SUKHUMI’S ANTI-GEORGIAN STANCE JEOPARDIZES INTERNATIONAL ECONOMIC INITIATIVES
By Zaal Anjaparidze
Eurasia Daily Monitor, DC
July 10 2006
Monday, July 10, 2006
The promising movement toward reopening railways to link Russia,
Georgia, and Armenia via Georgia’s breakaway Abkhazia region is now
in jeopardy. The $300 million project to restore the Abkhaz section of
the Russo-Georgian railway after it was cut in 1992-93 appears to have
stumbled over the mutual animosities between the Georgians and Abkhaz.
The first hints that the issue was moving toward resolution began
last summer, when Tbilisi backed away from its initial tough
stance regarding restoration of the rail link (see EDM, June 17,
2005). Georgian officials and specialists subsequently participated
in talks about the rehabilitation of the Abkhaz section of the rail
link and onsite technical inspections.
Last December EU officials visited Sukhumi, the Abkhaz capital, and
offered Abkhazia an impressive package of economic aid if it toned
down its secessionist agenda (see EDM, December 12, 2005). Some
Georgian officials and pundits believed that reopening the railway
could become an organic part of a large, Western-sponsored plan
of economic rehabilitation for post-war Abkhazia, and help move
the region toward eventual reintegration into the Georgian social,
economic, and political space.
On January 20, leaders of Georgian, Armenian, and Russian railway
companies signed a protocol on establishing an international consortium
to eventually open the rail link between Ingiri (Georgia) and Veseloe
(Russia). The document appealed to the Abkhaz leadership to join
the cause.
On May 4 in Moscow, officials from Georgia, Armenia, Russia, and
Abkhazia signed a protocol establishing the Black Sea Railways
consortium. The consortium, set up as an open joint-stock company,
must rebuild the Abkhaz section of the railway. Andrei Turukin,
Abkhazia’s representative in Russia for railway issues, said that
members would discuss where to register the consortium during its
next meeting, scheduled for late July in Tbilisi, and underlined that
“the Abkhaz side was represented as a full-pledged party.”
Some Georgian pundits and officials assessed this remark as one more
step facilitating the acknowledgement of Abkhazia’s independence.
Symptomatically, prior to the Moscow talks on the consortium,
Sergei Bagapsh, the self-styled “president” of Abkhazia, told Abkhaz
parliamentarians that Sukhumi must agree to resume railway traffic,
which requires making Abkhazia an independent member of the project. He
also declared that no political demands should be put forward as a
precondition for the project (Apsnypress, Regnum, April 26).
Georgian officials connected with the consortium initiative are
tight-lipped about the political and economic details of the
deal. Irakli Ezugbaya, director of Georgia’s state-run Railway
Company and the chief Georgian negotiator at the Moscow talks, told
Georgian lawmakers last December that a political decision about
the consortium is still pending (Civil Georgia, Regnum, Apsnypress,
May 5; Akhali Taoba, June 3). Parliamentarian Shota Malashkhia,
chair of the Commission for Territorial Integrity, expressed doubts
about the expediency of the consortium due to the remaining legal
questions. Meanwhile, according to a poll commissioned this April by
the International Republican Institute, 75% of the 1,500 Georgians
polled thought the restoration of the railway would “suit Georgian
national interests” (, Civil Georgia, May 30).
But now, as Sukhumi appears to be stepping up its secessionist agenda,
the Georgian government is reconsidering whether to give a green light
to the railway project. Kakha Bendukidze, Georgian state minister
for economic reforms, responded to reports from Russian and Abkhaz
sources about the Abkhaz separatists’ intention to rehabilitate the
railway on their own. He said that the rehabilitation of the railway
“is an issue of goodwill and politics,” and it is up to the Georgian
government to decide whether to use the railway or not” (Kavkaz Press,
June 26).
The Abkhaz increasingly regard the railway project as a political
trap set by Georgia. Meanwhile, the Abkhaz also likely fear excessive
integration into Russia, which the railway project might entail and
prefer to take a “wait-and-see” attitude. There have been reports that
Russia is pressing Sukhumi to reopen the railway link (Alia, June
27), while a July 4 statement by the Abkhaz government states that
Abkhazia will contribute to the project only if it serves Sukhumi’s
interests. (Apsnypress, July 4).
The statement follows a June 27 roundtable by the Forum of Abkhaz
People’s Unity, which includes opposition parties and public
movements. Forum participants noted that Abkhazia should not join
international consortiums until the international community recognizes
its independence. They said that the railway consortium aligns
with Russia’s geopolitical interests, while neglecting Abkhazia’s
interests. The Forum particularly disliked the wording of the May
4 protocol that, they argued, considers the Abkhaz railway to be a
“portion” of the other [Georgian] railway route. Some opposition
parliamentarians suggested that Abkhazia should join the consortium
only after international recognition of its independence. A Forum
statement issued on June 30 stressed that the international railway
consortium poses a threat to Abkhazia’s sovereignty. The influential
Abkhaz public-political movement Aidgilara (Unity), which is linked to
the government, recently called on Bagapsh “to disavow” the protocol
on creating an international consortium on the issue. On July 3 still
more Abkhaz civic groups came out against the railway consortium
(Apsnypress, July 7).
Bagapsh, who apart from security issues wants to discuss with Georgian
President Mikheil Saakashvili (EDM, July 6) reopening closed air,
sea and rail routes with Abkhazia to relieve the region’s economic
blockade, downplayed the Forum’s concerns. He told a news conference
on June 29 that the project is beneficial for Abkhazia in an economic
sense and that Russia needs this strategic railway (Kavkaz Press,
Apsnypress, Civil Georgia, Regnum, June 28-30).
Although the Abkhaz government formally denounced the Forum’s
allegations as groundless and said that agreements regarding the
consortium are not legally binding, it seems that the Abkhaz government
is using the Forum to send a message to all stakeholders; to put them
on notice that they must accommodate Abkhaz interests.

Matthew Bryza: “Peace talks not deadlocked despite exhausted mediating effort”
Today, Azerbaijan
July 10 2006
10 July 2006 [17:16] – Today.Az
The US mediator brokering settlement to the Armenia-Azerbaijan Nagorno
Karabakh conflict says the “creative potential” of the OSCE Minsk
Group co-chairs has run out, but this does not mean an impasse in
the peace process.
“The latest statement of the mediators made at the OSCE Permanent
Council meeting that they cannot achieve any more progress in
determining the principles for peaceful settlement does not imply
a deadlock. It means that the co-chairmen’s efforts have been
exhausted and there is a need for initiatives from the two countries’
presidents,” the US co-chair Matthew Bryza said in an interview with
the BBC’s Azeri service.
“The statement means that we have reached a point where the co-chairs
are saying the two leaders should make a decision on what they want,”
Bryza said.
According to AssA-Irada, he said the heads of state have political
will and are willing to cooperate.
“But we are not sure if they are ready to take the final and
challenging step – finalize the framework agreement. This is time when
the two leaders should explain the benefit of the peace plan to their
people and show them the way to advance through concessions. This is
a road of diplomacy, not war.”
Bryza said there are fair and promising principles on the negotiating
table.
“These are the best proposals made so far. I would say that we are
closer to peace than ever before. But I can’t guarantee that the
presidents would use their sovereign right to accept these proposals
or make changes that would suit both sides.”
The intermediary stressed that the US government’s statements on
supporting Azerbaijan’s territorial integrity and the issue of Nagorno
Karabakh’s self-determination are not contradictory.
“If you are paying attention to the co-chairs’ statements, there
is reference to both principles. The main thing is to find a common
ground in these principles at the negotiating table,” Bryza said.
The Foreign Ministry spokesman Tahir Taghizade said the US co-chair’s
statement suggesting that the mediators have exhausted their creativity
raises different questions.
“I am not sure how it should be assessed. It appears that the co-chairs
want to step aside from the peace process and lay responsibility on
the parties to the conflict.
“This is wrong. But if this [the statement] aims to give an incentive
[to the sides], that’s different,” Taghizade said.
With regard to compromises, Taghizade said it is not clear what the
US diplomat means.
“He probably remembers that although Azerbaijan has been subjected
to aggression and occupation, it remains committed to diplomatic
contacts. This is our biggest compromise. It is wrong to equate an
aggressor with a victim of aggression.”
Taghizade declined detailed comment on the assumptions that the
OSCE mediators’ latest statements are aimed to put pressure on the
conflicting sides, but said there is no need to pressure Azerbaijan.
“We understand very well how serious the unresolved status of the
Nagorno Karabakh conflict is for the region and the international
community. This is one of the priorities in Azerbaijan’s foreign
policy,” he added.
/AzerNEWS/
URL:

Tbilisi Denies Entry to Passengers Coming via Roki Tunnel
Civil Georgia, Georgia
July 10 2006
The Georgian side has stepped up security measures at the checkpoint
in the Ergneti village, at the administrative border with breakaway
South Ossetia, to prevent foreign citizens’ entrance into Georgia
via Roki Tunnel, the Georgian media sources reported on July 10.
These measures came after the Russian side closed down the border
crossing checkpoint with Georgia in Zemo Larsi on July 8 citing
repair works. But the Georgian side has condemned decision as
politically-motivated.
The Zemo Larsi is the only legally operating border checkpoint
with Russia.
Two others are located in breakaway regions of South Ossetia (Roki
Tunnel) and Abkhazia.
Georgian State Minister for Conflict Resolution Issues Giorgi
Khaindrava said that closure of Zemo Larsi checkpoint aimed to
complicate situation in the South Ossetian conflict zone.
“It is clear that when the only legally operating border crossing
point is closed down than people start searching for other means to
enter into the country and the Roki Tunnel becomes an option. But it
is illegal one,” Giorgi Khaindrava told reporters on July 10.
Reportedly several passengers moving from Russia into Georgia and
into Armenia via Georgia are trapped in the conflict zone, as the
Georgian side refuses to let them in.
The Georgian televisions broadcasted Zurab Arsoshvili, chief of the
Shida Kartli regional Financial Police, telling Armenian citizens
return back to Russia and “enter into the country legally though
Zemo Larsi.”
“It is impossible to register here those who are coming into the
country as here is no legally operating checkpoint, so there should
be no movement here,” he told reporters.

Armenian president to visit Russia in late July
Regnum, Russia
July 10 2006
Armenian President Robert Kocharyan will visit Russia in the second
half of July 2006 to attend the informal CIS summit, as well as to
observe, being accompanied by other state leaders, the annual horse
race for the prize of Russia’s President.
Armenian president spokesman Viktor Sogomonyan is quoted by a REGNUM
correspondent as saying that both the visit’s agenda and the meeting
schedule have not been detailed yet.
The horse race was held for the first time 2-3 July 2004 in Russia.
Most of the CIS leaders, except for Turkmenistan and Byelorussia,
gathered then in Moscow.

Yerevan has not yet received proposals from Gazprom to acquire Iran-Armenia pipeline
TREND Information, Azerbaijan
July 10 2006
Source: Trend
Author: À.Mammadov
10.07.2006
(REGNUM) – The Armenian side has not received any proposals from
Gazprom concerning acquiescence of the Iran-Armenia gas pipeline,
which construction is now underway; spokeswoman for the Armenian
Energy Ministry Lusine Arutyunyan is quoted as saying by a REGNUM
correspondent. According to her, the ministry received no proposals
and has no talks concerning sale of the pipeline. Commenting on a
recent statement of Gazprom Deputy CEO Alexander Ryazanov, who said
the company was intending to buy the pipeline, spokeswoman for the
Armenian energy ministry noted, “it was probably an intention by the
company itself.”
It is worth reminding, late June Gazprom deputy CEO announced that
the company intended to buy the Iran-Armenia pipeline. According to
him, putting the pipeline into operation would let secure stable gas
supplies in Armenia. “There are problems with gas transit to Armenia
via Georgia, as Georgia presumes unsanctioned pumping out of gas,”
Ryazanov said, reports Trend.
The Iran-Armenia pipeline is supposed to be put into operation in
the end of this year. The pipeline that connects Iran and Armenia
has a diameter of 700 mm, and its estimated capacity is 1.2 bln cubic
meter of gas per year. The project of constructing the Iran-Armenia
pipeline 141 km long has estimated cost of $120 million.
–Boundary_(ID_tHJUMk5LbeQBr5pvtEDeJw)–

Yerevan has not yet received proposals from Gazprom to acquire Iran-Armenia pipeline
Regnum, Russia
July 10 2006
The Armenian side has not received any proposals from Gazprom
concerning acquiescence of the Iran-Armenia gas pipeline,
which construction is now underway, spokeswoman for the Armenian
Energy Ministry Lusine Arutyunyan is quoted as saying by a REGNUM
correspondent. According to her, the ministry received no proposals
and has no talks concerning sale of the pipeline. Commenting on a
recent statement of Gazprom Deputy CEO Alexander Ryazanov, who said
the company was intending to buy the pipeline, spokeswoman for the
Armenian energy ministry noted, “it was probably an intention by the
company itself.”
It is worth reminding, late June Gazprom deputy CEO announced that
the company intended to buy the Iran-Armenia pipeline. According to
him, putting the pipeline into operation would let secure stable gas
supplies in Armenia. “There are problems with gas transit to Armenia
via Georgia, as Georgia presumes unsanctioned pumping out of gas,”
Ryazanov said.
The Iran-Armenia pipeline is supposed to be put into operation in
the end of this year. The pipeline that connects Iran and Armenia
has a diameter of 700 mm, and its estimated capacity is 1.2 bln cubic
meter of gas per year. The project of constructing the Iran-Armenia
pipeline 141 km long has estimated cost of $120 million.

Russia hurts Armenia after closing Georgia checkpoint – MP
13:29 | 10/ 07/ 2006
RIA Novosti, Russia
July 10 2006
YEREVAN, July 10 (RIA Novosti) – A deputy chairman of Armenia’s
parliament said Monday that Russia had hit Armenian interests after
it closed a checkpoint on the Russian-Georgian border for construction
work.
Russia closed the Kazbegi-Verkhny Lars border checkpoint early Saturday
morning for an indefinite period, which has created problems for
people traveling between Georgia and Armenia.
Vaan Ovannisyan said the border had been closed because of difficult
relations between Russia and Georgia.
“They [relations] have been worsening rather than improving recently,”
he said. “Our Russian colleagues must understand that each step against
Georgia also hurts Armenia’s interests. Therefore, they should be
more flexible and careful.”

Armenian, Georgian prime ministers talk up bilateral cooperation
By Christina Tashkevich
The Messenger, Georgia
July 10 2006
The number of tourists coming to Georgia from Armenia has tripled,
Georgian Prime Minister said over the weekend in Batumi, while Armenian
investors are also expressing much more interest.
“We are seeing intensive developments in Georgian-Armenian trade
and economic relations. This is not only the tripling of Armenian
tourists, which brings an additional USD 15-20 million revenue to
the country compared with last year, but also we see the more active
interest of Armenian investors towards the Georgian economy,” Zurab
Noghaideli said.
He met with Armenian Prime Minister, Andranik Margaryan, for the
fifth session of the Armenian-Georgian intergovernmental commission
on economic cooperation from June 7-10 in Batumi.
The sides discussed cooperation in the fields of agriculture, energy,
customs, transport and communication, education and tourism. The prime
ministers agreed to create a working group to discuss the possibility
of the reconstruction of the Kars-Gyumri-Tbilisi railway line.
Margaryan also said the Armenian government is ready to contribute
to rehabilitation programmes for the Javakheti region, which borders
Armenia and is 90 percent populated by ethnic Armenians. He said
Armenia agreed to participate in the reconstruction of several
educational facilities in Javakheti.
The Armenian side noted that an important contribution to the
improvement of relations between the two countries was the abolition
of road tax this spring. All types of transport entering Armenia from
Georgia no longer pay taxes, in line with a decision reached by the
governments this spring.
Previously, owners of public and cargo vehicles needed to pay between
USD 200-280, while owners of other cars USD 18-20 to pass from Georgian
territory into Armenia.
The forth session of the commission was held in last September
in Yerevan.
Both Georgia and Armenia note that several decisions taken at the
session last year have already been fulfilled. The governments signed
agreements on car communication between countries, on a joint crackdown
on car hijacking, and recently opened rail link Yerevan-Tbilisi-Batumi.

The Messenger, Georgia
July 10 2006
Russia closes the border for ‘repairs’
Russian border closure angers Georgia, but Armenia could suffer most
By Anna Arzanova
Russian border guards closed the Zemo-Larsi checkpoint late at
night on July 7. Georgian border police received this information
by fax later the same day. Officially, ongoing repair works taking
place at the crossing are the reason for the closure; however, as no
information has been released as to how long these repairs will last,
some in Georgia think that the closure is a political move.
According to the head of the Border Protection Service, Koba
Bochorishvili, the Zemo-Larsi checkpoint has been closed for repairs
for an unspecified time, and that “Russian citizens will also have
problems as well as Georgians, as both sides use this checkpoint.”
In a telephone conversation with Rustavi-2 Saturday, the president’s
representative in Mtskheta-Mtianeti region, Vasil Maghlaperidze,
said that Russians have closed the border “without any explanations,
they do not let or people cross the border.”
“As a reason they name alleged repair works, but this is an absolute
lie. This is against all international norms. They unexpectedly closed
the border like this in Berlin as well,” Maghlaperidze stated in a
reference to the Berlin blockade of 1948. He said that he and other
high-ranking officials visited the Zemo-Larsi checkpoint and made
every effort to clarify matters but “it seems that an absolutely
horrible situation has been created here.”
Maghlaperidze noted that a vehicle backlog has been created at the
border, and that the police have been advising drivers approaching
the checkpoint about the ongoing situation.
The president’s representative said that, in unofficial talks, the
Russian side told him that the Zemo-Larsi checkpoint might be closed
for a month or twenty days. “So, they are waiting for the instructions
from above.
“It is absolutely obvious to me that the border was closed for
political reasons,” Maghlaperidze noted.
Prime Minister Zurab Nogaideli, while attending a business forum
in Batumi, commented on the incident. He argued that Armenia would
suffer from this closure even more than Georgia, Armenia’s borders
to both Turkey and Azerbaijan are closed, meaning that Georgia is a
vital link to the outside. Noghaideli ordered the Ministry of Foreign
Affairs to contact their Russian colleagues to try to find out concrete
reasons for the closure of the Zemo-Larsi checkpoint.
“Such an unexpected closure of border without any agreements, due
to alleged repair or rehabilitation works never takes place in a
normal situation. By the way, I want to stress that practically, all
exports from Georgia to Russia have been interrupted by this action,
Armenia has been damaged from the economic standpoint,” Noghaideli
told journalists in Batumi July 8.
Noghaideli said that he has informed Armenian Prime Minister, who
also took part in the business forum, about this incident and hoped
that Armenia would also appropriately react to it.
Soon after Noghaideli’s statement, the Ministry of Foreign Affairs
held a press conference about the issue. Speaking at the briefing
Saturday, Deputy Minister of Foreign Affairs Merab Antadze confirmed
that Georgian border guards received information about the closure
by fax at midnight July 8.
“I would like to mention that, in 1993, Georgia and Russia signed an
agreement on the rules concerning founding, functioning and blocking
of checkpoints. It is indicated in the agreement that both sides
have to inform each other about any closures three months ahead,”
Antadze said at the press conference.
The statement, posted on the ministry’s website on July 8, says the
acting Russian ambassador was summoned to the Ministry of Foreign
Affairs of Georgia and was handed a protest note.
“Georgia has not received any appropriate notification. The Russian
side informed us two hours before the closure of the checkpoint, as
a result of which the situation at the checkpoint is difficult. The
Georgian side assesses this action of the Russian side as a violation
of their responsibilities, and expresses its protest in this regard. We
demand the obligatory fulfillment of the agreement and immediate
presentation of the deadline of the completion of the repair works,”
the protest note reads.

Azeri, Armenian presidents not scheduled to meet in St-Petersburg
TREND Information, Azerbaijan
July 10 2006
Source: Trend
Author: E.Husseynov
10.07.2006
The Presidents of Azerbaijan and Armenia were not invited to G8 summit
in St-Petersburg with respect to discuss the peaceable resolution
of the Armenian-Azerbaijani conflict over Nagorno-Karabakh, Novruz
Mammadov, the head of the Foreign Prelateships Department of the
Azerbaijani President’s Apparat, told Trend.
He voiced his surprise on the local media reports, spread on behalf
of the Azerbaijani Foreign Ministry on possible meeting of the leaders
of two conflict sides in St-Petersburg under the G8 summit.
“I do not have any concrete information in this respect. An invitation
by the leaders of G8 countries is the variant that suits us well,”
Mammadov underlined, adding that the chances for it are very low.
So far, no invitation has been made and I don’t know whether they
will be, Mammadov underscored.