CDI Russia Weekly

Brought to you by the Center for Defense Information
1779 Massachusetts Ave., NW * Washington, DC 20036
(202)332-0600 * Fax (202) 462-4559 * http://www.cdi.org
Edited by David Johnson 
ISSUE #35 February 12, 1999

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 funding from the Carnegie Corporation of New York, CDI Russia Weekly is a project of the Washington-based Center for Defense Information (CDI), a nonprofit research and education organization.
 

Contents

  1. Itar-Tass: Russian 131 Space Satellites Worn out by 50 per Cent.
  2. CDI Weekly Monitor: Dan Smith, Flaws in the System -- Part II. (Re Russian early warning problems).
  3. Jamestown Foundation Monitor: MOSCOW DENIES WEAPONS PROLIFERATION CHARGE.
  4. RFE/RL: Roland Eggleston, NATO Negotiators Optimistic About Conventional Weapons Treaty.
  5. Christian Science Monitor: Judith Matloff, Showing Russians who's boss. Prime minister boosts image with anticorruption drive. Eye on presidency?
  6. Boston Globe: David Filipov, Big Russian scam is alleged. Officials profited as reserves moved to secret account, ex-minister says.
  7. Itar-Tass: Russia Policy to Change if Japan-US Treaty Goes Too Far.
  8. Pravda: START II Lobbyists Stirred Up.
  9. Interfaks-AiF: Main Staff Admiral on START .
  10. Moscow Times: Andrei Pirontkovsky, SEASON OF DISCONTENT: We Still Can't Learn to Love Our Neighbors. (Re relations with Ukraine).
  11. Argumenty i Fakty: Journal Views Implications of Yeltsin's Health Problems.
  12. Itar-Tass: US, Germany Reiterate Support for Russian Reform.
  13. AP: Russia's once Mighty Nuclear Arsenal Falling Apart.


#1
Russian 131 Space Satellites Worn out by 50 per Cent.

MOSCOW, February 11 (Itar-Tass) - Russian space satellites at present number
131, which is nearly a fifth of all satellites circling the Earth, and a half
of them is technically worn out, according to Yuri Koptev, the Russian space
agency chief.

  He told a government meeting on Thursday that 60 satellites fulfil defense
tasks, 28 are intended for dual purpose tasks and 43 are used for civilian
scientific research.

  "75 percent of the satellites have exhausted their guaranteed resources
and 50 per cent have worked out their technical resources", Koptev said.

  Last November Koptev told a press conference that Russia was running 127
satellites and that the service life of 82 percent of them had expired.

  Koptev said that the balance cost of the Russian "space grouping" is 96
billion roubles (over four billion USD) and is mostly financed from the state
budget.

  "The Russian space grouping remains an important national wealth and that
demands a rational approach to it", Koptev said.

  "Russia is very seriously represented at the theater of space services", he
added and called "to pay attention to the preservation of our space grouping".

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#2
From
The Center for Defense Information
The Weekly Defense Monitor
1779 Massachusetts Ave., NW * Washington, DC 20036
202)332-0600 * Fax (202)462-4559 * www.cdi.org
VOLUME 3, ISSUE #6                                       Febrary 11, 1999

Flaws in the System -- Part II
Colonel Dan Smith, U.S. Army (Ret.), Chief of Research, Center for
Defense Information
dsmith@cdi.org

"Look Who's Sharing" (CDI Weekly Monitor February 4, 1999) described
problems the Russians are having in maintaining a full array of
operational anti-ballistic missile early warning ground radars.

On February 10, the Washington Post carried a front page story captioned
"Russia's Missile Defense Eroding" with a sub-caption, "Gaps in
Early-Warning Satellite Coverage Raise Risk of Launch Error." In fact, the
story is neither new nor about Russia's missile defense system which, in
accordance with the amended 1972 Anti-Ballistic Missile Treaty that limits
deployment of these systems to one site, is confined to protecting Moscow.

An accompanying article describes how, in September 1983, a Soviet early
warning infrared sensing satellite mistook reflected sunlight from clouds
for the exhaust plume of incoming ballistic missiles. Only the "gut
instinct" of the Soviet watch officer prevented a retaliatory launch of
Soviet nuclear tipped missiles at the U.S. But what may be most significant
about the retelling of this 1983 incident is the observation by the Soviet
officer that "he knew the [satellite] system had flaws. It had been rushed
into service...and was 'raw'."

Why is this significant? Because the U.S. seems intent on launching a
multi-billion dollar array of 24 infrared-based early warning satellites
as part of the National Missile Defense program -- without properly testing
it to make sure it works.

In the last week three different defense-oriented publications reported
that the Pentagon has decided to cancel the Space Based Infrared

System (SBIRS) -Low demonstration projects being developed by defense
contractors Boeing and TRW-Raytheon. The reasons given are the usual ones:
very over budget -- Boeing almost double and TRW-Raytheon a third over its
original program estimate -- and behind schedule -- the first satellites
were originally to be in place in 2004 but will not go up before 2006
because the Pentagon determined that a 2004 launch "involved too much
technical risk."

The reports note that the whole point of putting demonstration satellites
into orbit was to reduce risks by actually testing the on-board infrared
systems for a year. This common sense endeavor would ensure that the
satellites could detect and track ballistic missiles and then pass data to
other systems that would be tied to interceptor missile launch sites in the
U.S. But with a possible 2005 deployment date for the National Missile
Defense interceptors, the Pentagon does not want to risk delaying the
launch of the first SBIRS-Low satellites beyond  2006.

The upshot? The U.S. is heading down the path of launching and relying on
a system of untested, "raw" early-warning satellites that are supposed to
perform a critical role in the even more expensive and so far equally
unproven and technologically troubled National Missile Defense program.

This isn't defense; it's a disaster waiting to happen.

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#3
Jamestown Foundation Monitor
11 February 1999

MOSCOW DENIES WEAPONS PROLIFERATION CHARGE. As might have been expected,
Russian government officials yesterday vehemently denied a CIA report
alleging that Russian and Chinese businesses and quasi-government agencies
pose a growing international proliferation threat (see the Monitor, February
11). Russian First Deputy Prime Minister Yuri Maslyukov was quoted as
insisting that the Russian government's system of export controls ensures
that sensitive military technologies are not leaked to foreign countries.
Maslyukov, who heads a government commission overseeing Russia's military
and technical cooperation with foreign countries, also said that Russia is
willing to work with other countries, including the United States, on
proliferation issues. He added, however, that the CIA report was politically
motivated (Russian agencies, February 10).

The Russian Foreign Intelligence Service also denied the CIA report
yesterday. An agency spokesman reportedly said that "according to available
data, there are no existing facts of violation of international agreements
by Russia on a state level" in this area (Russian agencies, February 10).
The CIA study had said that the Russian and Chinese "entities" responsible
for leaking military technologies may be operating outside the control of
their respective governments. That is a charge which both the United States
and Israel have repeatedly leveled against Russia.

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#4
Europe: NATO Negotiators Optimistic About Conventional Weapons Treaty
By Roland Eggleston

Vienna, 10 February 1999 (RFE/RL) -- Arms negotiators in Vienna hope to
reach basic agreement in a month on a new treaty limiting conventional
weapons in Europe and placing restrictions on where they can be deployed.

   A senior NATO negotiator told our correspondent that the timetable
depends on Russia. He says Russia is trying to persuade NATO to make
concessions in return for admitting three former communist countries --
Poland, Hungary and the Czech Republic. The negotiator says NATO has made
clear it will not make concessions and it is now up to Russia to accept this.

   There are also differences between Russia and Turkey on the use of
Russian forces in the Caucasus. Russia wants a special concession on the
number of tanks, artillery and other weapons it can move in and out of the
region.

   The NATO negotiator says Turkey fears its security could be threatened
if Russia is allowed too much freedom to build up its southern flank.
However, he says progress had been made in bilateral talks between Russia
and Turkey. Turkey has offered proposals which would allow Russia to send
more troops on a temporary basis in times of crisis. A Turkish negotiator
confirmed this and told RFE/RL that the Turkish government was ready to be
"helpful" so long as Turkey's own security was not endangered.

   Negotiators hope the basic elements of the new treaty can be presented
at an upcoming NATO summit in Washington in April. Negotiations would then
resume with the goal of having the completed treaty signed at the end of
the year at a summit in Istanbul of the 54 members of the Organisation for
Security and Co-Operation in Europe (OSCE). OSCE includes all European
countries plus the United States and Canada.

   The new treaty will replace the 1990 Treaty on Conventional Forces in
Europe (CFE), which limited the number of tanks, artillery, armored troop
carriers, helicopters and war planes which can be held by NATO and the
countries of the former Warsaw Pact, including Russia and Ukraine. The 1990
treaty, updated in 1996, is widely regarded as a cornerstone of the present
European security system, but negotiators say it's inadequate to meet
present needs.

   New treaty negotiations began in 1997. The NATO negotiator -- who spoke
to our correspondent on condition of anonymity -- said they had proceeded
slowly because Russia argued from the start it wanted what it called
"compensation" for the enlargement of NATO. Its goal was to restrict NATO's
ability to deploy forces in Poland, Hungary and the Czech Republic and in
any other country which joined NATO later.

   NATO says it has presented ideas which should satisfy Russia without
offering compensation. NATO insists on the right to deploy forces in these
new members in time of need and if they agree. However, to ease Russian
suspicions, NATO has offered to limit the size of the forces it deploys to
two divisions. It also will give prior notification to all other
signatories before troops are sent -- but Russia will have no right of veto.

   The NATO negotiator told RFE/RL that this solution was similar to the
one Turkey had offered to Russia in regard to the Caucasus.

   He said NATO expects to deploy forces in the new NATO countries "very
rarely." He said that most of the time, the alliance would probably not
even deploy the full allowance of two divisions.

   Russia also wants to negotiate what it calls "stability measures" in
some other countries. For example, it wants to be allowed to deploy extra
forces on the territory of Belarus. Russia also wants extra deployment
privileges in Kaliningrad -- the Russian enclave wedged between Lithuania
and Poland. Russia also is seeking NATO restraints on deploying fixed wing
aircraft and attack helicopters in new member countries. It has proposed
numerical caps on the number of these aircraft.

   NATO negotiators in Vienna told RFE/RL they were "reasonably confident"
a basic agreement on major issues could be reached by the April summit.
Afterward, negotiations would continue on issues such as verification.  


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#5
Christian Science Monitor
FEBRUARY 11, 1999
[for personal use only]
Showing Russians who's boss
Prime minister boosts image with anticorruption drive. Eye on presidency?
Judith Matloff
Staff writer of The Christian Science Monitor
MOSCOW

With a bold new anticorruption drive and an agreement to limit the president's
power launched last week, Prime Minister Yevgeny Primakov has sent out the
message that he wants firm control over an unruly Russia.

While President Boris Yeltsin recovered from his latest bout of illness, Mr.
Primakov sent out police to raid a major tycoon and warned that he was
emptying the jails to make room for economic criminals who drain the country
of billions of dollars a year.

"Our government is taking all measures to strengthen stability in the country,
both political and economic," Primakov told reporters yesterday.

This flourish of dynamism not only strengthens Primakov's position in case he
wants to run for president next year (sooner if Mr. Yeltsin should die or
leave office early for health reasons), but also further sidelines Yeltsin.

And the initiatives give Primakov a moral authority that many Russians crave
at a time of economic crisis.

"Mr. Primakov is very slowly but clearly strengthening his position....
Finding scapegoats is a clear tactic to prepare for the [2000] electoral
campaign," says Sergei Kolmakov, deputy director of the Politika Foundation,
an independent think tank in Moscow.
Primakov, a former spymaster and ex-foreign minister, is a consummate
politician who since Soviet days has survived several regimes in Russia's
ruthless and fickle corridors of power. He was appointed in September as
caretaker premier, but has since broadened his influence, culminating in an
accord Friday that blocks the capricious Yeltsin from firing him without
consulting parliament.

Yeltsin's hallmark during his seven years in power has been abrupt dismissals
of officials, including firings of two Cabinets last year that drove the
country to the brink of political and economic disaster.

His inability to come to grips with corruption has long been a source of
frustration for Russians. But the sense of impotence was broken last week with
an array of actions on cases that have been under investigation for some time.

The salvos included the arrest of former Justice Minister Valentin Kovalyov,
who is accused of embezzlement, police raids on the businesses of oligarch
Boris Berezovsky, and revelations about shady practices at the Russian Central
Bank.

A report by the prosecutor general's office that the Central Bank secretly
transferred $50 billion of reserves to an offshore account on the British
island of Jersey follows criminal proceedings already under way against
several former bank officials. The officials are accused of cheating on
expense accounts, money laundering, and illegally shifting money out of the
country.

The greatest fanfare centered on moves against Mr. Berezovsky, a political
rival of Primakov and Russia's most visible tycoon. Once a confidant of the
Yeltsin clan, Berezovsky epitomizes for many Russians the small group of
financiers who profited from the transition from socialism, buying up state
firms for a song.

Police in black ski masks last week raided his oil company, Sibneft, and firms
doing business with the Aeroflot airline, in which he controls a large stake.
It was another blow to the fading financial empire of Berezovsky, who also
lost a big stake in the Transaero airline and control over the ORT television
channel, which has been placed under temporary state administration.

While the campaign against Berezovsky is motivated partly by politics, it also
has a strong financial component as Russia slides toward bankruptcy.

An International Monetary Fund team left town over the weekend with no
promises of further aid, leaving the government desperate to mobilize other
resources to stave off complete default.

Being seen as acting decisively as a crisis manager of the economy would win
Primakov plaudits from Western creditors, who have demanded results on the
anti-corruption front.

"This sends the right signals at home and abroad," says Boris Makarenko, a
political analyst at the Political Technologies Center, a Moscow-based think
tank. "It sends a strong signal to the political elite that this government
will no longer tolerate merciless corruption, and it may also help win back
some foreign confidence."

Even before the recent moves, a semblance of stability was restored with
Primakov at the helm, despite his inability so far to rescue the economy and
win new loans.

The prime minister's popularity in public opinion polls is rising, prompting
speculation that he could win if he decides to enter the 2000 election.
Primakov denies presidential ambitions, but most political observers believe
this is mere posturing.

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#6
Boston Globe
11 February 1999
[for personal use only]
Big Russian scam is alleged
Officials profited as reserves moved to secret account, ex-minister says
By David Filipov, Globe Staff

MOSCOW - Russia's former finance minister said yesterday that officials
profited by spiriting out billions of dollars of government currency reserves
for management in a shadowy offshore fund.

The comments by the former minister, Boris Fyodorov, raised new questions
about Russia's financial creditability as it desperately seeks international
aid to climb out of debt.

Fyodorov's accusation followed detailed charges by Russia's general
prosecutor, Yury Skuratov, just before he resigned last week, citing health
reasons.

Fyodorov said that after taking office in 1993, he began to notice that
Finance Ministry funds held in the Central Bank were diminishing for reasons
he could not understand. But when he confronted the head of the Central Bank,
Viktor Gerashchenko, he got no answers.

''I was told that ... I was meddling in things that were not my business,''
Fyodorov said at a press conference. ''In reality, as I understand, friends
were given a chance to make some money. When billions of dollars are pumped
through some company - when somebody gets a certain commission - it turns out
to be big in the long run.''

Skuratov, in a letter detailing the suspicious practices, alleged that between
1993 and 1998, the Central Bank paid an obscure offshore assets-management
company to handle the money, instead of managing it itself, as central banks
usually do. Western economists here call the practice unprecedented for a
central bank, which serves as the caretaker of a country's national wealth.

Skuratov also accused Central Bank executives of illegal sales of government
property and of maintaining extravagant lifestyles at state expense.

In many places, such charges lodged by a top law-enforcement official would
set off a political firestorm. Outside Russia, the allegations are bound to

raise even more doubts about the wisdom of granting Moscow's request for new
loans.

But inside Russia, where benefiting from government funds has been a
traditional path to upward mobility, the reaction had been rather quiet until
Fyodorov's outburst.

Gerashchenko, the Central Bank chairman, earlier had confirmed the practice,
if not the sums involved. Gerashchenko said Russia needed to hide its assets
to avoid seizure by creditors owed billions of dollars of Soviet-era debt that
Russia has promised to pay.

Fyodorov responded yesterday by declaring: ''This definitely is a completely
strange system that has nothing in common with international practice.''

Gerashchenko said that in 1994 the Central Bank transferred $1.4 billion to
the accounts of FIMACO, a company registered on the Island of Jersey, off
England.

''At that time, Russia was involved in difficult negotiations with the
creditors, and there was a probability that the country's foreign property
could be seized,'' Gerashchenko said in comments reported by The Moscow Times.
''FIMACO was set up to avoid complications.''

According to Skuratov's letter, which was handed out to members of the State
Duma, the lower house of parliament, the Central Bank allowed FIMACO to handle
$37.3 billion, 9.98 billion deutsche marks, 379.9 billion yen, 11.98 billion
French francs, and 862.6 million British pounds. This amounts to almost $50
billion at current rates of exchange and, Skuratov said, and included funds
from multibillion-dollar loan packages from the International Monetary Fund.

Western economists have been scratching their heads in amazement. Eric Kraus,
head of the fixed-incomes desk at Dresdner Bank's Moscow office, called the
allegations and Gerashchenko's partial confirmation ''astonishing.''

Kraus said he thought the $50 billion figure was ''doubtless exaggerated,''
because the Central Bank ''never had that much to manage.'' But he was left
with more questions than answers.

''Who actually managed this money, and how was it invested, what were the
results, how much was charged for this service, to whom did the profits go,
and where is the money now?'' he asked.

No one knows. Nor will they ever, if some Russian politicians have their way.

''It would be wrong to launch a criminal proceeding only on the basis of the
transfer of money to this firm,'' remarked lawmaker Georgy Luntovsky, who is
chairman of the Duma committee that oversees the Central Bank.

Analysts say that nothing in Russian law prevents the Central Bank from acting
as it did.

''There is nothing illegal about commercial activities by the Central Bank
that do not always coincide with the interests of the state,'' said Georgy
Bovt, political commentator for the liberal daily Segodnya.

However, Bovt said the government should investigate whether anyone profited
personally from the offshore investing of government funds.

Bovt and other analysts suggested that Skuratov's charges stemmed from an
investigation into the causes of Russia's financial collapse last August, when
the government devalued the ruble and defaulted on $40 billion of domestic
debt.

Anastasia Saschikhin of the Moscow bureau contributed to this report.

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#7
Russia Policy to Change if Japan-US Treaty Goes Too Far.

MOSCOW, February 12 (Itar-Tass) - If Russia finds itself in the range of
the new Japan-US security treaty, Moscow will have to reconsider its
defense policy, a high-ranking official at the Russian Foreign Ministry
told Itar-Tass on Friday.

  The Japanese parliament this week opened debate of a package of draft
laws to enact a new edition of the Japanese-US defense cooperation accord
which was passed in September of 1997 and which calls for consolidation of
bilateral military ties in case of an "emergency" in Japan-adjacent regions.

  The vague wording causes dismay of several countries, including Russia
and China.

  Moscow wonders what adjacent spells, the Russian Foreign Ministry's
senior spokesman Vladimir Rakhmanin said at a news briefing on Thursday.

  "Russia's question arises how far the 'regions adjacent to Japan'
stretch and whether they can apply to territories of third countries,
including Russia," Rakhmanin said.

  He said a "possibility of inclusion of the territory of Russia in the
sphere of effect of the new Japanese-American military agreement is
unacceptable for Moscow".

  "It is desirable that Japan and the US more precisely define the area of
effect of their new agreement. If Russia's territory is included in it, we
shall have to take certain measures in the field of ensuring security," the
ministry official said on Wednesday.

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#8
Pravda
9 February 1999
START II Lobbyists Stirred Up
unattributed article
[translated by Rachel Dubin <rdubin@gwis2.circ.gwu.edu>
Research intern at the Center for Defense Information]

As it has become known, the financial-economic basis of START II, which
has been drawn up by the experts of Prime Minister Yevgeny Primakov's
Cabinet, has gone to the lower house of parliament.  This was announced
by Roman Popkovich, the chairman of the State Duma Committee on Defense
and one of the most open lobbyists for the signing of this act.  The FEO
was prepared, as per the instructions of first vice-speaker Yuri
Maslyukov, who has likewise come out in favor of its ratification by the
Russian parliament.  Popkovich noted that a law on financing the
strategic nuclear forces up to 2010 has been prepared by his committee.
The leader of NDR [Our Home is Russia political faction­trns.] believes
that this law, which he proposes sending to the lower house for debate
at the end of February-beginning of March, will help the "sacred" matter
of ratification.

At the same time, it can be said that Yuri Maslyukov (the negotiations
of whom with the IMF are proceeding intricately enough and are necessary
from some sacred cows that are sacrificed) will manage to convince a
parliamentary majority of the necessity of ratifying START II.  Thus,
the most influential political forces in Russia are uniting for the
ratification of such an important document for the US.  From our
archives: read here the article by Hero of the Soviet Union, Army
General Valentin Varennikov, on the possibility of ratifying START II...

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#9
Main Staff Admiral on START

Interfaks-AiF, No. 5
29 Jan-4 Feb 99
[translation for personal use only]
Interview with unidentified admiral of the Navy Main Staff; place and date
not given: "Having
Naval Nuclear Forces Reinforces Stability in the World. Opinion of Navy
Main Staff Admiral"

 Swords continue to be crossed over START II even five years
after it was signed. The Russian parliament does not want to ratify
it. The treaty's fate was complicated even more after the armed
forces of the United States and Great Britain attacked Iraq.
Certain aspects of START II related to the problem of the changing
balance of nuclear forces based on the Navy were discussed with our
newspaper by an admiral of the Main Staff of the Navy of Russia who
wishes not to be identified.

 [Interfaks-AiF] To begin with, let us remind our readers of
the essence of this treaty.

 [Admiral] The Treaty on Further Reduction and Limitation of
Strategic Offensive Arms signed by the presidents of the Russian
Federation and the United States on 3 January 1993, known by the
acronym START II, may be said to have two fundamental
aspects.

 The first is the agreement that was reached for the complete
elimination of intercontinental ballistic missiles with multiple and
independently targeted warheads.

 The second is that a concrete maximum level was established
for warheads placed on ballistic missiles mounted on submarines: no
more than 1,750 units of the overall level of 3,000-3,500 strategic
nuclear weapons for each of the parties to the treaty.

 [Interfaks-AiF] How are these agreements advantageous to
Moscow?

 [Admiral] For Russia these were forced political decisions
were related primarily to the impossibility of maintaining and
developing the groups of missiles that were subject to being
reduced, since the main industrial potential for their production--
the NPO [scientific production association] Yuzhnoye--is located in
Dnepropetrovsk in Ukraine. To make our nuclear potential dependent
on a foreign state would be highly irrational.

 Clearly, whether Russia's high military-political leaders like
it or not, after it is implemented this decision will lead to
radical changes in the structure of the country's strategic nuclear
forces. While traditionally their structure in the USSR has been
oriented toward the unconditional priority of intercontinental
ballistic missiles (at the time of the signing of START I, up to 65
percent of all the strategic nuclear weapons were placed on them),
after START II up to 59 percent of these weapons could be placed on
carriers of the naval nuclear forces.

 After fulfillment of obligations under START II, the
structures of nuclear forces in Russia and the United States should
be practically identical.

 [Interfaks-AiF] And is this good or bad?

 [Admiral] It is our firm conviction that the transfer of most
of our strategic missile potential to Navy carriers on the whole
corresponds to Russia's national interests and the preservation of
strategic parity between the Russian Federation and the United
States in the area of nuclear weapons, taking into account the
political, economic, and purely military aspects of the
problem.

 In relations with the international community, having powerful
naval strategic nuclear forces gives the country's leaders
undeniable advantages over strategic missile forces. This is
explained primarily by the fact that nuclear weapons are regarded by
all nuclear powers not as battlefield weapons but as a powerful
deterrent against any type of aggression. Intercontinental
ballistic missiles with multiple and independently targeted warheads
will provoke the leadership of any nuclear country to adopt a
decision to launch them at the earliest possible stage in any
military conflict in order to avoid an attack by the enemy. This
led to the development of fixed theoretical ideas about their use in
the first strike or, in the extreme case, in a responsive
counterstrike.

 In order to provide for this application of these missiles,
the corresponding systems for combat control and antimissile
observation were created.

 The single-warhead ground-launched ballistic missiles may be
regarded in the same way. From the standpoint of political
relations among nuclear powers, having them increases instability,
the more so if these states do not trust one another or are in a
state of confrontation.

 But having a system of sea-launched nuclear forces contributes
to strengthening strategic stability in relations among nuclear
countries. For no government in the world can be certain that it is
possible as a preventive measure to discover and simultaneously
destroy all the probable enemy's submarine missile carriers.

 [Interfaks-AiF] You mentioned that relying on sea-launched
nuclear forces is advantageous economically as well...

 [Admiral] The number of Navy personnel involved in servicing
sea-launched nuclear forces is about 7,500, and RVSN [strategic
missile forces]--about 170,000. It takes less than three people to
service one strategic warhead in the Navy (with the Tayfun missile
system--less than one person), while in the Missile Forces it takes
57.

 The Navy has 17 facilities for strategic offensive weapons,
and the RVSN--about 40. The cost of maintaining RVSN during 1990-
1994 reached no less than 6 percent of the country's military budget
annually. And the cost of maintaining naval nuclear forces during
this same period was no more than 15 percent of the annual
expenditures on the entire Navy, that is, no more than 3.3 percent
of the military budget. Thus if we say that during this time, twice
as many warheads were deployed on land as on submarine cruisers, it
is possible to draw the conclusion that the cost of maintaining one
combat unit is the same in the RVSN and sea-launched nuclear
forces.

 After the implementation of START II, when up to 1,750
warheads are deployed on multiple-warhead missiles and the RVSN
keeps only 700-900 single-warhead missiles, the cost of maintaining
one combat unit in the Navy will be less than in the RVSN by a
factor of 2-2.5 (if the current ratio of the levels of financing the
RVSN and the Navy are maintained).

 On the whole, military-economic calculations done by
scientific research institutions of the Ministry of Defense, the
Navy, and the General Staff show that solving problems of
maintaining the combat readiness of naval nuclear forces, further
developing them, and implementing START I and START II for the
period up to 2003 will take about R20 trillion, that is, an average
of about R3 trillion annually. These costs cannot be considered
excessive.

  [Interfaks-AiF] What are the purely military advantages of
sea-based nuclear forces?

 [Admiral] In the first place, the huge nuclear striking power
concentrated on each missile submarine cruiser makes it possible for
the high military-political leadership of the Russian Federation to
confidently pursue an independent national policy. One Tayfun
submarine missile carrier alone can strike 200 objects at distances
of up to 10,000 kilometers in four minutes. Having two or three
such missile carriers guarantees the population that unacceptable
harm can be done to any probable enemy of Russia in any
situation.

 In the second place, naval nuclear forces are more viable.

 This thesis is the most unpleasant for their enemies. Our submarine
missile carriers of project 941 Tayfun and 667 BDRM have 100 times
less noise than the first generations of the Navy's nuclear
submarines did. Various devices from foreign submarine research are
installed on them and they are close (and in some cases surpass) in
their capabilities to those that are found on Western
submarines.

 Armed with missiles with intercontinental firing range, our
Navy's submarine missile carriers can solve combat problems from
regions directly adjacent to Russia's coastline and in extreme cases
right from the points where they are based. There is no need for
them to get past the lines of antisubmarine forces and be in regions
monitored by the submarine observation system.

 At the same time, one must admit that during 1997-1998 the
resource of the basic equipment of combat-ready nuclear submarine
cruisers and the reserve of active zone of their reactors where to a
considerable degree expended. I fear that in the future naval
nuclear forces will not be able to effectively carry out the tasks
assigned to them in the system of national security of the Russian
Federation.

 We must understand that the relative expenditures on the
country's strategic nuclear forces are many times less than the
expenditures Russia would have to make to provide for security with
nonnuclear means alone.

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#10
Moscow Times
February 11, 1999
SEASON OF DISCONTENT: We Still Can't Learn to Love Our Neighbors
By Andrei Piontkovsky

   Next week the upper chamber of the Russian parliament, the Federation
Council, will either ratify or reject the Russian-Ukrainian Treaty. The
outcome of this vote will have far greater consequences for Russia's future
than talks with the IMF or the titanic battle now unfolding between Prime
Minister Yevgeny Primakov and financier Boris Berezovsky.

   But our political consciousness still has not adapted to the idea that
the most crucial direction of Russian foreign policy in the coming decades
is no longer our relations with the United States but our relations with
Ukraine.

   Refusal to ratify the treaty is tantamount to a declaration that Russia
does not recognize the Ukrainian state and makes territorial claims on its
neighbor. The most passionate opponent of the treaty in the Federation
Council clearly understands this. "Let's make territorial claims on
Ukraine, and then no one will accept it into NATO," said Moscow Mayor Yury
Luzhkov, jumping up and down on the tribune with excitement as he
elaborated on this preposterous argument during the recent debate on the
treaty.

   So why not develop Luzhkov's train of thought? There are two months left
before the formal acceptance into NATO of Poland, Hungary and the Czech
Republic - quite long enough to make serious territorial claims on them
too, thus derailing the process of NATO enlargement once and for all.

   For Russia, refusal to ratify the treaty will signify not only the
geopolitical catastrophe of long years of confrontation with our southern
neighbor, but a moral catastrophe too. If we are incapable of establishing
normal relations with the nation closest to us in terms of blood-ties,
language and culture, then just what use are we to anyone else in this world?

   For several years now the Russian political class has been heading
steadily toward just such a catastrophe in its relations not only with
Ukraine but other CIS states as well. It seems that Moscow itself doesn't
know what it wants from its "younger brothers," and its behavior is rather
like that of a hysterical, aging spinster trying to win back the sympathies
of former admirers first by way of generous gifts (cheap energy supplies,
cancellation of debts) and then by using threats and tantrums.

   Much can be gleaned from a recent discussion on the television program
"Postscriptum" featuring two deputies from the State Duma, one in favor of
ratifying the treaty and the other against. Under no circumstances should
Ukrainian independence be recognized by ratifying the treaty, insisted the
opponent. "On the contrary," objected his more geopolitically advanced
colleague, "their independence should be recognized, but they should be
placed in such circumstances that they come crawling back to us on their
knees of their own accord."

   As it presides over a country ruined by its own incompetence and
unprecedented thieving, our "political elite" still waits with foolish
conceit for someone to "come crawling back on their knees."

   It is just such inability on the part of Russia's political class to
take the independence of CIS states seriously - not formally on paper, but
psychologically - its staggering obliviousness to any possible reaction
from partners and neighbors, and the spiritual torpidity that prevents it
from seeing itself through their eyes, that combines to produce a
self-perpetuat ing cycle of alienation and enmity across the entire
post-Soviet expanse.

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#11
Journal Views Implications of Yeltsin's Health Problems

Argumenty i Fakty, No. 955
February 1999 (signed to press 9 Feb 99)
[translation for personal use only]
Unattributed report from the "Details" column: "The President's Surprises;"
passages
within slantlines published in boldface. subheads as published

  The activity the president showed throughout last week astonished
even his tried and tested entourage. Some people say that as early as 1
February Boris Nikolayevich felt so well that allowed himself to drink
seven glasses ofbrandy to mark his birthday. Yet another outburst of
energy took place on 5 February, when Yeltsin all of a sudden
descended on the Kremlin, called for Prime Minister Yevgeniy Primakov,
anddiscussed the situation in the country with him till late hours. Rumors
have it that this conversation, too, was held in a typically Russian way, that
is, helped by liquor.

  But it was for the weekend that the head of state reserved real
surprises. First, to his doctors' dismay, he went to sweat in the sauna, and
then, having learned about the death of King Husayn of Jordan on Sunday
evening, he ordered an aircraft to fly to the funeral. Those doctors
who dared to protest were sternly told "to mind their own business." The
argument that a 30-degree temperature change is dangerous for someone
still recovering froma stomach ulcer was ignored.

  On the plane, the president was accompanied by a team of doctors. Another
team remained at the airport ready to fly to Amman if need be. Luckily,
everything passed without a hitch. True,  the meeting with Bill Clinton, on which
Boris Nikolayevich had counted somuch, lasted only six minutes: the flight and
climate change had had their effect. The worried entourage had only one
consolation: alcohol is banned in Muslim Jordan.

What is Yeltsin's illness, after all?

  We seem to know everything about the president's health: what diseases he
had in his childhood; what traumas he had; how the heart bypass operation
was carried out.

  But it is, in essence, not important what Boris Nikolayevich is down
with. It is when he recovers that alert should be sounded. Each time Yeltsin
returns to his office, the bureaucrats get a good bashing.

  Evil tongues contend that //half of Yeltsin's stays in hospital is simply
a way of checking his subordinates' loyalty.// From the hospital bed, the
president is watching keenly who of his officials doubts his ability to work.

  In 1993 it was the then Security Council Secretary Yuriy Skokov who got
caught in the president's trap, in 1996 - Aleksandr Korzhakov, Mikhail Barsukov,
and Oleg Soskovets.

  Later former Security Council Secretary Aleksandr Lebed made the same
mistake. He was followed by Prime Minister Viktor Chernomyrdin. As for ordinary
deputy prime ministers and ministers sacked after the president emerged from Barvikha,
they are counted by dozens.

  Psychologists are saying that Boris Nikolayevich uses his ailments to
screen off his indecisiveness and that stability simply drives the head of state to
political depression.Not surprisingly, Yevgeniy Primakov, with his peace and accord,
has a badeffect on the president's health. Does he not see that the best medicine for Boris
Nikolayevich is to be "above the fray" and to hold the steering wheel in a crisis situation?

Did Skuratov know too much?

  According to our information, the presidential administration had been
planning Prosecutor General Yuriy Skuratov's dismissal for a long time. The prosecutor
had come across documents which implicated the country's leadership directly or indirectly.
For instance, there is information about //the Central Bank transferring billions of dollars//
abroad, something that could hardly have been done without approval from above. Or
information about certain real estate abroad in the name of Tatyana Dyachenko. One of
Skuratov's closest allies told us that it was the danger of "family secrets" being leaked to
the opposition that sealed his chief's fate.

  However, it is not inevitable that the situation should take the turn
that the Kremlin desires. The Federation Council which, under the Constitution, has to
endorse thedismissal, is bound to seek explanations. People are saying that Moscow mayor
Yuriy Luzhkov is going to insist that Skuratov report on the work he has done and offers his
view of his sacking.

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#12
US, Germany Reiterate Support for Russian Reform.

WASHINGTON, February 12 (Itar-Tass) - U.S. President Bill Clinton and
German Chancellor Gerhard Schroeder, who paid a one-day working visit to
the United States, discussed on Thursday the situation in Russia, ways of
rendering economic assistance to it, the Kosovo problem and the forthcoming
NATO summit.

   After the end of the meeting, which lasted for about two hours at the
White House, Chancellor Schroeder said that both the United States and
Germany were very much interested in the stabilisation of the situation in
Russia.

   The two leaders focused their attention on economic problems. They
discussed the forthcoming meeting of the "big eight," stressing the
importance of the "development of global financial architecture, which will
help us wage the struggle against machinations all over the world." They
both pointed to the identity of their stands on the items, included in the
agenda of the forthcoming NATO summit. According to Schroeder, the exchange
of views on the Kosovo problem also revealed the similarity of their views.

   Speaking about Russia, Schroeder stressed that both the United States
and Germany were interested in the stabilisation of the situation there,
and that they are ready to support the reform, which is being implemented
in Russia. He stressed, at the same time, that support should by no means
be a one-way traffic, and on this point the U.S. and Germany also reached
agreement. They believe that, responding to their support for its
stabilisation, Russia will exert efforts aimed at speeding up the reform.

   Schroeder said it was very important now to stabilise the situation of
Primakov, because this will help stabilise the situation in Russia. White
House spokesman Antony Blinken, who is a senior official of the National
Security Council, said, in his turn, that the United State was paying
special attention to the rendering of assistance to the reform process in
Russia.

   Responding to questions of journalists at the press conference, held at
the Willard Hotel of Washington, Schroeder said, that both the U.S.
president and himself would like to see progress in Russia in the sphere of
the reforming of the banking and tax systems, in the struggle against the
mafia and terrorism. The U.S. and Germany are ready to support Russia, even
if its advance in those directions is slow. According to Schroeder, no one
thinks that Russia can make a transition form the centralised planned
economy to the socially oriented market economy overnight.

   Speaking about his visit to Russia, planned for the next week, Schroeder
said he intended to explain in Moscow that Germany and the U.S. would lay
emphasis on financing specific programmes, for instance, those connected
with the development of infrastructure in the power sector. If Russia makes
a certain degree of progress, Germany and the U.S. will not only use their
influence in the IMF, but will also render material assistance to it by
themselves.

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#13
Russia's once Mighty Nuclear Arsenal Falling Apart
February 12, 1999
[for personal use only]

MOSCOW (AP) -- At the height of Russia's financial meltdown, the minister
named to save the economy outlined an overriding priority: build a new
generation of nuclear missiles.

   The warning from First Deputy Prime Minister Yuri Maslyukov, first made
in October, that Russia could lose its nuclear capability, has produced
rare unanimity among the country's bitterly divided political factions.

   Communists, nationalists and liberals alike agree that Russia must stake
everything on its nuclear forces if it wants any claim to be a world power
and have any kind of credible military.

   Yet, the huge arsenal of rockets, planes and submarines that once
terrified the world is falling apart and there is no money to maintain it
or build large numbers of replacements.

   "The only thing for which Russia is respected in the world and which
makes us worthy partners ... is our strategic rocket forces," said
Alexander Lebed, a former general and a leading presidential candidate.

   Russia's nuclear arsenal of 6,000 warheads could soon shrink to just a
few hundred, analysts say. Early-warning radar and satellites vital to
protect against pre-emptive attacks and prevent premature missile
launchings are also falling apart, they add.

   "By the year 2010, the number of Russia's nuclear warheads will fall
10-fold to 600 to 800," predicted Alexander Pikayev, a top expert in arms
control with Moscow's branch of the Carnegie Endowment for Peace.

   Russia could be eclipsed as a nuclear power by China, which once lagged
far behind Moscow, he said.

   Analysts paint a gloomy picture of Russia's crumbling nuclear triad:

   -- The navy's nuclear missile submarines are in the worst state. During
the Soviet-era, dozens of submarines were on patrol, lurking under the
waves with batteries of nuclear missiles ready for instant firing. Scores
of submarines have been decommissioned and no more than three are thought
to be on patrol at any one time now. Even the working boats rarely leave
harbor.

   And if a nuclear war starts, the submarines wouldn't be able to sail out
immediately because they don't have food supplies on board.

   -- The air force's mainstay Bear bombers are more than 40 years old.
Pilots only get a few hours flying time each year, far below the level at
which they can operate effectively, analysts said. Lebed said the air force
has only 20 modern nuclear bombers.

   -- The land-based rocket forces, always the strongest part of the Soviet
nuclear triad, are in better shape. But many of the most powerful missiles
are well past their operational lifetime, officials admit.

   Nuclear weapons have a limited lifespan because of their atomic warheads
and corrosive fuel. Beyond that lifespan they often are incapable of
working or function defectively.

   "The strategic nuclear forces' command systems are also expiring, and
that may result in loss of control over them," Lebed wrote in a Jan. 21
article in the Nezavisimaya Gazeta newspaper.

   It would cost $3 billion a year to maintain existing missiles, according
to Roman Popkovich, head of the defense committee of the Duma, the lower
chamber of parliament. Russia's full budget for 1999 is $25 billion, and
officials concede much of the money exists only on paper.

   With the economy in a nose dive and conventional forces collapsing,
Russia's military has become increasingly dependent on its still massive
Soviet-era nuclear forces.

   Whatever money the government can scrape together for the military is
being funneled into nuclear forces, but analysts say it's too little, too
late.

   The navy designed a new nuclear missile submarine -- the Yuri Dolgoruky
-- but only one is under construction. "It's really difficult to say how
many nuclear submarines Russia will have on duty by 2010 -- two, four, five
or seven," said Pavel Felgenhauer, a leading analyst.

   The air force does not have any plans for a new long-range nuclear
bomber or cruise missiles, analysts said.

   The land forces alone have a new weapon -- the Topol-M -- a
single-warhead missile, 10 of which were deployed for the first time in
January.

   But even if Russia meets its goal of building between 35 and 40 Topol-Ms
a year, analysts say the nuclear forces will still drop drastically. Some
officials advocate building multi-warhead missiles, but this would break
the proposed START-2 agreement with the United States.

   The Communist-dominated Duma repeatedly has refused to ratify the
treaty, which was approved by the U.S. Senate in 1996 and would reduce each
side's nuclear arsenals to between 3,000 and 3,500 warheads by 2007.

   Government officials say Moscow must accept START-2 and seek a START-3
treaty to cut both sides to about 1,500 nuclear warheads as the only way to
give Russia some kind of parity.

   Such drastic cuts are "dozens of times more important for our country
than for the United States," said Popkovich, warning that Russia cannot
afford any kind of arms race with Washington.

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