CDI Russia Weekly

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Edited by David Johnson 
ISSUE #32 January 22, 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. RFE/RL: Julie Moffett, Russia: Security Discussions To Top Albright's Agenda.
  2. Moscow Times: Simon Saradzhyan, Maslyukov Says U.S. Right on Iran Leaks.
  3. Moscow Tribune: Catherine Belton, Russia's Grim Future with the Millennium
  4. Intellectualcapital.com: Richard Pipes, Echoes of the Cold War in Moscow.
  5. Carnegie Endowment for International Peace: Sergey Rogov, The Urgency of Restructuring the Russian Debt.
  6. RFE/RL: Russell Working, Russia: Naval Captain And Environmentalist Accused Of Treason.
  7. Moscow Times: Pavel Felgenhauer, DEFENSE DOSSIER: Sanctions Sure to Backfire.
  8. Jamestown Foundation Monitor: NORWEGIAN MISSILE LAUNCH A "ROUTINE" EVENT THIS TIME and DIMMING PROSPECTS FOR START II RATIFICATION.




#1
Russia: Security Discussions To Top Albright's Agenda
By Julie Moffett

Washington, 22 January 1999 (RFE/RL) -- U.S. Secretary of State Madeleine
Albright says security issues, primarily arms control, will be at the top of
the agenda during her upcoming trip to Russia.

Albright made the statement Thursday during a speech at the Center for
National Policy in Washington. She is expected to be in Moscow on Monday.

Albright said that discussions will focus on the Conventional Forces in Europe
(CFE) agreement, and how it will be affected by the expansion of NATO. She
also said she will be briefed about the status of the START II treaty which is
currently under debate in the Russian Duma.

Albright said she will urge the Duma to ratify the START II treaty and clear
the way for talks aimed at deep reductions in both Russia's and the U.S.'s
nuclear arsenals.

Albright said she will also discuss steps to prevent the "destablizing
transfer" of arms and sensitive missile and nuclear technologies. But she
added that this problem is not isolated only to Russia, but nations worldwide.

She explained: "We provide material or technical assistance to more than two
dozen countries to enhance the effectiveness of their export controls. We also
share information. These efforts, although rarely publicized, have prevented
numerous transactions that would have threatened our allies or friends or
ourselves."

Albright said that while working with Russia to halt proliferation, the U.S.
will also strive to ensure that America's own technology is not compromised.
She said that U.S. export control requirements are the world's "most
stringent," and that the Departments of State and Defense will seek to ensure
that export controls remain closely tied to U.S. foreign policy and national
security interests.

Albright said that as a result of "increased threats of missile
proliferation," the U.S. is now studying the development of a national missile
defense. She said she will discuss with her Russian counterparts how such a
defense system might affect the Anti-Ballistic-Missile (ABM) treaty.

She explained: "We have believed and continue to believe, that the ABM treaty
is central to our national interest and to our arms control. The ABM Treaty
has been amended before, and I think it will be essential to look at how it
will be affected. It has been possible before to abrogate the ABM Treaty if
there is supreme national interest."

But Albright said she will assure the Russians that the U.S. is simply
studying a national missile defense and had not found any reason to amend or
invalidate the treaty.

U.S. Defense Secretary William Cohen made the announcement Wednesday that the
U.S. was taking steps to deploy a missile defense network designed to protect
Americans at home and troops stationed abroad from the threat of weapons of
mass destruction.

Cohen told a news conference in Washington the system was not intended to
counter the Russian nuclear arsenal, but was aimed to address threats that
come primarily from rouge states such as North Korea.

Albright said regional conflicts would also be the focus of several
discussions in Russia, particularly the recent U.S. bombings in Iraq, and the
current crisis in Kosovo.

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#2
Moscow Times
January 22, 1999
Maslyukov Says U.S. Right on Iran Leaks
By Simon Saradzhyan
Staff Writer

In a surprising turnabout, First Deputy Prime Minister Yury Maslyukov has
admitted that the technologies behind nuclear weapons and ballistic
missiles have been leaking out of Russia to Iran and other points foreign
as part of a brisk world arms trade.

Maslyukov - a top Russian economic policy-maker whose roots in the
military-industrial complex run deep - said on RTR television's Podrobnosti
program that American fears about the proliferation of Russia's nuclear
secrets and ballistic missile technology were "entirely justified."

Last week the U.S. White House imposed sanctions on several Russian
companies and scientific institutes for allegedly exporting weapons
technologies to Iran. The U.S. government has also threatened to ban
launches of U.S.-made satellites on Russian rockets, a business that
annually generates tens of millions of dollars for Russia's cash-starved
space industry.

Russian officialdom was unanimous in hotly denying the American allegations
- until Wednesday, when Maslyukov said on RTR, "Some of the cases that they
[the Americans] have presented have turned out to be true."

That admission comes as the administration of U.S. President Bill Clinton
is suddenly talking of pulling out of a 27-year-old treaty that has been a
cornerstone of the Cold War-era disarmament process: the 1972
Anti-Ballistic Missile treaty.

The ABM treaty forbids either Moscow or Washington from developing an
umbrella of national defensive missile systems, largely on the grounds that
one superpower that felt immune to nuclear attack might be tempted to
launch a pre-emptive strike against the other.

But this is an age when full-scale nuclear war between superpowers seems
less worrisome than a single warhead on a single missile in the hands of
some rogue state or terrorist group.

So suddenly former President Ronald Reagan's "Star Wars" ideal of a missile
umbrella is again hot in Washington - where officials have ordered cruise
missile attacks in recent months against sites in Iraq, Afghanistan and
Sudan, seen terrorist attacks in Sudan and Kenya against U.S. embassies and
watched nervously as potential hostile states like Iran and North Korea
have made headway developing weapons and missile delivery systems.

Washington officials said this week that Clinton has sent a letter to
President Boris Yeltsin requesting amendments to the ABM treaty to allow
for limited umbrella missile defenses.

The U.S. defense secretary has already suggested this week that the United
States could just pull out of the treaty unilaterally if Yeltsin and the
Russian parliament gag on those amendments. Yeltsin has had no public
response, but Russian defense officials attacked Clinton's proposal in
interviews.

"Once [the Americans] become sure that they can defend themselves
effectively from our missiles they will start speaking to us from a
position of strength," warned General Yury Lebedev, an expert with the
Moscow-based RAU think tank who 10 years ago was the head of the military
delegation of the Soviet Union's START I negotiating team.

In addition to scrambling to open an umbrella against the rest of the
world, U.S. officials have fought to cut off the rain at its sources. That
means Russia - where, according to Maslyukov, representatives of the
often-lawless North Caucasus region, and also of other former Soviet
republics, are often the middle-men in a world trade in Russian weapons
knowledge.

Maslyukov said on RTR that the Americans only know part of the story,
saying, "We sometimes catch more [people] red-handed than they do."

The scandal over technology leaks to Iran and the proposals for umbrella
defense systems follow on the heels of Clinton's offer in Tuesday's State
of the Union speech of financial aid to secure Russian nuclear safety.

All of that will surely be on the table next week when U.S. Secretary of
State Madeleine Albright arrives in Moscow. Albright will be meeting with
Prime Minister Yevgeny Primakov, Foreign Minister Igor Ivanov and possibly
with Yeltsin.

Even as she arrives to discuss these new developments, old business like
the START II treaty still languishes before the State Duma.

START II picked up a new opponent Thursday, meanwhile, when Krasnoyarsk
governor and former army commander Alexander Lebed wrote in Nezavisimaya
Gazeta that the treaty was already too dated. Lebed said Russia and the
United States should instead negotiate new, deeper cuts under START III.

Other Russian military experts said neither START II nor III ought to be
ratified unless Washington pledges not to undercut the ABM treaty.

"The existing system of international security will be undermined if the
Americans walk out of the [ABM] treaty," said Lieutenant General Nikolai
Zlenko, deputy head of the Defense Ministry's international affairs
department.

"It is the cornerstone that ensures U.S.-Russian parity," Zlenko said,
noting that the START I and START II reductions of Russian and U.S.
strategic nuclear arsenals "were made possible only thanks to that treaty."

The START I treaty, which was signed in July 1991, reduced nuclear arsenals
in the United States and the Soviet Union by more than a third, to a total
of about 9,000 warheads on each side.

Under START II, the United States and Russia would further slash their
deployed strategic warheads, to a maximum of 3,500 each.

Advocates of START II - including Maslyukov, the Kremlin, and Russian
Defense Minister Igor Sergeyev - argue that Russia won't be able to keep up
with U.S. arsenals without such a treaty.

Back to the top



#3
Moscow Tribune
Jan. 21, 1999
Russia's Grim Future with the Millennium Bug
By Catherine Belton

In 345 days a tiny computer glitch known as the millennium bug could
trigger a potentially catastrophic chain of computer crashes, power
failures and environmental disasters that could wreak havoc across Russia.

The head of Russia's State Committee for Communications and Information,
Aleksander Krupnov, set alarm bells ringing just last Sunday with
statements warning of the immense threat to Russian national security posed
by the Y2K problem.

According to Krupnov, Russia still faces huge problems ensuring its missile
systems are not affected by the Y2K bug.

"The Defence Ministry is facing great difficulties with all types of
missiles. ... The technologies they have are 20 years old," he said after a
Russia-U.S. investment symposium held in the United States.
Krupnov's warning comes in stark contrast to the previously dismissive
statements of Defense Ministry officials who have insisted repeatedly that
all computer problems will be fixed in time. And, his claims that the cost
of attempting to fix the glitch in Russia now stands at around $1.5 to 3
billion push up his original estimate of July last year by up to six times.

Analysts say Krupnov's wake up call to rouse Russia from its so far
somnolent attitude to the problem may well have come too late.

According to one Western official investigating Russia's millennium bug
preparations who wished to remain unnamed, Russia and the remainder of the
former Soviet Union now top a list of the world's most potentially
dangerous Y2K disaster areas at the turn of the century.

"Lack of awareness combined with the relatively high level of technological
advance and the low sense of urgency with which Russia has approached the
problem so far make Russia one of the world's main worries," the official
told The Moscow Tribune.

The Bug -- A Hiccup in Computer Time

The root of the worldwide problem lies at the dawn of the computer age when
the first commercial computers used holes punched into cardboard strips to
store data. In order to economize on space, programmers expressed years in
two instead of four digits, so that 1973 was stored as 73 for instance.
Further generations of computers preserved this practice and stored up
trouble for the year 2000, or in computer terms 00, when computers would
assume time had returned to the year 1900.

Western governments have been grappling with the nightmares the bug could
unleash for at least five years now and have spent billions of dollars in
attempting to avert widespread computer failure.

Software systems are being checked and updated to make them compatible with
the year 2000 and so-called "embedded microchips" or switches used in basic
infrastructure systems such as oil and gas pipelines, electrical power
systems and even traffic lights are being traced and replaced.

But this has only been the case in the West where UK telecommunications
company British Telecom is reported to have spent $500 million in updating
its systems alone.

However, according to Graeme Finch, tax partner at the KPMG accountancy
firm, research companies are predicting a bankruptcy rate of between 1 per
cent and 10 per cent of companies worldwide.

Information about the state of affairs in Russia has so far been hard to
come by. And, in the traditionally secretive Ministry of Defense, the
response till now has been nonchalant. Strategic rocket force commander
Vladimir Yakovlev said just last month that solving Y2K would cost his
forces only 10 million rubles (less than half a million dollars).

But the onset of 1999 appears to be forcing the Defense Ministry to take a
more realistic look at the problem.

According to U.S. Pentagon officials, Russia finally gave the green light
on Monday to the creation of a US-Russian consultative council on defense
aspects of the bug.

Too Little, Too Late?

Analysts say a last minute flurry of activity in Russia is unlikely to
alleviate the situation when Western governments have been diligently
developing solutions since 1993.

"Russia is only just starting to check equipment and there is not enough
time to start implementing solutions. The program should have been
initiated in 1995 at the latest," Ron Lewin, managing director of the
computer company Terralink and Y2K advisor to the American Chamber of
Commerce in Moscow told The Moscow Tribune.

"The best thing we can hope for now is the development of effective
contingency plans should the worst happen," he said.

Claims that the low level of computer automation in Russia compared with
the West means there are fewer systems to be checked, may be merely
comforting myths, Lewin said.

"There are indeed still many systems in Russia such as lifts, heating and
ventilation systems that are electromechanical and not yet computerized as
in the West," Lewin said.

"But the fact remains that major infrastructure systems such as the power
grid, air traffic control, trains and probably defense systems are
computerized. Lack of time, resources and awareness means that the Russian
environment also brings critical disadvantages," he said.

Doomsday Scenario?

One saving grace for Russia may be the fact that many computer systems
within private businesses and banks were installed only recently, ensuring
that the majority of software is Y2K compatible.

"Awareness about software problems within the financial sector is
relatively high. And, it is expected that most of them should be ready for
the year 2000," Lewin said.

But, according to the Western official, Russia is way behind in checking
out the embedded microchips in basic infrastructure systems 6 and it is
this factor that could spark off a series of disasters as Russia enters the
next millennium.

The difficulty in tracing the original manufacturers of microchips that now
lie in pipelines, electricity grids and simple systems such as traffic
lights means that nobody knows exactly what will happen when midnight
strikes on the eve of the year 2000.

If the chips go haywire, then they may either stay switched "open" or
"closed." If they remain "open" in a pipeline, oil spills would be a
serious threat.

In case of power blackouts, nuclear reactors would still be expected to
fail safe, but crucial back-up power would be required to keep the reactor
cool.

According to the official, a similar disaster was only just averted at an
atomic power station in the northern Kola peninsula in the early nineties
when diesel generators initially failed to operate.

"There is so far no evidence that Russia has begun checking these systems
or begun developing contingency plans. Safety culture in Russia is
minimal," he said.

"But considering Russia's financial situation, lack of progress is to some
extent understandable," he said.

"If there was a problem that may or may not happen but could incur massive
costs to solve, then I'd also be inclined to keep my head down and ignore
the problem given the complete lack of budgetary resources to even begin
dealing with the bug in Russia," he said.


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#4
http://intellectualcapital.com
Echoes of the Cold War in Moscow
by Richard Pipes
January 21, 1999

International Affairs, a periodical published in Moscow, deals, according
to its subheading, with "World Politics and Diplomacy and International
Relations." Originally founded in 1954, shortly after Stalin's death, it
has served for a long time as a Soviet propaganda outlet for the Soviet
line in the Cold War. During the past several years, it has turned into a
serious academic journal, not unlike our own Foreign Affairs, that
addresses a broad range of international issues, ostensibly without
espousing a particular point of view.

Reading the latest issue, however, I was struck by two aspects of its
contents that suggest to what extent, despite democratization, Russia's
political culture remains rooted in its recent past.

America as Russian interloper

For one, not a single one of the 21 articles dares to criticize the current

Russian government. Polls indicate that only between 1% and 2% of Russians
hold a favorable view of President Boris Yeltsin, and yet reading this
publication, one would suspect nothing of the kind.

Are old Soviet traditions returning?
All the policies of the regime -- diplomatic, economic and military -- are
approvingly commented upon or, at any rate, not questioned. This is very
much in the old Soviet tradition, contrasting sharply with practices in the
West, where political commentators go to great lengths to avoid conveying
the impression that they are government spokesmen.

The other striking feature of the journal is its anti-American tone --
muted, to be sure, compared with what it was in the days of the Cold War,
but still unmistakable and almost equally invidious.

The lead article written by Sergei Rogov, the director of the Institute of
U.S. and Canadian Studies in Moscow, called "Russia and the United States:
Test by Crisis," notes that a good share of the assistance earmarked for
Russia by the Agency for International Development went not to Russia but
to American organizations working on behalf of economic reform there. Rogov
suggests that this reform was bungled by the employment of "second-rate
professors," presumably Americans sent to help guide Russia to democracy
and a market economy.

"The Clinton administration is not an onlooker: upon the disintegration of
the Soviet Union, Washington assumed the role of a Moscow mentor in the
political and economic reforms," Rogov writes. "To a great extent, the
United States are responsible for the results of the 1990s in Russia."

Another anti-American accusation

A second noteworthy article was written by an equally prominent Russian
commentator on world affairs, Sergei Kortunov, counselor to the head of the
office of the president of the Russian Federation. His contribution bears
the title "Is the Cold War Really Over?" In his analysis of the Cold War,
the author claims that U.S. foreign policy aimed not so much at defeating
communism as at breaking up and weakening the Soviet Union along
ethnic/territorial lines.

Such (alleged) American plans, he writes, "in effect did not in any way
differ from the plans of the German Nazis. ... [I]n this context we can say
that in 1945, the world anti-Russian center moved from Berlin to Washington."

One rubs one's eyes in disbelief reading such Stalinist accusations. As
someone who since the 1950s has been deeply involved in the study of Soviet
nationality problems and who tried, throughout the Cold War, with little
success, to make Washington aware of their importance, I can state
categorically that breaking up the Soviet Union along ethnic or territorial
lines was never U.S. policy.

Quite to the contrary. Fearing the destabilization of Eurasia, Washington
actively discouraged the claims of the Soviet nationalities to sovereignty.

Some things never change

At no point in the Cold War did Washington call for the break-up of the
Soviet state. As late as August 1991, when the USSR was well on its way to
self-destruction, the then President George Bush delivered in Kiev a speech
that was widely interpreted as urging the Ukrainians to refrain from
claiming independence.

Blaming the United States for the failures of Russian reform attempts and
comparing it to Nazi Germany carries ominous overtones. Such irresponsible
talk suggests that not only communist and nationalist politicians but also
Russian establishment intellectuals have not yet matured to the point where
they can assume blame for their own mistakes -- and be prepared to learn
from them.

Richard Pipes is a professor of history and has previously served as
director of Russian studies at Harvard University. He is a contributing
editor of IntellectualCapital.com.

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#5
Carnegie Endowment for International Peace
RUSSIAN AND EURASIAN AFFAIRS PROGRAM
Washington and Moscow: The Urgency of Restructuring the Russian Debt
paper presented by Sergey Rogov, Director of the Institute of the USA and
Canada, Russian Academy of Sciences, at the Endowment on January 20, 1999.
There is growing tension between the United States and Russia. While in the
early 1990s these former mortal rivals proclaimed a strategic partnership
with one another, now the two countries seem to increasingly diverge both
in their views about each other and in their interpretation of
international events.

Washington is preoccupied with the impeachment of the President and seems
to be paying very little attention to what goes on in the world. After the
end of the Cold War and seven years of unprecedented economic growth the
American political class is fully absorbed in a masochistic show. Only when
American politicians emerge from the trenches of the presidential
impeachment hearings do they remember that there is a crisis in Kosovo and
Iraq or that another "emerging economy" is headed for bankruptcy. They
respond to these international crises by launching cruise missiles or
ordering the IMF to undertake a new bailout. Shortly thereafter the world
is assumed to stop so that the public striptease can resume.

Meanwhile Russia is in the midst of an extremely painful historical
transformation. Since the dissolution of the USSR the Russian Federation
has had to redefine its identity, institutionalize political democracy,
create a market economy and integrate into various international systems.
Unfortunately the political elite of post-Soviet Russia failed to find
efficient ways to manage the difficult transition. The mismanagement of
privatization provided the Russian bureaucracy with huge opportunities for
corruption. The nouveax riches ­ "the new Russians" ­ who overnight
acquired huge assets practically for free, used them to get even richer and
transferred the capital abroad. The rest of the population won nothing but
lost Soviet-style social protection and even found themselves without their
meager regular wages. Most of the Russian enterprises were forced to switch
to barter ­ primitive natural exchange of goods and services. The bulk of
the Russian economy was de-monetized.

With the government treasury empty and with no capital to invest, the
economy went into a long decline. As in other countries in transition from
state-owned to market economies the Russian recession was probably
inevitable, but the depth and the harshness of the economic crisis in
Russia was to a great extent man-made. While still the largest and the
richest country in the world, the former superpower has been unable to cope
with the enormous challenges of post-Soviet reform.

The August 17, 1998, unilateral "temporary" default and the devaluation of
the ruble by the Russian government pushed the Russian economy to the brink
of a meltdown. This financial crash was the result of irresponsible and
incompetent policies of the so-called young reformers in Russia, encouraged
by the West and especially by the IMF, which promoted the
"non-inflationary" strategy of further reduction in government expenditures
and continued borrowing on the domestic (state treasury obligations) and
foreign markets. The governments of Gaidar, Chernomyrdin and Kiriyenko
failed to collect taxes from the barter economy and simply did not pay
their bills. This limited the money supply and thus contributed to
unprecedented inflation, which reduced by 55 percent the GDP of the Russian
Federation in 1991-1997 and by an additional 8-10 percent in 1998. Further
decline of about 10 percent will probably follow in 1999.

As a result, the Russian economy is in free fall, while the federal budget
has collapsed. If in July 1998 the federal government collected about $3.5
billion (at the ruble exchange rate of 6:1) in revenues, since then its
revenues dropped to less than $1 billion (with the exchange rate dropping
to 23:1). It is clear that the Russian government can not settle 70 billion
rubles in State treasury bills, known as GKOs, on which it defaulted last
year. And the federal government also owes about 25 billion rubles in
unpaid salaries (4 months of average wages) to the employees of state
enterprises, teachers, doctors; 15 billion to military officers; and even
more to pensioners, children, etc.

Meanwhile the sovereign foreign debt of the Russian Federation jumped to
about $155 billion, while debts of Russian commercial banks and companies
have reached $60 billion. Russian sovereign debts include loans by the IMF
and the World Bank, bilateral intergovernmental credits, London and Paris
clubs debts, and some loans by German and other Western banks. Moscow has
already missed some of its foreign debt payments in the second half of 1998
and does not have $18 billion to service its sovereign debt in 1999.

It is clear that the second tranche of the IMF loan -- even if it is
released despite failure to fulfill its terms -- will not resolve the
Russian debt problem. The Russian government will not be able to repay its
debts according to the schedule and urgently needs a long-term of debt
restructuring (at least 10 years). Additional borrowing will only add to
the debt burden, and by delaying the overdue reorganization of the Russian
economy, deprive it of any chances of recovery.

The Russian debt is in a way the price for the Soviet Union’s defeat in the
Cold War. The Russian Federation inherited much of the cost of Soviet
support of "wars of national liberation," the elimination of the
accumulated nuclear, chemical and conventional weapons, the social
rehabilitation of the decommissioned military personnel, etc. Similar to
Weimar Germany after the World War I, Russia can not cope with this
enormous burden alone.

The rescheduling of Russian foreign debt is a necessary component for the
recovery of its economy. Eliminating barter, which accounts for 75 percent
of the Russian economy, will help secure the necessary private investment
and restore the tax base of the government. It will probably take 18 to 24
months to halt recession and stabilize the situation, followed by at least
three years to monerize the barter sector and bring the entire Russian
economy to market conditions. Only after that can one expect the ground to
be prepared for fast economic growth.

Unfortunately President Yeltsin is not able to cope with the situation.
Prime Minister Evgeny Primakov, who is de facto running the country, has
been able to stabilize the political situation but can not produce any
quick miracles. While his government is not responsible for the mess
created by its predecessors, Primakov is preoccupied with immediate
economic challenges. It will take six to 18 months to stop the recession,
followed by several years to restore the market infrastructure, change the
tax system, monetize the barter sector, and prepare the necessary legal and
economic environment necessary to attract investment.

Of course, only Russians can advise Russia’s recoverery. Nobody else can do
this job. And sooner or later Moscow will again be a major international
player. It has a creative and dedicated people, enormous natural resources,
huge (although obsolete) industries, impressive nuclear capabilities and
occupies a strategic position in the middle of Eurasia. Russia is a giant
that has always had the power and tremendous capacity for good or bad. That
is why it matters whether the Russia Federation will come back as a
responsible international player, contributing to global prosperity and
international peace. The alternative is for Russia to bear grudges against
the new world order, considering it detrimental to its legitimate interests.

Many in Russia today blame the West for Russian misfortunes, accusing the
United States in particular of harboring sinister intentions. That is
unfair and untrue -- the CIA could never harm Russia as much as its own
Russian leaders have. But that does not mean that the United States is
without blame. Apparently Washington failed to develop a meaningful
strategy for the integration of Russia into the post-Cold War international
community.

The strategic partnership proclaimed by "friend Bill" and "friend Boris"
was never institutionalized. A partnership can not exist without a
mechanism for common decision-making. While the Clinton Administration
rejected the advice of those who believed that Russia should be weakened as
much as possible, apparently the Clinton team felt that there has been no
need to gain Russian support to do what has been considered necessary to
advance American national interests.

There was no reason to expect Moscow to welcome Washington’s decision to
expand NATO and absorb former Soviet satellites. Taking into account that
the North Atlantic alliance instead of the OSCE has become the backbone of
post-Cold War European security, nobody expects the Russian Federation to
be invited into NATO. And if NATO decides to use military force, as the
Americans did in Iraq without an explicit UN mandate, Russia, which still
is a permanent member of the Security Council, will feel even more humiliated.

The United States did not aid Russia as it assisted its former enemies
after the Second World War. There was no massive infusion of American
assistance to Moscow. Russia did receive what was less than five percent of
Marshall Plan assistance (at comparable prices), but this help was too
little, too late and sometimes counterproductive. The advice of Western
officials was shaped by IMF dogma and ignored Russian realities, thus
contributing to its problems, instead of helping to solve them.
Consequently Russia enjoyed very few benefits but acquired additional
burdens on top of heavy Soviet legacies.

As a result both sides feel more and more frustrated because the other side
did not live up to expectations (or illusions?). The economic asymmetry
produces growing unhappiness in Moscow and in Washington. The list of
Russian-American disagreements on international issues has been growing. In
Bosnia and Kosovo, Iran and Iraq, India and Pakistan, China and North
Korea, the two countries have begun to take opposing positions as in the
days of the Cold War.

Arms control has come to a standstill. Russia and the United States hardly
cooperate to manage the inevitable diffusion of power and do little to
jointly control the transfer of arms and dual use technology to the
challengers of the status quo. Nor is there much cooperation in the
enforcement of the NPT, or chemical and biological weapons agreements. The
START-2 Treaty, which was almost ratified in December 1998, is again on the
backburner, where it may stay forever. The efforts to change the ABM Treaty
may destroy most of what is left from the Soviet-American arms control
regime negotiated during the Cold War.

Present developments in Russian-American relations do not bode well for
either country. While the return to the Cold War is unlikely, both
countries will lose as a result of a possible disengagement and the renewal
of mutual suspicions. Lack of cooperation between Washington and Moscow
will make it very difficult to maintain international security and
stability and prevent efforts to abruptly change the balance of power.

It’s time for a serious effort to put U.S.-Russian relations on the right
track. Both sides should honestly search for a common understanding of the
new agenda in their relationship.

The restructuring of the Russian debt can hardly be done without the United
States, which dominates the IMF and the World Bank. But the Clinton
Administration seems to be paralyzed by its domestic political crisis. That
means that if Western leaders take no initiative, Moscow will be forced to
admit the default and face the consequences, which can push the Russian
economy to a complete meltdown.

There is an urgent need for direct discussions of the situation between the
top leaders of the two countries. The Gore-Primakov meeting in March may
provide this opportunity, unless Russia and the United States are overcome
by events, whether they be domestic surprises or new fighting in Kosovo or
Iraq.

A possible solution may be discussed at an emergency meeting of the G-7
meeting. That will permit the Western leaders to come to a broad
understanding with Prime Minister Primakov on a number of issues, including
debt restructuring and European security. The ratification of the START-2
treaty could restore Russia’s tarnished credibility and demonstrate that
Russia can eventually implement its commitments.

As far as additional Western assistance is concerned, it is not a
substitute for restructuring on the Russian debt. Moscow should help itself
to create a market economy. New Western assistance shouldn’t be used for
repayment of old debts, but targeted instead to a few limited areas, like
the elimination of weapons of mass destruction and providing housing and
job retraining for military officers. Russia could also be given credits
for emergency food relief in some regions this winter. But with the
long-term foreign debt rescheduling there is no need for a new IMF
"bail-out". In fact any attempts by the IMF to impose its conditions on
Russia will only bring new disasters.

If Russia understands that it is not being treated as a defeated country,
and if the United States understands that unilateralism can not be
successful, cooperation between the countries could become more
institutionalized.

A reassured Russia, while renewing its efforts to evolve into a market
economy and political democracy, will be able to deal more realistically
with the pressing arms control issues. Moscow would probably agree not only
to START-2 but also to much lower ceilings in strategic and tactical
nuclear weapons. That would provide a new life to the failing arms control
process in other areas.

Will the leaders of both countries, despite all their domestic problems, be
able to elaborate this new agenda? If they don’t, an historic chance might
be missed.

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#6
Russia: Naval Captain And Environmentalist Accused Of Treason
By Russell Working

Vladivostok, 21 January 1999 (RFE/RL) -- Prosecutors in Russia's Far
Eastern city of Vladivostok began laying out a treason case today in a
military court against journalist Grigorii Pasko.

Pasko is a Navy captain and journalist who provided Japanese media with
information on alleged environmental abuses by Russia's Pacific Fleet. He
is officially charged with espionage and revealing state secrets.

Pasko's trial has been compared to that of Aleksandr Nikitin, a Saint
Petersburg Navy captain and environmentalist who has been charged with
treason for contributing to a Norwegian environmental group's report on the
dumping of nuclear waste at sea.

In both cases PEN International, the writers and editors association
provided an attorney, and now Amnesty International is championing the two
men. Earlier this week, Amnesty International identified Pasko as a
"prisoner of conscience", saying he is being held in detention and
prosecuted "solely for the peaceful exercise of his right to freedom of
expression".

Our Vladivostok correspondent reports that Pasko was visibly agitated as he
left the court filled with agents of the Federal Security Service (FSB),
the successor to the KGB.

Pasko and his lawyer, Anatoly Pyshkin, indicated they had low expectations
for a fair trial in the military court. Pyshkin noted that the court
refused to release Pasko after the first trial was suspended in October. He
also referred to subsequent attempts to prevent Pasko from obtaining
qualifying documents for a recent failed race for a City Duma seat.

Prosecutors plan to finish reading the case tomorrow and begin calling
witnesses from "Boyevaya Vakhta," a newspaper where Pasko worked as an
editor and reporter.

Prosecutors and the military judge, Dmitry Savushkin, have refused to speak
to the press on the case.

Viktor Kondratov, President Boris Yeltsin's regional representative and a
FSB general, said the case has nothing to do with Pasko's environmental
activities.

Pasko came under suspicion in November 1997 when customs officials seized
documents from him as he was heading for Japan. When he returned a few days
later, he was arrested. His lawyers have noted that Pasko willingly came
home even though his papers had been seized -- which they say is an
indication he was innocent. And they insist the records he provided to the
Japanese were public.

A Vladivostok military journalist, who spoke on condition of anonymity,
told our correspondent that Russia has an enormous backlog of documents
that haven't been declassified since the Soviet era, even though the
information they contain has already been made public. The journalist said
Pasko's documents could have been of this type.

Pasko's trial opened in October but was immediately suspended. The matter
was referred to the Supreme Court, which ordered Pasko to remain behind bars.

Since his arrest, Pasko has sued NHK, a Japanese station he was
free-lancing for, claiming they used some materials without his permission.
NHK disputes that charge. Although it has a bureau in Vladivostok, NHK has
never sent reporters to cover the trial.

Yury Maksimenko, a representative of the Veterans of the Fleet Council who
was permitted to sit in on the trial, said the case was flawed. He said:
"there are so many assumptions, and not much proof." He added that
prosecutors "keep saying that Pasko sold information, but this is what
every journalist does."

As the hearing began, Pasko's wife, Galina Morozova, was expelled from the
courtroom. Morozova has been limited to one visit a month with her husband.
Amnesty International, citing Pasko's lawyers, have expressed concern about
his deteriorating health and said he has not been receiving adequate
medical treatment.

Reporters have been unable to talk to Pasko except in passing. Eduard
Vorotnikov, a Vladivostok television reporter, said he believes the Pasko
case has worrying implications for other Russian journalists.

(Russell Working is a regular contributor to RFE/RL, based in Vladivostok.
Nonna Chernyakova contributed to this report.)

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#7
Moscow Times
January 21, 1999
DEFENSE DOSSIER: Sanctions Sure to Backfire
By Pavel Felgenhauer

U.S.-Russian relations reached a new low last week when President Bill
Clinton's National Security Adviser Sandy Berger announced economic
sanctions against three Russian scientific institutions for allegedly
leaking nuclear and missile technology to Iran. The announcement of
sanctions was followed by a more serious threat - to cancel the launches of
American satellites by Russian space rockets.

Similar sanctions were announced last summer against several other Russian
institutions, but that time public reaction was muted, most likely because
those institutions were obscure scientific outlets nobody knew anything
much about. This time, two well-known public universities have been
blacklisted - the Moscow Aviation Institute and the Mendeleyev Chemical
Technical University. Thousands of students and professors will be affected
and many Moscow families may be punished by the United States for no good
reason. Russia's public universities have never been seriously involved in
designing Russian weapons of mass destruction and could not have possibly
passed any forbidden technology to Iran.

Of course, sanctions against institutions cannot in themselves cause a
major shift in Russian foreign policy. But if the threat to cancel launches
is made true, irreversible damage may be done.

Military and high-tech cooperation with Iran has for some time been a hot
issue behind the scenes in Moscow. In the '80s, during the Iraq-Iran war,
the Soviet Union sold arms to Iraq on a huge scale, but not to Iran. But
after the cease-fire that ended the war in 1988, the Soviet Union swiftly
moved in to supply modern arms that Iran desperately wanted, including
MiG-29 fighters, new jet bombers and Kilo class submarines. Russia helped
build a modern tank factory in Iran that is today busy making T-72 tanks
under license. The license agreement envisages the production of 2,000 T-72
tanks in Iran, and Iranian crack tank divisions are now equipped with these
Russian-designed weapons.

Iran has purchased more than $5 billion worth of Russian arms and military
technology since 1989. However, in 1995 this trade was curtailed when U.S.
Vice President Al Gore and then Russian Prime Minister Viktor Chernomyrdin
signed a memorandum that pledged that Russia will not sign new arms
contracts with Iran, but will honor old ones.

Immediately after the signing of the memorandum, Russia's defense industry
began clamoring for it to be scrapped. Russian arms production chiefs told
me bitter stories of how much time and money they put into preparing new
deals with Iran, only to suddenly learn that the Americans had left them
out in the cold. The pro-Iran lobby in Russia is strongly supported by
influential regional governors and by many State Duma deputies. Iranian
orders could create thousands of jobs in depressed regions. The Russian
government and the Kremlin are under constant pressure to renege on the
Gore-Chernomyrdin agreement and resume full military-technical cooperation
with Iran, while Iranian officials constantly signal that they have a long
shopping list for Russian arms and technology.

The pro-Iranian lobby in Russia is not particularly afraid of sanctions
since the United States is not buying their weapons. On the contrary,
sanctions promote anti-American feelings and so help the pro-Iranian cause.
Nor is the lobby overly eager for Russia to obtain further loans from the
IMF. A constantly falling ruble only makes arms exports more profitable,
and if consumer goods imported from the West dry up in the future, all the
better for the defense industry since it will be able to market offset
goods supplied to Russia in exchange for weapons by Iran and other countries.

Still, pro-Iranian pressure has so far been unable to change official
government policy because of strong anti-Iranian lobbying. Powerful
financial institutions (the pro-Western oligarchies) and the space-rocket
industry want to make money with the West - not against it. The allocation
of satellite launches to Russia was, in effect, an unofficial part of the
Gore-Chernomyrdin agreement.

However, the pro-Western oligarchies have lost sway while Washington is
threatening sanctions against the space industry, its last serious ally in
Russia. Kremlin officials say that they hope the United States is bluffing,
that negotiations on allocating new launch quotas are continuing and that
there is still time to clinch an agreement. But those officials will only
remain in office until elections, most likely dominated by anti-American
rhetoric, bring new people into the Kremlin.

Pavel Felgenhauer is the chief defense correspondent for Segodnya.

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#8
Jamestown Foundation Monitor
22 Januay 1999

NORWEGIAN MISSILE LAUNCH A "ROUTINE" EVENT THIS TIME. In a matter-of-fact
statement, the chief spokesman for the Strategic Missile Force announced
yesterday that Russian early-warning sensors had that day both detected the
launch of a Norwegian research ballistic missile and confirmed that the
missile's trajectory posed no threat to Russia. A similar event four years
ago nearly triggered a nuclear war (Russian media, January 21).

In January 1995 Norway launched a research rocket from northern Norway in a
joint U.S./Norwegian project to study the Northern Lights. As in the recent
case, Norway had notified Russia before the launch. In 1995, however, that
information was somehow lost in the Russian bureaucracy and apparently never
reached the missile force's command center. When Russian ABM radar detected
the rocket, computers identified it as a combat missile, perhaps a Trident
nuclear-armed missile launched from an American submarine patrolling in
either the Norwegian or Barents Sea. Later reports indicated that President
Boris Yeltsin's "nuclear briefcase" was activated and that he was poised to
authorize a retaliatory nuclear strike. The matter was fortunately resolved
when the missile splashed into the Arctic Ocean near Spitsbergen, more than
1,000 kilometers from Russia (The Economist, July 13, 1998).

This relatively close call fueled Western concerns about the deteriorating
state of Russia's nuclear command and control system. Yesterday's statement
indicates that some things have improved--such as the lines of communication
between the foreign and defense ministries. It would also appear that the
early-warning computers can now better distinguish between friend and foe.

DIMMING PROSPECTS FOR START II RATIFICATION. Two
announcements yesterday threw more water on flickering hopes that the State
Duma might ratify the 1993 START II nuclear arms reduction treaty. The first
was a statement by former general, Krasnoyarsk governor and presidential hopeful
Aleksandr Lebed that ratification of the treaty would cause "irreparable damage" to
Russia's national security (Russian media, January 21). The second was the
revelation that President Bill Clinton had written a letter to President
Yeltsin proposing that the 1972 Anti-Ballistic Missile (ABM) treaty be
renegotiated (New York Times, January 21).

Of the two, the second is the most serious. Russians of all political
stripes have long held the ABM treaty sacrosanct. It is regarded as the
cornerstone of all subsequent nuclear limitation and reduction pacts.
Attempting to significantly tamper with it, they say, would bring the entire
edifice down. Legislators in the State Duma will surely want to wait until
the status of the treaty is clarified before considering START II again.

Lebed called for bypassing that treaty and proceeding to the even more
radical reduction of weapons which had been envisioned for START III. At
their 1997 Helsinki summit, Yeltsin and Clinton agreed on a ceiling of
2,000--2,500 warheads for the new treaty. Lebed would like to see that
number lowered to 1,500-1,700. He also expressed particular concern about
the air and naval components of Russia's nuclear triad, and suggested that
each country should be able to apportion its warheads among its components
as it saw fit. Many Russian politicians agree with Lebed's concern that the
START II limits are too high, but the United States has shown no willingness
to move on to further cuts until the 1993 treaty is ratified. Defense
Minister Igor Sergeev yesterday again urged the State Duma to ratify the
treaty quickly, calling it "necessary and beneficial" (Russian media,
January 21).

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