CDI Russia Weekly-#187 4 January 2002 Edited by David Johnson Center for Defense Information 1779 Massachusetts Ave. NW Washington DC 20036 phone: 202-797-5277; fax: 202-462-4559 djohnson@cdi.org The CDI Russia Weekly is an e-mail newsletter that carries news and analysis on all aspects of today's Russia, including political, economic, social, military, and foreign policy issues. With support from the Carnegie Corporation of New York and the MacArthur Foundation, CDI Russia Weekly is a project of the Washington-based Center for Defense Information (CDI), a nonprofit research and education organization. CDI Russia Weekly Home Page (with archive): http://www.cdi.org/russia/ Visit CDI's web site: http://www.cdi.org Contents: 1. Interfax carries 'text' of Putin New Year's message. 2. AFP: Eastern Europe digs out from snow as cold deaths climb. 3. gazeta.ru: Pre-Christmas Polls Show Change of Hearts in Russians. 4. Nezavisimaya Gazeta: Lidia Andrusenko, WHAT IS THE BASIS OF THE PUTIN PHENOMENON? President Putin's approval rating may soon start sinking. 5. RFE/RL: Michael Lelyvedl, Russia: Economy And Oil Prices Remain Open Questions. 6. Chicago Tribune: Colin McMahon, NATO, Russia maneuver as Baltics watch. 7. Asia Times: Sergei Blagov, Russia's global player status uncertain. 8. www.russiaproject.org radio series: What's Next for the Russian Military? 9. PONARS: Pavel Podvig, The End of Strategic Arms Control? ******* #1 Interfax carries 'text' of Putin New Year's message MOSCOW. Jan 1 (Interfax) President Vladimir Putin following an established tradition addressed the nation shortly before the beginning of New Year. Here is the text of the message obtained by Interfax: "Respected citizens of Russia, Dear friends, This year was generally successful for Russia in home affairs and in foreign policy. And each day of it took us further away from the difficult time of economic and social upheavals. All of us have done much to this end. We worked together to make life more predictable. We achieved small but visible results. The year 2001 noticeably differed from the previous one. Not only was the tendency of economic growth preserved but the life of our people improved though even slightly. We managed to demonstrate that the fairly good results of the previous year had not been accidental. That they had not been a passing episode of our life. Important headway was made in the outgoing year. A legislative foundation was formed for new serious steps in economic and social policy. Decisions were made that should influence the business climate in the country in the long term, for several years ahead. The world regarded Russia with greater trust and respect. There was a better understanding of us. It become evident that the consistent struggle against terrorism is prompted not only by our national interests but also a global threat. The world community responded with unprecedented intensive international cooperation to the latest challenge of terrorists. Countries united and together with Russia came to the defense of peace, calm and life itself. Dear friends, Not everything we planned has been done. So far there are more unresolved things than achievements. Not all citizens of this country started living better in the outgoing year. And not everyone is capable of achieving that by himself without the support of society or the state. We must remember that when we sum up results and when we make plans for the future. Now that very little time remains until New Year I primarily wish all citizens of Russia wellbeing." Putin wished the nation happiness, success, love and good faith. "Let us tell kind words to our near and dear ones. Let us give good advice to our children. And wish everyone of us good health and success," he noted. "Happy New Year, dear friends! Happy year 2002!" Putin concluded. ******* #2 Eastern Europe digs out from snow as cold deaths climb AFP January 4, 2002 From the Baltics to the Balkans, eastern Europeans dug out from heavy snowfall that blanketed the region as plunging temperatures caused a spate of deaths from severe cold. With southeastern Europe lashed by the most severe snowstorms in three decades, dozens of towns and villages in northeastern Bulgaria remained cut off Thursday by snowdrifts up to two metres (six feet) deep. Several dozen Polish villages also remained completely cut off, while 180 towns in western Ukraine have remained without electricity since the New Year after heavy snowfall and severe winds created drifts three metres (nine feet) deep. Skies cleared across much of eastern Europe Thursday, allowing road crews a chance to catch up after a week of intermittent snow, but temperatures plunged causing a number of deaths from cold. Seven people were found dead from the cold in Turkey Wednesday, bringing the casualty toll from heavy snowstorms and sub-zero temperatures across most of the country since the weekend to at least 19, authorities said. In Bulgaria a 67-year-old pensioner was found frozen to death in the snow near her home outside Burgas, while a tramp died sheltering near the entrance to a building, his feet wrapped only plastic bags. In Moscow, authorities said 14 people had died from cold since New Year, including 10 overnight Wednesday, bringing the death toll in the Russian capital to 281 since the start of the winter, according to the Interfax news agency. Polish police said a dozen people have died from cold since the start of the year, bringing the death toll since October to 221. Two deaths from hypothermia were reported in the Latvian capital Riga over the holidays as temperatures plunged to minus 25 degrees Centigrade (minus 13 Fahrenheit). Rescue workers also had their hands full in several countries on Thursday. Twenty seven school children who spent 17 hours trapped in a bus under an avalanche in mountainous eastern Turkey were rescued, Anatolia news agency reported. A snowplow managed to free on Thursday a train that got stuck Wednesday evening near the Bulgarian city of Silistra. The passengers were unharmed. But some 60 tourists remained blocked for a fourth day in a mountain hotel near Veliko Tarnovo in central Bulgaria, civil defence authorities said. Several dozen secondary roads in northern Romania remained impassable Thursday, with snow removal efforts hampered by wind gusts of up to 80 kilometers (50 miles) per hour. In the northern region of Iasi patients had to be taken to hospital by sleigh after ambulances could not reach homes. In Turkey the people of Izmir on the Aegean, known for its temperate climate, woke up to their first snowflakes in half a decade, local reports said. In the Russian Black Sea resort of Sochi, the country's only subtropical city, palm branches were breaking from the weight of heavy snow, with traffic at a near standstill. Some 6,000 residents of the city of Volkov near Saint Petersburg were living without heat after a pipe burst as the temperature sank to minus 25 degrees Centigrade (minus 13 Fahrenheit). In the Czech Republic, school was cancelled until Monday in what the private TV station Nova termed "snow holidays". To the west, many routes were impassable over the German border and icy conditions were responsible for a number of fatal road accidents particularly in the eastern region of Moravia, police announced. Polish police appealed to drivers to travel only if necessary as many secondary roads remained impassable. They recommended drivers leave children at home and bring with them a shovel, sand, rope, hot beverages and a mobile phone. About a quarter of Lithuanian secondary roads remained impassable on Thursday, with the army on alert to help rescue services if needed, the Baltic News Service reported. ******* #3 gazeta.ru January 3, 2001 Pre-Christmas Polls Show Change of Hearts in Russians By Alexander Kornilov According to poll studies, in the first year of the new century the public opinion, unlike the economic situation, changed greatly. By the end of 2001 the share of Russians who assume that the country develops into the right direction has exceeded the share of pessimists, convinced that the nation moves into a deadlock. Thus, for the first time in ten years of public opinion research in Russia (the research during the Communist years can hardly be considered accurate) the number of optimistic respondents outweighed those for whom the glass is half empty. Also, the latest public opinion studies reflect the steady increase in popularity rating of the president Vladimir Putin. 80% of Russian citizens fully approve his moves. At the end of 2001 the All-Russian Centre for Public Opinion Studies (VTsIOM) reviewed the results of year’s research, analysing changes in Russians’ views and attitudes. Apparently, what proved the most striking about the results of conducted analysis is that the share of optimistic Russians has for the first time in years exceeded the number of pessimists. When asked: “How are things in the country?” more respondents than ever before said fine. At this, it is worth noting that the number of optimists was growing and, the chances are, such tendency will continue in 2002. Of 1600 respondents – Russian citizens from various regions of the country who took part in the poll – by the end of the 2001 48% said that they have already adjusted to the changes of the past ten years. 22% said they hope to adjust in the near future. In other words, public opinion researchers have determined that approximately 70% of Russian population have grown used to economic changes and are ready to abide by new rules. However, sociologists have concluded that most of respondents judge the new president not by his actual performance and by what he has done already but mostly by his potential. Many pin great hopes on Vladimir Putin, considering him capable of handling the problems the nation is facing. By the end of the year the president’s rating soared. 80% of respondents said they fully approved of his actions. Only 18% denied him approval owing to various reasons, and 2% found it difficult to answer the question. If the presidential election took place today, Putin would win support of 54% of Russians, or two-thirds of all those who expressed readiness to take part in voting. When asked what feelings respondents felt toward the president, 4% said they admired him, 34% said they treated him with sympathy and 38% saw nothing bad in his actions. On the other hand, 11% of respondents proved to treat him neutrally, 8% - cautiously, 3% see nothing good in him, 1% of respondents dislike him and 1% found difficulty in answering. Given such results, it deems scarcely surprising that by the end of 2001 Vladimir Putin proved on top of many domestic ratings. He was called a man of the year by many observers. In ex-Soviet republic Latvia Putin even proved more popular than George W.Bush. Public opinion experts hold that Putin’s popularity helped to improve the hitherto ailing image of certain high-ranking government officials and law enforcers, in particular, Russian PM Mikhail Kasyanov and the Prosecutor-General Vladimir Ustinov. For instance, the personal rating of the premier Mikhail Kasyanov by the end of 2001 proved to be considerably higher than in all previous years. 53% of Russians said they approved of his performance, 34% disapproved. 13% found difficulty in answering. As for the government as a whole 46% showed approval of its activity, 45% disapproved and 9% failed to answer. 42% respondents praised Prosecutor-General Vladimir Ustinov, 35% disapproved of his actions and 23% could not answer. The chief prosecutor had never before enjoyed such high support either. Observers tend to explain such tendency by the active participation of the Prosecutor-General’s Office together with the Audit Chamber in investigation of serious financial violations in ministries and other governmental agencies. Besides, Vladimir Ustinov gained more score taking part in raising the Kursk nuclear submarine and leading the public prosecution in Salman Raduyev’s case in 2001. The Kursk sub sank in the Barents Sea in August 2000 claiming lives of 118 sailors, and was raised in October this year. Ustinov personally supervised the raising operation. Evil tongues surmised he used the Barents Sea scenery to boost his public image and made a one-man show out of the operation. The notorious Chechen rebel Salman Raduyev was sentenced to life in December, charged with terrorism and murder for perpetration of ruthless attacks on Dagestani settlements in 1996 whereby dozens of civilians and policemen were killed. One more important conclusion drawn by VTsIOM’s experts on the threshold of the new 2002 year is that Boris Berezovsky, in the opinion of most Russians, has no chances whatsoever to return to the Russian political arena and to regain his former influence. Controversial Russian businessman Boris Berezovsky, who once used to be one of the key figures behind the scenes in the Kremlin, is temporarily abroad in the self-imposed exile, with fraud charges brought by the Prosecutor-General’s Office against him at home. Throughout the 2001 Berezovsky attempted to restore his influence in Russia with the help of media outlets that he still controls and setting up a new opposition force Liberal Russia. VTsIOM poll studies have shown that only 4% perceive Berezovsky as a political figure capable of creating an influential socio-political movement. 31% of Russian nationals hold that Berezovsky will continue annoying the authorities with political intrigues whereas 44% of respondents say he has no serious political potential. So, one might say that in that aspect the year’s results are favourable for the Kremlin as well. Russians deny Berezovsky support, whereas authorities ratings grow steadily. The question is, whether the Kremlin and, primarily, Mr. Putin is able to secure that tendency. Luckily, in 2001 he committed no serious political mistakes that could shatter the public sympathy towards him, though on the other hand he was never forced to take difficult decisions under pressure of time. Russian president was the first to call Mr.Bush with condolences on September 11. He fulfilled his promise to raise the sunken Kursk. On the other hand, he let the USA pull out from the START to proceed with anti-missile shield construction, without winning any benefits for Russia which made many observers accuse him o mildness and compare him with Mikhail Gorbachev and the way the Soviet president gave up Eastern Germany. ******* #4 Nezavisimaya Gazeta December 28, 2001 WHAT IS THE BASIS OF THE PUTIN PHENOMENON? President Putin's approval rating may soon start sinking Author: Lidia Andrusenko [from WPS Monitoring Agency, www.wps.ru/e_index.html] PUTIN'S UNBELIEVABLY HIGH APPROVAL RATING STILL REMAINS AT THE SAME LEVEL, BUT ACCORDING TO ANALYSTS, THE SITUATION MAY SOON CHANGE, WITH THE IMPENDING CRISIS DRAWING CLOSER. THE PRESIDENTIAL TEAM WILL HAVE TO FIND OR CREATE SOME ENEMIES, IN ORDER TO MAINTAIN THE PRESIDENT'S POPULARITY. The steadily high approval rating of the Russian president remains a political puzzle for many analysts. Some of them have even called it "the Putin phenomenon" - there are no signs of prosperity in Russia, yet the people's trust in the president keeps rising. Of course, there have been public attempts to question such high approval ratings, but they failed: leading polling agencies have refuted all allegations, declaring that opinion polls are done regularly, and with maximal accuracy. If we were to draw some average level of Vladimir Putin's popularity, based on data of the National Public Opinion Research Center (VTsIOM), the Public Opinion Foundation (FOM) and ROMIR, then the president's confidence rating would be around 70%, while the approval rating reaches 80%. And if presidential elections were scheduled for next Sunday, Putin would win in the first round. However, there is nothing unusual in these figures. The "Turkmenian", in the words of Vladimir Ryzhkov, rating of the president remains rating of hope. And hope for the young, energetic and intelligent president, who would help Russia overcome setbacks, has only become stronger this year. The reason for this is, first of all, the extreme events in the world. at the background of embarrassment of leaders of other states facing the new threat, the Russian president has shown himself in a better light, which was immediately reflected in his rating. Putin has become a sudden discovery not only for the west. No mater how strange it may seem, some research shows that his rating has increased due to his firm "pro-western" policy. It seemed before that Russians preferred the east, or at least, should choose neutrality. The support of Russians, not of the political elite, which doubted in choosing priorities, if not exactly got split, allowed Putin to make several radical steps, which would have been impossible in another set of circumstances: in particular, he accepted the USA withdrawal from the ABM Treaty without hysterics and decided to cooperate with NATO. However, Putin's recent interview with citizens broadcast on TV proved that Russians are not very interested in foreign affairs. And we do not rule out that if after the events of September 11 Putin had taken another political line, they would have supported him all the same. Actually, this is what is called "the Putin phenomenon": people trust him, but not institutions of power, which implement the president's policies. For example, a lot of citizens still believe that the State Duma deals with unnecessary matters. Only 9% of them are sure that the lower house works well, passing laws and decisions which are important for Russia. Only 8% think that the Federation Council is a useful state body; though both the Duma and the Senate are dominated by the presidential majority. The Cabinet is luckier, because, firstly, Russians traditionally prefer the executive branch of power and, secondly, it is somehow associated with the Kremlin. But they do not place their hopes in the Cabinet, and the activity of the president in improving the economy is assessed as "not very successful". The major claims of the populations to the president come down to the following seven points: increasing prices, lack of social protection of people, unemployment, increase in criminality rates, absence of plan for overcoming the economic setback, corruption in the government and the war in Chechnya. The security structures do not enjoy great popularity either. At that, when it was announced that several criminal cases had been started against several top-ranking officials, the rating of the General Prosecutor's Office has increased - almost a quarter of citizens decided that this is the beginning of the long-expected corruption campaign. And the overwhelming majority of Russians were sure that Ustinov was acting on Putin's orders. The rating of federal envoys is very low - around 33% (for comparison: the rating of governors is 55%), which proves that the idea of the president to tighten the hierarchy of power by dividing the country in seven federal districts did not quite come off. As for the parties' ratings, they are very strange. The pro- presidential party Unity (or United Russia now) ranks only second, with less than 30%. Another "party of power" the Union of Right Forces has only 7%. And the leader of the list is the oppositional Communist Party of the Russian Federation. Perhaps, if Putin headed United Russia, which Shoigu, Luzhkov and Shaimiev hope for, they would win more supporters, but now we have what we have. Obviously, the rating of trust toward the president will be decreasing. Hope for the better cannot last long. Especially since small incomes of people have stopped increasing by the end of the year. Average pension level has not reached the pre-crisis $50. The economy increase pace and production are slowing down. Low spirits have not reached the provinces yet, but a lot of analysts foresee a serious economic and political crisis. It is clear why it will be economic, and it will concern policies because the present power system has exhausted itself and cannot tackle the problems. Of course, the political system will be re-organized gradually, however, we will not escape enemies, which would be looked for in order to re-construct the power regime. For the time being, these enemies are not defined clearly - bureaucracy, corrupted civil servants. But as the crisis is drawing closer, their figures will be clearly cut, up to their surnames and positions. Especially since the preparations for the parliamentary and presidential elections have already started. And the rating of Putin and power structures will directly depend on real actions of the government, security structures and parties, supporting the president. (Translated by Daria Brunova) ******** #5 Russia: Economy And Oil Prices Remain Open Questions By Michael Lelyveld Questions continue this year for Russia's economy after oil prices ended 2001 on a down note. Officials say the new Russian budget can withstand falling oil prices, but troubles may multiply if Moscow's deal with OPEC falls apart. Boston, 3 January 2002 (RFE/RL) -- Russia's economy may be starting the new year with the same questions that dogged the old year to its end, as oil prices weaken despite attempts to prop them up. So far, markets have shown mixed reactions to a deal to cut worldwide oil output on 1 January. On the last trading day of 2001, crude oil prices dropped nearly 3 percent, driven by doubts that the Organization of Petroleum Exporting Countries (OPEC) would be able to trim supplies by 1.5 million barrels per day. OPEC has worked on its plan to rein in production for the past two months, but the soft economy since 11 September has kept oil demand falling faster than the plan could be put into place. Despite OPEC's agreement on 28 December to lower its output, the market continues to fret about an oil glut. A Bloomberg News service survey of analysts concluded that OPEC reductions would reach only 1 million barrels per day, due to sales by some countries above their assigned quotas. The cartel has already compromised on its demand that Russia and other non-OPEC producers pitch in with another 500,000 barrels in cuts of their own. After weeks of arm-twisting, the non-OPEC total came up short with only 462,500 barrels per day. There are also problems with Russia's pledge to contribute a decrease of 150,000 barrels, since the Kremlin has encouraged Russia's oil companies to shift more of their output to products like heating oil instead of crude. The switch may help to keep Russia's oil revenues high. But the effect on the market may be the same as no cut at all, since a surplus of oil products may drag prices down as much as a surplus of crude. OPEC seems to have deliberately looked the other way rather than call attention to the Russian loophole, in part because the market's reaction has been ruled by sentiment rather than fact for the past two months. The last days of December were no exception. Prices rose sharply the day before OPEC's announcement, but they quickly settled back during the next two trading sessions, although there was little data to support either move. OPEC leaders were forced to concede that their preferred corridor for prices of between $22 and $28 per barrel had been broken. On 28 December, Saudi Arabia Oil Minister Ali al-Naimi said, "We hope that prices will stabilize within reasonable limits, meaning between $20 and $25. This is what is expected now." But on 31 December, prices dipped again below $20, raising concerns for both OPEC nations and Russia, which remains reliant on exports of oil and gas. Russian officials have issued conflicting statements about the effect of oil prices on the 2002 budget. Early in December, Prime Minister Mikhail Kasyanov said, "Even with an average annual price of $12 per barrel there should be no problems for the budget." But in late December, Finance Minister Aleksei Kudrin told reporters that his budget revenue plan was based on the "optimistic scenario" that Urals crude would sell for $23.50 per barrel. In October, Kudrin said the budget was designed with a "reference point" of oil prices at $18.50. The budget appears to have room for fluctuation because it was designed with a surplus equal to 1.65 percent of gross domestic product. But officials also hope it will support foreign debt payments of some $14 billion in 2002 with a reserve set aside for payments of $19 billion in 2003. While the government may have some flexibility, it also seems to be aiming at moving targets. It has relied on raising domestic tariffs for gas, electricity, and railways by 35 percent this year and housing by 60 percent, according to "The Moscow Times." Such hikes have proved unpalatable in the past and could be halted if inflation rises too fast. It is also unclear if there is any plan if Russia loses its game of brinksmanship with OPEC and a price war breaks out. Kasyanov's assurance on the budget even if oil falls to $12 per barrel does not seem to cover the possible effect on the ruble if confidence is lost due to an oil price plunge. At least two pieces of evidence seem to argue for a pessimistic view. The first is a forecast in December by the Middle East Economic Survey that Russia's average daily exports of crude outside the Commonwealth of Independent States (CIS) will rise by 200,000 barrels rather than fall by 150,000 barrels this year. MEES projects that Russia's net exports of oil products outside the CIS will rise by an additional 60,000 barrels per day. Unless economic recovery comes quickly, OPEC nations may be forced to balance the increases with further cuts to keep prices from falling further. But the second sign suggests that OPEC members could be hard to persuade. Under OPEC's agreement in Cairo, some members like Iran and Venezuela have already been asked to accept cuts that are greater than Russia's pledge of 150,000 barrels, even though they already export far less. In a shrinking market, Russia's export growth can only come at the expense of oil revenues for countries like Iran, making resistance likely if more reductions are needed to keep prices up. If the OPEC deal did not solve last year's problems, it may only create more in 2002. ******* #6 Chicago Tribune January 3, 2001 NATO, Russia maneuver as Baltics watch By Colin McMahon VILNIUS, Lithuania -- The latest dialogue between NATO and Russia has raised concerns about how much influence Moscow might gain in the Western military alliance, but it has done nothing to shake the confidence of Lithuania, a former Soviet republic that has become a leading candidate to join NATO. Like its Baltic neighbors Estonia and Latvia, Lithuania has spent several years and hundreds of millions of dollars improving its armed forces. The three hope to be invited into NATO at the alliance summit this November in Prague. But Russia opposes NATO's eastward expansion, particularly in the Baltics. And some analysts are asking questions: How much say will Moscow have under a new NATO-Russia partnership unofficially dubbed, "NATO at 20"? And how much are the United States and its NATO allies willing to bow to Russia's concerns to entice Moscow to broaden its relationship with the West. Vilnius officials suggest it will not be much on either score. No real changes seen "There has been discussion more than anything else," said Lithuanian President Valdas Adamkus. "But I don't see any real changes. Russia's attitude has not changed much." Last month in Brussels, foreign ministers from NATO's 19 nations approved creation of a new NATO-Russia council. Intended to give Moscow more of a say in NATO policymaking, the council is supposed to be in place by the end of May. The goal, alliance members say, is to foster cooperation with Moscow on such issues as terrorism, arms control and peacekeeping. But this expanded role, alliance members now insist, will not amount to a Russian veto over NATO decisions. "The alliance will retain the right to act on any issue whether or not it has been discussed with Russia," U.S. Secretary of State Colin Powell said. Adamkus went further. He said the proposal to significantly expand Russia's role on NATO policy from its current advisory one, first made in Moscow by NATO General Secretary Lord Robertson, was akin to a trial balloon. "I believe this was more or less a political move to test the borders and to see what the reactions will be on both sides," Adamkus said. So far, the reaction has been mixed, even within governments. U.S. officials are split. Some view Russia as neither very trustworthy nor very relevant. Some want to reward Russian President Vladimir Putin for his efforts to integrate Russia into the West. Roughly, this places Defense Secretary Donald Rumsfeld on one side and Powell on the other. NATO's newest inductees, the former east bloc nations of Poland, Hungary and the Czech Republic, are pushing for more expansion. They joined NATO in large part to ensure protection from Russia. The Cold War may be over, but the Poles, Czechs and Hungarians understand why the Baltic states might fear a revived Russia with a history of imperialism. Lithuanian diplomats say the Scandinavian nations are clearly in their corner. Germany, long ambivalent on expansion into the Baltics, has offered more encouragement as well, said Rytis Paulauskas, who directs the department of multilateral relations in Lithuania's Foreign Ministry. As for Britain and Prime Minister Tony Blair, who has been pushing NATO to open up to Russia, Lithuania insists it does expect London to turn its back. Putin, meanwhile, has become more coy on NATO expansion. In a recent speech in Helsinki he acknowledged that independent states have a right to choose the groups to which they belong. Though that would seem self-evident to most people, in Russia and Eastern Europe, Putin's statement was greeted as more evidence of his modern thinking. "If you analyze the Putin comments, you can see the changes," Paulauskas said. "How quickly will that filter down into the political and military elite is the big question." Putin has floated the provocative if, for now, unrealistic idea of Russia entering NATO. He lobbies most consistently for a NATO "transformation"--a word Lithuania's Adamkus made a point of avoiding--in which the defense alliance would become a political organization. Few in NATO are keen on that. If NATO does expand, particularly to include one or all of the Baltic states, Putin would come under strong pressure from Russia's military and diplomatic communities to make a stand. The Russian public would also consider NATO expansion another kick to the ribs. But Putin swears that his efforts at partnership with the West are sincere. "This new NATO-Russia partnership is mostly meaningless. It is for the benefit of the Russian public and for Putin," said Audrius Matonis, political editor for Baltic News Service in Vilnius. "For so many years Putin and others were telling Russia that NATO was bad. Now Putin has a reason to say why the attitudes have changed. He can say NATO is turning to a political group from a military group." Moscow's concern Russia's current argument against NATO expansion is basically this: If we are all friends now, why does a Western military organization feel compelled to advance right up to our border? The Baltics answer this way: If we are all friends now, why should Russia care? "The possibility of a real military conflict with Russia is very low," said Povilas Malakauskas, a vice minister of defense in Lithuania. "That is our evaluation. That is the evaluation of our Western partners. We hope it is the evaluation of Russia too." The Lithuanians, like the Latvians and Estonians, argue that their membership in NATO would actually help Russia. The Baltic states and their military officers know better how to work with Russians, they say, so they can help Russia build links with its European neighbors. The Baltic states also argue, though this strikes most Russian military officers as preposterous, that a NATO stretching across almost all of Europe would take away the last remaining threat of conflict with Russia. This would allow Russia to redeploy its stretched forces, funds and energies to the Caucasus and Central Asia. "We cannot change our geography," said Malakauskas, who said Lithuania's building of an army almost from scratch has progressed even better than he thought possible. "Russia always was, is now and always will be our neighbor. The only way is to build a cooperative relationship." Still, when Russian forces hold war games, they often have NATO in mind. A potential NATO attack on neighboring Belarus, an international pariah state but a close ally of Russia, was the theme of one training exercise last year. So, too, was a NATO blockade against the Russian Baltic enclave of Kaliningrad. ******* #7 Asia Times January 3, 2002 Russia's global player status uncertain By Sergei Blagov MOSCOW - Since the Soviet Union fell apart 10 years ago, the Russian leadership has repeatedly pledged to create a strong state and improve the country's international standing. However, President Vladimir Putin is far removed from achieving that objective, either at home or abroad. According to political observers, in his first full year in the Kremlin, Putin has consolidated power, creating the conditions necessary to make major changes in the way the country is run. Yet his favorite project, restoring Moscow's control over the country's 89 regions, has been undermined by concessions to governors. One of the new laws created a mechanism for removing regional leaders who ignore federal laws, governing according to their own rules. But so far, Putin has not used this powerful new weapon. Putin has stated that he favors a strong state. But liberals are concerned about the rise of former KGB and military officers to top posts in his administration. It has been pointed out that Putin's eventual break with the Family (the group of Kremlin insiders under Boris Yeltsin) is imminent. But Putin has been unable or unwilling to shake the Family's influence completely. Although Putin's approval rating soared before the presidential election in March 2000 due to his tough rhetoric on Chechnya, a pacification campaign in the breakaway province goes ahead for the third year. Putin's high approval ratings have barely gone down since his election as some two-thirds of Russians approve of his performance as president. Yet it has been argued that Putin did not take full advantage of a broad-based support from a loyal parliament and an economy boosted by high oil prices, to push through real reforms in fighting Russia's endemic graft or improving the legal system. Perhaps Putin's most striking achievement was to force his political enemies either off the political field or onto his team. But not everybody is impressed and some academics and politicians have criticized his political and economic record. The problem is not that Russia is governed by a "Stalin", the real issue is that it is a very small "Stalin", who is unable to work out a strategy for Russia's development, said Mikhail Delyagin, an economist who heads the Institute of Globalization Problems. Even Putin's chief economic adviser, Andrei Illarionov, concedes that Russia still follows basically the same policies as it did under Boris Yeltsin. Moreover, the scale of corruption is even higher than under Yeltsin, admits Illarionov. Apart from pressing domestic issues, Putin is faced with immense foreign policy challenges. Moscow has moved closer to joining the World Trade Organization (WTO). Russia has also emerged as a reliable alternative to Organization of Petroleum Exporting Countries (OPEC), keen to ally politically with the West. Nonetheless, despite repeated Russian warnings that American plans of an anti-missile shield could trigger a new arms race, the Kremlin is constrained to live with new realities in the aftermath of the US jettisoning of a treaty that Washington saw as Cold War era dead-weight. In response to the US withdrawal from the 1972 Anti-Ballistic Missile (ABM) treaty, with effect from June 13, 2002, Putin told his countrymen in a nationwide television address that the Washington move is a "mistake", but one that will not threaten Russia's security. Russia had opposed the US plans to abandon the ABM treaty, which Moscow regarded as the cornerstone of nuclear deterrence. Under the ABM pact, Russia and the United States may protect only one site each with such a system. Putin has managed to drum up some support from the former Soviet states for his response to the US decision to scrap the ABM treaty. Ukraine's President Leonid Kuchma backed Putin's statement, describing it as a balanced assessment of the US move. The ABM treaty used to be a stabilizing factor. Yet Kuchma said that following the September 11 terrorist attacks on New York and Washington and subsequent global changes, the US had "a moral right" to abandon ABM. Russia's closest ally, Belarus, warned that the US withdrawal from ABM might undermine "strategic stability and international security". On the other hand, many Russian politicians have defended Putin's policy of rapprochement with the West. In the wake of September 11, Putin made the only right choice, said Grigory Yavlinsky, the leader of the liberal Yabloko party. Meanwhile, Russia's once ultra-nationalist Liberal-Democratic Party (LDPR) announced that it has decided to drop its anti-Western, anti-American and anti-North Atlantic Treaty Organization (NATO) stance. The party's leader, Vladimir Zhirinovsky, told the LDPR 13th Congress recently in Moscow that following the September 11 terrorist attacks Russia should ally with what he described as "Northern civilization", notably the United States and Western Europe. The LDPR had become notorious because of its anti-Western and nationalist rhetoric. Not surprisingly, Zhirinovsky has described the party's change of mind as the LDPR's "second birth". There are signs that despite the ABM demise, the Kremlin still aims at approaching the West differently. As the US move to abandon ABM came against a backdrop of Russia's improved relations with the West, political observers are of the view that Moscow's global status as Washington's equal partner faces yet another reality test. Some analysts see a silver lining on the horizon for Russia. The current situation gives Putin a unique chance to become a mediator between Washington and Beijing, argued Lilya Shevtsova, an analyst at the Carnegie Endowment. This view is, however, interpreted by other analysts as a sign that Russia's global status is undergoing yet another downgrade, because even optimistic scenarios give Moscow a mediation role rather than seeing it in the position of a powerful global player. (Inter Press Service) ******** #8 www.russiaproject.org Radio series transcript Part 2: Can This Be Democracy? What's Next for the Russian Military? Reported by Keith Porter, co-host, Common Ground WALTER CRONKITE: Following the devastation of World War II, the Soviets built one of the largest militaries in history with three million troops, naval and air bases circling the globe, and a nuclear arsenal with terrifying capacity. Now, ten years after the end of the Soviet Union, the Russian armed forces are a mere shadow of their past glory. Correspondent Keith Porter reports from Moscow. [Announcer: Russians drive for Berlin! (sound of artillery fire)] ["Thousands of Russian tanks crush Nazi resistence and German dead litter the road."] DIMITRY GRIGORIEVICH: (Via Translator) We went to Romania, then Poland, Germany, then Czechoslovakia—we deployed there quickly because they needed help. We were victorious, thanks to our love of the motherland. KEITH PORTER: Dimitry Grigorievich wears a chest full of shiny, red and gold medals honoring his service in World War II. He's describing his role in the Soviet Army's liberation of countries occupied by the Nazis at the end of the war. Here at Moscow's Victory Park, Grigorievich says he's worried about today's Russian military. GRIGORIEVICH: Today there's no army, there's nothing. When you compare the army today with what was before—you can't even do it. There was glory back then. These days, there's none. PORTER: His comrade in arms, Alexey Vassilievich, agrees. ALEXEY VASSELIYVICH: (Via Translator) Those soldiers were real soldiers, real officers. They saved Russia from the German fascists—and they held the nation together—that was our generation. But this generation gives up too easily. PORTER: Pavel Felgenhauer, independent defense analyst in Russia, says the veterans have reason to worry about today's Russian military. PAVEL FELGENHAUER: (Via Translator) Morale is very low and this is not only my opinion. That's what many high-ranking Russian generals tell me; that the morale of the Russian military is appalling. And morale continues to slide, and I know that in the top of the Russian military there is a lot of anxiety about what's happening right now with the Russian armed forces. PORTER: This anxiety reaches beyond Russia's borders. A weak, chaotic, disorganized Russian military could pose an internal threat to democracy and could be a destabilizing force internationally according to Celeste Wallender of the Center for Strategic and International Studies in Washington, DC. CELESTE WALLENDER: It is absolutely the case that a weak Russian military in these terms is not in American national security interests. Russia is a big place and it needs to feel secure. A corrupt, underpaid, underfed Russian military is susceptible to selling not only Kalishnikovs to Chechen rebels, but nuclear, chemical, and biological weapons to the highest bidder. PORTER: The Russian armed forces are now four times smaller than the Soviet armed forces ten years ago. And defense spending has dropped 95%. The decline of the Russian military began when former president Boris Yeltsin deliberately cut the military budget and weakened the armed forces because he feared their political power. Now Russia is paying the price. The headlines are full of stories about sinking ships and submarines, crashing military planes, and deserting soldiers. [Heavy altillery and Russian men shouting: "ammo is ready!"] PORTER: Thousands of Russian troops have been killed in Chechnya. And with every new story of horrendous human rights violations and deep corruption, morale plummets even lower. So does the military's public image. World War II vet Dimitry Grigorievich reacts with anger to the stories of Russian troops selling weapons to the very rebels they are fighting in Chechnya. GRIGORIEVICH: (Via Translator) These people are not soldiers nor officers; they're traitors. With them you can do little but line them up against a wall and pull the trigger. A bastard in life is a bastard in the army too. PORTER: Alexandr Golts covered the Russian military for ITOGI (ee-tow-ghi), the premier Russian newsmagazine forced out of business in the Spring of 2001. He says Russian soldiers at the lowest end of the pay scale make the equivalent of one US dollar a month. Officers do a little better but still don't make anything near a living wage. Given this, Golts says the path to military corruption is sometimes paved with good intentions. [Sounds of Army marching] ALEXANDER GOLTS: (Golts Farm) I can tell you a usual story of how an officer became corrupted. He will use the single thing this commander can use, the slave labor of soldiers. So he uses it. He sends his soldiers to nearest brick factory or to the nearest farm, and he receives money to feed them. But in eyes of any prosecutor it is a crime. It is the normal way to corruption. PORTER: Russian President Vladimir Putin is well aware of the morale and corruption problems in the Russian military, and he has proposed a number of steps to solve the problems. His chief aim is to make the Russian military even smaller. The goal is simple. Slash the number of troops without cutting the budget. In theory this leaves more money per soldier. But Alexander Golts says getting rid of soldiers isn't enough. GOLTS: This logic doesn't work when we speak about Russian armed forces. From the early 90s there were at least three total—very big—reductions in Russian armed forces. But each time we received a smaller copy, but absolutely inefficient copy of the Soviet Army. PORTER: Golts says the answer is to eliminate the draft and create a professional military—a task which will demand lots of money. But how can Russia's leaders justify more defense spending at a time when so much money is also needed for housing, agriculture, medical care, and other priorities? One age-old method for getting more military resources is to convince the public that the world is becoming more dangerous. Making that argument became much easier following the September 11 terrorist attacks on the United States, according to Celeste Wallender. WALLENDAR: Putin has been arguing that there is an opportunity now for Russia to be able to be in cooperation with the West and the United States, to effectively address the problems of terrorism that Russia has been facing through the 1990's, and that may ring more true to the Russian public. [Orchestra & chorus] PORTER: Of course some Russians, like the veterans back at Victory Park, don't need to be convinced that Russia should do whatever it takes to build a strong military. VASSELIYVICH: (Via Translator) President Putin should take power in his hands and return everything back to the way it was—then all these generals that whine about the army should be fired. PORTER: In the end, all agree that morale is low and corruption is high in the Russian military. The needed reforms carry a high price tag, but the new global environment may make it easier for President Putin to find the money. Yet, one problem remains. Reforming Russia's military may do nothing to stop their biggest enemy. Russian State Duma member Sergei Rogov says the biggest threat to Russia, is Russia. SERGEI ROGOV: The enemy is us. The enemy is our inability to use the enormous human and natural resources of Russia to make life here decent and to make Russia a respectable member of the international community. PORTER: Fixing Russia's military is a formidable, but feasible task. Fixing Russia, on the other hand, will be much more difficult. For the Russia Project, I'm Keith Porter, Moscow. © 2001 by The Stanley Foundation ******* #9 PONARS Center for Strategic and International Studies http://www.csis.org/ruseura/ponars/index.htm The End of Strategic Arms Control? By Pavel Podvig Center for Arms Control Studies December 2001 PONARS Policy Memo No. 217 Prepared for the PONARS Policy Conference Washington, DC January 25, 2002 An overview of the arms control field today gives a contradictory picture. On one hand, the United States and Russia are very upbeat about their relationship and claim that they do not consider themselves enemies or adversaries, which seems to present a good ground for cooperation on wide range of issues. On the other hand, very few of nuclear arms control or disarmament problems are being solved. The START II treaty has no chance of entering into force and there are virtually no prospects for a bilateral agreement that would set a limit on the number of nuclear weapons beyond the one set by START I, which is more than ten years old now. The immediate reason for the lack of progress with the traditional arms control agenda is the disagreement about the future of the ABM Treaty and about the approach toward reductions of offensive weapons. The differences in the U.S. and Russian positions were clearly demonstrated at the Crawford summit meeting in November 2001. The summit was marked by an announcement of seemingly radical reductions of the U.S. nuclear arsenal. During the summit, President Bush declared that the United States would reduce the number of "operationally deployed strategic nuclear warheads" to a level between 1,700 and 2,200 over the next decade. Details of the reductions have not been released yet, but these numbers would be consistent with the intention to decommission all MX/Peacekeeper missiles and convert four Trident submarines into SLCM platforms, which was announced several months ago. Although the planned measures will represent a significant reduction of about 1300 warheads, it seems that there will be few, if any, reductions that go beyond that. Most of the rest of the reductions will be done either by "downloading" existing launchers or simply by not counting them. It is plausible, for example, that none of the strategic bombers will be counted as "operationally deployed." Russian president Vladimir Putin replied to the U.S. announcement by reiterating his proposal of November 2000, in which he suggested reducing strategic nuclear arsenals to a level of 1500 warheads on each side. However, he did not make a binding commitment to the reductions. Instead, Putin underscored that the proposal would become a reality if Russia and the United States have it "in a treaty form, including the issues of verification and control." This means that unless a treaty is signed, Russia will not consider the reductions undertaken by the United States as real. This, of course, does not mean that the United States will not implement the announced cuts. However, the legal status of these reductions will remain unclear. It should be noted that the situation is markedly different from the one with tactical nuclear weapons unilateral initiatives of 1991. Although those initiatives also did not become a subject of a formal treaty, at that time neither side officially questioned the commitment of the other to carry on the promised reductions (which was exactly what Putin did this time). The prospects for a binding agreement that would codify the reductions are very dim, even if it will include very modest verifications measures based, say, on START I procedures. Russia and the United States announced that they will work on an agreement of this kind, but left the summit with uncertainty about how they would to achieve it. The outcome of the discussion about the future of the ABM Treaty was even more uncertain. Despite expectations of a breakthrough, Bush and Putin simply reiterated their old positions about the ABM Treaty being a "relic of the cold war" or a "cornerstone of strategic stability." Details of a proposed compromise, which were leaked to the press before the summit, clearly showed that neither side seems to understand what a compromise may look like. Although the presidents agreed to continue consultations, it is not clear what kind of outcome these consultations can produce. From the point of view of traditional arms control, the outcome of the Crawford summit is disappointing. The United States and Russia not only failed to overcome their differences, but also did not suggest a course of action that would help reconcile their positions in the future. The problems are exacerbated by highly politicized nature of the discussed issues (missile defense in particular), which raises the stakes and makes a compromise virtually impossible. On the other hand, the lack of progress with the arms control agenda may reflect serious changes in the relationship between the countries and in the role that they assign to nuclear weapons. From this perspective, the results of the summit are encouraging, since they indicate that changes are indeed taking place. It would be wrong to say that the two countries are ready to renounce nuclear deterrence or that the relationship between them could be characterized as a partnership. A closer look at various aspects of the U.S.-Russian relationship shows that in spite of recent rapprochement it still characterized by a significant degree of mistrust and has a fairly strong confrontational component. Nuclear deterrence is still considered an important component of the relationship. At the same time, what we see is that the long-admitted fact that the nuclear arsenals on both sides far exceed any reasonable requirements seems to have finally found its way into practical policies pursued by U.S. and Russian military and political institutions. Among practical steps that reflect this development is the U.S. willingness to reduce its strategic nuclear arsenal unilaterally, regardless of whether Russia reduces its forces. The most telling example of the changing attitudes toward the traditional arms control agenda is the lack of U.S. reaction to the Russian threats to respond to missile defense development by either extending the service lives of its heavy ICBMs or deploying multiple warheads on its new Topol-M missiles. Nor does the United States seem concerned about setting limits on Russian nuclear testing program, as the debate about the Comprehensive Test Ban Treaty indicates. This may reflect understanding of the well-known inability of Russia to maintain its strategic forces at the current level and the existence of a "hedge" policy, which would allow the United States to get its forces back to Cold-War levels. At the same time, the readiness to forgo reciprocity in nuclear reductions and most verification measures that come with it indicates that the United States does not assign high priority to questions that were at the center of traditional U.S.-Soviet arms control agenda-limiting the military capabilities of the Soviet/Russian forces. The attitude toward arms control in Russia is similar to that in the United States, although it may be driven by a different set of considerations. While the Russian military continues to underscore the importance of parity between strategic forces, the recent practical steps of the Russian leadership show quite clearly that parity is not considered vitally important. Among these steps are the decision to curb the deployment of new land-based missile and redirect the funds into conventional forces, unwillingness to revive the stalled START negotiation process, and the consistent refusal to find a compromise on missile defense. Although Russia admittedly has very little room to maneuver, if it was seriously concerned about the emerging disparities in strategic nuclear arsenals, it would have pursued somewhat different policies. These developments in the U.S.-Russian relationship (which, it should be noted, predate the events of September 11 and the subsequent "westward turn" in Russian policy) seem to reflect the growing understanding of the changing nature of nuclear deterrence. During the Cold War, it was estimated that deterrence required thousands of weapons to inflict "unacceptable damage" to the adversary. While this logic remains largely unchallenged today, the number of weapons that would inflict "unacceptable damage" is most certainly in the low single digits for both sides. This makes the actual number of nuclear weapons that could be delivered relatively unimportant, as long as this number is greater than zero. As a result, the deterrence value of 1500 Russian nuclear warheads is not really different from that of 3500 warheads. Similarly, from Russia's point of view it does not really matter whether the United States cuts its nuclear arsenal to 1700 weapons or leaves it at the level of 6000. The reluctance to reduce nuclear arsenals is also understandable. Although both sides seem to realize that the number of weapons that they have far exceeds what is necessary for deterrence, neither is certain about exactly how far it can go in reducing their arsenals. Given these uncertainties and the absence of incentives for reductions provided by the logic of arms race, military and political institutions in both countries are unable to come up with a policy that goes further than maintaining status quo. Since the arms control dialogue is largely irrelevant from the military point of view, other issues have replaced traditional military ones. These issues may have nothing to do with arms control and disarmament, but they come to dominate the dialog, which may not provide the best venue for addressing them. Both current controversies-the need for a binding disarmament agreement and the ABM Treaty-seem to illustrate this point very well. The Russian military and political leadership seems to understand very well that development of a missile defense that would in any way interfere with the Russian capability to deter the United States is currently not technically possible. Preserving the ABM Treaty stopped being a question of military balance long time ago. Moreover, Russia's policy strongly suggests that it is not interested in preserving the treaty for the sake of avoiding a precedent of unilateral withdrawal from a major international agreement (if it was interested, it would have agreed to a modification of the treaty, which would formally preserve it). Rather, Russia considers the question of the ABM treaty as a matter of principle and sees this issue as a vehicle for asserting its position in international affairs. The issue of weapons reductions is being treated very much the same way. A call for a comprehensive treaty that would include verification measures and control is hardly a practical policy. The problem is not only that an agreement of this kind is probably impossible (and maybe unnecessary). It is that Russian leadership seems to value an agreement of this kind not because it would set limits on nuclear weapons or destroys them, but because it would provide yet another way of showing that the United States considers Russia an equal partner. As a result, the traditional arms control agenda, whether it is preserving the ABM treaty or concluding a verifiable disarmament agreement, has been taken over by political issues that have nothing to do with arms control. One conclusion that follows from this analysis is that progress on substantive arms control issues is virtually impossible. The United States and Russia are still operating within the old arms control negotiations framework, which provides few incentives for solving the problems that exist today. Both countries seem to understand that they need to replace this old framework with something new, but so far their efforts have stopped at a rhetorical level. Moreover, what we see today are attempts to approach new problems-the most important of which is building a non-adversarial U.S.-Russian relationship and moving away from the nuclear confrontation of the Cold War-as if they are simply "warhead counting" and "strategic balance" problems of traditional arms control. In practical terms, no one should expect that missile defense or questions of strategic parity will disappear from the U.S.-Russia agenda any time soon, primarily because the underlying political issues, which are the real cause of the controversy surrounding these issues, cannot be resolved easily. If any successful agreement is possible here, it will have to address the political issues, rather than provide a technical arms control solutions. For example, a compromise on the ABM Treaty may include an agreement that would call for cooperative work on some components of missile defenses. Although practical importance of cooperation of this kind will be negligible, its political effect could prove sufficient for a compromise. While traditional ABM Treaty and START-type negotiations remain deadlocked, progress can be made in areas that are not considered part of traditional arms control and therefore are not affected by political controversies. One of these areas is dismantlement of nuclear warheads and disposal of weapon grade fissile materials. If handled properly these areas may provide opportunities for real progress in reducing nuclear arsenals, which eventually may prove more important than traditional SALT and START approaches. The traditional strategic arms control process may never recover from the end of the Cold War. Attempts to revitalize it by using the threat of a new arms race have largely failed, primarily because no arms race of the Cold War type is likely to materialize. On the negative side, this has left the United States and Russia with large nuclear arsenals and few ideas of how to cut them. On the positive side, the current problems of arms strongly indicate that the cold war confrontation is over. Of course, the United States and Russia are still far from overcoming all the problems they inherited from the Cold War. They seem to be making steps in this direction, but they have yet to build a framework that would allow them to deal with these problems effectively. *******