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$1 billion for Islam Karimov

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  • $1 billion for Islam Karimov

    Agency WPS
    What the Papers Say. Part B (Russia)
    June 17, 2004, Thursday

    $1 BILLION FOR ISLAM KARIMOV

    SOURCE: Vremya Novostei, June 17, 2004, p. 2

    by Arkady Dubnov

    President Vladimir Putin began his four-day Central Asian tour with a
    working visit to Tashkent yesterday. Putin's itinerary includes three
    summits in a row. Today a summit of the Shanghai Cooperation
    Organization (SCO) will take place in the capital of Uzbekistan,
    attended by the leaders of Russia, China, Kazakhstan, Kyrgyzstan,
    Tajikistan, and Uzbekistan. Hamid Karzai, head of the interim
    administration of Afghanistan, is invited to the summit as well.

    The summit will adopt the Provision on Observer Status for the SCO,
    and experts believe that Afghanistan will be given this status in the
    near future. "We will discuss how we can help Afghanistan organize
    elections, suppress anti-government actions, and restore its national
    economy," Putin said.

    It is apparently too early yet to talk about what the SCO can do to
    help the Afghanistan administration "suppress anti-government
    actions." Karzai is highly unlikely to appeal to members of the SCO
    to send armed contingents. It is clear that this is the duty of the
    US-led Western coalition. Karzai was in Washington the other day and
    asked the coalition to boost its military presence in Afghanistan.

    Astana will come after Tashkent. Summits of the Euro-Asian Economic
    Community (Russia, Belarus, Kazakhstan, Kyrgyzstan, and Tajikistan)
    and the CIS Collective Security Treaty Organization will take place
    in the capital of Kazakhstan on June 17 and 18. President Robert
    Kocharjan of Armenia will join other national leaders on June 18.

    June 16 was Russian-Uzbek day in Tashkent. Two documents were signed:
    a strategic partnership treaty between Russia and Uzbekistan, and a
    production sharing agreement between the Russian-Uzbek consortium
    headed by LUKoil and the government of Uzbekistan (the
    Kandym-Khauzak-Shady gas project in Uzbekistan).

    Sources in the Russian delegation say that the "strategic" treaty was
    President Islam Karimov's initiative. In other words, official Moscow
    insists that it did not force itself on Tashkent as a partner, that
    it was Tashkent that aspired for partnership.

    Putin was extremely tactful yesterday. "President Karimov himself
    participated in work on the treaty," he said. "I never thought it
    would be ready in so short a time." It appears that this is a
    framework treaty stipulating "facilitation of equal strategic
    partnership" in political, military technology, economic, and
    humanitarian spheres carried out on the basis of "appropriate
    accords."

    One article of the treaty is particularly interesting. It states that
    "signatories enable each other to use military facilities on their
    territories on the basis of special accords." It is hard to imagine
    Uzbekistan in need of military bases on the territory of Russia.
    Which means that it was Tashkent that pledged to enable Moscow to
    make use of military facilities on the territory of Uzbekistan. This
    alone may justify strategic nature of the Russian-Uzbek partnership
    proclaimed in Tashkent yesterday. The remaining articles of the
    treaty merely give definitions of close cooperation between the two
    countries.

    The agreement LUKoil President Vagit Alekperov signed in Tashkent
    appears much more interesting. It means that the Russian oil company
    is coming to Uzbekistan to stay - and handle natural gas there.
    LUKoil will operate Uzbek gas deposits for the next 35 years,
    investing up to $1 billion in them. Known gas resources on the
    territory in question amount to almost 3,000 billion cubic meters,
    and top annual production should reach 8.8 billion cubic meters. Gas
    production is to begin in 2007.

    LUKoil will sell its part of the gas to Gazprom. To accomplish that,
    the company intends to build a part of a pipeline connecting the area
    with the Central Asia - Center pipe running across Uzbekistan. The
    Russian oil company views the Uzbek project as strategic because "it
    stands for transformation of LUKoil into an oil and gas company," to
    quote Alekperov.

    Putin emphasized yesterday that "it is not Russia that is investing
    in Uzbekistan, it is Russian companies." Karimov immediately parried
    by saying that he as president guaranteed security of the
    investments. It is common knowledge in fact that foreign companies
    have a chance in Uzbekistan only with the Uzbek leader's personal
    guarantees.
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