BAKU: Azeri officer’s trial hearing adjourned till late September

Assa-Irada. Azerbaijan
May 11 2005

Azeri officer’s trial hearing adjourned till late September

Baku, May 10, AssA-Irada
The third hearing on the trial of Azerbaijani officer, senior
lieutenant Ramil Safarov was held in Budapest on Tuesday.
Safarov is charged with murdering an Armenian serviceman Gurgen
Markarian during NATO courses organized in the Hungarian capital in
2004.
During the hearing, which lasted 55 minutes, the judge said the
forensic expertise was carried out twice and showed different results
and adjourned the proceedings till September 27.
The court is to hear testimonies from forensic experts and
eyewitnesses from Azerbaijan and Lithuania at the next hearing.
Safarov killed the Armenian officer for insulting the Azerbaijani
flag and people.*

Russia’s electric expansion into Europe

RIA Novosti
May 11, 2005

RUSSIA’S ELECTRIC EXPANSION INTO EUROPE

Russia’s electric expansion into Europe

MOSCOW. (RIA Novosti commentator Marina Pustilnik)
Bulgaria’s privatization agency recently put three thermal power
plants up for sale: Varna, Ruse and Bobov Dol. Russia’s state-run
electric monopoly, Unified Energy Systems (UES), won the tenders for
the Varna and Ruse plants, while Greece’s Public Power Corporation
acquired the third facility.

The tender attracted the world’s leading electricity companies. Ten
of the 14 companies that applied to bid in the tender were selected.
Apart from the Russian monopoly and the Public Power Corporation, the
other companies were Italy’s Enel, the Czech republic’s CEZ,
Austria’s EVN AG, Japan’s Mitsui and J Power, Germany’s Energie,
Britain’s International Power Global Development Ltd., France’s
Dalkia International, and America’s AES.

Some market watchers are inclined to believe that these famous rivals
made UES bid far more for the assets than they are really worth. The
Russian company offered 389 million euros for Varna, which has an
installed capacity of 1,250 megawatts, and 120 million euros for
Ruse, which has an installed capacity of 400 megawatts. CEZ offered
only 192 million euros for the former, half the UES bid. Enel valued
the plant at only 150 million euros. UES made an even bigger mistake
when it came to putting a price on Ruse. The Czech company was only
willing to put 24.3 million euros on the table, whereas the Italians
offered a miserly 4.8 million euros.

After the winning bids of the tender were announced, a detached
onlooker might have taken the view that UES had won a Pyrrhic
victory. The Russian giant’s shareholders took the upcoming purchase
in different ways. Private shareholders have already said the
purchase of the Bulgarian thermal power plants will be of little
benefit to them. And Alexander Branis, the director of Prosperity
Capital Management, told the RusEnergy agency: “It is an immense sum.
At least acquisitions in Georgia and Armenia would have been
cheaper.” Branis also said it remained unclear who would get the
foreign assets after the Russian energy company is reformed and UES
is liquidated.

However, Mikhail Matytsin, the deputy director general of the
Integrated Energy Systems Holding, told RusEnergy, “It is a strategic
purchase that allows UES to be present in the Balkan region, which
will develop rapidly.” Meanwhile, a source in Gazprom added:
“Bulgaria occupies an important place on the map of Europe, and it is
logical and correct to buy such assets.” Gazprom representatives also
said that the location of these power plants opened up the Balkan and
Turkish markets for UES.

Although it may be considered a bitter victory for UES, it is
nevertheless a victory. The Russian company is continuing to
successfully implement its strategy of expanding to neighboring
countries. With the Varna and Ruse plants, UES will have hitherto
unknown access to the European market. In 2003, it did not get
through the screening of companies for the privatization of
Bulgaria’s distribution networks and in 2004, lost a tender for the
privatization of the Slovak electric company, Slovenske Elektrarne.

Many analysts accuse UES of failing to pursue economic interests in
conducting its aggressive expansion but following the political
instructions of the government, which is still the company’s main
shareholder. Perhaps there is some truth in these charges, and the
Kremlin is trying to obtain economic levers of influence in countries
that recently fell out of the zone of its political influence. But it
would be more reasonable to presume that UES is simply following the
worldwide practice of consolidation in accumulating foreign assets.

The Russian company wants to be a global operator on the global
electricity market, and so its strategy of acquiring foreign assets
and expanding to overseas markets is the only correct option.

Laws signed

A1plus

| 15:40:18 | 11-05-2005 | Official |

LAWS SIGNED

On May 10 Robert Kocharyan signed the RA Law on Ecological Control, the
amendments to the Law on Ecological payments, and the amendments to the Law
on Land Code adopted in the NA on April 11.

BAKU: Azeris mark occupation of Karabakh town by Armenian troops

Azeris mark occupation of Karabakh town by Armenian troops

ANS TV, Baku
8 May 05

[Presenter] Thirteen years have passed since the occupation of Susa
[a town in Karabakh]. A ceremony sanctioned by the Baku mayor’s
office to pay tribute to the Susa martyrs was held in the Martyrs’
Avenue today. However, similar commemoration ceremonies scheduled to
take place in other districts of the country did not happen.

[Correspondent] About 125 men were killed on 8 May 1992 during the
occupation of Susa, the crown of Karabakh. More than 40 people went
missing or were taken hostage. Some 25,000 Azerbaijani people have
become internally displaced. Seventeen mosques, all monuments of
culture and history, were destroyed.

The ceremonies to commemorate Susa have been held in the Martyrs’
Avenue over the past 13 years. First, officials of the Susa executive
authorities and former residents of the town came to the avenue and
laid wreaths at the monument to the martyrs.

Our compatriots from all over the world together with activists from
for the sake of Azerbaijan movement came to the Martyrs’ Avenue. The
deputy chairman of the movement, Sabir Azari, said that the world
urges Azerbaijan to make compromises on the Karabakh settlement.
However, the fact that 30,000 Armenians live in Azerbaijan is already
a compromise, end of quote.

The tour of the Martyrs’ Avenue continued with visits by activists
of the Karabakh Liberation Organization, the Yeni Fikir [New Thought]
youth organization and the Yox [No] movement.

Representative Of Armenian Ombudsman To Take Part In Regular Trial O

REPRESENTATIVE OF ARMENIAN OMBUDSMAN TO TAKE PART IN
REGULAR TRIAL ON CASE OF KILLED ARMENIAN OFFICER IN HUNGARY

YEREVAN, MAY 6. ARMINFO. Representative of Armenian Ombudsman Marina
Grigoryan will take part in a regular trial on the case of the killed
Armenian officer Gurgen Margaryan on may 10 as an observer. The
press-service of Ombudsman’s Office informs ARMINFO.

Besides, the source reports that May 11-13 Ombudsman Larisa Alaverdyan
will participate in a Round table for Ombudsmen of Eastern Europe and
CIS to be held Prague. Among other issues, the Ombudsmen will consider
the plan of actions of European Human Rights Institutions for 2005
and determination of prior direction and the expected results for
2006-2010. Besides, the Armenian Ombudsman is to meet with Hungarian
Ombudsman.

Intel Computer Knowledge days held in Armenia

INTEL COMPUTER KNOWLEDGE DAYS HELD IN ARMENIA

Pan Armenian News
06.05.2005 07:58

/PanARMENIAN.Net/ May 4-6 in the Yerevan Polytechnic University
the Days of Intel Computer Knowledge were held. During the event
notebooks assembled in Armenia on the basis of the latest Intel
Centrino technology as well as a new program of system administration
and chips made especially for this program were presented. The
principal directions of the exhibition were mathematical modeling,
multimedia, 3D design as well as implementation of mobile devices in
different fields. As Intel Company representative Renat Menazhzinov
told PanARMENIAN.Net, over ten Armenian specialists participated in
the creation of Intel Centrino system. On the last day a seminar,
during which the Intel specialists familiarized the participants
with the world news of high technologies, was held. Besides, Intel
and UNICOMP companies handed presents and raffled prizes. The main
prize was Unicomp notebook assembled on the basis of Intel Centrino
technology. To note, the students of the Polytechnic University only
took part in the competition. One more notebook was conveyed to the
University administration.

Neueste Nachrichten aus Deutschsprachige =?UNKNOWN?Q?Presse=A0=A0?=

Neueste Nachrichten aus Deutschsprachige Presse       04.05.2005 letzte
Aktualisierung 12: 00 Uhr

Schröder wirbt in Ankara für Reformen
Welt – 04.05.05 11:04 Uhr

Ankara – Bundeskanzler Gerhard Schröder (SPD) hat die Türkei zu verstärkten
Anstrengungen in der Reformpolitik aufgerufen. Beschlossene Reformen müßten
gesellschaftliche Wirklichkeit werden, sagte Schröder nach einem Gespräch mit dem
türkischen Ministerpräsidenten … … Historikerkommission zur Aufarbeitung
der Massaker an den Armeniern im Ersten Weltkrieg. Deutschland sei bereit,
seinen Beitrag dazu zu leisten …

Zweifel an EU-Reife der Türkei wachsen
Hamburger Abendblatt – 04.05.05 10:53 Uhr
Schröder-Besuch: Politiker aller Parteien beklagen Reformstillstand und
gebrochene Zusagen. … erkenne Zypern weiterhin nicht an und bestreite den
Massenmord an den Armeniern vor 90 Jahren. Matthias Wissmann (CDU), Vorsitzender des
Europa …

Schröder: Türkei darf bei EU-Reformen nicht zögern
Bocholter Borkener Volksblatt – 04.05.05 10:36 Uhr
“Gesellschaftliche Wirklichkeit” müssten die beschlossenen Reformen in der
Türkei werden, forderte Bundeskanzler Gerhard Schröder (SPD) am Mittwoch nach
einem Gespräch mit dem türkischen Ministerpräsidenten Recep Tayyip Erdogan in
Ankara. Schröder verteidigte zudem seine Unterstützung für die türkische
EU-Bewerbung. … Historikerkommission zur Aufarbeitung der Massaker an den Armeniern
im Ersten Weltkrieg. Deutschland sei bereit, seinen Beitrag dazu zu leisten

Schröder soll Klartext reden
Berliner Zeitung – 04.05.05 09:16 Uhr
Anlässlich des Besuchs von Bundeskanzler Gerhard Schröder (SPD) in Ankara hat
die Union ihre Kritik an den geplanten Beitrittsverhandlungen der EU mit der
Türkei verstärkt. Das Land habe zwar erfolgreiche Reformen hinter sich .. … .
5 Millionen Armenier getötet. Die Regierung in Ankara weigert sich bislang,
das Massaker als Völkermord zu bezeichnen. Der außenpolitische …

Kampagne gegen Türkei
St. Galler Tagblatt – 04.05.05 05:19 Uhr
Harte Vorwürfe gegen Schweiz wegen Armenier-Ermittlungen istanbul. Die
Vorermittlungen der Winterthurer Justiz gegen den türkischen Historiker Yusuf
Halacoglu haben weitere heftige Reaktionen ausgelöst. Der türkische
Justizminister
Cemil Cicek warf der Schweiz … … sie führe mit dem Armenier-Thema eine
Kampagne gegen die Türkei. Mit einer auf Lügen aufgebauten juristischen
Konstruktion wird hier eine …

Das Leben ist ein Auswärtsspiel
Jungle World – 04.05.05 05:15 Uhr
Und es gibt sie doch, die wunderschönen Fußballgeschichten, die Storys von
den Underdogs, die einmal ganz groß rauskommen. Jedenfalls scheint das in
Schweden so zu sein. Vor etwas mehr als 30 Jahren spielten einige assyrische
Flüchtlinge und Einwanderer, die … … Ähnlich wie die christlichen Armenier
wurden
die Assyrer zur Zeit des Ersten Weltkriegs Opfer von Verfolgung und
Vertreibung bis hin zum …

Nachrichten
Jungle World – 04.05.05 05:15 Uhr
Nordrhein-Westfalen. Während die SPD in den Umfragen seit Monaten besonders
schlecht abschneidet und mit ihrem populistischen Gerede über den Kapitalismus
zu retten versucht, was nicht mehr zu retten scheint, haben auch die Grünen
vor der Landtagswahl in Nordrhein-Westfalen … … aber ebenso Armenier, hat
Dink damals gesagt. Bei einer Verurteilung drohen ihm drei Jahre Haft. Der
Prozess wurde jedoch nach seiner Eröffnung …

Kampagne gegen Türkei
zuercher-oberland – 03.05.05 20:26 Uhr
sda. Die Ermittlungen der Winterthurer Justiz gegen den türkischen Historiker
Halacoglu haben weitere heftige Reaktionen ausgelöst. … sie führe mit dem
Armenier-Thema eine Kampagne gegen die Türkei. Mit einer auf Lügen aufgebauten
juristischen Konstruktion wird hier eine …

Erneut Streit mit der Türkei
St. Galler Tagblatt – 03.05.05 14:01 Uhr
Neue Irritationen: Vorermittlungen gegen türkischen Historiker lösen Proteste
aus Türkische Zeitungen stellen die Schweiz an den Pranger. Der Grund: Die
Justiz in Winterthur geht einer Anzeige nach, die gegen den Historiker Yusuf
Halacoglu eingereicht wurde. … die Zahl der getöteten Armenier betrage nur
einen kleinen Bruchteil davon. Was Halacoglu als Historiker zugespitzt vertritt,
lernen in der …

–Boundary_(ID_t3AEd3fc8JjUGtG4Fcbjvg)–

Will Kocharian and Erdogan meet in Warsaw?

WILL KOCHARIAN AND ERDOGAN MEET IN WARSAW?

AZG Armenian Daily #080, 04/05/2005

Armenia-Turkey

‘Nothing Has Been Arranged Yet’ RA President’s Speaker Says

“Referring to “diplomatic sources,” the Turkish Zaman informed in
its May 1 issue that Recep Tayyip Erdogan, Turkish prime minister, is
preparing “the second initiative,” i.e. the meeting with RA President
Robert Kocharian.

Zaman wrote that, according to the information by the Staff of the
Turkish PM, the tête-à-tête meeting of Erdogan and Kocharian
is envisaged in Warsaw, where the CE Summit will be held on May
15-16. But before that, Kocharian and Erdogan will participate in
another international arrangement. The 60th Anniversary of Victory
in World War II will be celebrated in Moscow on May 8-9.

“The time and the place of the meeting haven~Rt been specified yet,
but the opportunity of such a meeting will be created during the
Summit. If Erdogan and Kocharian meet, they will discuss the statements
on the genocide for the first time face to face,” Zaman wrote.

Victor Soghomonian, speaker of RA President, said in the interview
to daily Azg that “nothing has been arranged yet.”

The Turkish newspaper emphasized that Ankara’s diplomatic initiative
in the “issue of the statements on genocide” began by the exchange
of the letters the leaders of both countries addressed to each other.

On April 10, Erdogan suggested Kocharian “to create a group of
historians and other experts that would study the events and
the developments of the past not only in the archives of Armenia
and Turkey but also in the archives of third countries and would
also inform the international community about the results of the
research.” RA President mentioned in his response that “we have not
the right to give these plenipotentiaries to the historians. Thus,
we suggest establishing natural relations between two countries
without any preconditions.”

Before Kocharian received the letter, the Turkish press, as well as
The New York Times wrote that RA President refused the suggestion of
the Turkish PM, trying to make the impression that Armenia avoids to
unfold a discussion.

One shouldn~Rt exclude, that in this case also the Turkish press
tries to speak of the probable meeting between Erdogan and Kocharian
beforehand, so that they can blame Armenia for its unwillingness to
meet if the meeting doesn~Rt take place.

If the meeting in Warsaw takes place that shouldn~Rt be considered as
something extraordinary, as Kocharian has already met the Turkish PM
twice. On June 15, 1998, Kocharian met with Suleymam Demirel, former
Turkish PM in Yalta. The second meeting took place on November 17,
1999, within the framework of the OSCE Istanbul Summit. RA President
calls this meeting a bilateral “display of good will.”

By Tatoul Hakobian

–Boundary_(ID_WGXK6QPzaVAupzaQMahotw)–

Russia’s Future Foreign Policy: Pragmatism in Motion

“Russia’s Future Foreign Policy: Pragmatism in Motion”

Power and Interest News Report (PINR)
May 4 2005

Russia’s recent geopolitical moves have distinguished themselves
from the earlier attempts to regain the influence once exercised
by its predecessor states, the U.S.S.R. Once Russia emerged from
the ruins of a former superpower, its initial policies were directed
towards consolidating influence in the previous Soviet regions. These
moves were natural for a state that enjoyed and exercised unrivaled
political, military and economic predominance as the lead republic
within the U.S.S.R. Given the role Russia assumed on the global stage
following 1991, its initial post-superpower drive was to emerge as
the dominant power in the former Soviet Union, and as one of the
world’s foremost geopolitical players.

As the reality of the 1990s and early 2000s played itself out, Russia
was successfully checked on its borders by international and internal
pressures within some former Soviet states. While Russia may appear
to be on the “defensive” following a series of popular revolts that
brought to power governments that took an openly pro-European and
pro-American geopolitical stance, Moscow’s “waning” influence in
the former Soviet regions should not be construed as the country’s
weakness vis-à-vis its former sphere of influence. Even with the
growing pressure for democratic reforms on the heels of Georgia,
Ukrainian and Kyrgyz popular uprisings that brought down governments
that were at least partially influenced by Moscow’s policies, Russia
is still the region’s predominant economic power, a fact that is
often underreported in numerous analyses on the former Soviet Union.

Moscow’s economic role in Georgia, Armenia, eastern Ukraine and in
much of Central Asia gives it tremendous leverage even as it seems
to officially “retreat” in the face of mounting popular pressure for
reform and democratization. Additionally, the presence of millions of
ethnic Russians in the former Soviet republics presents Moscow with
yet another “international” advantage, even as it seems that for the
moment this advantage is not used efficiently, if at all. Even as the
current Russian military exhibits signs of inadequacy, the economic
and ethnic factors are not lost on the Kremlin’s decision makers as
they draft their country’s future moves in the world’s ever-changing
geopolitical environment.

Future Pragmatic Moves

Russia sought to reemerge as a successor superpower following the
collapse of the Soviet Union in December 1991. Its geostrategic
maneuvering were somewhat natural for a state that once rivaled the
United States on equal terms in practically every political, economic,
social, military and technological aspect around the world. However,
the harsh economic reality brought on by the demise of the Soviet
empire made the attempts to once again “catch up” to the United States
incredibly costly and unsustainable. Moreover, the loss of superpower
status was incredibly painful to the general Russian population that
still regards their country as one of the greatest powers on the globe.

Russian President Vladimir Putin recently alluded to the demise of the
U.S.S.R. as a catastrophe for the Russian people in his April speech
to the country. As Russia retreated from the numerous international
commitments of its predecessor state, it sought to recreate them to
a certain degree in its “near abroad,” or former Soviet states. This
policy led to open or covert interference in the internal affairs
of these countries, such as Georgia and Ukraine. Given the growing
U.S. and international presence in some of these states, Russia was
effectively “checked” in its efforts, at least for the near future.

Its foreign policy in the 1990s and early 2000s attempted to at least
partially assume the mantle once held by the Soviet Union, but its
greatly diminished political, economic and military status relegated
it to the role of the lesser powers, rather than “the one” power
capable of challenging the United States. Russia is still tremendously
important to the world’s major affairs, but its former Soviet clout is
effectively replaced by that of the United States, European Union and
China in areas such as the Middle East, Eastern Europe, South Asia,
Africa and Latin America. Yet, even in such conditions, Russia may
find itself in an increasingly more advantageous position in the
near future that would make it one of the world’s major players —
at a lesser cost than that paid for by the Soviet Union.

The U.S.S.R. paid a tremendous price for its position as one of the
world’s only two superpowers. Unlike the United States, the U.S.S.R.
saw no real economic or military gains for its global presence, while
its international obligations extracted massive social and economic
costs on the country. Its attempts to court or keep in check its major
and potential allies ultimately did not prevent the collapse of the
Western world, nor diminished the West’s global influence. On the
other hand, the coming geopolitical rearrangements expected to take
place in the next 10-15 years will yield massive benefits for Russia,
and present it with a number of advantageous options. Rather than
attempting to dominate world affairs the way the U.S.S.R. once did,
Russia can exercise an increasingly pragmatic foreign policy designed
to extract the greatest advantage out of the numerous opportunities
presented to it on the world scene.

Russia sees a multipolar world as the best opportunity to advance its
interests and safeguard “world peace.” This policy is enshrined in its
military doctrine, and Russian policymakers have openly stated on a
number of occasions that their country seeks to establish a multipolar
environment that would diminish, at least partially, the position of
geopolitical dominance currently held by the United States. In the last
seven years, its moves towards China and other states have been viewed
as manifestations of such policy. If the main predictions outlined
in numerous policy papers come true, Russia will be able to choose
from a variety of possible allies necessary to reach superpower status.

For example, the U.S. National Security Council’s “Project 2020”
analysis points to the rising influence of China and India in world
affairs in the next 15 years. Assuming the European Union will be
able to overcome its current divisions and emerge as a more unified
entity, its global presence will also be felt on all five continents.
Already, many Middle Eastern states look to Russia as a possible
counterbalance to America’s influence.

Russia will remain a major global player in the near future for
two main reason: its abundant natural resources will assume greater
importance to the world’s major developed economies, and its military
research and development will continually earn it a top place as one
of the top producers and suppliers of hardware around the world. Its
economic strength is still under question — even if major improvements
take place in the Russian economy, it will still be a fraction
of China’s and even a smaller fraction of the U.S.’ and Europe’s
economies for the next several decades. Its stabilized economy,
while still capable of attracting much needed foreign investment,
will be behind major growth in Europe, China and India.

Nonetheless, Russia’s pragmatic foreign policy is being outlined
today. In an interview with Israeli television prior to his
historical visit to the country in late April 2005, Putin was asked
if Russia would seek to establish itself as a superpower on the par
with the U.S.S.R. Putin replied that the costs associated with such
status-seeking moves will outweigh the benefits, and that Russia today
is already a great state, with major presence in Europe and Asia, in
both the “northern” and “southern” tier countries. At the same time,
Putin defended his country’s effort to have productive relations with
states like Syria and Iran, seen by the U.S. and Europe as having a
destabilizing influence on the Middle East — even as Russia courts
Israel at the same time. Specifically, Putin stated that since Iran
is a large country located on Russia’s periphery, therefore it would
be counterproductive to adopt a hostile or competitive attitude with
it. The same attitude is currently applied to China, as the Asian
rising power is seen more as an economic and strategic partner rather
than as a possible threat.

Assuming that today’s geopolitical patterns hold true for the next 15
years, Russia will find itself in a political environment that will at
least partially resemble multipolarity. China’s and India’s improved
economies will give the two states greater international clout,
prompting the United States to adjust its foreign policy to reflect
the appearance of two more powers on the world scene. The U.S. will
not likely diminish in its hegemonic status; however, major policy
centers like the Center for Strategic and International Studies in
Washington predict that it will have more difficulties in advancing
its policies around the world. It is also predicted that the European
Union will possibly emerge as a more unified political entity with as
much desire to advance its interests as the United States, China and
India. In this environment, Russia will have several options it would
be capable of pursuing. [See: “Testing the Currents of Multipolarity”]

Sino-Russian Competition

If China emerges as a possible “threat” to Russia given its
increasing need for natural resources, advanced technology and an
increasingly mature global influence, Russia will attempt to seek
partners in checking China’s influence, albeit in a more careful
style than the Soviet Union’s openly hostile policies of the 1970s.
Russia’s population is expected to decline in the next two decades,
while China’s is expected to rise. Given the already sparse population
in Russia’s Far East — a resource-rich area — this disparity
between this economically weak portion of the Russian Federation and
economically dynamic Chinese territories directly to the south means
a certain amount of friction may emerge between the two states that
today enjoy cordial relations. Russia would then not be the only
country seeking to contain China’s influence — Japan would also be
high on that list.

While today Japan is viewed as the world’s second largest economy,
it is expected to cede that status to China in the next two decades.
Japan relies on the import of natural resources vital to its economy
— as China does today and will do so in the future. The rising
competition with a much more powerful Asian neighbor may prompt
Japan to look for possible “allies in principle,” so as not to engage
Beijing openly as an adversary.

Russia is well suited to play that role, as it currently enjoys
growing economic connections with Tokyo. The United States is already
interested in preventing the rise of China as its possible competitor
in Asia, and is Japan’s major ally. Tokyo enjoys strong economic,
military and political connections with Washington, a relationship that
is expected to continue for the next several decades. Thus, if both
Japan and Russia would be interested in containing China’s influence,
the United States could become a third partner in this new alliance.

Sino-Russian Cooperation

On the other hand, if Russia chooses to throw its hat in China’s
corner following a natural progression of their relationship, it will
find itself in an increasingly dichotomous role as a major partner to
one of the world’s great powers. On the one hand, Russia will assure
its territorial integrity and increased economic cooperation with
one of the world’s largest economies. On the other hand, it might
find its own economy harnessed to growing Chinese needs. Nonetheless,
as a strategic and economic partner to China, Russia will be capable
of exercising tremendous leverage on the world scene as the country
closest to Beijing — much as today’s Japan is viewed as one of
Washington’s most reliable partners, and is therefore courted by many
states wishing to exert their influence with the United States.

Today, more than 60 percent of all Russians think that China is a
partner and is expected to be such in the near future. As a major
Chinese ally, Russia’s geopolitical clout vis-à-vis the United
States and Europe may increase, but stands the danger of being
supplanted by the eventual emergence of China as an economic and
military superpower. While both sides to the discussion on China’s
future status point to various internal and international reasons that
may aide or deter China’s rise, they point to Russia’s increasingly
important role in the “Sino-Russian alliance.”

Such an alliance would be capable of diluting — though not diminishing
— the influence currently exercised by the United States around the
world, creating a major competing economic and military entity. If, for
example, Russia’s economy would begin to suffer due to international or
domestic unrest, its decision makers, wary of the strong U.S. role in
the Russian economy in the 1990s, may decide to stay closer to China
as a counterbalance to Washington. The alliance with Beijing could
catapult Moscow back to world superpower status, though the eventual
political and economic beneficiary of this relationship may be China.

Relations with the European Union

The European Union, apart from possibly emerging as one of the main
power centers, may itself undergo a transformation in the next two
decades. Its core population is expected to decline and age, prompting
an urgent need for fresh workforce. Lately, and into the near future,
immigration has been growing in importance for Europe’s economy,
and is expected to become even more vital as more Europeans retire
expecting benefits that have long been a staple of Europe’s generous
social programs.

More importantly, Muslims from North Africa, Southeastern Europe,
Turkey and the Middle East have formed the bulk of that immigration
and, consequently, a growing percentage of the European population.
Already, Muslims form ten percent of the French population. This
phenomenon is not new in itself, as millions of Turkish immigrants
came to Europe in the 1960s and 1970s, but it is made more prevalent
by the declining birthrates among Europeans aged 25-45.

Russia has been experiencing a similar trend — with its current
birthrates and aging populace, it too will come to rely on immigration
to sustain its economy. Much of that immigration will come from
its own near abroad, and, to a lesser extent, from other countries
such as China. Muslims now form nearly 14 percent of the Russian
population and the percentage is expected to increase. Thus, the
European Union and the Russian Federation may find themselves in
a very similar situation in the coming decades, and may cooperate
more closely on issues such as the economy and immigration. Russia
is already one of the key trading partners of the European Union,
and that relationship is expected to continue.

However, if the current trends hold, both entities will have
increasing Muslim populations and the need for a more cooperative
strategy toward certain states in North Africa and the Middle East.
Given Russia’s well-established position in the Middle East, as well
as European foreign policy towards Muslim states in general, Russia
can find itself a beneficiary of a trilateral relationship between
itself, Europe and a collection of several Muslim states that will
become increasingly important to the economy and foreign policy of
the new Europe. For example, it is expected that Turkey might finally
accede to the European Union in the near future, and given Russia’s
constructive relationship with Ankara, might facilitate the formation
of this “alliance of need.”

There are certain policies that might disrupt the strengthening of this
relationship — such as the strong U.S. presence in the Middle East,
or the growth of N.A.T.O. and the European Union to encompass more
former Soviet states such as Ukraine. Nonetheless, Russia’s historical
ties to Europe and Moscow’s own view of itself as a European power
will allow it to forge domestic and foreign policies to compensate
for the “loss of prestige,” as its former sphere of influence might
be incorporated into an emergent political order.

Importance of the Military in Russian Foreign Policy

Russia considers military strength to be an important determinant of
its ability to become a powerful state. While it is not expected to
regain the global military reach once exercised by the Soviet Union,
its military is expected to reform and modernize. Military exports
form a significant part of Russia’s military strength, and Moscow
will adopt a further pragmatic approach to weapons exports that will
allow it to gain more contracts and hard currency. Putin stressed as
much to Israeli television when he defended Russia’s military sales
to Syria and Iran, while potentially even courting Israel’s powerful
military market.

Russia’s relationship with another rising power, India, might evolve
among the ties associated with military exports. India is currently one
of the biggest buyers of Russian military hardware, and its purchases
are allowing it to field one of the largest and most technologically
advanced armies in the world. Even as India is establishing peaceful
relations with Pakistan and is courting Beijing’s favors, it still
desires to emerge as a powerful state on its own terms.

Consequently, even the warming of relations with Islamabad and Beijing
will cause New Delhi to keep a watchful eye on its neighbors. Russia
can aid India’s rise as a regional power, a possible counterbalance
to China’s economic and political prowess, as well as a probable
partner to check U.S. influence. That policy can be complicated
by Washington’s own overtures towards India, as the two countries
are increasing their political and economic contacts. Nonetheless,
Russia stands ready to invest more into its bilateral relationship
with India, given its recent Cold War ties to New Delhi.

Relations with the Muslim World

A true wild card will be Russia’s relationship with the Muslim world
of North Africa, the Middle East and South Asia. There is currently
no single state besides Iran that can absorb the bulk of the benefits
of its bilateral relationship with Moscow. Russia is also used to
dealing with authoritarian, one-party states. Given the current
trends in the Middle East, certain political and social changes are
expected in the coming years that may alter Russia’s approach to
these countries. These changes will also determine the level of U.S.
influence in the region. If the current “democratization” trend
continues, America’s role is expected to increase. Soviet authority
in that region has been declining since the 1980s, and Russia’s weak
international position in the 1990s solidified that trend.

However, Moscow is expected to maintain a pragmatic approach to the
region, courting stronger and more stable regimes, while acting as
the possible supporter of weaker ones in order to keep a place at the
international negotiation table. Putin’s current approach to Israel,
Iran and Syria signifies this trend — Moscow will allow Washington
to take the initiative and pay for its successes and mistakes,
and then step in as an ally, a counterbalance, or even a possible
competitor. Since extensive involvement in the region today involves
investment and political clout — rather than Cold War style arms
transfers and economic “gifts” in exchange for influence — Russia is
expected to play a smaller role than that occupied by the Soviet Union.

Still, considering the enormous investment by the U.S.S.R. in the
Muslim world during the 1950s through 1980s, Russia is well poised to
assume at least part of that tremendous burden, and to be considered an
important player in the region. It is already courted by major Islamic
multinational organizations, given its own rising Muslim population.

Conclusion

What is surprising about Russia’s current situation in the former
Soviet Union is the speed with which several key states overthrew
their governments that at least nominally enjoyed cordial relations
with Moscow. This trend is also expected to continue, especially given
U.S. Secretary of State Condoleezza Rice’s comments that Belarus, one
of the last authoritarian states in Eastern Europe, should undergo
a profound political change. Still, even with America’s physical
presence in Central Asia and the Caucasus, and an increasing interest
in these regions’ energy sources by China and India, Russia may yet
play a powerful broker in its formerly controlled territories. The
presence of millions of Russian nationals in these states, as well
as the former Soviet states’ economic reliance on Russia as their
largest trading partner, will assure Russia’s strong role at least
for the next several decades.

Moscow has been closely observing U.S. hegemonic practices since
1991, and has extracted several important lessons. The level of
influence exercised by the United States throughout the world is
costly and problematic, even if it yields important short-term
results. Superpower status also has its limitations, as the U.S.
invasion of Iraq demonstrated both the scope and ability of its
armed forces and initial political pressure, as well as the need for
extensive alliances in the medium and long run. The said invasion
also showcased Russia’s ability to launch at least a partially
successful challenge to the United States in tandem with France,
Germany and China. Thus, Russian foreign policy can be expected
to utilize extensive alliance-building, covering as many “bases”
as possible without damaging its international credibility.

It would be difficult for Russia to rise once again as a global
superpower in the absence of an ideology capable of polarizing the
international community into two camps, thus aiding alliances and
constructing independent economic and political spheres of influence.
The world in the coming decades will still be dominated by the United
States, but will undergo a transformation, as more countries will
assume greater economic and political clout.

Therefore, Russia will seek to build “alliances of convenience” with
these countries — whether they be China, India, the European Union,
or even Indonesia or Brazil — in order to extend its influence around
the world. This is premised on the fact that Russia’s foreign policy
will follow Putin’s doctrines, for he is expected to step down in
2008. Much can take place after that year if his successors will not
be able to sustain the country on a track launched by him when he
took office in 2000.

Nonetheless, Russia can be expected to continue its policy of
“superpower on the cheap” — that is, building credible alliances to
share the costs of global influence, instead of paying these costs
themselves, as the Soviet Union did in the Cold War. This approach
can potentially allow it to increase its global influence and status
without extensively damaging its domestic and international standing.
Russia may even end up as an ally of the United States if the right
opportunity presents itself. Its foreign policy could stay as one of
well-calculated pragmatism, making it a very important international
player in the coming decades.

Report Drafted By: Yevgeny Bendersky

–Boundary_(ID_zqJPdC/zzgaXhlRS1c5rvw)–

Poor Azerbaijan prepares to get rich

Poor Azerbaijan prepares to get rich
By Kieran Cooke

In Baku, Azerbaijan

BBC
2005/05/03 21:16:10 GMT

This poverty stricken former Soviet republic on the shores of the
Caspian Sea is set to become rich. Very rich.

Industry specialists say the Caspian Sea holds some of the world’s
largest remaining untapped deposits of oil and gas.

Exactly how large the energy reserves are is a matter of considerable
debate.

But already the international companies that have begun exploiting
the resources contribute more than $200m to Azerbaijan’s finances
each year.

And that, say the oil majors, is little more than a trickle compared
with the wealth to come.

Benefit or curse

By 2007 it’s estimated that Azerbaijan – a country of eight million,
where people earn on average a little over $1000 per year – will
be receiving at least $7bn in oil revenues annually from Caspian
energy deposits.

“Azerbaijan is a country in transition,” according to Ilham Aliyev,
the country’s 44 year old president.

“We have considerable resources, but money earned from them must be
spent wisely.”

How Azerbaijan will deal with its bonanza in oil revenues is a
topic that occupies the minds of both senior government figures and
international financial institutions like the World Bank and the
International Monetary Fund (IMF).

“Oil wealth can be a big benefit or a curse,” says Ahmed Jehani,
the World Bank’s representative in Azerbaijan.

“If the benefits of rich resources are not shared, then this can lead
to ethnic and other tensions.

“Let us hope the temptation to divert money away from long term
investment does not prove to be too strong.”

Desperate plight

Like many former Soviet republics, Azerbaijan was in dire economic
straits following the collapse of the old USSR.

If the country relies just on oil revenues than other industries will
simply wither away Ahmed Jehani The World Bank

After independence was declared in 1991, the country suddenly found
itself without its traditional Soviet market for industrial and
agricultural exports.

Investment in the oil industry dried up. Hundreds of thousands lost
their jobs.

In addition, Azerbaijan has had to cope with the aftermath of a war in
the early 1990s, with neighbouring Armenia over the disputed enclave
of Nagorny Karabakh.

In the war, Azerbaijan lost more than 14% of territory and over
700,000 refugees were created.

According to a United Nations estimates, more than 50% of Azerbaijan’s
population live below the poverty line.

Much of the country’s infrastructure is in serious need of repair.
Since independence, more than a million have left the country in
search of jobs.

Job creation

Azerbaijan’s leaders have seen oil as the solution to the country’s
woes.

In 1994, Azerbaijan signed what was described as the “contract of
the century” – a $7.4bn production sharing agreement with a number of
leading western oil companies for the exploitation of the country’s
Caspian oil resources.

Since that time, hundreds of millions of dollars have been invested
by the oil majors in oil platforms and other facilities, with the
first oil flowing from the newly opened up Caspian fields in 1999.

Basil Zavoico, the IMF’s representative in Azerbaijan, says the great
challenge is to ensure that the large inflow of oil revenues does
not lead to a surge in inflation and undermine the development of
the critical non oil sector.

“The oil sector does not create many jobs,” Mr Zavoico says.

“The government’s job creation targets can only be met through
developing other economic sectors.”

Choppy waters

Early indications of how Azerbaijan is dealing with the sudden upturn
in its financial fortunes are mixed.

The country’s oil reserves are expected to be largely exhausted
by 2020: Azerbaijan’s financial planners have won international
plaudits for setting up the State Oil Fund, where a large portion
of oil revenues is placed to be invested for the benefit of future
generations.

Yet there are danger signals.

Inflation has entered double figures.

A building boom and the opening of upmarket shops and boutiques in
Baku, the capital, plus the presence of large numbers of new cars on
city streets are seen as evidence of economic overheating.

A recent assessment by Transparency International, a body which
monitors levels of corruption around the globe, placed Azerbaijan
140th out of 146 of the world’s most corrupt countries.

Dangerous reliance

This is not the first oil boom to hit Azerbaijan.

The country claims to be the site of the world’s first commercially
exploited oil fields: by 1900 the Caspian area was producing more
than 50% of the globe’s oil.

Business tycoons like the Rothschild’s and the Swedish Nobel family
rushed to control the Caspian’s resources and built lavish mansions
in a part of Baku still known as “Boom Town”.

The rise of communism and a series of bloody ethnic clashes with
Armenians brought that oil boom to an end in the early years of the
20th century.

The prospect of more fighting with Armenia is never far away.
President Aliyev insists his country must regain lands taken by
its neighbour.

Oil is looked on as the cure for Azerbaijan’s economic woes but the
future is uncertain.

“If the country relies just on oil revenues than other industries
will simply wither away,” says the World Bank’s Mr Jehani.

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4508621.stm