Author: Antonian Lara

MODEST KOLEROV: A NEW GREATER CAUCASUS: MUTUAL CONTAINMENT WITHOUT OUTSIDERS. WHAT THERE ARE NOT ALREADY AND CAN BE THERE

Regnum news agency
Aug 21 2008
Russia

The USA has bluntly advised Syria not even express its opinion on a war
in South Ossetia and Georgia’s responsibilities for its outcome and
be busy with own "regional" problems instead. This is a very precise
and opportune thought: for Syria one of the key regional problems is
the alliance between Turkey and Israel. Exactly that Turkey, whose
military, economic, political, special Ajarian and special Abkhaz
interests, is closely connected with Georgia and with its prospects.

Exactly that Israel, which until last days armed Georgia the
aggressor, who quite recently from the lips of own ambassador to
Georgia, maintained that the genocide was only the Holocaust but not
genocide of Armenians in the Ottoman Turkey, who were saved namely
on the territory of the modern Syria and Lebanon controlled by it.

In a nutshell, here we have our own and very complicated, historical
"regional" drama and it is not up to a representative of the other
side of the Moon, unable to find Syria and Caucasus with no reference
to the globe, to come up with methodological orders. However, the USA
noticed the main point correctly: a new Caucasus, in South Ossetia
and Georgia which became a victim of the failed American game in
the "controlled conflict", already cannot allow itself to remain a
field for provocation of strangers and even of those very interested
forces. They managed this in the Balkans but not in the Caucasus.

The issue in question is about the need for a new security system in
the Caucasus, which – irrespective of diplomatic victories and losses,
the number of new wars and genocide for the sake of the rudimentary
survival of the region as a complicated ethno-confessional and
political entity demands a categorical exclusion of "global" players
connected with no vital and physical fate of the Caucasus. [Passage
omitted: criticizing global players]

To wit, those "global" incompetent players urge prime
minister-candidate of Ukraine, Tymoshenko, to sign with her political
name drawn up from a "long telegramme" by [George F.] Kennan
[entitled Containment: 40 years later: then and now] and hardly
Hitlerite editorial of American article "Containment of Russia"
where for the sake of the same "containment"

No doubt, in the Caucasus and without such players the need for the
rational containment of the states of the region, which can only
be mutual and fully reciprocal responsibility for the Caucasus. Any
containment from outside with already its contrast is manipulation.

Completing the foreword to the following thesis, I want to note that
they are developing and expanding an approach to a new security system
in the Caucasus, systematically stated by the editor-in-chief of
Regnum news agency, Vigen Akopyan, in the article "Mortal enemies of
Georgia": consisting of three leaders (Russia, Turkey and Iran). So
as a result of the war in South Ossetia: what do already not exist
politically in the Caucasus and around it? What can be politically
new? To what questions are there not obvious answers there?

What do not exist politically and will not be there?

1. The Commonwealth of Independent States

2. GUAM [the alliance of Georgia, Ukraine, Azerbaijan and Moldova]

3. "The arc of the Baltic-Black Sea" from the Baltic to the Caspian Sea

4. The Black Sea Economic Cooperation Organization and similar ones.

5. Georgia incorporating Abkhazia and South Ossetia

6. The Azerbaijani blitzkrieg in Nagornyy Karabakh

7. Azerbaijan incorporating Armenian Nagornyy Karabakh

8. The transit communications corridors from the Caspian to Black
and Mediterranean Seas via the territories of Azerbaijan and Georgia

9. The alternative roles of Azerbaijan, Turkmenistan and Kazakhstan
in supplies of energy resources to the West

10. The role of Bulgaria, Romania, Ukraine and Moldova in problems
of Caucasus.

11. Russian separatism in Crimea

12. A project of uniting Adygeya and the Krasnodar Territory of Russia

What can be politically new?

1. The recognition of South Ossetia and Abkhazia by Russia

2. The recognition of Nagornyy Karabakh by Armenia

3. The recognition of the Turkish Republic of Northern Cyprus by
Azerbaijan

4. Georgia’s federalization without South Ossetia and Abkhazia with
granting autonomous status to minimum Kvemo Kartli (Borcali) except
for Ajaria

5. Associated relations between South Ossetia with Russia (North
Ossetia)

6. A system of the regional security set by Russia, Turkey and Iran

7. A system of the regional security of the Caspian littoral states

8. A system of the regional security between Russia, Turkey, Iran,
and Armenia balanced with NATO members: Azerbaijan and Georgia
(and Armenia?)

9. A system of the regional security between Russia, Turkey and Iran,
inclusive Azerbaijan, Armenia and Georgia.

10. A system of the regional security amongst Russia, Turkey, Iran,
Azerbaijan, Georgia, Armenia, inclusive Abkhazia and South Ossetia
(and Nagornyy Karabakh?)

11. A union between Armenia and Russia similar to the Union of Belarus
and Russia

12. The recognition of the Iraqi Kurdistan by the USA.

13. The federalization of Ukraine

14. A confederation between Moldova and the Dniester.

To what are there not answers?

1. Will a single front of Turkey and Azerbaijan with regard to Georgia
be restored?

2. To what extent will be stable and promising an alliance between
Turkey and Iran especially against Kurdistan?

3. When will Georgia and Azerbaijan join NATO?

4. Will Armenia join NATO?

5. When will a "peace for land" intermediate plan for the Karabakh
regulation be realized?

6. Will a new security system guarantee a corridor from Azerbaijan to
the Naxcivan autonomy on the analogy of the Lacin corridor to Karabakh
[from Armenia], or will Turkey remain a protector of Naxcivan?

7. When will the Crimean-Tatar separatism in Crimea be realized?

8. Will Turkey become second after Russia a security guarantor of an
independent Abkhazia?

9. What new targets will determine for themselves radical Islamic
and other sabotage underground in Russia’s North Caucasus as well as
in Abkhazia?

Weekend Australian
August 23, 2008 Saturday
5 – All-round Review Edition

Return to Armenia, in search of meaning

THURSDAY, AUGUST 28
by Jill Rowbotham

Family Footsteps: Armenia

8.30pm, ABC1

THIS intriguing story’s dark background is the Armenian genocide of
1915. This is the genocide denied by its alleged perpetrator, Turkey.

Joanna Kambourian’s family is one among millions for whom the
repercussions continue.

The graphic artist from coastal NSW is the troubled subject of the
first episode in the new series of Family Footsteps. She is the
daughter of a Dutch mother and an Armenian-American father. But it was
her Armenian great-grandfather on whom events turned. As conditions
deteriorated around him he had to choose between saving his family by
betraying his culture or accepting the high risk of their very cruel
deaths.

He chose life. Now Joanna wants to return to Armenia to see if time
has changed the harsh judgment.

“The worst thing about going to Armenia would be that the Armenian
people do not forgive my family for the past,” she says.

Her father is encouraging. “Here’s a culture you are part of, kid, go
do it,” he says.

Two weeks in the village of Ohanavan is every bit the cultural
bootcamp you may imagine, although she is warmly embraced by host
Tehmineh, a teacher; her husband Ara, an orchardist; and his mother,
Jemma, also a teacher.

Joanna struggles to contribute by working in the bakery, making lavash
bread using centuries-old techniques, eats unpalatable local
delicacies and even allows a rooster to be sacrificed for her host
family to confer a blessing on her.

In fact, this is only one of their gifts; the other is their
hospitality and care for her, signified by assigning her Jemma’s room,
the warmest in the house, being next to the stove.

Joanna’s winter visit inevitably means we see Armenia at its bleakest
and it’s hard to resist a shake of the head when she joins in a
celebration in Tehmineh’s classroom, staged because heating has been
restored to the school after two years.

The more conventional upsides are learning to dance with the women,
touring the market of the nearby capital, Yerevan, and visiting the
vicinity of Mt Ararat, where Noah’s ark landed, according to the Bible
story. Beyond it lies the village from which her family came, today
part of Turkey.

It’s all part of the search for her Armenian identity and some comfort
to take back to her father, so her visits to the genocide museum and a
local historian are powerful moments.

“I owe it to my family, my ancestry, to find a way to put a lot of
their feelings of grief and shame and loss to rest, but I’m not sure
how that is going to go,” she says.

The family could not have chosen a better emissary.

DEFENSE MINISTERS WILL DISCUSS IMPLEMENTATION OF THE MILITARY DEVELOPMENT PLAN

WPS Agency
DEFENSE and SECURITY (Russia)
August 20, 2008 Wednesday
Russia

Council of Defense Ministers of the CIS Collective Security
Treaty Organization will meet in Yerevan, Armenia, on August 21
to discuss implementation of the Plan of Military Development of
the CIS Collective Security Treaty Organization charted until 2010
and afterwards. Betterment of tactical and combat training of the
collective security framework will be discussed as well.

Agenda of the meeting includes nearly 20 issues.

The ministers will also discuss the draft provision on design, funding,
and implementation of international programs, priorities in the second
half of 2008 and first half of 2009, and schedule of consultations
among experts tasked to advance military cooperation between member
states. Some other documents will be discussed as well.

On August 22, the defense ministers will attend the fourth phase of
Frontier’2008, a joint command post exercise to be run on the Marshal
Bagramjan shooting range 40 kilometers from Yerevan.

Interfax News Agency, Russia
Aug 13 2008

SUMMARY: Conflict cools but tensions remain in breakaway republics

MOSCOW August 13

The following is a summary of events in the Georgian-South Ossetian
conflict and the crisis in the Caucasus to 18:00 Moscow time on August
13. For up-to-the-minute coverage, please see the Interfax Russia &
CIS General Newswire.

Military operations

The Russian General Staff said Russian forces stopped all active
military operations, such as guarding transport routes for aid, in
Georgia at 15:00 MST on August 13 and is now planning its withdrawal
as envisioned in the peace plan brokered by French President Nicolas
Sarkozy. It also claimed Georgia was not yet in full compliance with
its ceasefire obligations assumed under the agreement.

Russian armed forces units stopped active military operations in
Georgia at 3:00 p.m. Moscow time on August 12 but were told not to
leave the area where they received this order, Gen. Anatoly
Nogovitsyn, a deputy chief of staff of the Russian armed forces, said
at a news conference on Wednesday.

"Some units are protecting transportation facilities, primarily the
Zari road, through which humanitarian aid is being delivered and an
independent medical battalion started working in Tskhinvali," he said.

Russia’s General Staff has now started planning the withdrawal of its
troops to their permanent bases.

"Following the suspension of the operation [to compel the Georgian
authorities to peace], the Russian General Staff has started planning
the withdrawal of troops to their permanent bases," Nogovitsyn said.

"We’ve already been informed that the troops on Russian territory, who
were preparing for use as reinforcements, have halted their
activities," Nogovitsyn said.

Russia saw no reasons to beef up its peacekeeping forces in South
Ossetia before the recent armed conflict, he said.

"We treat the status of the peacekeepers as sacred, and we did not see
reasons to beef up these forces beforehand," Nogovitsyn said.

However, the mandate of the peacekeeping forces in the Georgian- South
Ossetian conflict zone will have to be re-formulated, he said.

"The previous mechanism can no longer be applied in the shape existing
earlier. I would not say what adjustments could be made. This is
political business," Nogovitsyn said at a news briefing in Moscow on
Wednesday.

No Russian troops were needed for peace enforcement operations against
the Georgian military in the Kodori Gorge, he added.

"Peacekeepers forced [Georgian] units illegally equipped with heavy
forms of weapons to peace in the Kodori Gorge and no other forces or
resources were required in this instance, although [Russian soldiers]
were prepared [to engage]," he said.

Georgia is not fully abiding by the ceasefire agreement with Russia,
he said.

"As of today, unfortunately, [the agreement] is not being carried out
in full, therefore we are being forced to carry out missions to hit
firing points, snipers, etc," he said.

The Russian General Staff says a considerable number of Georgian units
still remain near the Georgia-Ossetia conflict area.

"The Georgian armed forces begun withdrawing their troops in the
direction of Tbilisi as of 9:00 a.m. on August 13. Nevertheless, we
are concerned about the concentration of Georgian troops near the
security zone," Anatoly Nogovitsyn, deputy head of the Russian General
Staff, told a briefing in Moscow on Wednesday.

"We are not seeing an active withdrawal of the Georgian troops yet,"
he said.

Nogovitsyn said groups of Georgian saboteurs are still active,
including in South Ossetia.

He denied that Georgian President Mikheil Saakashvili had visited the
conflict zone in South Ossetia in person.

"He never went anywhere. He didn’t have enough spirit to appear in
Tskhinvali," Nogovitsyn said.

Gori

The General Staff also denied claims that Russian units were heading
to Tbilisi and that Russian tanks were patrolling the town of Gori,
located on Georgia’s key capital-coast highway. However, the road has
been closed and it was also claimed that the authorities in Gori had
fled, leaving the town without Georgian leadership.

The Russian military leadership has denied reports of Russian army
convoys of armored vehicles moving from Gori in the direction of
Tbilisi.

"Russian formations or army vehicles are not heading for Tbilisi.

We do not have such objectives," he said.

Motorways linking Tbilisi and western Georgia have been shut down.

"That was done for security purposes, in connection with Russian
armored vehicles’ withdrawal from Gori," chief of Tbilisi Traffic
Police Giorgy Gegechkori told the press.

It is yet unknown when the traffic will resume on the central motorway
between Tbilisi and western Georgia, he said.

Russian General Staff Deputy Head Anatoly Nogovitsyn, meanwhile,
denied claims that Russian tanks remained stationed in Georgia’s Gori.

"I state with full responsibility that there are no, and there could
not be any tanks in Gori," Nogovitsyn said at a news conference in
Moscow on Wednesday.

However, an unguarded arms depot has been discovered in the outskirts
of Gori, a spokesman for the command of the peacekeeping force told
Interfax.

"A discarded depot with large quantities of army hardware and
ammunition has been discovered near the town of Gori. It is absolutely
unguarded. The hardware is fully ready for use," he said.

"With the purpose of demilitarizing the zone adjacent to the conflict
area and also guaranteeing the safety of the civilian population,
Russian peacekeepers are evacuating this hardware vehicles and
ammunition," he said.

"The administration of this town disgracefully abandoned their posts,
and we have so far been unsuccessful in establishing contact with the
aim of suspending armed actions and implementing the settlement
principles" agreed upon between Moscow and Tbilisi with France’s
mediation, he said.

Georgia does not control the city of Gori, Nogovitsyn said.

"We need to discuss all issues concerning losses with the legitimate
administration, including [the administration of] this city, and we
cannot find anyone. How they were evacuated and what happened there is
a mystery to us," he said.

The Russian General Staff has no information about the reported death
of journalists in the Georgian town of Gori.

"I know about this [the reports], and I have studied this information,
but it requires verification. Journalists actively help us cover the
true picture and work among the troops, but we don’t have full and
clear information on this now," Nogovitsyn said.

"As soon as we have it, we will certainly revert to this issue," he
said.

Losses

The General Staff reported that a total of 74 Russian servicemen were
killed during hostilities and that Russia sustained serious aviation
losses in the early phases of its operation. However, it believes
Georgian losses to be far higher, in part due to an interrogation of
captured Georgian servicemen. Russia is proposing its POWs be traded
for Russian pilots captured in Georgia.

Seventy-four Russian military servicemen have been killed in the
Georgian-South Ossetian conflict zone, said Gen. Anatoly Nogovitsyn, a
deputy chief of staff of the Russian armed forces.

"The current losses of the group’s personnel are 74 people dead, 171
people wounded, and 19 missing," Nogovitsyn said at a press conference
in Moscow on Wednesday.

The Russian military command will draw serious conclusions from the
operation in South Ossetia, in particular serious aviation losses.

"At first we sustained serious losses [during the operation to compel
the Georgian authorities to peace], including in aviation, but we drew
our conclusions and we will be doing so in the future," Nogovitsyn
said.

Russian planes which flew missions in the peace enforcement operation
in Georgia were shot down with air defense systems supplied by Ukraine
and other countries, members of a Russian military delegation said on
Wednesday after a meeting of the Air Defense Coordinating Council of
the CIS Council of Ministers in Dushanbe.

"According to information available to us, a Tupolev Tu-22 long- range
supersonic bomber and several Sukhoi Su-25 jets were shot down with
S-200 and TOR surface-to-air systems, supplied to Georgia by
Ukraine. Ukrainian crews were operating the air defense systems," a
member of the Russian military delegation said.

Russian military experts believes the losses suffered by the Georgian
troops in the Georgia-South Ossetia conflict area far exceed the
losses suffered by the Russian military, but doubt that Georgia will
admit this.

"The losses suffered by the Georgian army far exceed the losses
suffered by the Russian peacekeepers," said a military expert who is
well informed about the number of Georgian troops killed in the
conflict.

"Let’s see if Georgia is brave enough to admit this," the expert said.

"The thing is that we are talking about human lives here, and, in
accordance with all moral norms, responsibility for any decision to
hide the truth will rest with those who will make such a decision,"
the expert told reporters.

Two captured Georgian servicemen said during an interrogation that the
Georgian army had sustained large losses in the conflict in South
Ossetia, Vladimir Markin, spokesman for the Investigation Committee of
the Russian Prosecutor General’s Office, told the press.

"Two Georgian contract servicemen confessed during an interrogation
that the Georgian army had left behind a large number of dead and
wounded soldiers as it was retreating," Markin said.

Russia’s General Staff is proposing a list-for-list exchange of
prisoners and dead.

"We’ve proposed a list-for-list exchange to the Georgians. Each side
will be able to see who’s on the lists, and then we’ll be able to
clarify the situation with missing persons, who might be held
prisoner, and with other areas," Nogovitsyn said.

This option is on the table, and Russia is waiting for the Georgians’
reply, Novgovitsyn said.

Georgian military servicemen captured by Russian peacekeepers in the
Georgian-South Ossetian conflict zone are likely to be swapped for
Russian servicemen, particularly the Russian pilot downed by the
Georgian Air Defense forces, said a source from the Russian security
services.

"Negotiations are currently under way about the fate of the captured
servicemen. The Georgian servicemen are likely to be swapped for the
Russian pilot officer, who was downed in Georgia," the source said.

About 200 Georgian servicemen and members of subversive groups, who
participated in the armed aggression against South Ossetia, have been
captured, a source in South Ossetia’s special services told Interfax.

"There are Russian investigators among those questioning them. The
first thing that interests them is the facts of killing servicemen of
the peacekeeping contingent," the source said.

The Georgian prisoners could then be swapped for captured Russian
servicemen, and for citizens of South Ossetia kidnapped by the
Georgian military during the operation in Tskhinvali and in other
populated areas, the source said.

"According to witnesses’ accounts, Georgian military herded people
onto trucks and took them away towards Georgia," the source said.

The deputy head of the South Ossetian Traffic Police is among those
unaccounted for, he said.

Weapons

Meanwhile, Ukraine denied it is supplying weapons to the Georgia Armed
Forces, despite claims by the Russian General Staff that arms supplies
from Kyiv had precipitated Georgian President Mikheil Saakashvili’s
decision to launch his country’s offensive against South Ossetia.

Nogovitsyn said the Russian armed forces did not use any new weapons
in the Georgia-Ossetia conflict area.

"It’s not a testing ground. We do tests in other places," Nogovitsyn
told a press conference in Moscow.

"We did not use anything new," he said.

Ukraine is currently not supplying weapons to Georgia, said the
Ukrainian Foreign Ministry.

The large supplies of weapons from the NATO countries and Ukraine have
pushed Georgia to attack South Ossetia, said Nogovitsyn.

"If [Georgian President Mikheil] Saakashvili had not been armed up to
the teeth, he would never have made such a decision," he said.

When asked what he thinks about the proposal to include NATO and
Ukrainian troops in the peacekeeping force in South Ossetia, he said:
"They have already taken part in it."

"Time will show who instructed the Georgian troops, who trained them,
and who supplied weapons and military equipment to Georgia," he said.

"Ukraine, of course, is the main supplier [of weapons to Georgia],
including from the manufacturing plants, although some of the
equipment was not new," said Nogovitsyn.

"At this stage, we are not supplying any weapons [to Georgia], not a
cartridge," Ukrainian Deputy Foreign Minister Konstantin Yeliseyev
told a briefing in Kyiv on Tuesday.

Military-technical cooperation between Ukraine and Georgia is
conducted in accordance with the norms of international law, he said.

At this stage, the supply of weapons is not being discussed because
the main thing is to establish "a language of diplomacy," said
Yeliseyev.

According to earlier reports, the Georgian army actively used
Ukrainian-made weapons in its invasion of South Ossetia.

Abkhaz Defense Minister Merab Kishmariya on Wednesday left for the
upper part of the Kodori Gorge, which has been freed from Georgian
troops.

"Having completed the administration of the operation, the defense
minister went there to organize a combat reserve because the Georgian
troops left a lot of weapons and ammunition when they were
retreating," Abkhaz General Staff chief Anatoly Zaitsev said.

"The weapons and ammunition were made mainly in the U.S. and Italy and
only a small amount of them are Soviet-made weapons," he said.

"Among the trophies are firearms, anti-aircraft systems, artillery
tubs, and grenade launchers," he said.

Abkhaz troops have organized observer posts in mountain passes and are
currently combing the gorges, he said.

There was a calm atmosphere in the region last night, Zaitsev said.

Black Sea Fleet

Meanwhile, Ukrainian President Viktor Yushchenko has approved a
Wednesday resolution of the National Security and Defense Council on
the rules of border crossings by the personnel, warships and aerial
vehicles of the Russian Black Sea Fleet deployed in Ukrainian
territory.

"There is a need to introduce a mechanism of permits for the crossing
of the state border of Ukraine by servicemen, freight vessels,
warships and aerial vehicles of the Black Sea Fleet permitting to
obtain impartial information about the presence of the fleet in
Ukraine’s territory," the council resolution approved by the president
says.

"Ships and aircraft of the fleet shall be allowed to cross Ukraine’s
state border only after notifying the Ukrainian Navy headquarters. The
notification must be submitted no less than 72 hours before the
expected border crossing," the presidential decree approving the
resolution says.

The notification should indicate how many people there are on the said
ship or aircraft, and whether it carries arms, ammunition, explosives
or army property.

Yushchenko confirmed that the command of the Black Sea Fleet is
obliged to negotiate its movement outside it’s bases in Ukraine with
the Ukrainian agencies concerned.

"The command of the Black Sea Fleet is to refer an application, in
accordance with the established procedure, for the approval of the
fleet’s movement at least ten working days before the beginning of the
movement," the rules require.

Within a day following the receipt of the application, the Ukrainian
Defense Ministry is to send a copy of it to the Interior Ministry, the
Ukrainian Security Council, the Emergency Situations Ministry, the
State Border Service and the State Customs Service, the document says.

"The Defense Ministry, within seven working days following the receipt
of the application from the Black Sea Fleet command, shall inform the
Black Sea Fleet Command and the agencies concerned, in line with the
established procedure, that such a permission has or has not been
granted," according to the rules given in the document.

Moscow expressed surprise over Yushchenko’s decree obliging the Black
Sea Fleet, based in Sevastopol, to seek official permission for its
movements.

"This is nothing else but the Ukrainian leader’s politically-
motivated erratic conduct," sources in the Russian Foreign Ministry
told Interfax on Wednesday.

The sources made it understood that Moscow see this decree as
"unserious."

"It is at variance with all agreements between Russia and Ukraine on
the Black Sea Fleet," they said.

Moscow also said that it hopes that the reaction of Kyiv to the
developments in South Ossetia will be appropriate.

"We have directly expressed to Kyiv our attitude to Ukraine’s stance
on the South Ossetian tragedy. As partners and close neighbors we have
the right to expect that Kyiv’s behavior will be appropriate and
balanced," Deputy Foreign Minister Grigory Karasin said in an
interview with Interfax on Wednesday.

"We are aware of active attempts to form an anti-Russian International
on any pretext and drag Ukraine into it," he added.

Energy Gas and oil supplies along all the key pipelines crossing
Georgia have now been stopped due to safety concerns. The
Baku-Tbilisi-Ceyhan, the one major pipeline in the region to bypass
Russia, is not transporting supplies due to an earlier accident and,
thanks to the conflict, have yet to be resumed. The flow of gas
through the Baku-Tbilisi-Erzurum to Turkey has also been
suspended. The conflict has aslo seen Azerbaijan divert supplies from
the route to the Baku-Novorossiisk pipeline and BP- Azerbaijan has
stopped the flow of oil through the Baku-Supsa pipeline.

Supplies of Russian gas to Armenia have been resumed in full.

BP-Azerbaijan has suspended the flow of gas through the Baku-Tbilisi-
Erzurum pipeline for reasons of safety, the company told Interfax on
August 13.

The company said that owing to the current situation in Georgia, the
flow of gas had been suspended through this pipeline. However,
pressure in the pipeline will allow for deliveries to Georgia and
Turkey, the company said, adding that Azerbaijan is receiving gas
through an alternate system and was experiencing no problems in this
regards.

BP-Azerbaijan added that production at the Shah-Deniz field, from
which gas is transferred into the pipeline, was still underway. A
company representative said that production at the field had
decreased, however, owing to an accident on the Turkish section of the
Baku-Tbilisi-Ceyhan (BTC) pipeline, the company had stopped pumping
condensate.

It was earlier reported that BP-Azerbaijan had suspended oil transport
through the Baku-Supsa pipeline citing reasons of security and safety
Since 2007 following the launch of production at Shah-Denis,
Azerbaijan has started transporting 800 million cubic meters of gas a
year to Georgia and 6.3 billion cubic meters of gas a year to Turkey,
which is resold to Greece.

The contract for the development of the Shah-Denis field was signed in
Baku on June 1996 and was ratified by the Azeri parliament on October
17 of the same year. Participating in the Shah-Denis project as BP
(the operator with 25.5%), Statoil (25.5%), Lukoil (10%), NICO (10%),
TotalFinaElf (10%) and TPAO (9%).

Meanwhile, supplies of Russian natural gas to Armenia have been fully
resumed, Armenian Prime Minister Tigran Sarkisian told journalists on
August 13.

Armenia is currently receiving 4.7 million cubic meters of gas per
day, or the same amount as usual, he said.

ArmRosGazprom CEO Shushan Sardarian said yesterday that Russian
natural gas exports to Armenia have decreased by 30% as of August 7.

She said that gas deliveries to Armenia had decreased owing to the
actions of the Georgian Oil and Gas Corporation, which without notice
had commenced test operations on its section of a 700 mm trunk gas
pipeline. As a result, gas pressure in the system fell.

Georgian Oil and Gas Corporation, for its part, has denied the report.

Rehabilitation

Russian President Dmitry Medvedev has launched proceedings aimed at
the rehabilitation of South Ossetia, including mechanisms for monetary
and other forms of aid to residents of the gutted region. Prime
Minister Vladimir Putin has ordered humanitarian aid to ease the
burdens being placed on both South and North Ossetia, which is housing
the majority of displaced peoples. Emergency Situations Minister
Sergei Shoigu is to oversee operations.

Medvedev has instructed Deputy Prime Minister and Finance Minister
Alexei Kudrin to strictly control the allocation of funds for the
rehabilitation of South Ossetia.

"I would like you to do this on a permanent basis, follow the
transfers of money and make sure that everything that we have planned
and the government decided on be put into practice. This concerns both
this immediate assistance for restoring lost property [50,000 rubles
to everyone who lost their property] and the spending of the funds
that we have planned for the restoration of the city and the
restoration of South Ossetian citizens’ property," Medvedev said at a
conference in the Kremlin on Wednesday.

The restoration of South Ossetia is "not a quick process," but
"everything needs to be done to help the people," Medvedev said
addressing Kudrin.

Prime Minister Vladimir Putin has ordered humanitarian and socio-
economic measures to be taken to ease the plight of refugees from
South Ossetia, and to improve amenities for North Ossetia residents,
the military and civil servants, the government press service has
reported.

A 500 million-ruble subsidy will be provided to North Ossetia as a
measure to balance up the regional budgets, the press service said.

Putin has also signed a resolution to provide additional benefits to
servicemen and federal civil servants, who were involved in the effort
to ensure the security and to protect Russian citizens residing in
South Ossetia and Abkhazia.

Twenty-one million rubles will be made available to North Ossetia
specially for non-working pensioners (Russian citizens), affected by
the Georgina-Ossetian conflict.

Another resolution lists measures to help citizens, who temporarily
left their places of permanent residence in South Ossetia and are
temporarily accommodated in Russia.

Putin has ordered an emergency headquarters to be set up under
Emergency Situations Minister Sergei Shoigu’s chairmanship to organize
the work to deal with the aftermath of the armed conflict in South
Ossetia and to aid the population affected by the conflict.

Russian humanitarian aid is on its way to South Ossetia and those in
need will soon see the situation improving, Russian Foreign Minister
Sergei Lavrov said.

"The humanitarian aspect is a vital element now. The sides have been
asked to guarantee unobstructed delivery of humanitarian aid and are
expected to open humanitarian corridors," Lavrov said at a news
conference in Moscow on Wednesday.

"This work is already being done locally. I hope those in need [of
humanitarian aid] will soon see the situation improving," the foreign
minister said.

A special medical unit of the North Caucasus Military District has
begun working in the populated area of Dzhava in South Ossetia,
Vladimir Shappo, the head of the Defense Ministry’s Main Military
Medical Department, said on Wednesday.

"Over 100 medics from the leading military medical establishments have
been sent [to South Ossetia] to strengthen the work of the medical
service of the units in the Georgia-Ossetia conflict area," Shappo
told the military observers’ press club in the Defense Ministry.

The medical unit has been moved from Rostov-on-Don to Dzhava, where a
field military hospital has been deployed, Shappo said.

The medical establishments of South Ossetia are receiving equipment,
medicines and specialists to help civilians hurt in the conflict,
Shappo said.

If the need arises, special-purpose medical units and staff units of
the Russian Armed Forces will be moved to areas where they are needed,
Shappo said.

Abkhazia

Moscow has welcomed the restoration of Abkhaz control over the Kodori
Gorge, saying the withdrawal of Georgian troops brings that country
back in line with the Moscow Accords of 1994. Abkhaz President Sergei
Bagapsh has called for Russian peacekeepers to remain in the region
amid fears Georgian forces are recuperating in preparation for another
armed attack.

Georgia’s demands for a halt of the peacekeeping operation in Abkhazia
may be an attempt to prepare an armed attack against the republic, the
Russian Foreign Ministry said.

"The demands for a halt of the peacekeeping operation in Abkhazia,
which is being conducted in accordance with the norms of international
law, look like nothing else than an attempt to prepare a new armed
attack, this time against Abkhazia," the Russian Foreign Ministry said
in a statement issued on Wednesday.

"If Mikheil Saakashvili’s absurd demand for a halt of the peacekeeping
operation in Abkhazia is fulfilled, the region risks getting into a
deeper crisis resulting from the unhealthy ambitions of the current
Georgian administration," said the Russian Foreign Ministry.

"Such a scenario is categorically unacceptable for the people living
in the region. It may lead to more bloodshed, more refugees, and an
even greater humanitarian catastrophe," the document says.

"Such a scenario would run counter to the efforts made by those
members of the international community who are today expressing
interest in resolving the crisis as quickly as possible," the document
says.

Russian military in Abkhazia have obtained Georgia’s plan of invasion
of Abkhazia, said Anatoly Nogovitsyn, deputy head of the Russian
General Staff.

Nogovitsyn showed the plan at a press conference in Moscow on
Wednesday.

"It’s a trophy map belonging to a [Georgian] headquarters office.

It was obtained by paratroopers from the 4th attack regiment on August
11. It outlines a detailed plan of invading Abkhazia," he said.

The Georgian army now poses no military threat to Abkhazia now that
the Georgian units have been disarmed in the Kodori Gorge, he said.

"The [Georgian] servicemen in the Kodori Gorge have been disarmed.

We will allow them what they are entitled to under the documents and
treaties signed in 1992 which is to have a staff pistol to carry out
their duties, because they have been disarmed they do not pose any
threat," he said.

The Russian peacekeepers deployed in the Georgian-South Ossetian
conflict zone have accepted more than 700 weapons from Georgian forces
during an operation on disarming them in the Kodori Gorge of Abkhazia,
he said.

"In line with an ultimatum on surrendering weapons announced
yesterday, the Russian peacekeepers accepted more than 700 pieces of
weapons contradicting the 1992 accords from the Georgian troops. They
are mostly foreign-made," Nogovitsyn said.

Moscow is contented with the fact that the situation in the Kodori
Gorge of Abkhazia has been brought into line with the existing
international agreements, said Russian Foreign Minister Sergei Lavrov.

"Talking about Abkhazia, I will say that we are contented with the
fact that the situation in the Kodori Gorge, which was in violation of
Georgia’s commitments under the Moscow Accords because of Georgia’s
actions, has been brought into line with the existing agreements,"
Lavrov said at a news briefing in Moscow on Wednesday.

"The floor has been cleared of extraneous factors related to Tbilisi’s
numerous violations of its commitments," he said.

"I think it is time now to return to the strict observance of the
agreements that existed and on their basis look for additional ways to
provide stability and ensure security of the people living in that
region," Lavrov said.

Abkhaz armed forces conducted a military operation on Tuesday on
ousting Georgian troops from the upper part of the Kodori Gorge, the
only area in Abkhazia that was under Tbilisi’s control.

After the main phase of the operation was finished, Abkhaz troops
started searching for armed Georgian groups that could still be
present in the Kodori Gorge.

Abkhaz President Sergei Bagapsh has told Interfax that decisions on
issues relating to the restoration of the Abkhaz administration in the
upper part of the Kodori Gorge will be made on Wednesday.

On Wednesday, Bagapsh visited the village of Achara to become familiar
with the areas where the Georgian troops have been located until
recently.

"We once said that our land will stay ours and there will be an Abkhaz
flag here, not a Georgian flag. This has happened now. The Georgian
military have miscalculated. It is a little too early to speak about
full resumption of peaceful life because we still need to check the
territory for possible remaining gangs," Bagapsh said.

"I believe the people will come back here soon. Look, the windows are
closed with shutters, but the cattle is grazing again, like it used to
be. It means the people will come back," Bagapsh said.

Abkhazia wants the Russian peacekeeping mission to be continued in its
territory.

"Russian peacekeepers are the sole guarantors of the non-resumption of
the bloodshed between Georgia and Abkhazia," Abkhaz Foreign Minister
Sergei Shamba told Interfax on Wednesday.

"Otherwise, nothing else will be left to us and the Ossetians but to
complete the war and end it in Tbilisi," he said.

"As long as Georgia has armed forces, it will continue being a threat
to the Caucasus," Shamba said.

"Over the years of independence, from 1918 to 1921, and since 1990 to
this day Georgia has unleashed seven wars. An end must be put to this
once and for all," he said.

The Russian Foreign Ministry earlier said that the future of the
peacekeeping mission in Abkhazia could not be decided without
Sukhumi’s participation. "We deem it impossible to decide the future
of the peacekeeping operation without taking the opinion of the Abkhaz
side into account," the Russian Foreign Ministry said in a statement
on Wednesday.

The CIS Collective Peacekeeping Forces are performing their mission in
Abkhazia at not only Georgia’s but also at Abkhazia’s consent, which
is stipulated by the 1994 Moscow Accords, it said.

Second, the presence of the CIS Collective Peacekeeping Forces in the
Georgian-Abkhaz conflict zone is supported by the UN Security Council,
which has been "repeatedly reflected in its resolutions."

"The provisions regarding the CIS Collective Peacekeeping Forces are
an inseparable part of the 1994 Moscow Accords, that is, the
liquidation of the Collective Peacekeeping Forces would dismantle the
entire international legal architecture of the Georgian-Abkhaz
settlement process," the Russian Foreign Ministry said.

Russia intends to continue its peacekeeping mission in Abkhazia
despite Georgia’s decision to declare the Russian troops in the region
occupants and denounce the agreement on their presence.

"Being guided by our international obligations and a sense of
responsibility for maintaining peace and stability in the region, the
Russian federation will continue fulfilling its peacekeeping mission
in Abkhazia and South Ossetia," the Russian Foreign Ministry said in a
statement issued on Wednesday.

According to earlier reports, Georgian President Mikheil Saakashvili
has made a decision to "denounce the agreement on the presence of the
Russian peacekeeping mission in Abkhazia and declare the Russian
troops in the Abkhaz region occupation forces."

The Russian Foreign Ministry admits that the peacekeeping operation in
Abkhazia can be stopped at the request of one of the parties to the
conflict, but stresses that Saakashvili’s statement looks like "an
attempt to prepare for a new military attack."

The status of Abkhazia is not subject to negotiation and the republic
will seek the recognition of its independence, said Abkhaz envoy in
Russia Igor Akhba.

"We have made a decision on our status. The status of Abkhazia is not
subject to negotiation," Abkha told a press conference in Moscow on
Wednesday.

"We will bring the issue of the independence of the Republic of
Abkhazia up again with Russia and the international community," he
said.

Akhba said Abkhazia has all the necessary grounds to seek the
recognition of its independence.

Reaction

Former Soviet President Mikhail Gorbachev and his Foreign Minister and
later Georgian President Eduard Shevardnadze have both criticized
Saakashvili’s decision to launch the campaign against South Ossetia.

Gorbachev blamed the West for encouraging him and for training
Georgia’s armed forces, while Shevardnadze claimed his successor had
fallen into a Russian trap.

Former Georgian President Eduard Shevardnadze has called the Georgian
leadership’s decision to start military actions in the Tskhinvali
region "a serious mistake".

"They should have calculated everything, including the possible
transfer of Russian troops to the Tskhinvali region, which apparently
was not done," Shevardnadze told Interfax on Wednesday.

By starting the military offensive against the Tskhinvali region, the
Georgian authorities "got into a Russian trap," Shevardnadze said.

"Russia had long been developing a plan to drag Georgia into armed
confrontation, but the incumbent Georgian authorities disregarded this
and pinned too much hope on their own strength," he said.

Shevardnadze ruled out the possibility that the U.S. or other Western
countries could have promised military assistance to Georgian
President Mikheil Saakashvili in case of the conflict’s escalation. "I
completely rule out the possibility that Washington or other Western
capitals could have promised military assistance to Saakashvili,
because nobody in the West wants military confrontation with Russia,"
he said.

The only way out of the situation is negotiations with Russia,
Shevardnadze said.

Commenting on statements by a number of Russian political figures
implying that Saakashvili is not a man to negotiate with, Shevardnadze
said this would be a mistake. "Nobody has the right to treat the
leader of a state legitimately elected by the people as a desired or
undesired negotiator," he said.

"I can’t make forecasts, because I don’t possess enough political
information, but the situation in Georgia is very difficult now," he
said.

Former Soviet President Mikhail Gorbachev believes the West’s position
provoked the Georgian leadership into attacking South Ossetia.

"One could resort to this only feeling support and encouragement from
a much more powerful force. The Georgian armed forces were trained by
hundreds of American instructors, and up-to-date military hardware was
bought in different countries. This, as well as the promises of NATO
membership, inspired the ruling regime with the sense of
overconfidence and impunity and suggested thoughts about a blitzkrieg
against South Ossetia, Gorbachev wrote in an article published in the
Wednesday issue of Rossiiskaya Gazeta.

"Mikheil Saakashvili hoped for the West’s unconditional support, and
the West gave grounds for that," he said.

"What happened early on August 8, including the shelling of the
capital of South Ossetia, Tskhinvali, using area-covering missile
weapons, is beyond comprehension," Gorbachev said.

"Russia could not fail to react to this. Accusing it of aggression
against ‘a small and defenseless Georgia’ is not simply a hypocritical
but also an inhuman position," Gorbachev said.

"It is obvious now that the Georgian leadership’s decision to send
troops against the civilian population was a reckless scheme that
resulted in tragic consequences for thousands of people of different
ethnicities," Gorbachev said.

The parliament of North Ossetia has adopted an address to the Russian
federal authorities and the entire world community asking them to
recognize South Ossetia’s independence.

"The parliamentarians of North Ossetia sincerely thank the country’s
administration and all people of Russia for everything that has been
done to protect the citizens of South Ossetia and stop the
extermination of the people of Ossetia. We are asking the Russian
administration to recognize the independence of South Ossetia," the
analytical center of the North Ossetian parliament told Interfax on
Wednesday.

"We fully agree with the country’s administration that reintegration
of South Ossetia into Georgia is impossible, taking into account the
scale of the tragedy, the victims and the suffering by the people of
Ossetia, the destruction, the huge number of refugees, and the norms
and principles of international law," the release says.

"The parliament of the Republic of North Ossetia is again asking you
to consider recognizing the independence of the Republic of South
Ossetia. We firmly believe that the legal, political and historical
norms allow this to be done," the parliamentarians said.

In late Sept 2008 Armeconombank will learn when it will receive the
second syndicated loan

2008-08-15 21:41:00

ArmInfo. In late Sept 2008 Armeconombank will learn when it will
receive the second syndicated loan, the vice chairman of the Board of
Armeconombank Hayk Lazarian has told ArmInfo.

Earlier the chairman of the Board of the bank David Sukiassyan said
that the size of the loan would range within $15mln-20mln.

To remind, in Dec 2007 Armeconombank signed an agreement with EBRD for
receiving a syndicated loan worth $15mln. The loan was provided by EBRD
and six big banks: Raiffeisen Zentralbank Osterreich AG and Bank
Austria Creditanstalt AG (Austria), State Bank of India, Land Bank of
Taiwan and FBN bank Limited (UK). EBRD lent $5mln for 36 months, the
other banks – $10mln ($5mln for 18 months, $5mln for 12 months – in
both cases the period of repayment can be prolonged). The money is to
be spent on support of small and medium-sized business.

UZBEKISTAN: RELIGIOUS FREEDOM SURVEY, AUGUST 2008

F18News
14 August 2008
Norway

By Mushfig Bayram, Forum 18 News Service <;,
and John Kinahan, Forum 18 News Service <;

In its survey analysis of religious freedom in Uzbekistan, Forum 18
News Service has found continuing violations by the state of freedom
of thought, conscience and belief. Amongst many serious violations –
which breach the country’s international human rights commitments –
non-state registered religious activity is a criminal offence, as
is the sharing of beliefs and meetings for religious purposes in
private homes. Religious communities are raided with impunity and
their members threatened, assaulted and even tortured. Prisoner of
conscience numbers are increasing. The state continues to actively
promote religious hatred and intolerance through the state-controlled
mass media. Members of religious communities complain that trials are
often conducted unfairly. Oppressive laws are symptomatic of oppressive
official attitudes, and state officials do not appear to acknowledge
any restraints on their actions. The state seeks to completely control
all religious activity – by Muslims and religious minorities such
as Christians, Baha’is, Jehovah’s Witnesses, Jews and Hare Krishna
devotees – through a web of laws, NSS secret police agents, censorship
and the activities of public agencies such as local administrations.

Ahead of the Universal Periodic Review of Uzbekistan by the United
Nations (UN) Human Rights Council in December 2008, Forum 18 News
Service has found a worsening of the country’s record on freedom of
thought, conscience and belief.

All non-state registered religious activity in Uzbekistan is a
criminal offence, as is the sharing of beliefs and meetings for
religious purposes in private homes. State officials frequently
violate international human rights standards on freedom of thought,
conscience and belief – which Uzbekistan has freely signed. Religious
communities are raided with impunity and their members threatened
and assaulted. Members of religious communities frequently complain
that trials are conducted unfairly, law seemingly being used merely
to provide officials with excuses to engage in oppression of fellow
citizens. Officials do not appear to see law as imposing restraints
on their actions.

President Islam Karimov has held absolute power since independence in
1991. Repression – including of religious believers of all faiths –
has escalated since the May 2005 Andijan [Andijon] massacre. Uzbekistan
has the largest population of any Central Asian state, estimated at
over 28 million, most of whom would identify themselves as Muslim by
tradition. Ethnic Uzbeks are often regarded in Central Asia as being
more devout Muslims than other Central Asian peoples. Uzbekistan’s
population is extremely poor, the minimum monthly salary decreed from
1 September 2008 by the President being 25,040 Soms (99 Norwegian
Kroner, 12 Euros, or 19 US Dollars).

State controls on religious believers and communities

Officials claim that Uzbekistan is a Muslim country, and so does
not oppress Muslims. Islam is primarily controlled from inside its
state-run structures, through the complete control of the selection,
education and nomination of imams in defiance of Article 61 of the
Uzbek Constitution: "Religious organisations and associations are
separate from the government and equal before the law. The government
does not interfere in the activities of religious associations." The
state also controls the number and location of mosques and the formal
religious education of Muslims. This has brought the Muslim clergy
almost completely under the control of the authorities, with the
Islamic religious leadership (the Spiritual Administration of Muslims
or Muftiate) being virtually an agency of state authority. In September
2007, the Muftiate banned imams in Namangan Region from preaching at
Ramadan night prayers, and children were banned from attending them.

The state controls other religious communities – including non-state
approved Muslims – from outside their formal structures, for example
through police and National Security Service (NSS) secret police
raids, or expulsions of university students (as happened with
Protestants and Hare Krishna devotees). Police and schoolteachers
have told children that if they attend Protestant churches they will
be jailed. All non-Russian Orthodox and non-state controlled Muslim
religious activity is banned in the north-west region of Karakalpakstan
[Qoraqalpoghiston].

State Islamic educational institutions check political loyalty
to the President, and the NSS secret police maintains informers
among students. Non-state controlled religious education is
forbidden. Official imams have complained that they cannot teach
religion to children.

The authorities from time to time use Sufism, particularly the
Naqshbandi order, to counter what they see as extremism and for
propaganda purposes in foreign countries. An example is allowing
an unregistered kanaka (Sufi monastery) in Kokand in the Fergana
[Farghona] Valley. However, the authorities’ attitude to Sufism
fluctuates, as the NSS secret police has regarded the Sufist "myurid"
(discipleship) system as a possible terrorist organisation.

Numbers of haj pilgrims are restricted to about 5,000, which is about
a fifth of the pilgrim quota granted by Saudi Arabia. All pilgrims
need approval from local authorities, the NSS secret police and the
Haj Commission, which is controlled by the state Religious Affairs
Committee and the Muftiate. Travel on the haj must be on the state-run
airline, Uzbekistan Airways, and costs about 200 times the minimum
monthly wage.

Religious communities – whether Muslim or of other faiths – are not
able to buy, build or open places of worship freely. Some places
of worship have been confiscated. Open and hidden surveillance
of religious believers and communities by the secret police is
widespread. The NSS has hidden microphones in places of worship,
sent agents to monitor worship, and recruited spies within
communities. State officials are acutely interested in controlling
all religious activity. An April 2007 internal document from Andijan
Region Hokimat (administration) reveals the issuing by the authorities
of direct orders to religious communities "to prevent missionary
activity," "to bring under constant close observation all officially
registered religious organisations" and "to strengthen the struggle
with people conducting illegal religious education and organising
small religious gatherings."

The official committee that runs each mahalla, the district into which
towns and cities are divided, is a key unit among state institutions
used in repression. Although ostensibly elected and self-governing,
mahalla committees are in practice instruments of state control. They
are often used to block registration attempts by religious minorities
such as Protestants and Jehovah’s Witnesses. They are also used in
periodic crackdowns on religious minorities, as well as to monitor
members of the majority Muslim community, such as to check up
on individuals who want to make the haj pilgrimage. Other public
agencies, such as the Fire Brigade and Sanitary-Epidemiological
Service, have also been used against religious believers, through
inspections allegedly to check whether registered communities are
observing fire and public health regulations.

To gain state registration, the only method of gaining legal status,
religious organisations must submit two letters of guarantee: one
from the district hokimat (local administration), confirming that
the organisation to be registered has a building which corresponds
to public health and fire safety requirements; and one from the
mahalla committee, stating that other mahalla residents do not
object to the organisation. Uzbek officials wrongly claim that the
alleged unwillingness of local residents allows the state to, under
international law, stop religious organisations from operating. All
unregistered religious activity is a criminal offence.

Other ways used to repress religious believers and communities, and
cut them off from their fellow-believers abroad, include refusals to
renew visas – used in summer 2008 against Uzbekistan’s Chief Rabbi –
and expulsions, which have been used against several Protestants. Even
those who flee from religious persecution in the country, such as
a Pentecostal who gained UN High Commissioner for Refugees refugee
status in Kazakhstan, face Uzbek government attempts to have them
sent back for trial – in this case with the false claim that he was
an Islamic fundamentalist and terrorist.

Torture

The UN Committee Against Torture found in November 2007 that the use
of torture by state officials is "routine." Religious believers and
communities are highly reluctant, for fear of further state repression,
to publicly discuss the use of torture. But occasionally on the record,
and frequently off the record, Forum 18 is told of the threat or
use of physical violence, including rape and the use of gasmasks to
cut off victims’ air supply. Such methods are used to try to force
adults and children to renounce their beliefs or to make confessions
implicating themselves or others. Such torture and threats usually
follow in the immediate aftermath of the frequent police and secret
police raids against unregistered religious communities, often but
not always while people are held under arrest.

Religious tolerance?

Officials claim that religious tolerance flourishes in the country,
however state-run TV has repeatedly shown films – which school and
university students are strongly encouraged to watch – inciting
intolerance and hatred of religious minorities, especially those who
are said to share their beliefs with others. For example, as well as
direct attacks on named individuals and communities, psychotropic or
mind-altering drugs are falsely said to be used by religious minorities
to gain adherents, those who change beliefs are said to be traitors,
and sharing beliefs has been compared with terrorism. Representatives
of registered religious communities have been shown supporting these
broadcasts, however it should be noted both that Uzbek TV has in the
past falsified interviews discussing human rights with people who
are not state officials, and that extreme pressure can be used by
the state against individuals and communities.

After one broadcast encouraging religious hatred in May 2008, Forum 18
was told that some members of religious minorities are "afraid to go
out on the street where they live for fear of being persecuted." Other
state-run media outlets, such as newspapers and websites, similarly
encourage religious intolerance and hatred. One Protestant publicly
attacked in a state TV broadcast commented to Forum 18 that "the
government is trying to stir up Muslims against Christians." Raids
on and fines imposed against members of religious minorities usually
accompany such media campaigns, but as such violations of religious
freedom are commonplace, it is unclear whether there is a direct link.

Legal framework a symptom of official attitudes

When the harsh 1998 Religion Law was adopted, President Karimov claimed
it was necessary to counter "Wahhabi" Muslims – a term widely and
loosely used in Central Asia to denote anyone from peaceful devout
Muslims to Islamist militants. Karimov stated in a speech broadcast
nationwide on state radio on 1 May 1998 that "such people must be
shot in the forehead. If necessary, I’ll shoot them myself." There are
indications that Uzbekistan may be planning to further harshen the Law.

Numerous articles in the Religion Law, Criminal Code and Administrative
Code are used to punish peaceful religious activity. The articles
most frequently used are cited below, but other articles are also
deployed. The Uzbek legal system contains a web of articles, used to
varying degrees over time, designed to block the peaceful exercise
of freedom of thought, conscience and belief. President Karimov’s
remarks illustrate clearly that the major problems that religious
believers and communities face are not limited to particular laws or
articles, but rather to the oppressive actions of state officials,
of which the laws are a prominent symptom.

Unregistered religious activity is a criminal offence under Article 8
of the Religion Law. Registration – the only way in which communities
may obtain legal status – is via the Justice Ministry. However,
the experience of many communities, registered or unregistered, is
that repression can occur at any time, with no regard for whether
or not a community is registered. The ban on unregistered religious
activity is underpinned by articles in the Criminal Code and the
Administrative Code. Under Article 240 (breaking the Religion Law)
of the Administrative Code, unlawful religious activity is punishable
by fines, or administrative detention of up to 15 days.

Statistics from the state Religious Affairs Committee indicate that a
net total of six Christian churches lost registration between October
2002 and February 2007, along with one Jehovah’s Witness, one Hare
Krishna and one Baha’i community. The figures cannot be independently
verified and conceal denominational differences, with an increase in
the numbers of Russian Orthodox and Armenian Apostolic communities
disguising the loss of legal status of Protestant churches. Religious
believers inside Uzbekistan indicate that the reality may be much
worse. Between 2000 and 2006, some Protestants calculated that 38 of
their congregations were stripped of legal status by the state. Over
100 religious communities of various faiths reportedly have tried
unsuccessfully to gain registration. The Religious Affairs Committee
asserted in February 2007 that "there are no restrictions on or
hindrances to registration." But when Jehovah’s Witnesses in the town
of Kagan, on the outskirts of Bukhara [Bukhoro], tried to register
between 2006 and 2008, they faced harassment, a police raid and the
ten community members were threatened with death and each given fines
of five years’ minimum wages. Bailiffs have made repeated visits to
seize property to pay the fines.

In 2006, fines for a wide range of religious activity – including
unregistered religious activity – were increased significantly,
rising from the previous 5 to 10 times the minimum monthly wage to the
current 50 to 100 times the minimum monthly wage. Since late 2007,
it appears that the numbers and scale of raids and fines imposed
on religious minorities have further increased. A March 2008 raid
on a Protestant church was justified as "anti-terrorist activity,"
although police were unable to specify to Forum 18 what threat the
raid was supposed to stop.

Although members of religious minorities are often fined, they have
in the past not been – unlike Muslims – frequently brought to trial
and jailed. An exception was the 2007 conviction of Pentecostal
Pastor Dmitry Shestakov. He was sentenced to four years in a labour
camp under Article 216 of the Criminal Code and Article 244-1, which
punishes "dissemination of information and materials containing ideas
of religious extremism, separatism, and fundamentalism, calls for
pogroms or violent eviction of individuals, or aimed at creating panic
among the population, as well as the use of religion in purposes of
breach of civil concord, dissemination of calumnious and destabilising
fabrications, and committing other acts aimed against the established
rules of conduct in society and of public security." Credible claims
were made that the trial breached the procedures laid down under Uzbek
law. It was suggested that the main reason for Pastor Shestakov’s
labour camp sentence was that his church – which subsequently decided
to disband as it was "too dangerous to meet" – had been attracting
ethnic Uzbek converts in the Fergana Valley. This valley is seen as
a region with many particularly devout Muslims, and was the site of
the 2005 Andijan massacre.

Sharing beliefs is banned by Article 216-2 of the Criminal
Code, which states that the "conversion of believers belonging
to a certain religion to other religions (proselytism) and other
missionary activities, will, after the application of penalties under
Administrative Law for similar activities, be punished by a fine
of between 50 and 100 times the minimum wage or up to six months’
detention or up to three years in prison." Similarly, Article 5 of
the Religion Law states that: "Actions aimed at turning believers
from one faith to another (proselytism) are forbidden, as is any
other form of missionary activity."

Article 216-2 of the Criminal Code also bans "illegal religious
activity, evasion of registration of a religious organisation’s
charter by its leaders, conducting special meetings for young people,
work groups, and other circles and groups, unrelated to worship,
by religious leaders and members of religious organisations."

"Inducement to participate in the operation of illegal public
associations, religious organisations, movements or sects" is banned
under Article 216-1 of the Criminal Code.

Reinforcing the bans on sharing beliefs and on religious small groups,
"teaching religious beliefs without specialised religious education and
without permission from the central organ of a [registered] religious
organisation, as well as teaching religious beliefs privately"
is banned by the Criminal Code’s Article 229-2 and Article 241 of
the Administrative Code. Article 10 of the Religion Law states
that "religious educational establishments acquire the right to
operate after registering with the Justice Ministry and receiving
the appropriate licence. (..) Persons teaching religious subjects at
religious educational establishments must have a religious education
and carry out their work with the permission of the appropriate agency
of the central administration."

Unregistered Muslim religious activity has mainly been punished under
Criminal Code Articles 159 "attempts to change the constitutional
order"; 242 "organisation of a criminal society" and Article 156. This
article bans "acts intended to humiliate ethnic honour and dignity,
insult the religious or atheistic feelings of individuals, carried
out with the purpose of inciting hatred, intolerance, or divisions
on a national, ethnic, racial, or religious basis, as well as the
explicit or implicit limitation of rights or preferences on the basis
of national, racial, or ethnic origin, or religious beliefs." This
article has also been used against religious minorities.

Religious minorities within Uzbekistan have noted that the state’s
own incitement of religious intolerance and hatred violates the
Criminal Code’s Article 156, as well as both Article 139 punishing
"Denigration, that is, dissemination of false, defamatory information"
(including in the media) and Article 140 punishing "Insult, that is,
intentional grievous degrading of the honour and dignity of a person"
(also including in the media).

Prisoners of conscience

Reportedly, thousands of Muslims have been imprisoned, usually
on accusations of belonging to terrorist, extremist or banned
organisations. One observer asserted that within the past year police
have arrested people as terrorists because an Arabic Koran was found
in their house. The nature of the Uzbek justice system, in which the
planting of evidence and torture by the authorities is often credibly
claimed, makes it unlikely that the authorities – or anyone else –
knows how many of these prisoners are guilty of violence or are only
"guilty" of being devout Muslims who take their faith seriously.

Prisoners are often denied their religious freedom. Muslim prisoners
have complained to Forum 18 that they have been forbidden to recite
prayers or fast during Ramadan. Similarly, Pentecostal pastor Shestakov
has been denied access to a Bible in prison.

There are violent groups which oppose the state, even though their
violence is infrequent, but the authorities’ own violence and
injustice fuels support for such groups. When Forum 18 has asked
Uzbeks who sympathise with extremist organisations why they do so,
they often indicate that such sympathy is motivated by a dislike of
the government’s actions.

In addition to Pastor Shestakov, the other currently known religious
minority prisoners of conscience are four Jehovah’s Witnesses:
Irfon Khamidov, who is serving a two-year prison sentence imposed
in May 2007 for "illegal religious teaching"; Olim Turaev, who was
jailed for four years in a labour camp from April 2008 for holding
an unapproved religious meeting and teaching religion without state
permission; Abdubannob Ahmedov sentenced in July 2008 to a four year
term for "illegal organisation of public associations or religious
organisations"; and Sergei Ivanov sentenced in July 2008 to three
and a half years for "illegal organisation of public associations
or religious organisations". Other Jehovah’s Witnesses are serving
suspended or corrective labour sentences, under which a large part
of their salaries is deducted and handed to the state.

The number of religious minority prisoners of conscience may continue
to increase, as the authorities seem to be more frequently bringing
charges that carry a possible jail sentence. Aimurat Khayburahmanov,
a Protestant arrested in June 2008, faces criminal trial under
Article 229-2 and Article 244-2 part 1 (also used against unregistered
Muslims), which punishes "establishment, direction of or participation
in religious extremist, separatist, fundamentalist or other banned
organisations" with sentences of up to 15 years’ imprisonment. As is
often the case, these charges can mask the activity the authorities
dislike. Asked what was "extremist" about Khayburahmanov’s activity,
Uzbek police told Forum 18 that he held meetings in his home and read
"prohibited" Christian literature. Police refused to specify what
Christian literature was prohibited, but stated that, for reading
these books, imprisonment was a legitimate punishment.

Control of religious literature

Religious literature in Uzbekistan is also under tight state
control. The import and production of literature – including the
Koran and the Bible – is strictly controlled, with compulsory
prior censorship by the state Religious Affairs Committee. Only
registered communities can ask for permission to print or import
material. Relatively little literature about the majority Islamic
faith is allowed to be published, and none is imported officially. Some
Islamic books are no longer published, such as Imam Muhammad ibn Ismail
al-Bukhari’s book "Sahih al-Bukhari". This is a collection of hadith
which Sunni Muslims regard as the most authentic hadith compilation.

Censorship of religious literature is mandated under Article 19 of
the Religion Law. This bans the "manufacture, storage and distribution
of printed items, films, photographs, audio and video recordings and
other materials containing ideas of religious extremism, separatism
and fundamentalism". The article also states that: "Delivery and
distribution of religious literature published abroad is done after
expert analysis of its contents is carried out in the order prescribed
by law." Publication of religious literature within Uzbekistan is
also subject to compulsory prior censorship. Under Criminal Code
Article 244-3, "illegal production, storage, import or distribution"
of religious publications is punishable for repeat offenders by terms
of up to three years in jail. Article 184-2 of the Administrative Code,
imposes fines and confiscation for a first offence.

Either the state’s Religious Affairs Committee or – in provincial
areas – teachers at local university philosophy departments decide
whether religious material, including items sent by post, should be
banned. Mainstream Islamic theological works are often deemed to be
extremist. Uzbekistan’s postal authorities actively collaborate in
censorship of publications sent from abroad, and have all but halted
the delivery of parcels of books sent to individuals from abroad. Such
parcels have been returned to senders in recent years with a letter
informing them that such literature is banned and telling them not to
send it in future. Religious minorities – including Christians and
Jehovah’s Witnesses – are also concerned about literature held for
long periods by customs, which may also incur extremely expensive
official charges for "storage". The official system of internet
censorship also blocks access to some foreign religious websites.

In 2006, new penalties were introduced for the "illegal" production,
storage, import and distribution of religious literature. Some
Muslims stressed to Forum 18 that the changes merely provided a
"legal" basis for current practice. The state Religious Affairs
Committee told Forum 18 that "illegal" production and distribution
of religious literature are "home-produced" materials.

Frequently even legally imported materials are confiscated during
police raids. Courts often order such material – including books such
as the Bible – to be burnt, as happened to literature confiscated
from Baptists in Karshi [Qarshi] in October 2006.

Ban on religious dress

Under Article 14 of the Religion Law, wearing religious clothing is not
allowed in public places. The term "religious clothing" is not defined,
and this has caused Muslim men to fear having an obviously Muslim
appearance, such as wearing a beard and clothes that are traditional
to Muslim countries. Women who wear traditional robes covering their
heads have also been subjected to discrimination in the past, but
this ban does not appear to be currently applied rigorously. From
time to time, the authorities in the Fergana Valley have also stopped
men from wearing traditional white prayer caps entering mosques, but
this does not appear to be a current problem. The ban on appearing
in public in "religious clothing" also affects religious minorities
who wear religious clothing, such as Hare Krishna devotees.

What changes do Uzbek citizens want in religious policy?

Religious believers of various faiths have told Forum 18 that they
most want to see Uzbekistan:

– end the ban on unregistered religious activity;

– end the ban on sharing beliefs;

– end the ban on religious meetings in private homes;

– end raids on peaceful religious worship services;

– end threats, violence and torture by state officials;

– enable fair trials for alleged offences;

– end fines, harassment and persecution of people exercising their
right to freedom of thought, conscience and belief;

– free prisoners of conscience;

– end attempts to control and repress both Muslims and members of
religious minorities;

– end state encouragement of religious hatred and intolerance;

– end censorship of imported and locally-produced religious literature
and material;

– end confiscations of property from religious believers and
communities;

– end restrictions on haj pilgrims, and other religious believers
and communities being in contact with fellow-believers abroad;

– and end restrictions on children’s religious education.

Uzbek citizens have told Forum 18 that these steps are essential to
ending the state’s ongoing, systematic and nationwide violations of
freedom of thought, conscience and belief. (END)

For a personal commentary by a Muslim scholar, advocating
religious freedom for all faiths as the best antidote
to Islamic religious extremism in Uzbekistan, see
338.

Full reports on freedom of thought, conscience
and belief in Uzbekistan can be found at
;r eligion=all&country=33.

The previous Forum 18 Uzbekistan religious freedom survey can be
found at

A survey of the religious freedom decline in the eastern part of
the Organisation for Security and Co-operation in Europe (OSCE)
area is at ,
and of religious intolerance in Central Asia is at
15.

A printer-friendly map of Uzbekistan is available at
las/index.html?Parent=asia&Rootmap=uzbeki.

ARMENIA HAS NO INTENTION TO QUIT CIS: FOREIGN MINISTRY

ARKA
Aug 13, 2008

YEREVAN, August 13. /ARKA/. Armenia has no intention to quit the CIS,
reported RA Deputy Foreign Minister Gegham Gharibjanyan. "The CIS
is Armenia’s long-term political choice, and the country has been
cooperating with the Commonwealth for the past years," he said.

The Deputy Minister pointed out that last year Armenia signed a
concept of further cooperation with the CIS.

Georgian President Mikheil Saakashvili declared Tuesday Georgia would
leave the CIS.

GEORGIA LOSES WHILE BATTLEGROUND EXPANDS
By Sä°Nan Oä~^An*

Today’s Zaman
Aug 12, 2008
Turkey

The operation initiated by Georgia in an effort to preserve its
territorial integrity and maintain constitutional order took on another
dimension with the involvement of Russia; there is now the danger that
the war may spread all over the region. Meanwhile, Abkhazia attacked
Georgian units stationed in the Kodor Valley, which Georgian forces
have occupied since 2006. With South Ossetia’s official call for
Russian help, the war to maintain constitutional order has turned
into a South Ossetia-Abkhazia-Russia war against Georgia.

Georgian President Mikhail Saakashvili issued a document indicating
that the country is in a state of war and referred it to parliament
for approval; parliament endorsed the document. The Russian General
Staff insisted that this is not a state of war, stressing that Russian
actions sought only to protect Russian citizens in the region. Georgia
asked for a cease-fire despite that the fact that it had declared
war against Russia.

Perhaps the date of Aug. 8 was chosen for a reason, as at the time
the international community was busy watching the inauguration of
the Summer Olympics in Beijing. Putin and many other word leaders
were in that city.

The first promise Saakashvili made to the Georgian people after the
Rose Revolution in 2003 was to preserve the country’s territorial
integrity. Georgia had three autonomous regions when it declared
independence from Russia. Two — Abkhazia and Ossetia — gained
independence. Only Ajaria was out of the conflict. Turkey’s role was
indispensable in this, as it actually acted as a guarantor in regards
to Ajaria. But Turkey never brought that up.

Saakashvili decided to start with the weakest of the three,
Ajaria. After sending Ajarian President Aslan Abatidze to Moscow, he
annulled the autonomous status of the region. The people of Ajaria,
a predominantly Muslim region that had been included in the borders
at the time of the Turkish National Oath (Misak-ı Milli during the
Ottoman era), were forced to convert to Christianity. A cross was
included on the Ajarian flag.

Next Saakashvili targeted South Ossetia, the second-weakest of the
three regions. But Russia did not let this happen.

In effect, Russia has had a pretext for this war for some time, as
most citizens of South Ossetia have become Russian citizens. Moreover,
Russia has stationed peacekeeping troops in the region. Russia has
also imposed an embargo upon Georgia. Therefore, Russia is trying
to take the Georgians out of South Ossetia in order to protect its
citizens and troops and to destroy Georgia’s infrastructure and
industrial capabilities.

The involvement of Russia in the conflict has forced Saakashvili to
ask for a cease-fire. This situation shows that Georgia will be the
losing party in the conflict. If the current scenario continues this
way, South Ossetia and Abkhazia will break away from Georgia. There
will be no peaceful means to ensure that these republics will remain
attached to Georgia.

It is necessary to review the developments, which have taken on a
regional dimension and now include Russia and Abkhazia, despite the
fact that the conflict started between Georgia and South Ossetia.

US, NATO and the EU:

The US, the EU and NATO have stressed that they support the territorial
integrity of Georgia. While some countries such as Denmark have made
strong statements against Russia, no concrete step has been taken
by the EU or the Organization for Security and Cooperation in Europe
(OSCE). It should be noted that Russia’s ability to threaten Europe’s
energy security as well as its military and diplomatic strength has
played a determinative role in Europe’s ineptness.

It does not seem logical to think that Georgia initiated the South
Ossetia operation without informing the West — NATO, the US,
etc. It is also impossible to argue that Georgia did not consider
probable Russian involvement after initiation of the operation. So
why did Georgia take this action knowing that it would lead to
confrontation with Russia? It is not logical that Georgia did not
consider this. Only one option remains: Georgia started this war
knowing that a confrontation with Russia would occur. In so doing,
it might have sought to drag Russia into a regional conflict.

What are the strategic considerations of Russia in this
operation? These could include the following:

–Russia will be dragged into an ethnic conflict in the region to make
sure that it is labeled by the international community as an aggressor.

— Georgia will seek help from the US and NATO when it requires a
hand because it is aware that it cannot deal with Russia on its own.

–Georgia’s membership in NATO will be facilitated

–The Olympics, held in China, — the US’s biggest rival — will lose
importance because of the Russian-Georgian conflict.

–Attention will be taken away from the American elections

–Probably Israel and the US will strike Iran at a time when Russia
is busy with this regional conflict.

The list may be expanded. But there is one vague point: To what extent
will the US be supportive of Georgia? Statements from US authorities
have so far been mild at best, asking for immediate Russian withdrawal
and maintenance of Georgian territorial integrity. A harsher US stance
will be important for a better understanding of potential scenarios
in the region. On the other hand, Saakashvili called for a cease-fire
when he realized that the help he was expecting would never arrive.

The ongoing conflict between Russia and Georgia will also have
repercussions in the region, causing separations and partitions. Maybe
the potential for this has existed for a long time, but the lines were
never drawn so clearly. Now the current statements made by different
countries clearly distinguish the sides and parties in the region.

This war clarified the lines among the countries in the region
and distinguished one from the other. Azerbaijan, neighbor to
both Georgia and the Russian Federation, issued a statement that
it supported Georgian territorial integrity, implying that it was
extending diplomatic support to Georgia in relation to the South
Ossetian problem.

Azeri support for Georgia is understandable. Azerbaijan, which
sympathizes with Georgia because of the Armenian occupation of
Nagorno-Karabakh, supports Georgian territorial integrity. It
is expected that Azerbaijan will resort to violence to regain the
Nagorno-Karabakh region if this is not done via peaceful means in the
middle term. Azeri President Ä°lham Aliyev and the defense minister
made clear statements reaffirming this stance.

While Azerbaijan supports Georgia in the conflict, Armenia openly
supports Russia and even became party to the clash. It is rumored that
when Russian military jets bombed Georgian military bases in Vaziani
and Marnauil near Tbilisi, which are unofficially used by the US and
NATO, the jets had taken off from Armenia. This proves that Armenia
has joined the war on the side of Russia. Kazakhstan also tends to
support Russia in the conflict.

Within the region, Ukraine, Poland and the Baltic countries have
taken Georgia’s side. Ukraine, which has ongoing problems with Russia,
declared that it would extend any kind of support with the exception
of weaponry to Georgia. Poland took action to ensure that the EU and
NATO take steps toward a decision to defend Georgia against Russian
aggression. In general the countries that have problems with Russia
in the region have taken a supportive stance toward Georgia in the
conflict.

Turkey is one of the most sensitive countries involved in this
conflict. Turkey has made clear that it does not support separatist
movements because of similar problems that Azerbaijan has been
facing. For this reason, it supports the territorial integrity of
states with separatist problems. However, it also has refrained
from moves that will harm its sensitive relations with Russia. It
is well-known that Turkey equips Georgian military units, provides
technical support for the Georgian army and even repaired a military
airport in that country. In general, Turkey extends military support
to Georgia. The Russian press has emphasized that Turkey is at the
top of the list of countries extending support to Georgia.

Another reason Turkey is concerned is that Georgia is a transit
country for Turkey. The country hosts important pipelines and
transport corridors. The Baku-Tbilisi-Ceyhan (BTC) pipeline, the
Shah Deniz-Erzurum gas pipeline and the Kars-Tbilisi-Baku (KTB)
railway project are all factors that increase Turkey’s concerns.

There are many sides behind this war. We cannot take the issue
as a mere Georgian-South Ossetian war. Russia is at the heart of
the conflict. Turkey supports Georgia because of their strategic
ties. Moreover, Turkey favors Georgia’s territorial integrity in
principle because Azerbaijan is dealing with a similar problem in
Karabakh. On the other hand, the northern Caucasian peoples support
South Ossetia. There is a sizeable Caucasian diaspora in Turkey
that generally supports South Ossetia. Moreover, Turkey has deepened
its strategic relations with Russia. In this case, Turkey cannot be
expected to take sides with either party.

Turkey may assume a role of mediation in this conflict as it has in
Middle Eastern conflicts because the involvement of Russia and the
voluntary support of the Caucasian peoples will make the situation
more difficult for Georgia. Georgia asked for Turkey’s support when
Russia became involved in the war and started bombing peaceful areas
outside the war zone. What can Turkey do at this point? The situation
is sensitive. Therefore, Turkey should assume the role of mediator to
ensure that the issue is discussed in UN circles and that peace is
maintained. And of course, Turkey should consider the humanitarian
aspect of the conflict and provide relief aid for people in the
conflict zone.

Is there any possibility that the energy and communication lines
will be harmed by the war? According to the Energy Ministry, the
answer is no. However, arguing that the BTC will not be bombed while
other locations within Georgian borders are being bombed — such as
the Port of Poti, the Vaziani military base and the unofficial US
military base in Marnauli, a predominantly Azeri region — must be an
attempt to calm the public. Otherwise, there is no other explanation
for this. On the other hand, it should be recalled that these lines
pass through a predominantly Armenian region, and in consideration
of this, some lines may be harmed.

*Sinan Ogan is the president of the Turkish Center for International
and Strategic Analysis (TURKSAM).

–Boundary_(ID_LJE6m5S+StdYhrDS1GDVPQ) —

Alalam News Network, Iran
Aug 10 2008

Iran Ready to Defuse Georgia Conflict

TEHRAN, Aug 10–Iran says it is ready to offer any help to end the
mounting crisis in the breakaway Georgian region of South Ossetia.

Foreign Ministry spokesman Hassan Ghashghavi told reporters on
Saturday that the the Islamic republic voices concern over the
military conflicts in South Ossetia that have left hundreds of
defenseless people dead and calls for an immediate halt to the
clashes.

The spokesman also said "Iran is ready to offer any help … under its
principal policies of contributing to the establishment of peace and
stability in the region."

Georgian military forces began a large-scale military offensive
against South Ossetian separatists on Thursday evening in order to
regain control of the province, which declared independence after the
collapse of the Soviet Union in 1991.

Russia deployed its peacekeeping troops to South Ossetia following
Georgia’s military offensive against the breakaway region.

Urging the two sides to reach a negotiated solution on the disputed
region, Ghashghavi warned that the deterioration of conditions could
spill over the entire region which would leave "negative impacts".

Iran borders with two of Georgia’s neighbors in the Caucasus —
Armenia and Azerbaijan — and historically maintains a close
geopolitical interest in the region.

Times of Malta, Malta
Sunday, 10th August 2008

Russian diners say Nyet to Soviet service
James Kilner, Reuters

A frothy cappuccino or fresh mozzarella salad is no longer
enough. Russia’s growing middle classes now want service with a smile.

With much of Europe and North America saturated, the newly affluent
among Russia’s 143 million people are an attractive target for Western
coffee shop chains eager for growth, and Starbucks and Costa Coffee
are among brands now found in Moscow.

But where once any alternative to Soviet-style fried meats and
dill-laced boiled vegetables was a thrill, increased competition now
means superior service is important to attract and retain customers.

This is a challenge, says Ian Zilberkweit, an American part-owner of
the Russian franchise for the Belgian coffee shop chain Le Pain
Quotidien.

He and his Armenian-American business partner have drawn up bonus
schemes and share plans to persuade staff to shake off Soviet habits
and instil loyalty in a typically casual sector.

"The Soviet system meant there was no system for treating people
nicely," said Zilberkweit, who has just opened his fifth store. "It
was all about shifting products."

Cash from energy and commodity exports has boosted Russia’s economy
since a crisis in 1998. The World Bank estimates real incomes rose by
80 per cent between 1998 and 2007 to nearly $8,000 per person –
roughly level with Mexico and Lithuania.

Data from Moscow-based Business Analytica shows the number of bars,
cafes and restaurants in Moscow rose by a third between 2004 and 2007
to 6,600, with the fastest growth at the mid-priced level. Big chains
now own around a third of the outlets in Moscow, double the proportion
in 2004.

Starbucks Corp., which is closing shops in North America, opened its
first branch in Moscow in 2007 with a Russian partner M. H. Alshaya
Company W.L.L and now has five, and Costa Coffee, owned by British
brewer Whitbread opened in March through a joint venture with Russia’s
Rosinter.

Starbucks declined to give details of its plans but Costa aims to open
at least 200 cafes in Russia, a market analysts described as a major
growth area.

"All companies are focusing on the Russian market in all leisure
sectors, not just coffee. It’s a country that Costa has to be in,"
said UBS analyst Stamatis Draziotis.

Le Pain Quotidien’s Zilberkweit said the potential in Russia was just
too great to miss out on.

"In Europe, real incomes are not going up due to rising prices, but in
Russia it’s different," he said, wearing a grey London Business School
sailing club shirt.

"Because the domestic economy is growing like crazy, incomes are still
going up like crazy."

By the end of this year, Le Pain Quotidien aims for eight outlets in
Moscow, rising to 50 within four years. Sales now stand at about $5
million but are targeted to rise to $20 million by 2009, said
Zilberkweit.

A former investment banker at HSBC bank, he said competing in Russia’s
lucrative dining market is further complicated for foreign firms
because spending patterns and business costs differ from those in the
West.

Le Pain Quotidien projects itself as part-bakery, part-cafe,
part-restaurant.

The interiors are wooden, a counter sells freshly baked bread and
pastries – supplied by a bakery which Zilberkweit part-owns – and the
menus are based mainly around soups, salads and light main meals.

But Russian customers spend their money differently from people in
other countries.

About 50 per cent of Le Pain Quotidien’s sales are from food in Russia
compared with 35 per cent in Britain, for example. Rent is by far the
biggest expense in Russia while staff salaries are the main expense in
Europe.

Its prices in Russia are similar to the rest of Europe – $3 for a
croissant, $7 for a bowl of soup and $17 for a fish pie – and diners
usually add on a tip of around 10 per cent.

With prices high and rising, Russian customers are no longer willing
to stomach slow, erratic and surly Soviet service.

"If I see a new place which I want to go into, I do worry what the
service will be like," said Natalya Miloserdova, 27, puffing on a
cigarette outside the tour agency where she works.

"You pick a place to eat where you know the service will be good."

Zilberkweit said service has been a neglected aspect of retail in
Russia as most staff grew up without experiencing any.

"We were unbelievably frustrated two years ago because we would get
these people in and we would just want them to smile and they wouldn’t
even know why," he said.

Smiling staff can make the difference in Russia’s increasingly crowded
cafe sector.

"The customer, five years ago, in Russia would have been only too
happy if within five minutes’ walk there was a place to have a coffee
latte," he said. "Now, he has 10 choices and demands much more."

Another Soviet hangover Zilberkweit has had to confront was a drop in
an employee’s work ethic after promotion.

"In Russia, the moment you give somebody a title they stop working,"
he said. "Now, we give people more money and more responsibility but
not a new title."

The security cameras on the ceiling also play a role. "We have to do
this for security reasons," he said, adding that pictures are beamed
to a control room in every restaurant.