VLADIMIR PUTIN IS TIGHTENING THE CIRCLE OF HIS FRIENDS
by Vladimir Soloviov, Mikhail Zygar
Translated by A. Ignatkin
Source: Kommersant, August 15, 2006, pp. 1, 5
Agency WPS
What the Papers Say Part B (Russia)
August 15, 2006 Tuesday
The Launch;
A regional alternative to the World Trade Organization; An informal
summit of the Euro-Asian Economic Community opens in Sochi today. The
presidents of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and
Belarus have confirmed their attendance. Armenian leader Robert
Kocharjan and new Ukrainian Prime Minister Viktor Yanukovych have
been invited.
An informal summit of the Euro-Asian Economic Community opens in
Sochi today. The presidents of Kazakhstan, Kyrgyzstan, Uzbekistan,
Tajikistan, and Belarus have confirmed their attendance. Armenian
leader Robert Kocharjan and new Ukrainian Prime Minister Viktor
Yanukovych have also been invited to Sochi.
The Kremlin attaches considerable importance to the forthcoming
meeting. The Russian authorities want it to demonstrate that they are
not concerned about the failure of World Trade Organization (WTO)
membership talks. When negotiations with the United States broke
down on the eve of the G8 summit in St. Petersburg, Moscow decided
to organize an “alternative WTO” – based on the Euro-Asian Economic
Community (EAEC).
In fact, Russia began demonstrating exactly how it perceives the
future economic integration within the framework of the EAEC even
when preparations for the summit were under way. Mounting mutual
dependance of the neighbor states (with both states’ consent, that
is) for starters. Mounting pressure applied to the neighbors still
resisting as phase two. Expansion into the countries that have so
far escaped being in the focus of Moscow’s attention afterwards.
Traditionally for the Kremlin, energy sphere will become the number
one tool and lever. That is why establishment of the EAEC common
energy market is going to become the central issue of the informal
summit that will end on August 17.
Kazakh media outlets report on the eve of the Sochi summit that a
colossal project of water supply for Central Asia – Moscow’s latest
initiative – will become the most important issue on the agenda.
Water has always been a strategic resource in and for Central Asia.
Almost 80% of the water resources of the region are concentrated in
Tajikistan and Kyrgyzstan while the major consumers are Uzbekistan
and Kazakhstan. Tension usually mounted in summertime when water was
in a higher than usual demand but Kyrgyzstan began storing it up in
reservoirs for electric power production in winter. Kazakhstan and
Uzbekistan inevitably brought economic leverages into play to bow
Kyrgyzstan, dependent on exported energy as it is, to their will.
The Kremlin is trying to turn the tables now and make use of the
opportunities this situation is presenting. The idea of an Eurasian
water-energy consortium was first conceived of in Moscow in early
summer. Sources in Moscow and Astana imply that the project may be
financed by the Eurasian Bank Russia and Kazakhstan established not
long ago… Inter RAO EES, a subsidiary of the RAO Unified Energy
Systems, is already building the Sangtuda 1 hydroelectric power plant
and Russian Aluminum the Rogun hydroelectric power plant in Tajikistan.
Realization of the water-energy consortium initiative will put in the
Kremlin’s hands a major geopolitical tool that will certainly boost
its positions in Asia. On the other hand, it will pave way to energy
expansion into the Indian, Pakistani, and Chinese markets.
Eager to do its neighbors great favors, Russia has never yet failed
to encounter one and the same old problem. A great deal of CIS
countries are in the focus of Washington’s interests and attention,
and Vladimir Putin will have to have “friendly chats” with the CIS
leaders who seem to be on too intimate terms with the United States.
Russia has several “problematic” countries to deal with in this
respect and Kyrgyzstan is one of them. Encouraged by Moscow, Kyrgyzstan
asked the United States to revise the terms of the presence of Khansi
airbase in Bishkek airport Manas in 2005. In short, Bishkek wanted
$207 million in rent per year. According to our sources, the Kremlin
feared at first that Washington would accept the new terms but the
latter turned the demand down. Moscow expected that it would result in
curtailment of American military presence in Central Asia but Bishkek
let it down. All of a sudden, it abandoned its new demands and let
the Americans stay for a much lower price that it had demanded at
first. The Kyrgyz-American talks ended on July 14. Under the terms
of the new agreement, Washington is expected to pay $150 million per
year for the airbase. Putin will certainly expect an explanation from
President Kurmanbek Bakiyev of Kyrgyzstan now.
One other subject will be raised in Sochi. Russia will do its best
to persuade Kyrgyzstan not to join the HIPC (Heavy Indebted Poor
Countries) program under the aegis of the World Bank and International
Monetary Fund. Kyrgyzstan will be told that membership of the program
will cost it tis sovereignty and place it at the beck and call of
the United States. Moscow will offer Kyrgyzstan dependence on Russia
instead.
Yanukovych as a special guest at the informal summit is the Kremlin’s
other potential headache. According to what information is available at
this point, Putin invited the new Ukrainian prime minister to Moscow
because of the alarming rumors from Kiev that Yanukovych’s contacts
with American negotiators become more and more frequent and that the
sides have all but reached mutual understanding already.
Neither do Yanukovych’s latest statements permit the Kremlin to
relax. The Ukrainian prime minister is resolved to demand a lower
gas price from Russia: $95 per 1,000 cubic meters. This is not
an initiative guaranteed to find Putin or Gazprom particularly
sympathetic. Last but not least, Moscow cannot help noticing that
Yanukovych, the erstwhile “pro-Russian candidate,” isn’t even thinking
of keeping his central pro-Russian campaign promises. (On a working
visit to the Crimea on August 11, Yanukovych announced that making
Russian the second state language is not possible for the time being.)
There are some guests expected in Sochi whose pro-Russian stance
is not something Putin doubts, but even that doesn’t make Russia’s
relations with their respective countries exactly cloudless.
The Russian-Belarusian talks promise to be particularly difficult.
Moscow is resolved to make no more advances to Minsk. Establishment of
a union state is one of the worst problems in the Russian-Belarusian
bilateral relations. Russia wants a common currency introduced in
both countries as soon as possible but Belarus never misses a chance
to delay and impede the process. Alexander Lukashenko demands from
Russia a recompense for the budget losses the forthcoming unification
of the two countries will entail. Belarusian economists maintain that
processes of integration has cost Belarus almost $2 billion in the
last twelve months. Russia, however, has an ace up its sleeve. The
Kremlin is enraged – and doesn’t bother concealing it – that Belarus
is exporting Russian gas and oil products to the third countries
without compunction. According to official estimates alone, Belarusian
petroleum product exports increased by almost 60% in January-May 2006,
to $3.2 billion. More than ample compensation for what losses Belarus
claims it is suffering.
There is one other factor that doesn’t make Russian-Belarusian
bilateral relations any more easier. When Lukashenko was re-elected
this spring, Gazprom announced that the price of Russian gas sold
to Belarus should be raised to match the European average. Moscow
is even prepared to discuss the matter, as long as Beltransgaz turns
over some elements of the gas transportation framework to Gazprom.
But official Minsk wouldn’t hear of it, so the gas price could soar
from $46 to $180-200 per thousand cubic meters. This would be a
near-fatal blow to the struggling Belarusian economy.
Lukashenko has made some frantic attempts to establish a dialogue
with Iran and Venezuela and even evinced vivid interest in the project
of the pipeline from Iran to Pakistan to India. And yet, it is clear
that all these contacts are merely a show, an attempt to make Moscow
more amenable.
Rapprochement with Islam Karimov of Uzbekistan, another “faithful
friend” of Russia, is not following the script Russia has chartered.
Tashkent found himself in international isolation after the massacre
in Andijan. Russia moved in, supported Karimov wholeheartedly, and
even signed a treaty of the relations of allies with him. Expecting
Uzbekistan to sell Russia its major assets in return. Well,
considerably glitches have developed in the process. Establishment
of an uranium-mining joint venture to develop the Aktau deposit came
to grinding halt because of the Uzbek redtape on the government level.
The future of the American-Uzbek Zarafshan-Newmont is another
unknown. US-based Newmont Mining withdrew from the project when the
Uzbek authorities slapped back tax claims on it ($11 million for 2005
and $37 million for 2002-04). Moscow hoped that Interros would take
the Americans’ place, but no progress at all has been made yet…
In fact, Moscow has a strong argument to be used in the disputes with
Uzbekistan. The matter concerns the group of Uzbeks currently in the
detention cell in the Russian city of Ivanovo. Suspecting them of
organization of the revolt in Andijan, Tashkent has been clamoring
for their extradition for a year now. Russia is prepared to turn the
Uzbeks over to Tashkent but only in return for serious condescensions
on the part of Uzbekistan. After all, the Russian authorities have
already granted the men in question the status of political refugees,
and their extradition to Uzbekistan will almost certainly make trouble
for Moscow’s image in the West (not to mention political problems it
will generate).
On the other hand, damage to its image in the eyes of the international
community is not what worries Moscow that much nowadays. Mad at the
West, the Kremlin is out to nail together a team of its own. Should
it set the West seething, Moscow will be only pleased.

ISRAEL SUPPORTED BY USA, TURKEY AND AZERBAIJAN, POLITICAL SCIENTIST SAYS
Panorama.am
15:47 15/08/06
Gevorg Torosyan, member of World Committee of Armenian Sympathizers
of Lebanese Resistance, informed reporters that 70 bridges and 80
percent of roads in Lebanon were damaged during 34 days of military
actions. The Israeli air combat has blown up the oil storages of
Lebanon causing ecological disaster in the Mediterranean Sea. Torosyan
told a press conference today that 1071 Lebanese people were killed
and another 3628 injured during the war.
Igor Muradyan, a political analyst, believes that Israel would not
start war against Lebanon if not the silent acceptance of the Arab
world.
Levon Melik-Shahnazaryan, a political scientist, assures that 3
countries have supported Israel in this war – the United States of
America, Turkey and Azerbaijan. The political scientist believes that
Israel received 80 percent of its fuel from Baku-Tbilisi-Jeyhan oil
pipeline. He says even Azerbaijan does not refute this fact.
Melik-Shahnazaryan said Israeli tanks and airbuses would be only
scrap metal without Azerbaijani oil.

EVENTS DEDICATED TO 15th ANNIVERSARY OF INDEPENDENCE OF ARMENIA TO BE HELD AUGUST-OCTOBER
Armenpress
Aug 15 2006
YEREVAN, AUGUST 15, ARMENPRESS: Armenian Education and Science Ministry
is going to conduct a set of events in August-October dedicated to the
15th anniversary of the Armenian Independence. Pupils and students
of the educational establishments of the provinces and Yerevan will
participate in the events.
Narine Hovhannissian, head of the Education and Science Ministry’s
general education department, said today at a press conference that all
the events are of patriotic, familiarizing nature. From August 17 to 20
second pan-Armenian educational conference will be held in Tsakhkadzor,
from August 20 a school competition on writing a composition on
“My Free Homeland” will be announced. The best compositions will be
published in “Krtutyun” (“Education”) and “Kanch” newspapers.
On September 1, the Day of Knowledge, open lessons dedicated
to the 15th anniversary of the independence will be conducted in
schools. Besides exhibitions of works of students and pupils will be
held; on September 21 a march to Yerablur will be organized.
Events will be held in the sport sphere as well, particularly
championships in volleyball, basketball etc. will be
conducted. Besides, in the schools the pupils will meet with
state-political figures, in higher educational establishments
conferences, lectures will be conducted.

MINISTRY OF EDUCATION GETS READY FOR INDEPENDENCE DAY
Panorama.am
14:45 15/08/06
The ministry of education and science called a press conference today
to inform the public about the events they are going to organize
connected with 15th anniversary of Independence in Armenia. Narine
Hovhannisyan, secondary education department head, said they are
developing a concept paper to bring education and patriotic upbringing
together. “Only then we can accomplish success,” she said. The ministry
of education has instructed all schools to conduct a lesson on 15th
anniversary of Independence Day in Armenia on the first day of classes,
September 1. The ministry plans meetings with political figures and
Artsakh war freedom -fighters during classes. They will also organize
a march to Yerablur, memorial cemetery of freedom fighters, on the
Independence Day.
Students will also be enrolled in essay writing competition on the
subject “My Free Country.”
From: Emil Lazarian | Ararat NewsPress

ROBERT KOCHARIAN MEETS RUSSIAN PRESIDENT VLADIMIR PUTIN
Armenpress
Aug 15 2006
SOCHI, AUGUST 15, ARMENPRESS: The delegation headed by the Armenian
President Robert Kocharian arrived today in Sochi to participate
in the non-official summit of the Eurasian Economic Association
conducted in Sochi August 15-17. Armenia is participating in the
summit as an observer.
At the airport Robert Kocharian was met by the governor of Krasnodar
province Alexander Tkachov, Russian deputy foreign minister and
executive secretary of Eurasian Economic Association Grigori Rapota
and Armenian consul in Sochi Vardan Azoyan.
Armenian president met with his Russian counterpart at the latter’s
summer residence “Bocharov Ruchei”.
The two presidents discussed topical issues within their bilateral
relations, including economic, cultural and a number of regional
issues. Vladimir Putin highly underscored the positive dynamic
development of cooperation in trade sphere between the two countries
and expressed his conviction that the Russian-Armenian business
partnership will prove successful.
In his turn, Robert Kocharian emphasized the importance of establishing
effective cooperation mechanisms in the communication, transport and
investment sectors. Vladimir Putin and Robert Kocharian also noted
about the successful conduction of events within the framework of
the Year of Armenia in Russia.
Members of the Eurasian Economic Association are Kazakhstan,
Kyrgyzstan, Russia, Belarus, Tajikistan and Uzbekistan. Armenia,
Moldova and Ukraine are observers.

ONLY 11 RECEIVE HIGHEST 20 POINTS IN MATH
Panorama.am
14:44 15/08/06
Levon Lazarian, minister of education and science, paid a visit to
Math exam today. This is the last day of this examination at higher
educational establishments. The examination committee managed to
check about 6800 tests in the course of 23 days.
Today, 253 applicants took examination in Mathematics, and 14 people
were registered as absent. The examination committee says the absent
students may have already failed previous exams. The committee says
few students were considered as exceptionally bright, since only 11
out of 6800 received the highest 20 points.

EXHIBITION OF WORKS OF HRAYR HAWK KICKS OFF
Armenpress
Aug 15 2006
YEREVAN, AUGUST 15, ARMENPRESS: An exhibition of distinguished Canadian
Armenian photographer Hrayr Hawk kicked off today at the Armenian
center of aesthetic upbringing. About 45 new works of the photographer
are presented at the exhibition which will last until August 22.
The photographer said in his photos he wanted to reflect the beauty
of woman “as human expression of beauty of the nature.” “Each person
follows the beauty with his/her eyes and I do the same, at the same
time trying to pass it to everyone by taking pictures of naked women,”
Hrayr Hawk said.
The photographer worked on his photos for about five years. In near
future he is expected to publish an album in China in which he will
include the works presented at the exhibition.
Besides photos of women, Hawk also has works presenting relations
between Armenia and neighboring countries. He has already published
“Armenia in Georgia” album, soon another one “Armenia in Georgia”
will be published. Besides, in September an exhibition of his works
entitled “Armenia and Artsakh” will be organized.

APPLICANT SAYS ACCEPTANCE COMMITTEE SUBJECTIVE
Panorama.am
15:39 15/08/06
Gayane Gasparyan, acceptance committee chairwoman in English language
(oral examination), says they consider communication skills in English
language while examining an applicant. Gasparyan is neither content
nor very dissatisfied with the knowledge and skills of the applicants,
saying, “they are prepared in general.” About 1100 applicants received
11-16 points out of 20. Only 22 applicants could get the highest 20
points. Even they, Gasparyan says, “are not as bright as last year
applicants, who received the highest 20 points.”
The applicants, who have received low scores, complained that the
commission was subjective. They say the professors do not listen what
they say to the end. “They had decided to give a low mark beforehand,
and so they did,” Tatevik Sargsyan, an applicant who received 10
points, complained. Tatevik also said that when she tried to defend
her rights, she was ordered “not to argue.”
The parents, who gathered in front of the examination buildings,
say there is no fairness. “Those who give bribes, get high scores,”
they claim.
From: Emil Lazarian | Ararat NewsPress

ARMENIAN PARLIAMENT SPEAKER: TURKISH AND AZERI MEDIA REPORTS HAVE NOTHING TO DO WITH THE REAL CONTENT OF THE RESPONSE I GOT FROM PIERRE LELLOUCHE
Yerevan, August 12. ArmInfo. Armenian Parliament Speaker Tigran
Torossyan refutes the reports by Turkish and Azeri media that NATO PA
President Pierre Lellouche has allegedly sent him a letter of protest
against “the disrespect they showed for the Turkish MP, NATO PA Vice
President Vahid Erdem in Yerevan.”
In a talk with ArmInfo, Torossyan says that these allegations have
nothing to do with the real content of Lellouche’s letter. He says
that the Armenian side has sent Lellouche a letter informing him of
the very unbecoming behavior of Vahid Erdem in Yerevan. “Mr.
Lellouche answered very laconically and tactfully. He said no single
word blaming the Armenian side or protecting Mr. Erdem.”
To note, it was exactly Erdem who told APA news agency (Baku) about
the “content” of Lellouche’s letter. Erdem said that “Mr. Lellouche
expressed his protest to Mr. Torossyan because during my stay in
Armenia they deprived me of office car and bodyguards and searched me
even though I had diplomatic passport. Though being soft, the position
of Mr. Lellouche has satisfied me.” Erdem also accused Torossyan of
distorting facts in his letter to Lellouche.
To remind, NATO PA delegation led by Erdem visited Yerevan in mid
June. The key reason for Erdem’s indignation was not the alleged
“disrespect” for him but Torossyan’s stopping his attempt to prove
that the Armenian Genocide “is just a fiction.”

RAILWAY COMMUNICATION BETWEEN ARMENIA AND GEORGIA RESTORED
Yerevan, August 12. ArmInfo. The passengers of the Batumi-Yerevan
train that was forced to stop at Sadakhlo because of derailed cargo
train will be taken to Batumi by buses, says the representative of
the Railway Department of Armenia Hakop Khrimyan.
The Georgian side is taking measures to restore the communication by
this evening. The train will reach Batumi by the Aug 13 morning. The
next train will leave Yerevan according to the schedule.