Armentel Launches Armenia’s First 3g Network

ARMENTEL LAUNCHES ARMENIA’S FIRST 3G NETWORK
by Michael Lacquiere

Global Insight
October 1, 2008

The roll-out of 3G services in Armenia is further indication of the
market’s growing maturity.

Armentel has become the first operator to offer 3G in Armenia,
launching the service in the capital Yerevan. It will offer 3G services
to both post-paid and prepaid subscribers. The data-transmission cost
of the service will be included in tariffs for GPRS packages. Services
available to subscribers include video calls and full internet
access. Armentel, fully owned by Russia’s VimpelCom, had 655,000 mobile
subscribers at the end of the first half of 2008. Rival operator
K-Telecom, owned by VimpelCom’s Russian rival Mobile TeleSystems
(MTS), had 1.49 million subscribers at that time. A third mobile
licence is scheduled for tender before the end of the year.

Global Insight Perspective Significance: The smaller operator within
Armenia’s mobile duopoly has become the pioneer of 3G services in
the country, launching in the capital Yerevan.

Implications The move is unlikely to alter the dynamics of the mobile
market, given that rival operator K-Telecom is itself lining up a 3G
launch before the end of the year.

Outlook The roll-out of 3G services and the imminent tender of a
third national GSM licence are indicative of the growing maturity
of the Armenian mobile sector, notable amongst the emerging,
high-growth-potential markets of neighbouring Eurasian countries.

Outlook and Implications

Armentel’s 3G Launch Unlikely to Change Market Dynamics:By pioneering
3G services in Armenia, Armentel has struck a small blow against
its rival, but it is unlikely to be massively significant as
K-Telecom is itself planning to launch 3G services before the end of
2008. K-Telecom, which operates under the "Vivacell" brand, entered
the Armenian mobile market after Armentel, in July 2005, but has
since usurped Armentel and now dominates the sector. Both companies
were awarded 3G licences in October 2007, and by launching first
Armentel will hope that it can claw back some ground by tapping into
the country’s organic growth potential and possibly even churning
customers from K-Telecom. Given the current gap between the two
operators in terms of market share, and K-Telecom’s imminent 3G launch,
however, it is unlikely that Armentel’s announcement will massively
alter Armenia’s mobile market dynamics.

Further Indication of Growing Maturity of Armenian Mobile Sector:The
launch of 3G services by Armentel, coupled with the likely emulation
of this feat by K-Telecom, is a further indication of the growing
maturity of the Armenian mobile market. The sector has benefited
from the arrival over the last two years of Russian giants MTS and
VimpelCom, and the investments they have brought. Uptake levels have
soared, and penetration at the end of 2007 was 57%, with Global Insight
estimating that this figure will increase further to a very healthy 78%
by the end of 2008. The country’s Public Services Regulatory Commission
(PSRC) has indicated that a tender for a third GSM licence will take
place in 2008, and the entrance of another operator will positively
benefit the market, acting as a natural buffer on tariff prices (see
Armenia: 30 July 2008). While many of the telecoms sectors of Eurasia
are notable as emerging markets with high growth potential, Armenia
is developing into one of the better-developed, more mature markets.

Power: The Vladimir Story

POWER: THE VLADIMIR STORY
by C.J. Chivers

Esquire Magazine
October 1, 2008

VLADIMIR V. PUTIN stood on the landing of a staircase outside the
Grand Kremlin Palace. Ceremonial troops paraded before him. Behind
him was the presidency, which he had left a few minutes before.

It was May 7, 2008, a milestone in a season of ceremony inside
the Kremlin’s red walls. Beside Putin stood his protege, Dmitry
A. Medvedev, who had just become the third president of post-Soviet
Russia.

Officially, Medvedev was the Kremlin’s leader, successor to Yeltsin,
Gorbachev, and all of the others, back to Stalin, Lenin, and the
czars. Medvedev was minutes into his term. After the troops filed
past, he remained in place, waiting. And then, in the full public view
that live television allows, Vladimir Putin, who at the moment held
no elected office, shifted his head and said something not audible
to the rest of us.

Taking a cue from Russia’s boss, Medvedev left the stage.

It was Medvedev’s day. It remained Putin’s time.

I. THE MAN WHO WOULD BE CZAR

Vladimir Putin is a national savior and hero, a man, sober and
exceptionally smart, who stepped from shadows to resuscitate a proud
country that others had run aground, looted, and left for dead. After
eight years as president, a period marked by a surging economy
and an unexpectedly victorious war in Chechnya, he surrendered one
of the most seductively powerful offices on earth voluntarily and
according to Russia’s constitution, with Moscow’s influence in the
world restored and with a large fraction of Russia’s citizens better
off than they ever had been. He has been a bridge from postcommunist
chaos and hardship to national stability, freer markets, individual
economic choice, and the possibility of democracy.

Or, he is a cunning, even diabolical strongman atop a scrum of
bandit cliques. As a career officer in the KGB, an organization
its members never leave, he is fundamentally anti-Western and
undemocratic, and comfortable with conflict, crime, and the company of
beasts. Moreover, he is nostalgic for empire and covetous of power, and
he has surrendered only a title. Instead, he has manipulated Russia’s
loose political rules and obedient political class to install a puppet
successor and transfer the levers to his new post as Russia’s premier,
where he continues to abuse office and direct the spoils of oil-state
excess to his coterie. His talk of public stewardship and personal
liberties is farce. The Kremlin has rejected democracy while pretending
to embrace it, hardening into a kleptocracy with nuclear weapons and
state-controlled television stations purring that all is well.

Depending on the point of view of the commentator (and sometimes the
source of the commentator’s paycheck), the standard assessments of
Putin’s nine years in public office reach these rival extremes. What
makes them interesting, and makes full and accurate descriptions of
Putin elusive, is that both are largely true.

Vladimir Putin is one of the central figures of our times, the man
who presided at the Kremlin as the broken remains of a sprawling
nation were restored to life, and who used his stature to reorder
the Russian-speaking world’s relations with the West and become the
de facto spokesman of strongmen everywhere. No recent Western leader
can claim to have changed a nation and its place in the world so fully.

During his second term, from 2004 to 2008, as Putin reanimated
the Kremlin, I lived and roamed in the world where he is supreme,
working as a newspaper correspondent throughout the former Soviet
republics. Putin’s influence is outsized and everywhere. But fresh
insights into him are rare. This is because analysis of Putin and his
Kremlin relies more on deduction than firsthand observation. Access
to him and the top levels of his government is exceptionally
limited. The common perceptions of Putin are created indirectly,
by reflecting on the Kremlin’s manufactured images on state-run news,
by interviewing people in proximity to power or who have suffered from
it, and by reading cues. Sleuthing informs the picture but is small
in scale. Russia lacks freedom-of-information laws and practices,
many interesting archives are closed, and fundamental documents of
civil affairs-court records and transcripts, for example-are difficult
to obtain. Requests for meetings with officials or questions about
government decisions can go unanswered for months. Russian authorities
also run the equivalent of a counterintelligence operation against
independent journalists: The entrances to the apartments and offices
of much of the Moscow press corps are under video surveillance and
have uniformed guards who check visitors’ passports. Phone lines
are bugged. Almost every journalist who wanders Russia has tales
of being denied access to regions, of having sources reinterviewed
by local authorities, or of being stopped for questioning by police
or intelligence officials. (A Russian colleague and I were detained
twice while working on a story on the terrorist siege at the public
school in Beslan.) Putin’s Russia is far less restrictive than Soviet
times, but is a stifling environment in which to trace the motions
of a nation, and a leader, moving at such speed.

In grappling with Putin and his meanings, I often turned my back on
him for weeks at a time to survey the Kremlin’s old and distant domain,
trying to understand Putin from vantage points away from the center-in
the Caucasus and Central Asia, at revolutions, crackdowns, elections,
and in the Chechen and Georgian wars. Throughout a continent where
the rule of cliques is secured by manipulated politics and fraudulent
elections, there was no limit to the seams where Putin’s hand-and
his extraordinary luck-revealed itself. Putin ultimately succeeded
in running against the 1990s, against separatism, penury, weakness,
and the crisis of self-confidence that made Russia a laugh line, even
as official cruelty and crime checkered his political climb. And yet
when measured off the bottom-against the domestic behavior of other
leaders who imposed themselves on the union’s wreckage-he could often
seem the softest of the autocrats.

That unlikely status presents one way of blending the rival arguments:
Is Putin’s Russia a retreat to Soviet practices or a capitalist
democracy sputtering through early stages of evolution? Putin’s
signature legacy is not Russia’s new wealth and confidence, nor the
subjugation of Chechnya, nor the return of an assertive foreign
policy, capped by the invasion of Georgia. It is the refinement,
if that word could ever be used with this phenomenon, of a more
sophisticated and rational police state than the failed USSR. This
is no celebration of imaginary virtues; the world of his politics
remains ugly and unrepaired. It is meant to pose a question. Putin
has reshaped Russian autocracy under another name. To what end?

II. THE TALL MAN

>From the beginning, the experts’ forecasts were wrong. When an
exhausted President Boris Yeltsin introduced Putin to the world in
the summer of 1999, announcing that Putin was his choice as prime
minister (Yeltsin’s sixth in less than eighteen months), few expected
him to last. It was not just that Putin, then forty-six, was charged
with managing a pauper state, a government adrift in disorder,
and a population soured by the unmet promises of free markets and
democracy. The brewing unrest in Chechnya had drifted beyond separatism
and nationalism and become an international Islamic cause. Crime
and corruption were pandemic, and a circle of billionaire oligarchs
controlled large fractions of the nation’s resources and capital,
as well as voting blocs in parliament, which was a legislature for
sale. There was also Yeltsin’s lurching style to consider, which
lent Putin’s new job the air of a free-swinging trap-door. Nothing
that summer suggested that Putin’s tenure would end differently from
those of his predecessors, who were sacked. Vladimir Putin was an
untested unknown, a stand-in destined to be fired. It hardly helped
that Yeltsin said he would support him in the presidential election
in 2000. An endorsement from a man who gave Russia a losing war and
economic shock therapy at once? Leonid Dobrokhotov, an advisor to
the Communist party, called it a "kiss of death."

In retrospect, of course, the early assessments were wrong, albeit for
understandable reasons. Russia’s problems were monumental. Events in
the recent past predicted little relief. And the available information
on Putin, a career spy, was beyond scarce. This was a public figure
schooled in anonymity and deception; so complete was his obscurity that
one prominent Western newspaper described him as "tall." Putin is a
martial-arts expert. Light-footed and thick-shouldered, he can emanate
the self-assuredness of a stocky, muscular cat. But he is not tall. He
stands, by generous estimate, perhaps five feet six inches high.

Putin swiftly displayed his confrontational self. He directed a
renewed military campaign in Chechnya, which was foundering under
the self-rule separatists had gained after fighting the Russian army
to a standstill a few years before. The war had undermined Russia’s
standing and self-esteem, psychological injuries that Putin seemed to
understand viscerally. Vladimir Putin did not just promise to restore
Russian rule. He went beyond the typical language of settling unsettled
scores. He vowed blood. "We will pursue the terrorists everywhere,"
he said. "You will forgive me, but if we catch them in the toilet, we
will wet them even in the outhouse." Earlier Russian premiers had been
rendered inert by the tenacity of the Chechen fighters and the reliable
incompetence of Russia’s army. (In 1995 Viktor Chernomyrdin had pleaded
for the release of hostages with Shamil Basayev, the terrorist,
on live television. "I beg you," he had said.) Putin signaled that
Russia would not beg. He came from an organization that had used fear
to bring a vast nation to heel. Violence for him was a governing tool.

Putin also showed skills as a performer, peppering an understated
demeanor with prison-slang coarseness. Hunting terrorists to their
toilets? The Russian idiom "to wet" is inmate jargon for soaking a
victim in blood. It is a knowing way of saying "to kill" and suggests
killing at very close range, as with a knife. Underneath his Italian
suits and aura of sobriety, Putin revealed an icy Eastwood deadpan. An
ease with crudity simmered beneath what passed for Putin’s style. Asked
if he worried about Russia’s columns inflicting civilian casualties,
Putin made clear that he did not, and would not keep company with
people who did. "We do not need generals who chew snot," he said.

Such was the mind behind Russia’s new war. Russian troops soon
leveled much of Grozny, Chechnya’s capital, and launched often
indiscriminate sweeps through the Chechen countryside. Victims and
human-rights organizations assigned much of the blame for the troops’
conduct to Putin, whose language seemed to encourage it. Putin was
undeterred. He had found a persona. He was not just a stern nationalist
who would restore Russian sovereignty. He was the unblinking fighter,
untroubled by rules, conscience, or second thought in the pursuit of
national order. Russia’s losing streak had been long. Putin would be
its fist. RUDEST EVER P.M. WINS OVER RUSSIA, another Western newspaper
declared. His popularity climbed.

Late in 1999, Yeltsin resigned, making Putin the front-runner in the
presidential race. In the spring of 2000, he was elected. His time
had begun.

III. THE BOOM

Eight years on, Russia looks not much like it did then. The value of
the Russian stock market has soared. Personal incomes have grown. A
society that suffered the forced austerity of communism and economic
collapse has entered a carnival of personal spending. Gone are empty
shelves, replaced by a rollicking consumer culture that buys what it
wants. French perfumes, Austrian chocolates, Japanese electronics,
Scandinavian cell phones, Italian handbags, Cuban cigars, Australian
wines, and single-malt Scotches-malls have opened offering all of
these. Rates of car ownership have multiplied with access to personal
credit, and Moscow’s roads, cluttered during Yeltsin’s time with
Zhigulis, are jammed with BMWs and Benzes. Extravagant restaurants
cater to the wealthy. Sushi, in the inland reaches of a northern
forest, is a minor Russian craze. For people of even modest means,
stores stock fresh fruits and vegetables year-round. Yes, babushkas
still sell onions on the streets. And yes, rural areas are deeply
depressed. But the expanding Russian wealth has grown beyond the
horizon. Visit tourist destinations in Thailand, the Mediterranean,
Europe, or the Red Sea and you will hear Russian. Visit a real
estate office in any Western capital and you will hear tales of
Russian buyers.

Such are the signs of the most tangible freedom associated with
Putin’s Russia-the freedom to buy whatever you can afford, except,
in most cases, power.

No small part of this turnaround resulted from conditions outside
Putin’s control. Russia’s combined oil and natural-gas reserves
are the world’s largest, and with timber and coal and mineral
deposits, these resources positioned Russia to be a global gas pump,
lumberyard, and mine long before any of us knew Putin’s name. The
price explosion of oil enriched Russia with head-spinning speed,
creating a huge transfer of global wealth to Slavic hands. Along the
way, it transformed parts of dreary Moscow into a northern Vegas and
allowed the Kremlin-which not long ago could not afford the fuel in its
fighter jets-to pay down foreign debts ahead of schedule. And yet the
results cannot be ascribed to sheer chance. It is easy to reduce the
arrival of Russian wealth to the indifferent bounty of market forces,
but sound macroeconomics and fiscal restraint supported some of the
boom. Stephen Kotkin, the professor of Russian history at Princeton,
said early this year that if surging oil and gas prices automatically
mean that states rich with hydrocarbons will enjoy instant prosperity,
ask Nigeria where its boom is.

While Russia’s economy roared, Putin was benefiting from another
unanticipated success. By 2005, the war in Chechnya had turned. The
insurgent bands were either being thinned to pockets or, in many cases,
coerced to join a pro-Kremlin government led by Ramzan Kadyrov, the
rebel turned Putin loyalist who replaced the chaos of conflict with
a local dictatorship. Fighting lingers nearby, in Ingushetia and
sometimes Dagestan, but in scale and intensity it is a fraction of
the violence of 2004. No one saw this coming. Anyone suggesting four
years ago, after the school siege in Beslan, that the war would be
reduced to skirmishes in Ingushetia and Dagestan, and that Grozny
(think: Mogadishu) would be largely rebuilt in a thousand days,
would have been dismissed as a fool. But after the school siege
ended in 2004, with more than 330 victims dead and hundreds more
injured, Russian counterterrorism was reinvigorated. Two underground
Chechen presidents were killed, and Basayev died in a mysterious
explosion. On both sides, the war had been a race for the bottom,
with horrors trumped by horrors for several years. With Beslan, the
separatists had gone too far. Chechnya’s Sufi nationalists had once
enjoyed a reputation as underdogs. But killing children was not an
image-booster; support for them collapsed.

Then came luck, courtesy of George W. Bush: The influence of foreign
Islamic fighters declined.

Foreigners had been a radicalizing presence in the war, and their
near disappearance during Putin’s second term was related to a factor
out of Putin’s hands. For several nights in late 2005, I sat with
Chechen fighters in Baku, Azerbaijan, just over Russia’s border. These
scarred men dwelt on their hatred of Putin, blaming him alike for
deaths of relatives and of hostages for whose freedom he would not
negotiate. They spoke of him as the ugly product of a weakened,
embarrassed state, and compared him to Hitler, whose rise followed
Germany’s defeat in World War I. (Hitler comparisons are tiresome
and common in some of the circles that hate Putin most. A more apt
pejorative for Putin is Putin.) Then they described an underground
railroad they had used to smuggle Arabs, Turks, and others into
Chechnya to fight. By bribing Russian guards and using roads that
pass from Azerbaijan through Dagestan, they said, the separatists
had shipped in traveling Islamic fighters for years. But by 2005, the
railroad had all but stopped. "They used to sit in the chair you are
sitting in and ask us to take them to the jihad," one of my Chechen
hosts said. "Now they do not come. They are all fighting in Iraq."

Putin, a student of what is wrong with the United States, had loudly
opposed the invasion of Iraq. But as the United States bogged down
along the Tigris and the Euphrates, the war he had stood against
was making his job easier. George Bush limped toward the end of
his presidency, facing public unease about his handling of the wars
in Afghanistan and Iraq. Vladimir Putin’s public-approval ratings
exceeded 70 percent. By this year, with memories of terrorism in
Moscow streets fading, the Chechen war had slipped from much of
the national conversation. Putin was even able to raise the subject
himself to divert uncomfortable questions about his personal life.

He had long been rumored to keep mistresses, including a relationship
with a prominent television executive whose career turned for the
better after they met. In April, a Moscow newspaper dared to publish an
article about another suspect: Alina Kabayeva, a twenty-four-year-old
former Olympic gymnast and newly appointed member of parliament. Putin
decried the story as the intrusive fantasy of a yellow press. But,
he added, "Thank God people have stopped asking about Chechnya."

IV. THE BREAKOUT

In his public appearances, Putin has always displayed a Clintonesque
command of facts, as if he spent his nights reading the finer points
of policy proposals. Authentically vulgar, his mind was also swift
and facile, capable of freewheeling riffs on all manner of public
affairs. But he had rigged his own reelection in 2004, and by late
that year he seemed out of stride with powerful currents coursing
through the old Soviet space. A bloodless revolution in Georgia had
overturned another falsified election and installed a West-leaning
government, eroding the Kremlin’s influence. The Ukrainian opposition
was organizing in Kiev. Could the yearning for a new guard, evident
along Russia’s borders, spread to Red Square?

There are many essential moments in Putin’s consolidation of
power. Most publicly, it began with the arrest of oil oligarch
Mikhail Khodorkovsky, an act that propelled his long climb to what
he is now. But his handling of Ukraine, at first bungled, proved to
be another.

Putin’s Ukraine policy had courted disaster. In the elections of
2004, he publicly backed a pro-Russian candidate, Viktor Yanukovich,
who had been convicted of robbery but had the support of the sordid
political machine built by Leonid Kuchma, the much-hated departing
president. Putin jumped in as if the race were a domestic affair. He
presided over a Soviet-style military parade in Kiev and committed
Russia to an energy deal that pledged to sell natural gas to Ukraine
at a deep discount through 2009. Natural gas is the lubricant of the
Ukrainian economy. It heats Ukrainian cities and powers electrical
plants and factories. Putin’s deal-to sell gas for less than a quarter
of the market rate through Yanukovich’s first presidential term-was
a subsidy-for-loyalty exchange, and promised Ukraine’s elite ample
opportunity for graft. (Reselling subsidized Russian gas at high
profits is a common insiders’ swindle.)

There was only one problem: Yanukovich was not elected. His rival,
Viktor Yushchenko, survived dioxin poisoning and emerged from
the hospital as a potent symbol against the enduring nastiness of
post-Soviet rule. Kuchma’s government falsified an election victory
for Yanukovich, but it was not enough. Hundreds of thousands of
demonstrators, and then the Ukrainian court, demanded a new vote. Putin
was scrambling for credibility.

His retaliation was precise. Russia announced that the gas deal with
Ukraine was off, and that Ukraine would have to pay market rates,
now more than five times the previous offer. Gazprom, Russia’s state
gas monopoly, set a deadline for late 2005. The threat’s timing
was carefully chosen and the irony inescapable. Ukraine faced the
prospect of gas shortages in winter. And Putin, the KGB man who had
given a Soviet-style energy subsidy to a nation to buy its loyalty,
was now lecturing Europe about the need for market rates.

As Yushchenko resisted through the deadline, Russia escalated again,
reducing pressure in pipelines feeding Ukraine. Pressure quickly began
to fall in Europe, which receives much of its gas on lines that pass
through Ukraine. In his anger that Ukraine overturned a falsified
election, Putin was cutting off gas to the West. European officials
seethed. Could he be such a neophyte? Was he not getting any better
advice? Had Putin lost his mind?

With the din rising, Yushchenko capitulated in a deal to buy gas
through a mysterious company, Rosukrenergo, at a compromise price. It
was an utterly nontransparent arrangement, and raised immediate
suspicion that insiders were profiting. After seeming cornered only
months before, Putin had won, and been successful in three ways. He
had forced Ukraine to accept his terms, he had pulled Yushchenko into
an agreement that sullied his government and image as a reformer, and
he had shown Europe that he could stand up to it as Yeltsin never did.

As the deal closed, an invigorated Putin appeared on national
television. These appearances have become scripted rituals of
daily broadcast life in Russia, during which Putin holds contrived
meetings with subordinates on sets made for state television. Putin
has many such sets available-in the Kremlin, in Sochi, and on this
evening he appeared at Novo-Ogaryovo, his suburban residence outside
Moscow. The office had a desk, a boardroom table, and a Christmas
tree. A group of us was allowed into the room to observe the faked
meeting, which would be broadcast around the Russian-speaking world
as the president receiving a report about the negotiations with
Ukraine. Putin arrived. Aleksei Miller, Gazprom’s chief executive,
and Viktor Khristenko, Russia’s energy minister, took seats before
him. The show began.

The president congratulated his men, and then turned to the subject
of the day. "I am sure that the settlement of the complex issue in
the gas sector will have a positive effect on the entire set of
Russian-Ukrainian relations," he said. "It is not only important
that Russia’s approach to calculating the gas price was recognized
as justified, but that our relations are assuming a new quality and
becoming a truly transparent market partnership." Nothing about the new
partnership was transparent, and relations with Ukraine had hardened.

After he finished talking, his daily TV segment done, he looked over
at us. For a moment, Putin stared. Then he spoke. "S Novim Godom,"
he said. This is a Russian holiday greeting, words in Russia that
carry great cheer. Coming from most any other mouth it would mean
"Happy New Year." Coming from Putin, it carried another message:
Get out of my room.

V. THE CRACKDOWN

For all of Putin’s domestic success, and in spite of his good luck,
Russia remains bedeviled by problems. Social services are poor, and
corruption has become total. Russian public services are so wormy
with dishonesty and dysfunction that patients bribe doctors for care,
parents buy access to schools for their children and grades for their
report cards, and the police shake down drivers with a regularity
resembling taxation. The court system is a sham, vulnerable to bribery
and political instruction. Racial and ethnic violence is widespread,
and murders of minorities occur with morbid frequency.

Russia’s army, far behind Western levels of professionalism and
standards of equipment, is further weakened by high rates of draft
dodging, which are elevated by traditions of conscript hazing. Its
record of human-rights violations is appalling. Putin has consolidated
the Kremlin’s control over key economic sectors-oil, gas, pipelines,
aircraft and vehicle manufacture, arms dealing, banking, and metals-and
the billionaires have been brought under the Kremlin’s sway. But there
are more oligarchs now than in 2000, suggesting that wealth has not
been redistributed in ways Putin had pledged, even as inflation and
a real estate bubble have eroded middle-class spending power.

All of these are issues that might motivate a growing middle class to
ask questions about its government. So how did Vladimir Putin build so
much prestige and muster the strength to assert himself on the world?

The easy answer, the one you’ve heard, is that he rolled back civil
liberties and created a neo-Soviet state, securing his own power by
limiting everyone else’s. Since 2000, Putin’s Kremlin has replaced
independent television with lapdog television, stifled political
competitors, expelled foreigners and harried nongovernmental
organizations that criticize the state, abolished the elections
for governors and replaced them with a system in which the Kremlin
appoints regional leaders. The effect has been a drought of candor and
vibrancy in Russia’s public conversation. These days, free speech does
not extend much beyond venting online, a single bold radio station,
and the work of a few small, rambunctious newspapers.

But the insistence that Russia is returning to Soviet times is a
claim resting on omission and exaggeration. This is not the nightmare
of Soviet rule, and not just because Russians have access to food
and foreign goods. Putin’s Russia is a canny autocracy, a system
that exerts intensive control over political society but offers
pressure-release valves in individual life. In Russia, Internet use is
largely unfettered, cell-phone ownership is profligate, the pursuit of
money is an organizing ideology, and foreign travel is common. Under
the old guard, all of these would have been regarded as threats to
the state.

So what is this new Russia? A few years ago I sat one cold morning with
a Western diplomat who was contemplating Putin. Western governments,
he said, often criticized the Kremlin for not emulating democratic
systems of government, and accused Putin of backsliding toward
strongman rule. The diplomat saw the backsliding. But he suggested
that there was actually a high degree of emulation of the West.

The Kremlin’s political apparatus routinely falsified elections. It
compelled laborers, students, and government employees to vote for
its candidates. It doctored voter lists. It used tax in-spectors and
police to harass opposition members. It manipulated media coverage
and released invented vote results. In the daily administration of
government affairs, the state perched atop a sprawling machinery of
graft that spirited away money from all manner of public works. And
the state’s penetration of the strategic industries extended the graft
throughout the economy. Although checks and balances existed in the
law, in practice they had been subverted. The Kremlin controlled
the legislature and courts. Law-enforcement agencies-from the tax
police to the successors of the KGB-worked at its bidding. No new face
could stand against Putin or his men. "We keep urging them to embrace
and practice democracy," the diplomat said. "But actually, when you
look at it, the Kremlin has done a pretty good job of copying the
state of democracy in American urban machines of the early twentieth
century. It’s not that far from Tammany Hall."

Put another way, Putin’s autocracy is a cunning blend of ruling
ideas from the old Soviet regime with many of the material pleasures
of capitalist life, a form of government for strongmen who did
their homework. And just as they accept that freer markets are more
efficient than planned economies, and that pining for foreign goods
is not treason, Putin and his circle understand that Russia’s people
can say what they wish in their kitchens without endangering the
state. This allows for democratic pretenses with centralized rule
and insider access to the profits of governing. The Kremlin today
does not control everything. It does not try to. Putin’s circle
exerts control over the profits of the most lucrative industries, and
bares its teeth at actual threats to power. Repression is no longer
total. It is precise, and its weight is brought down, often publicly,
on the few who stand up to the state.

Putin will be remembered for many things, but to the list should be
added his government’s skills at mimicry. Throughout his second term,
he smothered foes by creating obedient duplicates of them. These
are the Kremlin’s Stepford Wives. Western journalists have covered
Russia critically? Putin launches Russia Today, a twenty-four-hour,
state-controlled English-language television station that acts less
as a news agency than as a sycophant with a British accent. Opposition
youth groups-Otpor! ("Resistance!"), Kmara! ("Enough!"), Pora! ("It’s
time!")-helped topple tired postcommunist governments in Serbia,
Georgia, and Ukraine? The Kremlin creates Nashi, or "Ours," a youth
organization whose demonstrations praise the power and whose ranks
serve as an unofficial reserve of street loyalty to be mobilized at
will. The Organization for Security and Cooperation in Europe, which
leads the region’s most credible election-observation missions, was
publicly documenting election-rigging in the old Soviet space? The
Kremlin deploys its own observers to declare rigged elections free
and fair.

To all the world, these duplicates are crude Orwellian inventions,
calling things the opposite of what they are. To Putin, they are
accoutrements of power. He has seemed pleased to watch his subjects
disgrace themselves in the service of his needs.

VI. A KINDER, GENTLER POLICE STATE

For years after the Soviet Union’s collapse, Russia’s liberals and
Westerners alike hoped that the freed people and new republics would
form law-abiding and democratic states. Putin’s rule has labored to
prevent that from happening, and the old Soviet world has hardened
to its new shape. Across the rolling expanse of steppe, forest, and
mountain range formerly under Kremlin rule, every single government
unfailingly declares itself democratic. But aside from in the Baltic
states, few in the region can speak candidly on television or the
radio, or watch a free and independent news broadcast of local origin,
or enjoy unmolested public assembly that criticizes the government,
or have a fair hearing before an impartial judge in a court where
the law is the highest authority, or select leaders from a slate
of candidates who have been allowed to campaign openly and without
restriction. This is the state of the Russian-speaking world nearly
two decades after the wall came down.

This is his world. When Moscow proved too opaque, this is where I
would go to see Vladimir Putin’s reflection.

In Belarus, the opposition to President Aleksandr Lukashenko was
portrayed on state television news (the only broadcast news in the
country) as homosexual, drug-abusing, and in the pay of spies. Campaign
managers were jailed, as were the protestors against electoral
abuses. Both opposition candidates that stood against Lukashenko
were arrested during and after the race, and one, Aleksandr Kazulin,
was sentenced to five and a half years in jail for leading a protest
march. He was released this year to attend the funeral of his wife,
who died of cancer, and then led back to his cell.

Kazulin’s fate has been less harsh than others. In Tajikistan in 2005,
Makhmadrouzi Iskandarov, an opposition leader who said he would run
for president, was convicted of terrorism and other charges. He was
sentenced to twenty-three years in jail at a closed trial.

In Kazakhstan that year, a newspaper editor who published court
documents from the United States detailing the corruption of President
Nursultan Nazarbayev was mugged by men who carved a censor’s X across
his chest. Two prominent opposition politicians died of gunshot wounds
around election time. One, Zamanbek Nurkadilov, was found shot twice
in the chest and once in the head. (The police suggested the death
was a suicide, the three shots apparently evidence of resolve.) The
other, Altynbek Sarsenbaiuly, was bound at the wrists and murdered
in early 2006 by officers from Kazakhstan’s former KGB.

In Uzbekistan, protestors, many chanting "Freedom," were dispersed
by government machine-gun fire in 2005. No outsider knows how many
people died, and President Islam Karimov blocked all independent
reviews. Blocked is euphemism here: Two survivors who were interviewed
by me and two colleagues were later dragged from a refugee camp
by Uzbek intelligence officers and imprisoned after show trials;
a local journalist who assisted us had a bounty placed on his head
by the Uzbek government for his own writings. Soon after, he was shot.

In Azerbaijan, after the last parliamentary election, demonstrators
and candidates were clubbed by phalanxes of riot police and chased
by trucks with water cannons after protesting the intimidation,
vote stuffing, and rigged counts that accompanied the ruling party’s
overwhelming official victory.

In Turkmenistan, after the dictator Saparmurat Niyazov died, the
man in line to be acting president was arrested, securing another
insider’s path to power.

In Armenia, the government declared a state of emergency amid street
protests to a flawed vote, and sent tanks to disperse the crowds.

During Putin’s second term, I traveled to each of these former Soviet
nations and observed their political machines. In Russia, where I
lived, control of elections is almost total. But across the region,
there are shades in the palette of repression and official crime, and
the Kremlin’s election-season repression was less crude and violent
than in many former Soviet states. Putin, who had the opportunity to
be a democrat, instead chose to lead this club. At a time when he was
popular and powerful, he never trusted Russia’s people or politics
enough to allow a free vote. He dashed his chance at legitimacy and
surrendered the possibility that Russia might wield moral weight.

Instead, as he became Russia’s preeminent man, he pulled the
levers of a reinvigorated state to suit himself. And this year when
Russia invaded Georgia, Georgian president Mikheil Saakashvili was
instantly assigned the role of criminal on Russian TV, just as Mikhail
Khodorkovsky had been before him.

VII. TO WHAT END?

Early this year, Putin was challenged by a reporter at a news
conference over the continued vote fabrications in Chechnya. There,
according to the government’s figures for the parliamentary election
last year, 99 percent of the voters had cast ballots, and 99 percent
of the ballots were for the political party Putin leads. Such election
figures have been rivaled only in Kim Jong-il’s North Korea, Mao’s
China, Niyazov’s Turkmenistan, and Saddam Hussein’s Iraq. They were
especially absurd for a vote in Chechnya, a land shaped by cycles of
resistance to Russian rule, and that had been brought back to yoke by
force. The correspondent wanted to know: Did the president of Russia
find these numbers credible?

Putin declined to answer. Instead, he asked a state journalist from
Chechnya to answer for him. The young Chechen quickly stood. "These
are absolutely realistic figures," he said, grinning obsequiously. And
Vladimir Putin watched with a mix of satisfaction and boredom, the
face of unchecked power itself.

VivaCell-MTS New-Generation Service Center Opened In Kanaker-Zeytun

VIVACELL-MTS NEW-GENERATION SERVICE CENTER OPENED IN KANAKER-ZEYTUN

RIA OREANDA
Economic News
October 1, 2008 Wednesday
Russia

Yerevan. ">OREANDA-NEWS . October 1, 2008. VivaCell-MTS announces the
opening of a new service center in Kanaker-Zeytun community, at 24/9
Azatutyan St. The service center will cater for all subscribers needs
Monday through Saturday from 9:00 to 18:00, and Sundays from 9:00 to
13:00. Yet again, VivaCell-MTS General Manager Ralph Yirikian offered
a subscriber to cut the red ribbon of the opening celebration. The
subscriber is the main scope of our business and because we care for
saving his time and make his life easier, we are day after day getting
closer to him everywhere in Armenia. Today we are in Kanaker-Zeytun, to
cater for our subscribers needs in the very efficient and professional
manner, noted Yirikian. The whole range of the VivaCell-MTS products
and services are made available in the newly-opened service center
including international roaming, post-paid and prepaid packages with
respective tariff plans, invoice settling, different denomination
scratch cards, number selection, GPRS, corporate packages, detailed
bills, and other services.

NATO Exercises In Armenia Will Improve Interaction Of Units Of The A

NATO EXERCISES IN ARMENIA WILL IMPROVE INTERACTION OF UNITS OF THE ALLIANCE

WPS Agency
DEFENSE and SECURITY (Russia)
October 1, 2008 Wednesday
Russia

NATO exercises Cooperative Longbow/ Lancer – 2008 will take place in
Armenia in the framework of Partnership for Peace program between
September 29 and October 21. Colonel Seiran Shakhsuvaryan, press
secretary of the Armenian Defense Minister reported earlier that the
goal of the exercise was to increase the level of interaction between
units of NATO and partner countries. More than 900 servicemen from
21 countries including seven NATO members and 14 participants of NATO
programs Partnership for Peace and Istanbul Initiative will take part
in the exercises.

Earlier, deputy chief of the main staff of the armed forces of Armenia,
Major General Arshaluis Paytyan, reported that both NATO member states
including the US, UK, Poland, Lithuania and Canada and post-Soviet
states of Georgia, Kazakhstan and Moldova would take part in the
exercises. The exercises will be commanded by Lieutenant General Jack
Gardner, deputy commander of central base Heidelberg representing
the US armed forces.

The exercises will take part in two stages: command staff and field
exercises. Their participants represent various branches of the
armed forces and various military professions, including drivers,
doctors and sappers.

Theater Of Combat Operations: Dmitry Medvedev Watched Military Exerc

THEATER OF COMBAT OPERATIONS: DMITRY MEDVEDEV WATCHED MILITARY EXERCISES NEAR ORENBURG
by Alexander Kolesnichenko

WPS Agency
DEFENSE and SECURITY (Russia)
October 1, 2008 Wednesday
Russia

REPORT FROM STABILITY-2008 EXERCISES; Last Friday, President of
Russia Dmitry Medvedev visited the Donguzsky training range in the
Orenburg Region where he watched the final stage of military exercises
Stability-2008.

Last Friday, the President visited the Donguzsky training range in
the Orenburg Region where he watched the final stage of military
exercises Stability-2008.

The exercises in the Volga-Urals Military District began in the
middle of July and ended last Sunday. In the course of the exercises,
47,000 servicemen including 13,000 reservists transported 10,000
units of military hardware by 1,500 kilometers, dug 200 kilometers
of trenches, arranged 4,000 bunkers, built 80 bridges and crossed the
Ural Rivet. Mechanized infantry and tank units and pilots learned to
coordinate their actions with each other. Generals learned to fight
against a conventional enemy on maps.

This time the enemy was the Southern Alliance including Osmania (it
coincided with Turkey on the map), Transcaucasian Republic (Georgia,
Armenia and Azerbaijan united into one state) and Southern Emirstan
(Iran, Afghanistan and Turkmenistan). On the map of the exercises
Abkhazia and South Ossetia were within Georgia and Transcaucasian
Republic. Russia was renamed into the Northern Federation that
counteracted to the Southern Alliance together with its allies
Arystan (Kazakhstan) and Gornostan (Uzbekistan, Kyrgyzstan and
Tajikistan). According to the scenario of the exercises, forces of the
Southern Alliance landed on the eastern coast of the Caspian Sea and
moved in four columns to the northwest towards Samara, to the north
towards Ufa, to the northeast towards Chelyabinsk and to the east
towards Astana. According to the map, the enemy managed to capture
Samara and Ufa, and the Orenburg Region (the President arrived to the
Donguzsky training range there last Friday) remained in the deep rear
of the attacking enemy. One of the officers said that at the end of
the exercises the Northern Federation defeated the Southern Alliance
and returned to the initial borders.

One of such battles took place in presence of Dmitry Medvedev. An
observation post was arranged for the President on Ryskina
Mountain. The battlefield was located below five kilometers
away. According to the scenario, a mechanized infantry regiment
attacked by exceeding enemy forces moved from the first defense line to
the second. The enemy thrust forward and went into a trap. At first,
it was bombed from the air, attacked by multiple rocket launchers
Grad and flamethrowers Buratino and blown up by mines. The defeat
was accomplished a tank attack.

In reality there were no enemies on the field but were white targets
and a combat infantry vehicle could not hit one of them for a few
minutes. When the firing began, the field was covered with black smoke
very quickly. It turned out that containers with solar oil were placed
near the targets to add realistic features to the exercises.

After that there was an air battle when two pairs of fighters circled
one above the other and the announcer explained which of them adopted
a beneficial position and which could be considered downed. Air
defense system Tunguska fired tracer projectiles at imitators of air
targets but the imitators did not react to the shots and landed on
the field. There were no other drawbacks, nothing broke and nobody
fired at the friendly forces. In any case, one of the officers said
that there were accidents during transportation of troops to the
training range and there were even victims.

Firing at the field lasted for about an hour.

The President stated that the exercises were successful and named
five tasks that the military had to fulfill.

BAKU: The Karabakh Problem In The Context Of ‘Georgian Precedent’

THE KARABAKH PROBLEM IN THE CONTEXT OF ‘GEORGIAN PRECEDENT’

Turan News Agency
22 Sep 08
Azerbaijan

By its military aggression against Georgia and its recognition of
the independence of Abkhazia and South Ossetia, Russia has created
a new and very dangerous situation throughout the post-Soviet space
and especially in the South Caucasus.

In the situation of escalating threats and growing confrontation,
none of the former Soviet countries (including Azerbaijan) can stand
aside and feel fully secure.

Russia sets dangerous precedent for post-Soviet space.

The dangerous precedent that Moscow has created in the post-Soviet
space of the crude violation of Georgia’s sovereignty and territorial
integrity may fundamentally change the entire configuration of
mutual relations between states, condemning almost every state to
potential blackmail and the threat of separatism. There is no doubt
that Azerbaijan should also take such a threat into consideration.

In the context of the "Georgian events" some issues have become
especially topical in Azerbaijan: "Is it worthwhile counting on the
prospects for a peaceful settlement of the Karabakh problem within
the framework of the current confrontational format of the OSCE
Minsk Group?"

Is it possible to place hopes upon a military means of "peace
enforcement" and liberation of the occupied lands anytime in the
foreseeable future? From now on, whenever there is any weighty
reason for dissatisfaction, will Moscow blackmail Baku with threats
of repeating the "Georgian events" and the possibility of recognizing
Karabakh?

Can the West guarantee the security and territorial integrity
of Azerbaijan? Are there any resources left for continuing the
policy of maneuvering between the competing interests of Moscow
and Washington? Can such a policy and fresh mediation initiatives
facilitate the resolution of the Karabakh problem?

We have been assured for a long time that the "Kosovo precedent"
has nothing to do with the conflicts in the post-Soviet
space. Nevertheless, the military aggression of Russia against
Georgia, as a result of which the Kremlin unilaterally recognized the
independence of the separatist regimes in Abkhazia and South Caucasus,
showed the error of these optimistic assurances.

Now after the turbulent Georgian events, they again continue to calm
us down (especially in Moscow) that the "Abkhaz and South Ossetia
precedent" will not extend to the process of settling the Nagornyy
Karabakh problem and that Azerbaijan has nothing to worry about. How
long-lasting and firm will this optimistic pill prove to be? Anyway,
is it worthwhile for us to worry about this?

I assume we should. True, some of our experts who also did not take
the "Kosovo threat" seriously are now captives of a new political
illusion. It seems to them that Moscow, preoccupied with the problem
of its own rehabilitation, would not dare to repeat the "Georgian
events". Moreover, for the purpose of restoring its image and trust,
Moscow will assume the principle of territorial integrity as a basis
in the Armenian-Azerbaijani conflict and thus play up to Baku.

This is a strange logic. In particular, when the talk is about
today’s Russia, which has demonstrated by the example of Georgia
what its assurances are worth and how little it is concerned about
considerations of image, reputation or rehabilitation motives. By
the way, unlike Russian and some local experts who are in euphoric
expectation of a breakthrough in the Karabakh settlement, western
politicians and pundits are showing more concern over this issue. And,
it seems, there is reason for this.

USA fears Moscow may blackmail Baku

Given that 20 per cent of our lands are under occupation, keeping
the existing conflict in a frozen and suspended state has always
presented a serious problem and a potential threat for Azerbaijan.

In the current confrontational conditions, especially in the context
of the "Georgian precedent", the risk and threat of the conflict
being manipulated for the purpose of putting pressure on Azerbaijan
or destabilizing the situation in the region have grown significantly.

This concern explains the surge in US activity for a settlement of
the Karabakh problem. As the US co-chair in the OSCE Minsk Group,
Matthew Bryza, said in Baku: "The events in Georgia testify to the
need for a speedy settlement of the Nagornyy Karabakh conflict."

At the same time, he especially noted, "The settlement of the Karabakh
conflict will proceed from the principle of territorial integrity,
taking into account international experience and laws." We should also
underline that Bryza informed Baku about Vice President Dick Cheney’s
words that in the light of the regional threats and challenges,
"the USA will always be next to Azerbaijan".

The US concern has less to do with the fact that Russia may repeat
the Georgian scenario in one form or another in Azerbaijan than that
by constantly employing such threats, Moscow may significantly shape
or correct the geopolitical, regional and energy plans of Baku as
it requires.

With the Georgian separatist conflicts temporarily out of the active
game, the Karabakh conflict has turned into the key risk factor and
lever for manipulating the situation in the South Caucasus. At this
stage, some countries (Russia and Iran), despite positive rhetoric
and a demonstration of mediation efforts, are keen on preserving
this potential threat, while others (the USA, Europe and Turkey)
strive for a swift settlement in order to fully secure the region
and their interests.

After some reduction in tension in Georgia, all the key regional
subjects are gradually shifting their attention to the two most
significant and mutually connected factors in the struggle for
dominance in the south Caucasus: alternative energy projects
(in particular Nabucco) and the Armenian-Azerbaijani conflict. The
political fate of the Southern Caucasus republics and the geopolitical
prospects of the whole region will depend on the outcome of this
struggle.

Armenian President Ready "To Cede Karabakh" To Azerbaijan

Haykakan Zhamanak
Sept 23 2008
Armenia

Armenian President Ready "To Cede Karabakh" to Azerbaijan

Armenian President Serzh Sargsyan has started carrying out a major
programme of ceding Nagornyy Karabakh to Azerbaijan, pro-opposition
Haykakan Zhamanak daily reported on 23 September.

Sargsyan has to cede Karabakh to remain in power, the paper said,
adding that Sargsyan’s predecessor, Robert Kocharyan, had remained in
power for 10 years "playing around the Karabakh issue". The author
of the article says that Sargsyan has to "shift to real actions"
as his predecessor had already exhausted all possible games around
the negotiations table.

Hakobyan says it is not surprising that Turkish Foreign Minister
Ali Babacan has said recently that Turkey is optimistic with regard
to Armenia’s political will in the Karabakh issue, because President
Sargsyan recently told the Azerbaijani president that "maybe, Karabakh
people express a wish to live as a part of Azerbaijan in a referendum"
if Azerbaijan makes serious investments in Karabakh. The problem is
that Armenian President Serzh Sargsyan tried to show Ilham Aliyev
ways of returning Karabakh to Azerbaijan during the negotiations,
Hakobyan writes.

The author says that one can justify Sargsyan saying that his words
were a joke, but the seriousness of the situation is that Sargsyan’s
words "fully reveal Sargsyan’s moods and programmes on the Nagornyy
Karabakh issue". One should remember in this regard that Turkish
President Abdullah Gul said after his recent meeting with Sargsyan
that Armenia is ready to return occupied territories [Azerbaijani
territories currently under Armenian control] to Azerbaijan, the
author says.

Hakobyan writes that President Sargsyan agreed to Turkey’s mediation
in Karabakh conflict and that much depends on the first tripartite
meeting between the Armenian, Turkish and Azerbaijani foreign ministers
during the upcoming session of the UN General Assembly in New York. It
is obvious that "the Armenian and the Azerbaijani sides have come to a
common denominator concerning an option of settlement of the Karabakh
conflict within the framework of Azerbaijan’s territorial integrity,
and now it is the issue of deadlines that remains".

TBILISI: Georgian, Armenian Presidents Agree On Regional Motorway Pr

GEORGIAN, ARMENIAN PRESIDENTS AGREE REGIONAL MOTORWAY PROJECT

Kavkas Press
Sept 30 2008
Georgia

Tbilisi, 30 September: Georgia and Armenia will form a consortium
to work on the construction of a direct road leading from Armenia
to Ajaria [on Georgia’s Black Sea coast]. Armenian President Serzh
Sargsyan and his Georgian counterpart Mikheil Saakashvili made this
announcement today at a joint briefing in Tbilisi.

"Tbilisi and Yerevan are so close to each other, that we should be
a continuation of each other. You know how many holidaymakers visit
Georgia from Armenia in summer – this is why we took the decision to
build a road that will on the one hand link Armenia and Ajaria and
on the other hand link Tbilisi with the mountainous part of Ajaria,"
Saakashvili said.

He also pointed out that money will be raised abroad in order to
build the road, which will connect Georgia, Armenia and Turkey and
in so doing "become a regional project that will make it possible to
increase the volume of cargo transported by road".

"This will once and for all bring all the countries of the region
closer together and serve to develop them all," he said.

"The project will of course change the economic geography of the
region. If our consortium raises enough money within two months to
begin building the road, then this meeting will have been of use,"
the Georgian president said.

For his part, Sargsyan stressed that he was "happy about the
implementation of this project". "This is very important for the
development of our peoples. Georgia’s freedom is important for
Armenia, as 70 per cent of our foreign trade is done through Georgian
territory. And many of our brothers and sisters live in Georgia,"
he said.

BAKU: Azerbaijan And Uzbekistan Identified Unity Of Positions

AZERBAIJAN AND UZBEKISTAN IDENTIFIED UNITY OF POSITIONS

Turan News Agency
Sept 15 2008
Azerbaijan

The visit of Uzbek President Islom Karimov to Azerbaijan on 11-12
September was successful, the Uzbek Foreign Ministry reported,
underlying similarity of positions on many issues of the regional
political and economic nature. It was noted that Uzbekistan and
Azerbaijan share same aims and attempts on the issue of the development
of mutual cooperation and that the countries are partners on political
matters. This assessment was also highlighted at the joint communique
which the two presidents signed at the end of the visit.

Judging by the scarce official statements and reports about the visit,
the sides paid more attention to political aspects of the development
of the situation in the Central Asia and the Southern Caucasus that
has emerged in the wake of the crisis events in Georgia.

The overall bilateral trade between the countries stands at 60m dollars
and could only be a topic of regret but not of important discussions. A
conclusion inevitably springs to mind as a result of the visit is
that the sides have a consolidated position on the events in Georgia.

They assess negatively the military intervention of the Russian
army in Georgia and encroachment upon its territorial integrity. In
Baku Karimov backed in rather direct terms a plan for a peaceful
resolution of the Armenian-Azerbaijani conflict within the framework
of Azerbaijan’s territorial integrity and likewise, along with other
countries of the Central Asia, he did not support Russia’s steps to rip
Abkhazia and South Ossetia from Georgia. Earlier, Baku in response to
Moscow’s challenges repeatedly insisted on inviolability of Georgia’s
frontiers by recognizing the territorial integrity of this country.

The latest aggressive behaviour of Moscow could not but push slightly
countries of the CIS (the Commonwealth of Independent States)
to coordination of their positions and speeding up the process of
integration on the basis of bilateral and regional levels. Welcoming
Karimov, Aliyev underlined that the integration of Azerbaijan and
Uzbekistan is of great significance not only for the two countries but
also for the Central Asian, the Caucasus and Caspian region countries.

Aliyev even described the results of the meeting exclusive for
the cooperation of the two countries with strong positions in the
region. The issue in question is most likely about cooperation and
coordination of actions of the countries within a general strategy for
the development of transport and communication and energy corridors
East-West. It is not by chance that the meeting attached a special
significance to the development of transport and transit shipments.

At the same time, proceeding from Karimov’s assessment of Aliyev’s
foreign policy course as balanced, pragmatic and reasonable, the
sides probably would stick to cautious evolutionary steps to reach
the highest degree of independence of their countries from ties
and influence that remained after the demise of the USSR. The sides
experience similar discomfort from similar threats and influence.

Azerbaijan and Uzbekistan are experiencing similar risks of being
subjected to military, political, psychological pressure due to efforts
to diversify their energy routes. The countries are vulnerable from
standpoint of regional disagreements with neighbours, international
terrorism, interests of drug syndicates and other threats.

The recognition by Russia (although with reservation about
inadmissibility of this threat for Azerbaijan) of independence
of the separatists in Georgia, the strengthening of the military
presence in this country and the support of dangerous for Uzbekistan
hydropower projects in Tajikistan and reinforcement of the military
presence in this country are factors that cannot but be conducive to
rapprochement of these countries. As is known, in August President
Medvedev and Prime Minister Putin simultaneously visited Central
Asia. Medvedev agreed upon stationing of a Russian air base near
Dushanbe, the handover of 1bn dollar worth arms to the Tajik army,
the exploitation of gas and uranium deposits and the construction
of three hydroelectric facilities in Tajikistan, the realization of
which may lead to dewatering of the eastern part of Uzbekistan.

Against the backdrop of Medvedev’s initiative, the Russian prime
minister "slightly" proposed Karimov cooperation in the gas sector
which should be expressed in reinforcement of Tashkent’s independence
on Moscow. Similarly, practically at the same time, Deputy Prime
Minister Zubkov suggested in Asgabat Turkmen President Gurbanguly
Berdimuhamedow to purchase whole gas at European prices.

Moscow’s political and military actions in August along the southern
direction from the Black Sea to the Pamirs were assessed by several
observers as a preventive step against intensification of West’s
strategy to infiltrate into the former Soviet space. The consolidated
tough military and political repulse to the Kremlin efforts to slow
down this process was heard from Brussels. What will be an energy
reaction of the EU-US tandem will be obvious in the forthcoming
November energy summit in Baku where Uzbekistan’s involvement is not
ruled out.

Armenia-Georgia. A New Situation Opens New Perspectives

ARMENIA-GEORGIA. A NEW SITUATION OPENS NEW PERSPECTIVES
by Vardan Grigoryan

Hayots Ashkharh
Oct 1 2008
Armenia

President Serzh Sargsyan’s visit to Georgia, which started yesterday
[30 September], has been one of the noteworthy and important events in
the two countries and the whole South Caucasus region over the past
weeks. It is known that Armenia’s interstate relations faced in a
difficult ordeal during the Russian-Georgian war. On the one hand,
being Russia’s strategic ally, and on the other hand, Georgia’s
immediate neighbour, in the long run, Armenia, by preserving
neutrality, managed not to harm the interests of the either of the
conflicting sides.

After Russia recognized Abkhazia’s and South Ossetia’s independence,
although Armenia joined, being a member of the Collective Security
Treaty Organization, a common statement which condemned the Georgian
government’s actions, however, it refused to recognize the independence
of the two new states, which separated from Georgia. Of course such
balanced and reserved behaviour of the Armenian government raised
questions among all sides of the confrontation, however these are
fully justified from the point of view of Armenia’s own national
interests. A country, which is blockaded by Azerbaijan and Turkey
and which has communications routes passing through Georgia and an
Armenian community there, could not have acted another way.

New shifts, which occurred in one-and-a-half months after the
Russian-Georgian war, proved that Armenia’s balanced and reserved
policy is both the only winning way out of the force majeure situation
and a necessary precondition for freeing its hands during the later
developments. This is proved by the following three truths.

The first one: The Turkey-Georgia-Azerbaijan transpiration and
communication axis, which was being shaped in the South Caucasus under
Western protection and with the active participation of Turkey, started
to gradually but consistently weaken in the post-war period. This
is evidenced by the suspension of Azerbaijani oil import via the
Baku-Ceyhan oil pipeline, as well as the Turkish government’s current
hesitations over the viability of the Kars-Akhalkalaki-Tbilisi-Baku
railway. The second one: Georgia, which has lost South Ossetia
and Abkhazia, is twisting its fortune with the perspective to
integrate into Western entities, while Armenia’s two, so to say
"hostile enemies" – Turkey and Azerbaijan – are attempting to start a
strategic dialogue with Russia, the only full-fledged strategic partner
of our country. The third one: As a result of these two concurrent
geopolitical processes, Russia and Georgia, which have become "hostile
enemies", and Russia, which is expressing its intention of becoming
a "hostile friend" on the one hand, and Turkey and Azerbaijan, on
the other hand, have shaped such a "chess board" around Armenia,
that in order to play on it without mistakes, Armenia feels the
necessity to strengthen its former cooperation and mutual trust with
Georgia. Georgia is a defeated and weakened neighbour for Armenia on
the one hand, on the other hand, it is a country that has the role
of the USA’s and Europe’s "regional outpost".

The mechanical move of the "acute angles" of the West-Russia
confrontation, which emerged as a result of the Russian-Georgian
hostilities, to the South Caucasus is not at all in Armenia’s national
interests. The value and importance of Turkey and, consequently,
of Azerbaijan in the region is growing in the eyes of the West,
and especially of Russia, as a result of any confrontation like
this. At the same time, Armenia’s opportunities to pursue a policy
of complementarity are diminishing. Therefore, preserving a "window"
to the West that opens via Georgia is a guarantee of ensuring the
continuity of its policy; and under these circumstances, the value
and the weight of our country is increasing significantly in the eyes
of all the players in the region. Under these circumstances, neither
Turkey nor Azerbaijan can view Armenia as a small member in their
"hostile friendship" with Russia, and Russian political experts will
stop saying that "anyway Armenia has nowhere to escape". This means
that in the new situation Armenia and Georgia can find options to solve
key issues in bilateral relations more quickly and rationally. Those
concern both transport and communication issues and the state of
ethnic Armenians in [the Armenian-populated] Javakheti Region of
Georgia and other Georgian regions.

It is no secret that Javakheti has turned out to be in an ambiguous
situation after the Russian-Georgian war. On the one hand, Javakheti
is devalued as a Turkish-Georgian-Azerbaijani communication joint,
on the other hand, serious forces interested in the region are
increasingly tempted to make this Armenian-populated region one of
the "subjects" of the Georgian federalization programmes. The state
of ethnic Armenians living in other regions of Georgia has noticeably
changed as well, because as a result of the Russian-Georgian war this
country has hosted Georgian and Svan refugees which fled its former
autonomies. At the same time, the state of Armenians of Georgia,
who used to work in Russia, has become very complicated, as they have
found themselves "between the hammer and the anvil".

There still remain the issues of return of Armenian churches, which
were expropriated in Tbilisi and other cities of Georgia, supplying
books and teachers to Armenian schools and many other culture and
education-related issues. In the new regional realities a thorough
discussion of all these issues and mutual readiness to find appropriate
solutions can undoubtedly create a positive atmosphere for the further
development of Armenian-Georgian dialogue and cooperation.