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MediaDialogue Newsletter - 12/15/2006

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  • MediaDialogue Newsletter - 12/15/2006

    Yerevan Press Club presents www.mediadialogue.org web site, featuring the
    most interesting publications from the press of Armenia, Azerbaijan, Georgia
    and Turkey on issues of mutual concern. The latest updates on the site are
    weekly delivered to the subscribers.

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    NEW YEAR'S GAS CRISIS LOOMS FOR RUSSIA'S NEIGHBORS


    | "Turkish Daily News" newspaper (Turkey) | Stephen Boykewich, AFP |
    15-Dec-2006 |

    As a Jan. 1 deadline looms for Belarus and Georgia to either strike new
    deals for Russian gas or face possible supply cuts, Minsk is showing
    defiance and Tbilisi is lining up alternatives, but Moscow seems to hold all
    the cards, analysts said.

    Generous Russian gas subsidies to its former Soviet neighbors have fallen
    like dominoes in recent years as state gas giant Gazprom has sought to hike
    prices nearly to European levels -- currently averaging $235 (177 euros) per
    thousand cubic meters (TCM).

    It has been a bitter pill to swallow in countries like Ukraine, which was
    paying about $50 per TCM just a year ago, and had its gas supplies cut when
    it resisted Gazprom's demand for a more than fourfold increase.

    Now Georgia and Belarus are facing similar demands, and though each is
    resisting in its own way, both are running up against the hard reality of
    Russia's new energy policy: Moscow sets the terms, and its partners "take it
    or leave it," Alfa Bank analyst Chris Weafer said.

    "No matter how you look at it, the cards are all stacked heavily in Russia's
    favor and against Belarus and Georgia," Weafer told AFP.

    After witnessing the January cutoff to Ukraine and Russia's hardball tactics
    to gain state control of the foreign-run Sakhalin-2 energy project -- using
    environmental pressure to threaten a project shutdown -- "both countries
    know the game very well," Weafer said.

    "They will be under no illusions that Russia will cut gas supplies to get
    what it wants."

    What Russia wants in the case of Belarus is what it wanted in countries such
    as Ukraine and Armenia -- control over valuable gas transport
    infrastructure, analysts said.

    Armenian gas prices are set at $110 per TCM to the end of 2008, Gazprom
    spokesman Sergei Kupriyanov told Echo of Moscow radio in a recent interview,
    in exchange for ceding control of its gas distribution network.

    "It's a package deal in which we strengthen our position in Armenia, we get
    assets that interest us," Kupriyanov said.

    Minsk is trying hard not to give up control over its own pipeline network,
    including transport pipelines to Western Europe that are "its last trump
    card in bargaining with Russia," Belarussian analyst Tatyana Manenok told
    AFP.

    Belarussian President Alexander Lukashenko has threatened to break relations
    with Moscow if Gazprom does not back down from its current demand of either
    $200 per TCM of gas or 50 percent control over Belarussian pipeline company
    Beltransgas.

    But Moscow has already dealt Minsk a blow with yesterday's decision to
    introduce steep tariffs on its oil exports to its traditional ally.

    Factor in Minsk's reliance on cheap gas to prop up its manufacturing sector,
    and "the Belarussian economy, which is Soviet and unreformed, is set for
    collapse," Manenok said.

    Georgia has more leeway and is moving fast to secure enough gas from
    neighboring Azerbaijan, as well as Iran -- which has left Washington less
    than happy -- in an effort to become completely independent from Russia.

    Georgian energy officials will hold talks with Azerbaijani, Turkish and
    Iranian officials over the next several days to see if Georgia can cover its
    2007 needs for at least 1.7 billion cubic meters of gas even if Gazprom
    turns off the taps, an energy ministry spokesman told AFP.

    The catch, Alfa Bank's Weafer said, is that Georgia's alternative gas
    sources are likely to cost close to the $230 per TCM Russia is demanding.

    However painful Russia's neighbors are finding Gazprom's new pricing policy,
    "they've enjoyed a subsidy that was appropriate for the Soviet Union and was
    extended for 15 years."

    Now, "they're between a rock and a hard place," Weafer said.


    MANVEL SARGSYAN:NEITHER OF SOUTH CAUCASIAN STATES CARES OF NEIGHBORS


    | PANArmenian.Net News Portal (Armenia) | 14-Dec-2006 |

    Supposed changes in the balance forces in the region and optimistic
    statements on the possible settlement of the Nagorno Karabakh problem by the
    end of 2006 have revealed new directions and distribution of the power
    vector. External factors and first of all strengthening of the U.S. and
    European structures in the region and Russia's retreat from the dominant
    positions is being observed in the region. Analyst of Kavkaz center Manvel
    Sargsyan comments on the situation to PanARMENIAN.Net.

    How do you assess the balance of forces in the region?

    In fact there are no special moves in the intention to engage the South
    Caucasian states into a unified new system of new quality, which is being
    declared both by the states of the region and the international community.
    In this regard efforts of individual activity are observed. Georgia tries to
    settle its relations with Russia with harsh methods and integrate into the
    European structures. The President of Azerbaijan Ilham Aliyev put forward a
    program of total isolation of Armenia, hoping that he will be able to enlist
    support of international community. Armenia attempts to balance its
    relations between the West and Russia. Neither of the states of the region
    has time for its neighbors.

    Such an individual activation strengthens the dependence of regional states
    from this or that foreign factors. More and more the interests of foreign
    powers come in contact with this or that country in the region. Compromise
    between the conflicting sides becomes more and more complicated. For
    example, the more the Armenian leadership speaks about its readiness to
    serious compromises in the Nagorno Karabakh issue, the more the Azeri
    authorities strengthen their military calls. An appetite to get all but not
    a part through bargaining with foreign powers occurs.

    The states of the region stake not on compromise, but on exclusive foreign
    support for their own intentions. In this view, Azerbaijan's speaking of
    military solution of the conflict, which totally is put in a wider circle of
    necessary means, is needed to 'return the territories'. In October Ilham
    Aliyev stated that "if there is no progress in negotiation process any
    variants will be discussed, stressing it means that here Baku must think
    about military operation". It means that he, more precisely than earlier,
    pointed that military operation is the last possible step. It needs time
    which, in his opinion, works for Azerbaijan's favor.

    What exactly did the Azeri President mean?

    Ilham Aliyev has already announced of the necessity of total information,
    communicative, political and economic blockade of Armenia. He eyes such a
    program as an instrument to force Armenia to accept Azerbaijan's conditions.
    Aliyev's reiterates Azerbaijan's intention to press for the construction of
    the Kars-Akhalkalaki-Tbilisi railway bypassing Armenia as well as to
    establish high-level relations with all those states Armenia enjoy good and
    even friendly relations (for example with Iran). He also speaks of the
    intention to efficiently struggle against the Armenian lobby by opening
    consulates in the states with most active Armenian Diaspora. There are also
    plans to keep on pushing the Karabakh issue into the agenda of international
    organizations. That is to say, to fight at all fronts.

    However the problems of the region are not restricted to these two states.
    There also exist the EU's interests, especially after the signing of the
    Action Plan with all of three South Caucasian states.

    There are separate activity lines in the South Caucasus. It is the already
    mentioned EU program, that is the problem of engagement of the South
    Caucasian states into the European Neighborhood Policy. Here I have to
    underline the fact of separate communication vectors between the EU and
    regional states. Europe also has been lured by the predilections of
    individual initiatives of the states of the region. There is no smell of
    regional integration in South Caucasus, instead tendencies of separate
    integration lines are observed between EU programs and the regional
    countries. In the current period of global changes the civilized world goes
    to any experiments for the sake to preserve universal stability and
    encourage the growth of political quality throughout the globe.

    The old principles of stability ensuring work get worse and worse and it is
    necessary to find methods to transform global order on the basis of less
    destructive processes to prevent appearance of different uncontrollable
    territories. We notice that these issues occupy bigger and bigger place in
    the geopolitics of Western states. The South Caucasus, in this regard, is
    not the biggest problem. We should not also forget about the chain of
    disruptiveness - Iraq, Iran and Lebanon. The Caucasian problems are more
    local.

    Still there is one more moment - the relationship of the South Caucasian
    states with Russia. For example, Russia has already set a task to Armenia -
    make your choice. Its meaning is difficult for comprehension, not only for
    the people of our region but also for Russia herself. I do not think that
    anybody fully understands what is right, what is not. The work is going on
    as a habit, and the characters of reciprocal demands do not display
    well-shaped logic: this is the specific character of period of changes. From
    time to time we notice that the presidents of regional countries just do not
    understand how to behave, what others want from them. There is no iron logic
    - there are only amorphous approaches and bad knowledge of own interests.

    Nagorno Karabakh has adopted the Constitution. How can it influence on the
    political situation in the region?

    With the adoption of the Nagorno Karabakh Constitution a new factor occurred
    in the region, which different international bodies and Azerbaijan can use.
    This factor gives a lot of possibilities both to Armenia and Nagorno
    Karabakh. The referendum can remain unrecognized, but it is not easy to
    ignore the fact of collective will of the people of this territory. At least
    the referendum is the leading law of this territory, and to qualify it as
    illegal is not easy. Nobody can do it - the world has not seen anything more
    legal than the national law. After all we can qualify as illegal all the
    legal acts of Azerbaijan but it makes little sense.

    Nations live their life. All the others can define their attitude towards
    the actions of this or that nation. They can recognize their right. The
    other nations can also try forcefully to lead away a nation from its own way
    with disdain. If a nation has chosen its way it must prove to itself and all
    the others the effectiveness of that very way and be able to defend its
    choice. Up till now the NKR was able to do that: time will show if there is
    a will to continue that initiative. And the world always recognizes those
    who deserve it.


    GEORGE BUSH "DEFINED" THE PLACE OF AZERBAIJAN


    | "Zerkalo" newspaper (Azerbaijan) | R. Mirkadirov | 14-Dec-2006 |

    He calls on us to get integrated in EuroAtlantic Space

    Many media, commenting on the statement made by President George Bush when
    giving credentials to the Ambassador Extraordinary and Plenipotentiary to
    USA Yashar Aliev and disseminated by the channels of "Azertaj" state news
    agency, emphasized the support expressed by the Head of the White House for
    the territorial integrity of Azerbaijan. Public recognition and support of
    the territorial integrity of Azerbaijan by US President is undoubtedly a
    notable event, though it is this part of his statement that Bush viewed as a
    protocol phrase revealing the position of the current American
    administration on Armenian-Azerbaijani conflict. Meanwhile, when
    communicating with the new ambassador of Azerbaijan, George Bush made more
    implicative statements as to the long-term plans of US on Azerbaijan.

    In general, we should note at the outset that during the ceremony of
    granting nine other credentials, US President paid quite large attention to
    Azerbaijan, which by itself is a significant factor. Still it is not a
    matter of the "mass quantity" but the content of these statements.
    Emphasizing the big role of Azerbaijan in fighting terrorism, George Bush
    qualified our country as a "reliable partner" of USA, "The future of
    Azerbaijan is linked to the EuroAtlantic community, and USA will be
    supporting the efforts of Azerbaijan in the sphere of developing ties with
    NATO and EU".

    This is what we should have considered right away. The Head of the White
    House, as straightforward and sincere as only an American can be, clearly
    defined the future place of Azerbaijan in military-political system of
    international security. In his opinion, it turns out that our place is in
    NATO, which makes the author of these lines quite happy. It would be good if
    official Baku on its behalf also gets determined on the foreign policy line
    of our country.

    It is not very hard to understand US President. Today, Russia and USA have
    one "outpost" each in the South Caucasus - Armenia and Georgia. While, the
    "outpost" is still not a reliable and integral "front line", it is a sort of
    a "stronghold". As for Azerbaijan, it is still wary of "falling under the
    trumpets", and therefore is still in doubts. Meanwhile, without Azerbaijan
    it is impossible to create a reliable "front line". For this reason, George
    Bush has to encourage official Baku by stating that "USA will be supporting
    the efforts of Azerbaijan in developing the relations with NATO and EU",
    similarly to the situation in Georgia.

    The Head of the White House does not even conceal the reason why USA
    attaches vital importance to an integral "front line" on the border with
    Russia. As reported by "Turan", George Bush thinks that Azerbaijan plays a
    key role in the energy corridor to Europe as a supplier of energy resources
    and a transit country. In the coming years, the significance of this
    corridor will be growing. USA supports economic and political reforms of
    Azerbaijan, which aim at ensuring long-term security and stability. In other
    words, the West and USA in the first place is to control the sources of the
    energy carriers and the routes of their supply to Europe, especially in the
    light of the recently increased "energy blackmail" by Russia.

    It is not accidental that George Bush views the necessity of settling
    Armenian-Azerbaijani conflict from the point of ensuring regional security,
    since it is only thus that the situation in the South Caucasus countries may
    fully be delivered of the Russia's control.

    Referring to Karabagh conflict, Bush stated that this issue keeps disrupting
    the regional security in the South Caucasus. He called on Azerbaijan to
    continue seeking peaceful ways of conflict settlement. He also mentioned the
    necessity of searching for the paths of establishing trust between the
    nations of Armenia and Azerbaijan. At the same time, he expressed obvious
    support for territorial integrity of Azerbaijan. USA as one of the OSCE
    Minsk Group Co-chairs keeps working with the leaders of Azerbaijan and
    Armenia to speed up peaceful resolution of the conflict.

    In other words, paying more attention to Azerbaijan than it is due by
    protocol, in the conversation with our ambassador George Bush clearly
    defined the goals of American policy on our country and the methods of their
    achievement. Thus, the Americans do not have "incomplete missions". In case
    of a problem emerged, they act on the principle "who if not us". If it is
    good or bad is another matter.

    However, USA clearly knows what is needed for meeting the goal set, which
    unfortunately is not true for Azerbaijan. We should just remember certain
    steep turns, which were traced in the foreign policy line of official Baku
    all through 2006. For instance, the year was started from almost brotherly
    relations with Russia, while by the end of the year they became rather tense
    to put it mildly. It should have been expected. We should have kept in mind
    that "being friends" with Russia is costly as a rule, since the latter more
    frequently puts the proposals which are impossible to agree. This time it
    was the same. Russia suggested that Azerbaijan become a participant of the
    "crusade" against Georgia and torture to cold death the "orthodox Georgian
    brethren", "disloyal" to the Kremlin. May be Baku really did not expect such
    an outcome but they really could not show solidarity on this issue with the
    Kremlin. It is not only that they would have to leave "brother" Georgia
    alone in cold winter, with almost 500 thousand Azerbaijani residents, with a
    Baku-Ceyhan oil and Baku-Erzrum gas pipelines passing via its territory. The
    problem is that they would have to doom to freezing the Georgia, which today
    is the only reliable "outpost" of USA in the South Caucasus. While this is
    what official Washington would not forgive to official Baku.

    In other words, Azerbaijan had no choice. Official Baku, placed between the
    "devil and the deep sea", chose the least of the two evils.

    The problem is of a different type. The threats and challenges of the
    Russian imperial policy on CIS space, especially in the South Caucasus, are
    almost constant. They do not disappear and are unlikely to in the near
    future. They simply vary depending on who is at power in Baku or Moscow. It
    is for this reason that Azerbaijan needs to quickly understand what should
    be its military political system for ensuring security, as Mr. Bush
    suggests. It is to be done not out of big love for USA or the West at large
    but at least for the sake of the primitive "self-preservation instinct".

    Indeed, in this case certain difficulties will emerge, related to the
    hostile attitude of Russia and Iran. However, it would be much better to
    "provoke" such aggravation in a so-called "peace time", which is
    "convenient" for us, than to act in the time of trouble after crisis
    situation have emerged. The crisis situations need to be treated through
    ensuring maximum security of own, supported by clear international legal
    commitments.


    ONE MORE UNRECOGNIZED REFERENDUM


    | "24 Saati" newspaper (Georgia) | Dmitry Avaliani | 12-Dec-2006 |

    Karabagh Joins the Race

    The parade of separatist referenda on the post-Soviet space is still
    underway. On Sunday, the Mountainous Karabagh voted for adoption of the new
    Constitution, in accordance with which Mountainous Karabagh is an
    independent state. The results of the referendum were not recognized by the
    international community. Baku thinks that the referendum held is a part of
    the performance staged by Moscow.

    The referenda parade was a specific consequence of the address by Russian
    President Vladimir Putin. Several months ago to resolve Georgia's
    territorial problems, he proposed to the country's authorities holding
    referenda in the self-proclaimed Republics. At the same time, he brought the
    example of Chechnya, where the referendum was held after forced
    establishment of Moscow's jurisdiction. Following this statement of the
    Russian President, the referenda on the issue of independence were held in
    Pridnestrovie (in October, already seventh time), South Ossetia (in
    November, second time). While in Karabagh, it is the first Constitution that
    the authorities decided to put to public debate.

    In accordance with the results announced, 98 percent of Mountainous Karabagh
    population voted for the Constitution and independence as an outcome. The
    process was monitored by about 150 observers from the self-proclaimed
    Republics, representatives of Russian and European NGOs. The Secretary
    General of the Council of Europe Terry Davis, as it was expected, stated
    that the referendum organized by the authorities of Mountainous Karabagh is
    illegal, and its results will not be recognized by the international
    community. He thinks that the political decision on Mountainous Karabagh
    status may be achieved only during the negotiations between the Presidents
    of Azerbaijan and Armenia.

    The Chairperson of the Sub-committee on Mountainous Karabagh of the CoE
    Parliamentary Assembly Lord Russell Johnson on his behalf stated that the
    referendum in Mountainous Karabagh should be conducted in accordance with
    the interests of the conflicting sides, while the Sunday referendum violated
    this principle. The European structures gave the same evaluation to the
    referendum in South Ossetia and Pridnestrovie, and will naturally refuse to
    recognize the results.

    "The referendum held in Mountainous Karabagh has no legal force and is
    illegitimate", Azerbaijani Minister of Foreign Affairs Elmar Mamediarov
    stated. Naturally, the President of the self-proclaimed Republic Arkady
    Ghukasian keeps to a different point of view and thinks that the new
    Constitution will have a positive impact on the settlement process.

    In a special address Armenian President Robert Kocharian congratulated the
    Karabagh population on adopting the Constitution. R. Kocharian noted that in
    the referendum the Karabagh people fixed their striving for freedom. He
    thinks that in compliance with international standards, adoption of the
    Constitution became one more basis for building Karabagh statehood.

    According to the Azerbaijani political scientist, Head of the Department of
    Conflict Management and Migration of the Peace and Democracy Institute Arif
    Yunusov, the Karabagh referendum is only a "follow up of the parade of
    referenda, which were held this year on the post-Soviet space by Moscow's
    order". In his opinion, these are the trump cards of Russia in the struggle
    against the Western states. "Simply that in this game Karabagh, South
    Ossetia and Pridnestrovie are only pawns", Yunusov said.

    At the Karabagh referendum, unlike that of South Ossetia, Abkhazia and
    Pridnestrovie, there were no observers from the official structures of
    Russia, the Russian Duma. Overall, recently Russia paid Karabagh little
    attention as regards the support of separatist regimes. The Karabagh
    government was quite passive in the issues of the joint activities with the
    governments of Abkhazia, South Ossetia, Pridnestrovie.

    "Russia's position on Abkhazia, South Ossetia, Pridnestrovie does not differ
    from its position on Karabagh", member of the State Duma Constantine Zatulin
    stated. In his opinion, he opts for Russia's recognition of the
    sovereignties. Probably, Russia will be driven towards support of
    Mountainous Karabagh through tension in the relations with Azerbaijan, which
    in its turn is conditioned by Baku's refusal to be involved in the
    anti-Georgian energy blockade.

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