilateral agreements between the two counties and is not subject to
consent by any third parties, he said. VY
RUSSIAN PREMIER TAKES STEPS TO REDUCE LIABILITY ON SOVIET DEBT
Mikhail Kasyanov on December 29 signed a directive introducing a new
regulation concerning Soviet foreign debts to commercial creditors
united in the London Club, RIA-Novosti reported on 8 January. According
to the new regulations, all Soviet debts to the foreign credit
institution will be transferred into Russian Eurobonds on 10- to
30-year terms. However, the Russian government will no longer honor
debts resulting from contracts for goods and services to the Soviet
Union if those deals were inked without a direct guarantee from the
Soviet government. VY
PUTIN TELEPHONES RUSSIAN EXPLORERS IN ANTARCTICA
President Vladimir Putin telephoned a group of Russian explorers on 8
January upon their successful trek to the South Pole to congratulate
them on their achievement, RIA-Novosti reported. Artur Chilingarov, a
deputy speaker of the State Duma, and a Hero of the Soviet Union who
led the polar expedition, told the president during their conversation
that the goal of the journey was "to stress the Russian presence in
Antarctica." In the past few months, Russia has made significant
political and public relations efforts to emphasize its claims on
resource-rich regions of the Arctic and Antarctic. VY
FSB DISRUPTS ILLEGAL SALE OF RARE STRATEGIC METAL
Officers of the Moscow branch of the Federal Security Service (FSB)
have detained five individuals who tried to sell six grams of the rare
strategic metal osmium for $800,000, RosBalt reported on 8 January.
Osmium is a metal in the platinum group that is used in nuclear weapons
production as well as in the aerospace industry. Because of its
extremely high market price (up to $600 thousand per gram) and lack of
radioactivity, it is also used as a reserve asset in the banking
sector. According to an FSB spokesman, there is only one osmium ore
deposit on the territory of the former Soviet Union, and an
investigation has been launched to determine how the metal was brought
to Moscow. VY
TAX POLICE: 60 PERCENT OF RUSSIAN BUSINESS ENTITIES FAIL TO PAY TAXES
Viktor Vasiliev, the head of the Moscow office of the Federal Tax
Police Service (FSNP), told RosBalt on 8 January that 60 percent of
Russian enterprises, companies, and institutions do not pay taxes or
other obligatory duties, and thus constitute a "shadow segment of the
national economy." In some sectors, such as automobile servicing, for
example, the level of the illegal revenues exceeds 80 percent. Vasiliev
told the online news agency that through research and practical
experience the FSNP has found that most tax crimes are committed in the
energy sector, credit and financial institutions, real estate, consumer
trade, and export-import operations. VY
LAWYERS DEMAND SUTYAGIN'S RELEASE FROM CUSTODY...
The lawyers of Igor Sutyagin, the researcher from the Institute of USA
and Canada who has been accused of espionage for "a NATO country" (see
"RFE/RL Newsline," 28 December 2001, and 4 January 2002) have appealed
the verdict of a Kaluga court that decided to further investigate the
case, ITAR-TASS reported on 8 January. In the appeal, the lawyers
requested Sutyagin's release from custody during the period of
investigation on the grounds that the court itself found procedural and
legal violations on the part of investigators. VY
...AS ACTIVISTS ACROSS RUSSIA PROTEST PASKO CASE
Following a demonstration in Lyubyanka Square in central Moscow the
previous day, around 30 activists in Nizhnii Novgorod picketed the
local office of the FSB on 8 January to protest the recent conviction
of former military journalist Grigorii Pasko for espionage, Interfax
reported (see "RFE/RL Newsline," 8 January 2002). Similar actions were
held in other Russian cities, including Vladivostok, Novosibirsk,
Yekaterinburg, Murmansk, Chelyabinsk, Birobidzhan, Volgodonsk,
Novocherkassk, Rostov-na-Donu, and Yaroslavl, according to Askhat
Kayumov, the chairman of Nizhnii Novgorod's ecological center "Dront."
JAC
RUSSIAN TELEVISION GOING DOWN THE TUBE?
Writing in strana.ru on 8 January, mass communications expert Aleksandr
Kustarev said that Russian television is showing a clear trend of
disrespect for its audience and is degrading itself. One example he
sites is the habit of inviting celebrities into the studio as "experts"
on various issues, even when they are completely incompetent in the
subject matter they are asked to discuss. Another sign, Kustarev said,
is the obsession of television directors with the idea that the level
of expertise and intellectual skill of television personalities should
not exceed that of the general audience. In doing, he said, those
directors are showing that they feel the general public is not worthy
of hearing what it doesn't already know. VY
TV-6 HEAD SAYS CHANNEL WILLING TO COMPROMISE
Media magnate Boris Berezovsky denied on 8 January a report that
appeared the previous day in the "Financial Times" that he is planning
to sell his package of shares in TV-6, Interfax reported. According to
the daily, Berezovsky is conducting negotiations with TPG Aurora for
the sale of his 75 percent stake in the company for $140 million.
Berezovsky said the "Financial Times" report and others claiming that
he seeking a buyer are "provocations" designed to create the impression
that he has changed his stance on the channel. Meanwhile, TV-6 General
Director Yevgenii Kiselev told Ekho Moskvy radio the same day that he
does not consider his channel to be "such an oppositional channel," and
that he and his team "are prepared for a compromise with authorities;
however, no one has yet suggested a compromise." JAC
TV AND RADIO BLACKOUTS IN REGIONS TO BE THING OF THE PAST...
As of 1 January, the federal government assumed financial
responsibility for the distribution of national television and radio
channels to cities with fewer than 200,000 people, Russian Television
and Radio Broadcasting System General Director Gennadii Sklyar told
ITAR-TASS on 8 January. According to Sklyar, such a move was necessary
because local authorities have often been unable to pay for the
services of transmission centers, which belong to various regional
structures and private telecommunication entities. Some regions in the
Far East, such as Kamchatka and Khabarovsk, have been plagued by the
stopping of radio and television broadcasts as a result of increased
debt arrears (see "RFE/RL Russian Federation Report," 4 April 2001). In
addition, fees for signal distribution are among the largest expenses
for Russian broadcasters. JAC
...AS FEDERAL AUTHORITIES TO RETAKE CONTROL OF TV AND RADIO TOWERS
Sklyar also said that his company has other long-term plans regarding
the reconsolidation of regional TV and radio transmission centers,
"which during past years were illegally handed over to authorities and
private communications businesses." Sklyar's company was set up by
presidential decree last August. Under that decree, all the property of
transmission facilities of the All-Russia State Television and Radio
Company (VGTRK) must be transferred to Sklyar's company, including
property that is now rented to private companies (see "RFE/RL Russian
Political Weekly," 12 September 2001). JAC
NEWER SENATORS SHUT OUT OF LEADERSHIP POSTS...
At a 25 January session, members of the Federation Council are expected
to confirm the selection of three deputies for Council Chairman Sergei
Mironov, as well as the heads of profile committees, regions.ru
reported on 8 January, citing Uralinformbyuro. According to the
website, Sverdlovsk Oblast's senators, Valerii Trushnikov and Andrei
Shmelev, who were only appointed as of 1 January 2002, lack any
committee leadership assignments because the bargaining over which
senators will get which committees has already been concluded. For the
entire Urals region, of which Sverdlovsk Oblast is a part, Kurgan
Oblast Senator Andrei Vikharev has the highest post, that of chairman
of the Committee on Social Questions, according to the website. JAC
...AS ANOTHER ST. PETERSBURGER HEADS FOR UPPER HOUSE
Meanwhile, new senators continue to be named. Krasnoyarsk Krai's
legislature will be represented by Konstantin Meremyanin, the
Prosecutor-General Office's envoy to the Federal Assembly, polit.ru
reported on 8 January. In addition, Irkutsk Oblast Governor Boris
Govorin announced that he is sending Dmitrii Mezentsev, the president
of the Center for Strategic Research, regions.ru reported. Mezentsev
was born in St. Petersburg, and he later he worked in the mayoral
office there from 1991-96, overlapping President Putin's time in that
office. JAC
ONE VOTE, ONE VOLGA
The mayor of Yakutsk plans to hold a lottery during the second round of
presidential elections in the Sakha (Yakutia) Republic, the main prize
for which will be a Volga automobile, Interfax-Eurasia reported on 8
January. During the election's first round last month, Yakutsk
authorities were offering residents who voted in presidential elections
there a 100 ruble ($3.30) rebate on their monthly housing payments, as
well as a reduction in their arrears on electricity payments. However,
the local election commission ruled that the offer seemed too similar
to a bribe, and city authorities were forced to extend the offer to all
residents regardless of whether or not they voted (see "RFE/RL
Newsline," 21 December 2001). This time around, Yakutsk's mayoral
administration says that the lottery will be conducted in legally
correct fashion. Alrosa President Vyacheslav Shtyrov will compete
against SAPI industrial group head Fedot Tumusov on 13 January. JAC
RUSSIAN TROOPS PULL OUT OF ARGUN...
Russian military units began withdrawing on 8 January from the town of
Argun east of Grozny where they began an operation five days earlier to
detain Chechen militants (see "RFE/RL Newsline," 7 and 8 January 2002),
Russian agencies reported. A military spokesman admitted that the
remaining Chechen fighters had succeeded in escaping from the town.
Thirteen residents detained in the course of the operation have not yet
been released. LF
...AS LOCAL RESIDENTS STAGE PROTEST
Also on 8 January, several hundred residents of Argun gathered in front
of the local administration building to demand that the Russian troops
end their search (the fifth in six months, according to "Izvestiya" on
8 January) and withdraw, and than the ban on transportation to and from
the town be lifted. Chechen Prosecutor-General Vsevolod Chernov said
the same day that no violations of the law took place during the
six-day security sweep, which Prime Minister Stanislav Ilyasov argued
was necessary because Chechen gunmen "constantly shoot at military and
civilian convoys and at cars belonging both to officials and
civilians." LF
TRANSCAUCASUS AND CENTRAL ASIA
ARMENIAN FOREIGN MINISTER SUMS UP 2001...
Armenian Foreign Minister Vartan Oskanian on 8 January held his
traditional annual press conference to review the major foreign policy
developments of the previous 12 months, Armenian agencies cited by
Grong reported. Oskanian admitted that no improvement was registered in
Armenian-Turkish relations despite Yerevan's repeated calls to
establish diplomatic relations with no preconditions. He said Turkey's
policy toward Armenia has a negative impact on the South Caucasus as a
whole. But at the same time Oskanian described the situation in the
region as relatively stable, noting the importance to that stability of
Armenian-Georgian relations. He also expressed appreciation of Iran's
"balanced" policy in the South Caucasus, Noyan Tapan reported. LF
...CAUTIOUS OVER PROSPECTS FOR KARABAKH SETTLEMENT
Oskanian said it is "difficult" to predict how the search for a
solution of the Karabakh conflict will develop in 2002, according to
Armenpress, as quoted by Groong. Oskanian described the two meetings
last year between the Armenian and Azerbaijani presidents, and the
OSCE-mediated talks in Florida in April, as having given rise to the
temporary hope that a mutually acceptable peace would soon be achieved.
Oskanian again argued that Azerbaijan has no historical, moral, or
legal right to claim that the unrecognized Nagorno-Karabakh Republic is
part of Azerbaijani territory (see "RFE/RL Newsline," 19 November and 5
December 2001). LF
IRANIAN DEPUTY FOREIGN MINISTER CONTINUES TALKS IN AZERBAIJAN
Following his talks in Nakhichevan (see "RFE/RL Newsline," 8 January
2002), Mehdi Safari traveled on 8 January to Baku for the second time
within one month (see "RFE/RL Newsline," 12 December 2001), to discuss
with Prime Minister Artur Rasizade, Economic Development Minister
Farkhad Aliyev, and Deputy Foreign Minister Khalaf Khalafov
preparations for Azerbaijani President Heidar Aliev's upcoming official
visit to Iran, bilateral ties, and the legal status of the Caspian Sea,
Interfax reported. Aliev's long-postponed visit is now scheduled for
before the end of March 2002, according to Interfax on 4 January. LF
AZERBAIJANI SENTENCED FOR SPYING FOR IRAN
Azerbaijan's Court for Serious Crimes sentenced Telman Ismailov on 8
January to 11 years imprisonment on charges of passing to Iran
information on the location of Azerbaijani military units, Reuters and
Interfax reported. Ismailov was arrested in July 2001 trying to cross
from Azerbaijan into Iran. LF
AZERBAIJANI OPPOSITION NEWSPAPER NOT PUBLISHED
The state publishing house refused to print the most recent issue of
the newspaper "Mukhalifat" (Opposition) because its editors refused to
comply with a demand that they substitute for a recent photograph of
President Heidar Aliev one taken 10-15 years ago, Turan reported on 8
January. LF
EXPORTS OF AZERBAIJANI OIL RISE BY OVER 50 PERCENT
Azerbaijan exported a total of 8.44 million tons of crude oil in 2001,
55 percent more than the previous year, Interfax reported on 8 January.
The lion's share of that amount (over 5.9 million tons) was produced
and exported by the Azerbaijan International Operating Company that is
developing three offshore Caspian oil fields. LF
AZERBAIJANI-GEORGIAN-TURKISH SECURITY SESSION POSTPONED
A meeting of security experts from Azerbaijan, Georgia, and Turkey
scheduled to take place in Ankara on 7-8 January has been postponed
indefinitely due to inclement weather conditions, Caucasus Press
reported on 8 January. The three sides were to have signed a trilateral
agreement on security cooperation proposed in October 2001 by Turkish
Foreign Minister Ismail Cem. LF
GEORGIA'S AFGHAN WAR VETS PROTEST ABDUCTION OF HERMIT MONK
Some 50 members of Georgia's Union of Veterans of the War in
Afghanistan congregated late on 7 January in the village of Matani,
which is close to the mouth of the Pankisi Gorge, to demand the
immediate release of an Azerbaijani and of a Georgian hermit monk taken
hostage in the gorge in November (see "RFE/RL Newsline," 19 and 30
November 2001). As of early on 9 January, their numbers had swelled to
100. The unknown abductors of Father Basil have demanded a $1 million
ransom. National Security Minister Valeri Khaburzania on 4 January
asked 15 Georgian clergymen who began a similar protest near the gorge
three days earlier to disperse lest they "destabilize the situation" in
the district. LF
FORMER KAZAKH GOVERNOR PREVENTED FROM HOLDING MASS MEETING
The Pavlodar City administration has turned down a 27 December request
by former Pavlodar Oblast Governor Ghalymzhan Zhaqiyanov to hold a mass
gathering in the city on 12 January to demand the immediate release of
two of Zhaqiyanov's former deputies who were detained recently by local
police and accused of abuse of power and financial mismanagement (see
"RFE/RL Newsline," 3 January 2002), RFE/RL's Kazakh Service reported on
8 January. Zhaqiyanov was dismissed as governor in November by Kazakh
President Nursultan Nazarbaev after he cofounded the new opposition
political movement Kazakhstan's Democratic Choice (see "RFE/RL
Newsline," 26 November 2001). LF
KAZAKHOIL DENIES OWNING SHARES IN ODESSA-BRODY OIL PIPELINE PROJECT
KazakhOil spokeswoman Umitkhan Baltayeva has rejected as untrue Kazakh
media reports of the company's alleged involvement in Ukraine's
Odessa-Brody oil pipeline project, RFE/RL's Kazakh Service reported on
8 January. LF
CHARGES BROUGHT AGAINST DETAINED KYRGYZ PARLIAMENT DEPUTY...
Djalalabad Oblast Prosecutor Zootbek Kudaibergenov on 8 January
formally charged detained parliament deputy Azimbek Beknazarov with
abuse of his official position and detaining persons who were innocent
of any crime, RFE/RL's Bishkek bureau reported. Those charges derive
from a murder in Toktogul in February 1995 following which Beknazarov
temporarily took into custody several persons, including relatives of
the victim (see "RFE/RL Newsline," 8 January 2002). LF
...AS STORM OF PROTEST GROWS
Also on 8 January, some 20 people including several prominent human
rights activists picketed the office in Bishkek of Prosecutor-General
Chubak Abyshkaev. Some of them were allowed to meet with Abyshkaev and
handed him a petition protesting that Beknazarov's detention was
politically motivated and demanding his release. Abyshkaev told them
that a local investigator in Djalalabad took the decision to take
Beknazarov into custody and that no government official has sanctioned
his arrest. A similar picket was held in Djalalabad, where 3,000 people
have signed a petition calling for Beknazarov's release. Several
committees in defense of Beknazarov have been formed. The New
York-based International League for Human Rights has written to Kyrgyz
President Askar Akaev expressing concern over Beknazarov's arrest and
pleading with Akaev to "stop persecuting the political opposition and
other persons disagreeing with your policies." LF
KYRGYZ PREMIER SEEKS TO STRENGTHEN DISCIPLINE WITHIN GOVERNMENT
BUREAUCRACY
Before departing on 31 December on a three-week vacation, Kurmanbek
Bakiev signed a decree under which all new government employees will be
required to sign a declaration pledging not to violate the law, and
acknowledging their personal responsibility for all office property
issued to them, RFE/RL's Bishkek bureau reported on 8 January, quoting
the governmental press service. Some 25 percent of the country's
workforce is employed in the government bureaucracy. LF
KYRGYZ OFFICIAL SAYS U.S. MILITARY PRESENCE WILL NOT BE PERMANENT
The military presence in Kyrgyzstan of the U.S. and its allies in the
antiterrorism operations in Afghanistan will be "lengthy but not
permanent," parliament Information Committee Chairman Kabai Karabekov
told ITAR-TASS on 8 January. He predicted that "the guerrilla war in
Afghanistan will continue for a long time." Karabekov stressed that the
Kyrgyz parliament has not given permission for a permanent U.S.
military presence in the country, and will not do so without prior
consultations with Russia, China, and fellow signatories to the CIS
Collective Security Treaty. Russian observers have expressed concern
that Washington may adduce the Afghan situation as the rationale for
establishing a permanent U.S. military presence in Central Asia. LF
FRENCH MILITARY EXPERTS ASSESS TAJIK INFRASTRUCTURE
A group of French military experts arrived in Dushanbe on 8 January to
inspect together with Tajik Defense Ministry personnel the Aini
military air base located some 15 kilometers southwest of Dushanbe,
Russian agencies reported. Also on 8 January, a contingent of French
troops who arrived in Dushanbe the previous day were airlifted to the
Bagram air base near Kabul. They are to serve as part of the UN
peacekeeping force in Afghanistan. LF
RUSSIAN, UN OFFICIALS DISCUSS TAJIK PEACE PROCESS
Russian First Deputy Foreign Minister Vyacheslav Trubnikov met in
Dushanbe on 8 January with Ivo Petrov, who is the UN
secretary-general's special representative in Tajikistan, to discuss
mobilizing further international support for the present leadership and
for measures to stabilize the post-civil war situation in Tajikistan
and restore the social and economic infrastructure, Russian agencies
reported. They focused specifically on the need for continued UN
participation in those processes. The UN scaled down its representation
in Tajikistan following the presidential elections in November 1999 and
the parliamentary ballot in early 2000. LF
CENTRAL AND EASTERN EUROPE
MINSK TRACTOR FACTORY DIRECTOR ARRESTED
The Prosecutor-General's Office on 8 January announced that law
enforcement officers have detained Mikhail Lyavonau, the director of
the Minsk Tractor Factory, Belapan reported. Lyavonau is suspected of
having caused "particularly large damage" to the economy through abuse
of office and negligence. Lyavonau is the third major business
executive arrested in Belarus recently. In November, prosecutors
arrested Belarusian Railways chief Viktar Rakhmanko and Minsk
Refrigerator Plant Director Leanid Kaluhin, also on charges of abuse of
office. JM
UKRAINIAN PRESIDENT VETOES BILLS ON COMPULSORY TV DEBATES, LOCAL
ELECTIONS...
Leonid Kuchma has vetoed a bill obliging all candidates in presidential
and parliamentary elections to take part in televised debates and
requiring that television companies, independently of their form of
ownership, broadcast such debates (see "RFE/RL Newsline," 14 December
2001), Interfax reported on 8 January. Kuchma also vetoed a bill on
local elections that stipulated a mixed system in elections to
oblast-level councils and a majority system in elections to lower-level
councils. JM
...URGES PARLIAMENT TO PASS CD COPYRIGHT LAW
Deputy parliamentary speaker Stepan Havrysh said on 8 January that
President Kuchma has urged the parliament to pass a bill on compact
disc production to potentially soften the impact of U.S. trade
sanctions imposed for Ukraine's failure to fight CD piracy (see "RFE/RL
Newsline," 21 December 2001), Interfax and AP reported. Premier
Anatoliy Kinakh has sent a similar appeal to the parliament. JM
ESTONIAN GOVERNMENT RESIGNS
Fulfilling the pledge made in December, Prime Minister Mart Laar handed
the resignation of his government to President Arnold Ruutel on 8
January, ETA reported. Ruutel has two weeks to name a candidate for
prime minister, who in turn has two weeks to present a cabinet to the
parliament for approval. It was expected that the new government would
be formed with a coalition of the Center Party and Reform Party as its
core, but in a surprise move Center Party Chairman Edgar Savisaar
invited the leaders of the People's Union and the Moderates for
consultation the next day on forming a new coalition. Moderates
Secretary-General Tonu Koiv has said his party will not cooperate with
the Center Party as long as it is led by Savisaar, but the party's
board will meet on 10 January to discuss the proposal. Reform Party
Chairman Siim Kallas, who is considered to be the most likely next
premier, said he was surprised by Savisaar's offer to the other
parties, but even though the three parties have similar world outlooks
their coalition would mean too abrupt a turn to the left. SG
ESTONIA CANCELS PRIVATIZATION OF NARVA POWER PLANTS
The government canceled the agreement with the U.S. firm NRG Energy on
the privatization of the Narva Elektrijaamad (Narva Power Plants)
because it failed to sign a loan agreement for 285 million euros ($258
million) for renovating the power stations by the 31 December 2001
deadline, ETA reported. Premier Laar said that the six-year
negotiations with NRG Energy had actually benefited Estonia, as it had
facilitated the drafting of the energy sector's development plan. The
Economy Ministry has been given three months to submit alternate
proposals for the plants' renovation. SG
NEW LATVIAN-ESTONIAN TAX AGREEMENT ENDORSED
The Estonian government on 8 January endorsed the Latvian-Estonian
agreement on preventing double taxation and tax evasion, BNS reported.
The agreement replaces a similar 1993 agreement that Latvia decided to
ignore last year after Estonia abolished its corporate income tax on
reinvested profits. Latvia started taxing Estonian companies doing
business in Latvia with local taxes beginning on 1 June 2001. In
December 2001 the Latvian government approved the new agreement, which
the two countries agreed to apply beginning on 1 January 2002. SG
AMENDMENTS TO LITHUANIAN HIGHER EDUCATION LAW SIGNED
On 8 January, parliament Chairman Arturas Paulauskas signed the
amendments to the Higher Education Law approved by the parliament in
December, ELTA reported. The previous day, President Valdas Adamkus
asserted that the amendments contained evident flaws but decided not to
veto them because such a move would have led to confrontation in the
parliament. The amendments, which will go into effect beginning in
January 2003, introduce a uniform tuition fee of 500 litas ($125) per
semester. As defined by the amendments, half of the daytime and
one-third of evening students receiving the highest grades will be
exempt from paying tuition, while others will be entitled to
low-interest loans with 15- to 20-year payment plans. Prime Minister
Algirdas Brazauskas expressed doubts as to whether the funds required
by the amendments will be found, as the real costs for each student is
about 5,000 litas per year, "Lietuvos rytas" reported on 9 January. SG
POLISH CABINET PRESSES CENTRAL BANK TO CUT INTEREST RATES
Representatives of Premier Leszek Miller's cabinet and the Monetary
Policy Council, which supervises the activities of Poland's National
Bank, are to meet on 9 January to discuss the government-postulated
"significant reduction" in interest rates in order to stimulate the
economy, Polish media reported on 8 January. Deputy Prime Minister
Jaroslaw Kalinowski told Polish Radio on 9 January that if there is no
reduction in interest rates within the next three months to a level
"similar to that of other countries," Poland will face a crisis. "We
would like to shield Poland from such consequences as Argentina has
met, since there too the peso was very strong, equal to the dollar. Our
zloty is also very strong and ever stronger, but this strength does not
after all transpire from the state of the economy, but...precisely from
the fact that we have high interest rates, the highest in Europe,"
Kalinowski noted. JM
CZECH TROOPS NOT TO TAKE PART IN AFGHAN PEACEKEEPING FORCE
Czech units numbering up to 350 soldiers approved by parliament for
peacekeeping in Afghanistan will not be needed by the international
force there, the Defense Ministry said on 8 January, CTK reported.
Deputy Defense Minister Stefan Fuele told the daily "Mlada fronta Dnes"
that Britain, which heads the security force in Kabul, informed Defense
Minister Jaroslav Tvrdik on 8 January that the Afghans were requesting
a 3,000-strong force, not a 5,000-strong force as previously. "We were
not delighted by the news but respect the limit set by Kabul," Fuele
said. Tvrdik told TV Nova on 9 January that a chemical defense unit
will still be sent to Kuwait in early March as part of the U.S.-led
antiterrorism campaign. DW
CZECH INDUSTRY MINISTER'S RESIGNATION REJECTED BY PREMIER
Prime Minister Milos Zeman refused the resignation formally offered to
him on 8 January by Trade and Industry Minister Miroslav Gregr, CTK
reported. Gregr said he was offering his resignation in compliance with
a promise he made 18 months earlier to resign if the test preparations
of the controversial Temelin nuclear power plant's second reactor were
not ready by the end of 2001. Zeman called Gregr one of government's
most successful ministers, adding, "Since none of the ministers who
delayed Temelin's construction by more than seven years have resigned,
I don't consider it as necessary to accept the resignation." The
opposition and environmentalists have called Gregr's move a political
farce. DW
CZECH CABINET UNWILLING TO PAY TO TAKE PAPER TO COURT IN SLANDER CASE
According to the daily "Mlada fronta Dnes" on 9 January, to date none
of the ministers of Premier Zeman's cabinet have followed through on
threats to file civil suits (see "RFE/RL Newsline," 26 November 2001)
against the weekly "Respekt" for libel. The daily adds that the court
fee of 400,000 crowns ($11,000) has put them off. The government did
file a criminal complaint against "Respekt" on 22 November, and
"Respekt" Editor in Chief Petr Holub has filed a countersuit against
Zeman. DW
SLOVAK PRESIDENT CRITICIZES FOREIGN MINISTER OVER HUNGARIAN STATUS LAW
Rudolf Schuster on 8 January criticized the approach of Foreign
Minister Eduard Kukan toward the Hungarian Status Law, TASR-Slovakia
reported. Schuster expressed regret that Kukan had not involved himself
more actively in the negotiations between the two countries. He also
warned against the possibility of serious bilateral conflict, as
Hungary is a strategic partner of Slovakia in the EU accession process.
"Nothing has ever been solved by emotions," Schuster said. In a press
conference later the same day, Kukan said that negotiations with
Hungary over the implementation of the Status Law, which came into
effect on 1 January, should be handled in a civilized fashion, without
emotions or hysteria. Responding to Schuster's criticism, he added that
of the 10 implementation rules, the Hungarian side has to date
clarified only four to Slovakia. The deputy foreign minister and
ministerial-level negotiations cannot resume until all implementation
rules are clarified, Kukan said. DW
SLOVAK STOCK EXCHANGE FREEZES SALE OF STEELMAKING GROUP SHARES
The Bratislava Stock Exchange (BCPB) on 9 January suspended the sale of
shares in Slovakia's VSZ former steelmaking group by the state-owned
Transpetrol, TASR-Slovakia reported. The Financial Market Office issued
a 30-day injunction against the sale of the 21.24 percent stake to the
Central European Brokerage Company (SMD), BCPB Director Maria Hurajova
said. The deal was criticized as disadvantageous for the state by
government members, VSZ, and U.S. Steel. U.S. Steel, which in 2000 took
over VSZ's steelworks in Kosice, owns 24.5 percent of VSZ and was a
bidder for the Transpetrol stake. Economy Minister Lubomir Harach said
recently that if the deal proves flawed, he is ready to shoulder
responsibility and even resign. DW
HUNGARY'S MEDGYESSY OUTLINES ELECTION PROGRAM
The opposition Socialist Party's candidate for prime minister, Peter
Medgyessy, outlined his election program at the Pilvax Cafe in downtown
Budapest on 8 January, saying a future Socialist-led cabinet would
represent the political center and advocate a program that promotes the
general welfare, security, and progress, Hungarian media reported.
Regarding the economy, Medgyessy said his "In Consensus with the
Nation" program will include tax cuts, lower inflation, encouragement
for Hungarian entrepreneurs, and the allocation of government subsidies
"based on performance rather than personal friendships." He promised
that if elected his government would be "fiscally prudent, not
wasteful," and work to strengthen local governments. The Socialists
would also seek to establish a bicameral parliament in which the
representation of ethnic minorities would be assured, Medgyessy
concluded. MSZ
HUNGARIAN GOVERNMENT APPROVES DECREE ON STATUS LAW
The cabinet passed an implementation decree on the Status Law on 8
January that also includes a provision for educational and cultural
subsidies to ethnic Hungarians in neighboring countries, cabinet
spokesman Gabor Borokai told reporters. He said the educational
subsidies will be provided to parents with Hungarian nationality
certificates who have at least two children in local Hungarian-language
schools. The subsidy will include 20,000 forints ($72) annually per
child, plus expenses for textbooks and stationery. In other news,
Wilfried Martens, the chairman of the European People's Party, issued a
statement in Brussels on 8 January saying that Hungary's Socialists are
"playing with fire when they whip up nationalist feelings over the
memorandum of understanding" reached between Hungary and Romania on the
Hungarian Status Law. Martens said, "This is unworthy of a democratic
party, even in the heat of the election campaign," Hungarian media
reported. MSZ
SOUTHEASTERN EUROPE
MAYOR OF CROATIAN CAPITAL OFFERS TENTATIVE RESIGNATION
Zagreb Mayor Milan Bandic told a press conference on 8 January that he
is "placing his mandate at the disposition" of the City Council
following his involvement in a drunken hit-and-run accident, RFE/RL's
South Slavic and Albanian Languages Service reported (see "RFE/RL
Newsline," 7 and 8 January 2002). The council will meet on 31 January
to consider his offer to resign. The Croatian People's Party (HNS),
which governs in Zagreb in a coalition with Bandic's Social Democrats,
said in a statement that the accident is a personal matter and need not
affect his status as mayor. The party added, however, that Bandic must
either resign or stay in office, and that there is no legal provision
for asking for a vote of confidence from the council. PM
CROATIAN PRIME MINISTER SETS PRIORITIES
Ivica Racan said in Zagreb on 8 January that he has set two priorities
for immediate attention, RFE/RL's South Slavic and Albanian Languages
Service reported. The first is the construction of a major highway
linking Zagreb and Split. The second is a program aimed at providing
employment for young people seeking their first job. He added that he
will announce a third, unspecified priority project in the near future.
PM
CROATIA SAYS TIME TO SETTLE PREVLAKA DISPUTE
UN Secretary-General Kofi Annan has asked the Security Council to
extend the mandate for UN monitors on Croatia's Prevlaka Peninsula for
a further six months, RFE/RL's South Slavic and Albanian Languages
Service reported (see "RFE/RL Newsline," 14 November 2001). Prevlaka is
Croatian territory that controls access to Kotor Bay in Montenegro,
home of Yugoslavia's only deepwater port and naval base. UN monitors
have been stationed in the area for several years. Croatian officials
recently said they want this extension of the monitors' mandate to be
the last one because Prevlaka is no longer a potential regional
security problem. Belgrade has welcomed the extension of the mandate,
Reuters reported from New York. Montenegro has sought to negotiate with
Croatia directly as a way of affirming its sovereignty as a state.
Croatia has maintained contacts with both Belgrade and Podgorica about
Prevlaka. PM
CROATIAN COURT FREES MOBSTERS FOR 'LACK OF EVIDENCE'
The Zagreb county court has freed Nikica Jelavic and four other alleged
underworld kingpins, saying there is not enough evidence to proceed on
any of the charges against them, dpa reported on 9 January. The news
agency added that the charges included "murder, attempted murder,
extortion, money laundering, drug abuse, kidnapping, and association
with a criminal organization." The trial began in October 2000 and has
been called the "trial of the century" because of the high visibility
of some of the men's businesses and their social contacts with
celebrities. PM
ATTACKS ON RFE/RL CORRESPONDENT IN MONTENEGRO
Unknown persons "demolished" the automobile of Sead Sadikovic on 7
January and attempted to break into his flat the following day,
RFE/RL's South Slavic and Albanian Languages Service reported.
Sadikovic has reported from the Berane area in recent days about
attacks by pro-Belgrade extremists on Orthodox Christmas celebrations
by members of the Montenegrin Orthodox Church (see "RFE/RL Newsline," 7
and 8 January 2002). Berane Mayor Sveto Mitrovic blames the Montenegrin
government and police for the tensions. PM
REPUBLIKA SRPSKA MARKS 10TH ANNIVERSARY
Republika Srpska President Mirko Sarovic said in Banja Luka on 8
January that "we accept Bosnia and Herzegovina as a state. We have
accepted it because we got the Republika Srpska [as part of the 1995
Dayton agreement]. The interests of the Serbian people [have been
satisfied] through Dayton, [by creating] a functional and decentralized
state" consisting of the Republika Srpska and the Croat-Muslim
federation, Deutsche Welle's Bosnian Service reported. He added:
"Looking back, we have nothing to be ashamed of. Our way was the right
way, and we would do it the same way if we had to again." Sarovic
stressed that "we must turn to real patriotism to avoid future problems
stemming from the abuse of power by aggressive patriotism." The
Republika Srpska marks the anniversary of its founding on 9 January
1992 as an official holiday. PM
PETRITSCH WARNS AGAINST RETURN OF HALILOVIC TO BOSNIAN GOVERNMENT
The office of Wolfgang Petritsch, who is the international community's
high representative in Bosnia, announced in Sarajevo on 8 January that
he is opposed to the proposed return of Sefer Halilovic to the cabinet
of the Muslim-Croat federation as minister of refugee and social
affairs. The Hague-based war crimes tribunal freed the Muslim
ex-general in December pending his trial (see "RFE/RL Newsline," 14
December 2001). Petritsch's office said that one must take into account
the feelings of the families of Halilovic's alleged victims, and until
his name is cleared, he should not return to the government. PM
UN SACKS MORE POLICE IN BOSNIA
UN police (IPTF) spokesman Stefo Lehmann said in Sarajevo on 8 January
that the IPTF has fired nine police for involvement in a variety of
crimes or otherwise unacceptable behavior, AP reported. The IPTF has
periodically sacked wrongdoers in its ranks, but critics charge that
much remains to be done (see "RFE/RL Newsline," 28 December 2001). PM
FORMER SERBIAN STRONGMAN IN THE DOCK IN THE HAGUE
Slobodan Milosevic made his final pretrial appearance in a Hague
courtroom on 9 January, Reuters reported (see "RFE/RL Newsline," 11
December 2001). His trial for crimes against humanity in Kosova is
scheduled to open on 12 February. PM
HEAVY SNOWS PLAGUE ALBANIA
The government declared a state of emergency in much of northern
Albania after continued heavy snowfalls left 100,000 villagers isolated
in their communities, AP reported from Tirana (see "RFE/RL Newsline," 3
January 2002). The regions affected most severely are Lezha and Shkodra
in the northwest, and Kukes and Peshkopi in the northeast. There have
not been any reports of deaths so far. NATO troops from neighboring
Kosova recently helped the Albanian army deliver food to those parts of
the affected area in the northeast, which is cut off from the rest of
Albania by high mountains. PM
ROMANIAN PREMIER LAUNCHES ANTICORRUPTION CAMPAIGN WITHIN THE INTERIOR
MINISTRY...
Adrian Nastase said on 8 January that the fight against corruption has
to be based on "sound institutions" and improved "legal framework,"
Romanian Radio reported. He said the government will support the
ministry in combating corruption, most importantly within the Interior
Ministry itself. Nastase and Interior Minister Ioan Rus analyzed the
ministry's activities over the past year as well as its plans for 2002.
At the end of 2001, Nastase launched a campaign focusing on eliminating
corruption from the justice and financial-banking systems (see RFE/RL's
"Newsline," 28 December 2001). ZsM
...DENIES POLITICAL INVOLVEMENT IN INVESTIGATION OF CONTROVERSIAL
BUSINESSMAN'S COMPANIES...
Meanwhile, Nastase denied any political involvement in the
investigation of the companies of Sorin Ovidiu Vantu, who has been
accused by media outlets of financial engineering (see "RFE/RL
Newsline," 8 January 2002), Mediafax reported. In a television
interview broadcast on 7 January, Vantu accused Premier Nastase of
ordering the investigation of his businesses as chairman of the ruling
Social Democratic Party. Vantu went on to say that politicians should
not interfere with his businesses, and that the role of state
institutions should be to ensure the transparency of the capital and
financial-banking markets. Nastase said in response at a press
conference following his meeting with the Interior Ministry staff that
he ordered the inquiry in his capacity as prime minister, and denied
any business relationships with Vantu. In addition, he said he does not
know of any involvement by his cabinet members in business
relationships with Vantu. ZsM
...WHILE SCANDAL SURROUNDING VANTU UNFOLDS
On 8 January, Romanian Information Service Director (SRI) Radu Timofte
called Mihai Iacob, who is in open conflict with Vantu, a "crook" and
said he should be arrested, Romanian media reported. In response, Iacob
sued Timofte the same day for insult and libel. Iacob had previously
accused Vantu of having strong links with secret service leaders and of
having made a proposal to him to become an undercover officer. Timofte
called on the SRI to turn over to him "all data related to this
miserable situation." Meanwhile, Ion Stan, the chairman of the
parliamentary commission overseeing the SRI, has asked Timofte to hand
over all data related to Vantu's businesses and to tell whether the SRI
has informed state authorities of the matter. Vantu has previously
admitted to his friendship with Timofte. ZsM
TURKISH PARTY IN BULGARIA DEMANDS COALITION COUNCIL
The junior coalition partner of Prime Minister Simeon
Saxecoburggotski's National Movement Simeon II, the chiefly Turkish
Movement for Rights and Freedoms (DPS), is demanding the introduction
of a coalition council, the daily "Dnevnik" reported on 9 January. The
council would be intended to improve the coordination between the
coalition partners. The DPS is also demanding leading positions for
party members in state enterprises such as Bulgartabak (see "RFE/RL
Newsline," 3 January 2002). As Economic Minister Nikolay Vasilev thus
far refused such demands, the DPS is now considering pressing for
Vasilev's resignation. UB
U.S. COMPANY TO HELP DESTROY BULGARIAN SS-23?
Defense Minister Nikolay Svinarov said on Bulgarian National Radio that
a U.S. group specialized in the destruction of Scud and SS-23 missiles
will arrive in Bulgaria next month to hold talks with the Bulgarian
government, "Monitor" reported on 9 January. Svinarov did not specify
the name of the company, but added that he is confident that the
October 2002 deadline for the missile destruction posed by the
parliament can be met (see "RFE/RL Newsline," 18 December 2001). In the
meantime, Bozhidar Dimitrov, the director of the Military Historical
Museum, has asked the Bulgarian government for a SS-23 missile-launcher
to be exhibited in the museum because of its "historical importance."
Svinarov said he does not see any problem in fulfilling this request.
UB
BULGARIA TO REOPEN EMBASSY IN KABUL
Bulgaria will reestablish its diplomatic relations with Afghanistan and
reopen its embassy in Kabul, the country's future ambassador announced,
news.bg reported on 8 January. Angel Urbetsov, who will head the
diplomatic mission, said Bulgaria will help reconstruct Afghanistan and
support humanitarian efforts. Bulgaria will also participate in the
international UN protection force. UB
BULGARIAN CHAMBERS DISCUSS CURRENCY BOARD
Following the devaluation of the Argentinian peso, discussions are
continuing in Bulgaria about the currency board, which was introduced
by the International Monetary Fund in 1997. Yosif Avramov, the deputy
chairman of the Bulgarian Entrepreneurs and Handicrafts Chamber, said
the currency board has to remain in office until Bulgaria enters the
EU, news.bg reported on 8 January. Avramov's statement comes after Ivan
Angelov of the Bulgarian Academy of Sciences demanded the dissolution
of the currency board. According to Avramov, the Argentine currency
board failed because the peso was pegged to the U.S. dollar at an
unfavorable rate. According to Dikran Tebeyan, the deputy chairman of
the Economic Chamber, criticism of the board is not unfounded. Since
its introduction, Bulgaria has experience some 47 percent inflation and
Bulgarian exports have lost their competitiveness, which he said could
lead to a worsening of the country's balance of payments. UB
END NOTE
KOSOVA: A THANKLESS -- AND NECESSARY -- JOB
By Patrick Moore
Hans Haekkerup resigned his post as head of the UN's civilian
administrator in Kosova (UNMIK) just before Christmas, after barely a
year on the job. His successor will have to break some unpleasant
truths to many people. The task will not be easy, but it must be done
sooner rather than later if Kosova is to have a stable and prosperous
future.
Haekkerup's resignation came as a surprise to many -- but was not
unwelcome to Albanian leaders and to many of the international staff
members. The leading candidate to replace him is reportedly Germany's
knowledgeable but abrasive Michael Steiner.
The new UN chief administrator in Kosova will have to break some
unpleasant truths to many people. The task will not be easy, but it
must be done sooner rather than later if Kosova is to have a stable and
prosperous future.
It is possible that Steiner could alienate local leaders just as
Haekkerup did. After all, the history of the international community's
involvement in the former Yugoslavia in the past decade or so is filled
with the names of self-confident Western politicians and technocrats
who never seemed to understand the political culture of the Balkans.
Even Haekkerup realized early on that the Balkan attitude toward
compromise is quite different from that of his native Scandinavia, but
that insight did not help him much in developing a working relationship
with leaders of the 90 percent Albanian majority.
But perhaps just the right touch of steeliness is what is required.
This is because the new head of UNMIK faces at least three daunting
tasks that involve telling many people things that they may not want to
hear. He will have the same formidable powers as Haekkerup but will
need to use them more effectively than did the former Danish defense
minister.
The first task is to make it crystal clear to the Albanians that they
stand no chance of achieving their goal of independence unless they
show that they can manage their own affairs. The main reason for the
foreign presence in the Balkans to begin with is that most of the local
groups and their leaders proved unable to rise to the task of dealing
with the dissolution of the former Yugoslavia, a process set off by the
policies of Serbian leader Slobodan Milosevic. The foreigners are
unlikely to approve any new status for Kosova that seems likely to lead
to fresh trouble.
The Albanians will first have to show that they are capable of forming
and maintaining a stable government backed by a working majority in the
parliament. As it stands, Ibrahim Rugova, whose Democratic League of
Kosova (LDK) has the largest single bloc of seats, has failed to
persuade either of the two next-largest Albanian parties to join him.
These are Hashim Thaci's Democratic Party of Kosova (PDK) and Ramush
Haradinaj's Alliance for the Future of Kosova (AAK). Unless these three
leaders can show more talent for practical politics, they will find few
people abroad who will take their demand for independence seriously
even if it is based on the principles of self-determination and
majority rule.
One strong argument for Kosovar independence is that there will not be
stability in the region until the status of the province is clarified.
But there will not be stability, in any event, unless the Albanians
show that they can control the crime and corruption in their midst. By
cleaning up their own community's affairs, the Albanians can
demonstrate that they are serious candidates for more than just home
rule. If they fail to weed out their own mafia-like structures, they
will give credence to those who argue that Kosova can only be ruled
with a firm Serbian hand.
Besides setting up a stable government and combating crime, the
Albanians will also need to show that they are capable of treating
Kosova's minorities according to European standards. This means first
and foremost the Serbs, but also the Turks, Roma, Bosnian Muslims, and
others as well. The Albanians' record to date has been far from
encouraging, and they will need to improve if they want to convince the
world that they are ready for independence.
The second task for the new head of UNMIK will be to point out to the
local Serbs that their future is most likely that of a minority and not
as masters. The quicker the Serbs recognize that Serbian forces are
unlikely to return to Kosova at any time in the conceivable future, the
sooner they will be able to adjust to new realities. The fact that they
voted in large numbers in the November election and sent 22 deputies to
the parliament suggests that many already realize that their future
will be determined in Prishtina and not in Belgrade.
The new head of UNMIK will also have to remind some of the leaders in
the Serbian capital of a few unpleasant truths. Perhaps Haekkerup's
greatest disservice to the stability of the region was to enter into a
pact with the Belgrade authorities to give them a voice in the affairs
of the province. UN Security Council Resolution 1244 on Kosova
specifies that the province remains part of Yugoslavia, but it is
equally clear that this link is a paper one without any real
authority.
By giving Yugoslav President Vojislav Kostunica and Serbian Deputy
Prime Minister Nebojsa Covic a pre-election document to justify a role
for Belgrade in post-1999 Kosova, Haekkerup seemed to ignore what to
the Albanians is the basic political fact of life in Kosova: that the
repression and war of 1998-1999 cost Serbia and Yugoslavia any claim on
the Albanians' allegiances or loyalties. The new head of UNMIK -- and
perhaps others in the international community -- may seek early on to
suggest to Belgrade that its energies are better spent on ending the
poverty and corruption that plague Serbia than on trying to recover
lost territories.
The third task facing the new head of UNMIK is to bring home to the
leaders of the international community that they should not forget
about Kosova's affairs or lose sight of what they intend to accomplish
in the province. Without constant assessment and review, the
international community could find itself with yet another expensive
and messy international protectorate, with no end to that status in
sight.
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