Turkish and Russian FMs Discuss `Caucasus Union’ Initiative

Trend News Agency, Azerbaijan
Aug 22 2008

Turkish and Russian Foreign Ministers Discuss `Caucasus Union’ Initiative
22.08.08 17:28

Azerbaijan, Baku, 22 August / Trend News corr. S.Ilhamgizi / Ali
Babajan, the Turkish Foreign Minister, discussed with Sergey Lavrov,
his Russian counterpart, the establishment of the Caucasus peace and
cooperation platform over telephone on 22 August, the Turkish CNN-Turk
TV channel reported.

According to the TV channel, the ministers exchanged their opinions on
details to establish peace and cooperation organization in the
region. It was decided to hold a joint meeting with the participation
of the Russian and Turkish officials and to discuss in large format
the issue on establishment of the Caucasus Union at this meeting.

The Turkish officials are expected to hold discussions on this matter
with the Armenian Government.

Rejeb Tayyob Erdogan, the Turkish Premier, discussed the initiative of
the Caucasus peace and cooperation platform with the Presidents
Mikheil Saakashvili, of Georgia, Dmitriy Medvedev, of Russia, and
Ilham Aliyev, of Azerbaijan.

Analysis: Energy crisis in the Caucasus

United Press International
Aug 21 2008

Analysis: Energy crisis in the Caucasus

by STEFAN NICOLA

BERLIN, Aug. 21

The war in Georgia was not mainly about energy, as some have said, but
it highlights the vulnerability of energy deliveries through the
Caucasus and threatens future projects in the region.

Pipeline security can be quite a fascinating topic, even to the
standards of a James Bond movie. The 1999 blockbuster "The World Is
Not Enough" deals with the construction of an oil pipeline through the
Caucasus, from the Caspian Sea to the Mediterranean coast of Turkey;
it is called "King pipeline" in the film, but it is obvious what
pipeline is really meant: the Baku-Tbilisi-Ceyhan, which transports
oil from the Azeri-Chirag-Guneshli field in the Caspian Sea via
Azerbaijan and Georgia to Ceyhan, a port on Turkey’s Mediterranean
coast.

Shortly before the war between Georgia and Russia captured headlines,
an explosion and fire in eastern Turkey (the Kurdish rebel group
Kurdistan Workers’ Party claimed responsibility, but Turkish officials
denied the fire was man-made) shut down parts of the BTC pipeline. The
world’s second-largest oil pipeline, the BTC is a key element of the
West’s strategy to diversify its energy exports and become less
dependent on Russian deliveries.

Moscow wanted to have part of the BTC pipeline run through its
territories, but when that was denied, it refused to join the
project. British Petroleum leads the project companies, and Washington
became one of its greatest supporters. The BTC pipeline pumps oil to
customers in Turkey and Western Europe, and Russia can’t do much about
it — or can it?

Russia’s offensive into Georgia included attacks on military
facilities, but there are also reports that the Russian military,
while pulling out, is destroying vital energy infrastructure.

While Russia denies this, its military presence in the country forced
shut a pipeline transporting some 100,000 barrels of oil a day from
Azerbaijan to the Georgian port of Supsa, after shippers declared
force majeure, a legal option contractors can fall back on if
circumstances beyond their control make work at a pipeline
impossible. A natural gas pipeline from Azerbaijan to Georgia and
Turkey was also shut down for several days because of the
fighting. All over the country, Russia with vessels and ground troops
has been blocking ports, streets and railroads, severely impeding
deliveries and transit of oil-related products in or out of the
country. Georgian President Mikheil Saakashvili has stated repeatedly
that the country, because of its transit role that undermines Russia’s
energy influence, was a recipient of aggression. That some Central
Asian countries, the Caucasus and the Caspian region — formerly parts
of the Soviet Union — have become a key transit region for Western
energy deliveries is more than a thorn in the eye of the Kremlin.

Nevertheless, experts say the Georgian-Russian conflict was not an
energy war.

"Energy resources certainly were not the main reason for Russia’s
military campaign; that would be simplifying the conflict. It wasn’t a
war about oil," Uwe Halbach, Caucasus expert at the German Institute
for International and Security Affairs, told United Press
International in an interview. "But of course it plays into the whole
thing. New pipeline projects are now in question. At least they have
to be re-evaluated for security reasons."

Observers are concerned that some planned projects, including the
Nabucco pipeline and the Odessa-Brody-Gdansk-Polotsk oil pipeline, are
on hold because of the difficult security situation in the region. At
best, the crisis demonstrates that the West needs to provide better
security for the pipelines designed to bring oil and gas into Europe.

And there is even greater potential for problems flaring up in the
region, according to an expert.

"Any troubles between Armenian and Azerbaijani minorities in Georgia
could potentially re-ignite a dormant conflict between Azerbaijan and
Armenia over who controls the disputed Nagorno-Karabakh region,"
Sergei Blagov wrote in a commentary for ISN Security Watch. "Such an
eventuality may put an end to any plans of sustainable oil and gas
supplies from Azerbaijan and Central Asia circumventing Russia."

There is some good news, however: The BTC pipeline will resume work
next week, officials said.

Russian gas transit via Georgian territory to Armenia cut 30%

SKRIN Market & Corporate News
August 22, 2008 Friday 10:50 AM GMT

Russian gas transit via Georgian territory to Armenia cut 30%

Georgian Oil and Gas Corporation has denied information that Russian
gas transit via the Georgian territory to Armenia was cut 30% due to
maintenance works on the trunk pipeline. PR Director of GORC Tamara
Shoshiashvili said Monday that "these data are at odds with reality"
and gas transit to Armenia "is being implemented on a regular
basis". According to her, maintenance works are only taking place on
the pipeline in the Kazbegsky region adjacent to Russia. "They began
back on July 8 and provide for the replacement of a 400 m section of
the pipeline damaged last spring due to a landslide" – Shoshiashvili
said. "As for the adjacent North-South trunk pipeline used to pump
Russian gas via Georgia to Armenia", this pipeline "continues to
operate on a regular basis. We can only see slight changes in the gas
pump mode which depend on an increase or reduction in the pipe’s
pressure. However, this is a common thing" – she stressed. Earlier
head of Russian-Armenian Aromrosgazprom Shushan Sardaryan said that
natural gas supplies from Russia to Armenia since August 7 were
slashed 30%, Finam Investment Company reported.

Vergine is telling a rich mix of tales

Huddersfield Daily Examiner, UK
August 22, 2008 Friday
1ST Edition

Vergine is telling a rich mix of tales …;
Story telling

by VAL JAVIN

STORYTELLER Vergine Gulbenkian’s fascination with traditional tales
began with her own Armenian origins.

But once she had researched stories from the rich Armenian oral
tradition Vergine turned her attention to other cultures.

She will be sharing that rich mix of tales when she appears at
Huddersfield Public Library in the autumn.

Vergine has called her show Cradle Of Life and in it she threads
together three stories from very different parts of the world.

In the show at the library in the centre of Huddersfield on October 21
expect lullabies, incantations, repeated themes and factual
observations.

The stories themselves are linked by the timeless themes of
motherhood, birth, death, listening and sacrifice.

Her tales will include the Mesopotamian story of the birth of mankind
and the Flood, the Tibetan story of the wrathful mother goddess Palden
Lhamo and the Celtic story of Ceridwen and the birth of Taliesin.

Vergine has taken her storytelling skills to major venues in London,
including the South Bank Centre, the Battersea Arts Centre, the
British Museum and the Barbican Centre.

She has also visited museums, schools and storytelling clubs around
Britain. Armenian folk songs are an integral part of her performances.

The show, which begins at 7.30pm, is suitable for adults and children
over 12. Tickets are pounds 4 (pounds 3 concessions), including
refreshments from the library on 01484 221959 or 221960.

Trade Gap Remains Deep in January-July as Export Growth Stalls

World Markets Research Centres
Global Insight
August 22, 2008

Armenian Trade Gap Remains Deep in January-July as Export Growth
Stalls

by Venla Sipila

The latest trade figures from the Armenian National Statistical
Service give little hope of any swift improvement in Armenia’s
external balances. Indeed, the first seven months of 2008 saw
Armenia’s exports fall by 0.2% in annual comparison, totalling 192.6
billion dram ($640US million) for the seven-month period, ARKA News
reports. At the same time, imports surged by 40.9% y/y and totalled
703.4 billion dram. Over July alone, exports increased by 8.7% while
imports grew by 10.5% from June. July developments brought the trade
deficit for the first seven months of 2008 to 510.8 billion dram. Over
last year, Armenia’s trade gap soared by 73% from 2006, totalling over
$2US billion.

Significance:Persistently very robust domestic demand keeps fuelling
imports. While high international commodity prices have boosted import
value, the strong appreciation trend of the dram, on the other hand,
has had the opposite effect as a strengthening exchange rate has made
imports more affordable in dram terms. However, there still should be
some scope for appreciation before a clear deteriorating effect on
export competitiveness is likely to take hold. However, at the same
time, export potential remains limited, to an extent dependent on
diamond trade. Thus, it would be important for Armenia to continue
firmly on its well-started structural reform path, so that its export
earnings capacity improves before dram strengthening starts to have a
clear deteriorating effect on external competitiveness. Given that
domestic demand is holding surprisingly well, imports are likely to
keep growing at a rapid rate in the near term. Moreover, Armenia has
agreed with Russia to bring gas prices charged by Russia’s Gazprom to
market prices by 2011, and this will boost the import bill looking
forward.

July Brings No Easing to Persistently Brisk Armenian GDP Growth

World Markets Research Centres
Global Insight
August 22, 2008

July Brings No Easing to Persistently Brisk Armenian GDP Growth

by Venla Sipila

The Armenian economy continues to power on, posting double-digit
growth rates. Indeed, according to the latest figures from the
National Statistical Service quoted by ARMNIFO, the country’s GDP
expanded by 10.6% year-on-year (y/y) over the January-July
period. This result signals some speeding up in annual growth in July,
as the first half had seen GDP rise by 10.3% y/y. In particular,
retail trade increased by 6.1% y/y, while service supply (excluding
domestic trade) soared by 15% y/y and construction output rose by 14%
y/y. Meanwhile, production in the agricultural sector grew by a lower
but still respectable rate of 6.9% y/y. Industrial output rose by 1.8%
y/y for the first seven months of the year, with, specifically,
electricity generation gaining 2.7% y/y. Nevertheless, while remaining
weak in comparison with the other sectors, industrial output revived
over July after contracting by 0.3% y/y in the first half. Measured
month-on-month (m/m), Armenia’s GDP surged by 21.4%, notably boosted
by a strong seasonal boost from agricultural output and solid
construction activity.

Significance:The latest data confirm that this year may see annual
growth reaching double digits once again. However, they also give
further support to concerns over overheating, as continued rapid
growth of domestic demand is contributing to inflation pressures and
deepening the wide trade deficit.

Book review: The Stone Woman by Tariq Ali

Desicritics.org
August 22, 2008 Friday 2:01 AM EST

Book review: The Stone Woman by Tariq Ali

by Vinod Joseph

Aug. 22, 2008 ( delivered by Newstex) — The Stone Woman is the third
book in Tariq Ali?s Islam Quintet. Set at the turn of the twentieth
century as the six hundred year old Ottoman Empire slowly flickers
out, the Stone Woman revolves around the family of Iskander Pasha, who
live in a remote palace ?

not too distant from Istanbul?. Iskander Pasha is a retired diplomat
who had once graced the French court and the salons of Paris and is
the descendent of Yusuf Pasha, a courtier at the Ottoman court.The
novel derives its name from an ancient rock in the palace garden,
roughly shaped like a veiled woman, probably once worshipped by pagans
as a goddess. Ali has each of his main characters make their way to
the Stone Woman and pour out their feelings and emotions. In that
sense, the Stone Woman is a collection of various personal tales of
the various members of the cast. Unlike the first two books in the
Islam Quintet, the Shadows of the Pomegranate Tree and the Book of
Saladin (, there is no single strand of storyline that runs from
beginning to the end.The Stone Woman gives its readers a feel of
Ottoman society as it existed then. Iskander Pasha?s family cannot be
classified as commoners, and just as in the case of the Shadows of the
Pomegranate Tree , aristocrats and their servants form the main
cast. Ali tells us of a dying empire where the Sultan and the mullahs
or the ?beards? are in control and where innovation is frowned
upon. Not just the printing press, but even clocks have been banned.

The muezzin?s call to prayer is the only means of knowing the
time. The reader is forced to wonder, can this be the same Ottoman
Empire which in 1453 captured Constantinople (or Istanbul) from the
Byzantines using the most advanced cannon of those times? The Ottomans
were definitely the masters of innovation then. Tolerant Sunnis, they
managed to run an inclusive empire where Arabs, Turks, Kurds,
Armenians, Bedouins, Greeks and Slavs were all invited to the party.In
the course of telling his tale, or rather collection of tales, Tariq
Ali makes references to various historical events. The increasing
animosity between the Kurds and the Armenians (which would later lead
to the massacre of 2 million Armenians during the First World War) is
brought out very well. To start with, it?s a simple case of the
Armenians having some of the best land and the Kurds coveting the
land. The inception of the Young Turks movement is also built into the
storyline. A young officer named Kemal Pasha makes a few cameo
appearances. The Young Turks have contempt for the decadent Ottomans.
They want to create a pure Turkish state where there will be no place
for Armenians or Greeks. Some of the minor stories are not really
relevant to this story, but they are interesting as well, such as the
rivalry and differences between the Ommayads and the Abbasids and the
reasons for the defeat of the Ottomans at Vienna in 1683.The main or
rather only the problem I have with this story is the same problem I
had with the Shadows of the Pomegranate Tree and the Book of Saladin
. In this story, Ali?s cast lead a life that would be called ?liberal?
by even modern-day standards. Iskander Pasha?s brother Mehmed and his
gay partner, a German Baron, have an open relationship. Iskander?s
third wife is Sara, a Jewish woman. Sara was in love with Suleman,
another Jew, but could not marry Suleman. After she was betrothed to
Iskander, she made sure she became pregnant with Suleman?s child
before marrying Iskander. Iskander eventually gets to know of this,
but does not really mind, because he is a man for whom ?blood
relations don?t matter in the least?. Iskander loves Sara?s daughter
Nilofer as much as any of his biological children. For the same
reason, when Iskander gets to know that woman he had an affair with in
France (during his diplomat days) had his child, he does not
particularly want to meet that child.Nilofer is allowed to marry
Dmitri, a Greek school teacher. Nilofer?s love for Dmitri cools after
a few years and she abandons him for her father?s palace. When Nilofer
is at the Palace, she has an affair with Selim, the family barber?s
son. At that time, Dmitri who is alone in Konya, is killed by Turkish
fanatics. Very soon, Nilofer marries Selim (who made an officer in the
army by her brother, a senior army officer) and they seem to be all
set to live happily ever after. One of Nilofer?s brothers marries a
Coptic Christian in Cairo and another brother marries a Shia
Muslim. Also, in the course of the story, when Iskander Pasha loses
his voice (please read this book to find out how and why) and later
regains it, he thanks August Comte and not Allah.I am not too sure if
families as liberal as the one described in this story ever lived in
the Ottoman Empire at the turn of the twentieth century. May be they
did. If they did, Ali would have done well to have told his readers
the source of his information.

Silence of the Commonwealth

WPS Agency, Russia
DEFENSE and SECURITY (Russia)
August 22, 2008 Friday

SILENCE OF COMMONWEALTH

by Yekaterina Barova

AN UPDATE ON CIS COUNTRIES’ REACTION TO THE RUSSIAN-GEORGIAN CLASH;
Analysis of CIS countries’ reaction to the Russian-Georgian clash.

Belarus

Minsk’s silence in the first days of the Georgian-Ossetian conflict
was bewildering. Russian Ambassador to Minsk, Alexander Surikov, even
called a press conference on the subject. It was only on August 13
that President Alexander Lukashenko cabled his condolences to the
South Ossetian leadership. No such cable was dispatched to Georgia.

Moldova

Moldova backed the European Union and called for a
cease-fire. Kishinev’s official silence is understandable. It has its
own domestic conflict to deal with, export-import wars to fight, and
membership in anti-Russian GUAM with Azerbaijan, Ukraine, and Georgia
to mind.

Armenia

Yerevan said in no uncertain terms that it had no intentions to
withdraw from the Commonwealth (in response to Saakashvili’s fiery
speech). Official reaction at the Foreign Ministry level was fairly
moderate and considerate. Armenia said it hoped the involved parties
would concentrate on peaceful settlement.

Azerbaijan

With Ilham Aliyev being away in Beijing when bombs and shells started
raining on Tskhinvali, his political enemies had a field day. These
latter kept screaming bloody murder about "Russian aggressor", "the
Caucasus in jeopardy", and so on. Azerbaijani officials released a
simple statement that reiterated territorial integrity of Georgia but
never said a word about the Russian military operation.

Kazakhstan

President Nursultan Nazarbayev did his best to avoid becoming
committed in any way and said CIS foreign ministers should sort it
out. Meeting with Putin in Beijing, Nazarbayev only said the Georgian
leadership was wrong to have neglected to inform its CIS partners of
its intentions in advance. On its return home, however, he castigated
the "amorphousness" of the Commonwealth.

Kyrgyzstan

It was Kyrgyzstan as CIS chair-in-office that compelled the CIS
Collective Security Treaty Organization to officially condemn Georgia
and its action in the conflict area. A group of Kyrgyz
parliamentarians and political scientists travelled to the conflict
area even before the CIS Collective Security Treaty Organization’s
statement, which was apparently a political gesture.

Ukraine

President Victor Yuschenko’s unconditional support of his Georgian
counterpart Saakashvili fomented a rift in the Ukraine. Prime Minister
Yulia Timoshenko was accused of being in a conspiracy with the Kremlin
(the idea was that Timoshenko wouldn’t support Tbilisi in return for
Moscow’s support in the forthcoming presidential election). The Rada
even appealed to the Ukrainian Security Service to keep an eye on the
situation with the issuing of Russian passports to citizens of
Ukraine.

The leaders of Uzbekistan, Tajikistan, and Turkmenistan declined
comment.

Source: Sobesednik, August 20, 2008, p. 5

CIS mil. structure meeting discusses further development, S.Ossetia

ITAR-TASS, Russia
Aug 21 2008

CIS MILITARY STRUCTURE MEETING DISCUSSES FURTHER DEVELOPMENT, SOUTH
OSSETIA

Yerevan, 21 August: The meeting of the Council of Defence Ministers of
the Collective Security Treaty Organization (CSTO) member countries
held here on Thursday [21 August] "showed adherence to allied
relations in the organization’s format," says a report of the Armenian
Defence Ministry circulated after the meeting.

"The defence ministers of the CSTO states discussed the military and
political situation in the zone of the organization’s responsibility
and in the adjacent districts," says the report. Col-Gen Aleksandr
Kolmakov, Russia’s first deputy defence minister, informed the members
of the Council of the causes of the tragedy in the Georgian-South
Ossetian conflict zone and of the tendencies for the development of
the situation. There was a substantive exchange of opinions about the
situation in the Georgian-South Ossetian conflict zone and in the
entire Transcaucasian region.

The participants in the meeting "discussed the implementation of the
plan for joint military develop of the CSTO up to 2010 and beyond, and
questions of perfecting operational and combat training of the forces
and preparing means of the collective security system."

The members of the Council of Defence Ministers discussed the draft
provision for drafting, financing and implementing targeted
inter-state programmes of the CSTO. The defence ministers endorsed the
plan of joint measures for operational and combat training of the
command and contingents of the armed forces of the CSTO states for the
next year. They also coordinated the draft plan of consultations of
representatives of the CSTO countries on the foreign policy, security
and defence for the second six months of this year and the first six
months of the next year.

The defence ministers amended a number of documents in the area of
military cooperation, including the normative-legal base regulating
the activity of the rapid deployment collective forces in the Central
Asian collective security region. It was decided to sets up an
interstate working group to take measures to create a uniform system
for technical protection of railways of the CSTO countries and to
implement the organization’s budget.

In accordance with the CSTO procedural rules, the powers of chairman
of the Council of Defence Ministers for a regular period between the
sessions were vested in Armenia’s Defence Minister Seyran Ohanyan. The
meeting endorsed the draft decision of the Collective Security Council
to appoint Col-Gen Yuri Khachaturov, the Armenian deputy defence
minister, as the CSTO joint chief of staff for a regular period
between the sessions.

The CSTO includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia,
Tajikistan and Uzbekistan.

From: Emil Lazarian | Ararat NewsPress

Minor blast in bridge connecting Georgia with Armenia

Interfax, Russia
Aug 22 2008

MINOR BLAST IN BRIDGE CONNECTING GEORGIA WITH ARMENIA

Tbilisi, 22 August: Unknown individuals have attempted to blow up a
railway bridge in Marneuli District connecting the country with
neighbouring Armenia, regional authorities have reported.

Kvemo Kartli governor Davit Kirkitadze told journalists on Friday [22
August] that an explosive device, presumably an anti-tank mine planted
under one of the piers of the bridge, went off in the early hours on
Friday. However, the explosion did not cause serious damage.

The governor stressed that an investigation had been launched into the
blast.