Russia Tries To Draw Ex-Soviet States Closer

RUSSIA TRIES TO DRAW EX-SOVIET STATES CLOSER
By Sergei Blagov

CNSNews.com Correspondent
August 17, 2006

Moscow (CNSNews.com) – At a summit of former Soviet states, Russia
has agreed to settle a dispute with neighboring Ukraine over natural
gas prices, which contributed to a split between the two former allies.

Moscow also used the event to further strengthen its economic relations
with countries in its neighborhood, where some ex-Soviet states have
moved away from its influence and towards the West.

A damaging disagreement over prices for gas supplies from Russia to
Ukraine early this year saw Russia cut off gas, a move that also had
a ripple effect on European countries whose gas supplies from Russia
travel across Ukrainian territory.

Ukraine’s new, pro-Russian Prime Minister Viktor Yanukovich told
journalists Wednesday that the two countries had now agreed on prices
for Russian gas until the beginning of 2007.

Agreement came during talks between Yanukovich and his Russian
counterpart, Mikhail Fradkov, who said Russia would pump 24.5 billion
cubic meters of natural gas into Ukraine’s storage facilities by the
end of the year.

Many observers saw the dispute as part of an attempt by Russia to
punish its neighbor for drifting out of its orbit and towards the
West under President Viktor Yushchenko.

The president was forced recently to offer the premiership to his
rival, Yanukovich, to end a long-running political crisis in Ukraine.

Yanukovich met with Fradkov at the Black Sea resort of Sochi,
on the sidelines of a meeting of the Eurasian Economic Community
(EEC), an organization formed in 2001 whose aim is to boost economic
cooperation between Russia and its neighbors that was lost when the
Soviet Union disintegrated.

It comprises Russia, Belarus and the Central Asian states of
Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan. Ukraine, Armenia
and Moldova attended are currently observers.

President Vladimir Putin and other leaders discussed plans to create
a customs union that would unite all of the EEC states.

Kazakhstan’s President Nursultan Nazarbayev told a news conference
that by October or November, a fledgling customs union would be in
place, comprising a core of three nations – Russia, Kazakhstan and
Belarus. Others are expected to follow later.

Moscow wants to see the EEC continue to expand. Last January it
gained its sixth full member, Uzbekistan, the most populous of the
four Central Asian republics.

As with other post-Soviet blocs, Russia dominates the EEC. It has a 40
percent vote in the grouping, and also funds 40 percent of its budget.

In another important development Wednesday, Uzbekistan confirmed
its return to another post-Soviet grouping, the Collective Security
Treaty. Uzbekistan was a member of the CST, but withdrew in 1999 when
its relations with the West were improving.

After strong U.S. and European criticism of a 2005 clampdown in
the city of Andijan, President Islam Karimov ended his short-lived
dalliance with the West and moved back towards Moscow.

The CST links Russia with the Central Asian "stans" as well as Belarus
and Armenia.