Johnson's Russia List #6083 18 February 2002 davidjohnson@erols.com A CDI Project www.cdi.org [Note from David Johnson: 1. Financial Times (UK): Andrew Jack, Risk indigestion for a slice of Russian success: The outlook may be rosy but the hardest part still lies ahead for the Putin-led government. 2. Richard Thomas: Erickson Memorial. 3. Reuters: Lucky Kyrgyzstan finds Afghan war a boon. 4. Moscow Times: Matt Bivens, No Sushi Satisfaction. (re Chubais) 5. Newsweek International: Fred Guterl and Eve Conant, In the Germ Labs. The former Soviet Union had huge stocks of biological agents. Assessing the real risk. 6. Mikhail Tsypkin: re: Aslund's response to Reddaway/6078. 7. Financial Times (UK): Matthew Garrahan, Sponsor's frozen vodka to melt Olympic hearts. 8. Moscow Times: Nabi Abdullaev, Break-in Highlights Nuclear Security Problems. 9. The Times (UK): Alice Lagnado, What the Russian papers say. 10. The Russia Journal: Ira Straus, Paranoia about the West and TV-6: A tale of a dark world filled with enemies external and internal. 11. The Independent (UK): Charles Arthur, New laws to suppress academic research. 12. AP: Russian Olympic Chief Blames Media.] ****** #1 Financial Times (UK) 18 February 2002 Risk indigestion for a slice of Russian success: The outlook may be rosy but the hardest part still lies ahead for the Putin-led government By ANDREW JACK Moscow's upmarket hotels and restaurants have been doing a flourishing trade in the last few weeks, as western investment banks bring large delegations of potential investors to the Russian capital to persuade them to part with their money. After a period during which eating nuclear waste from one of the Soviet-era weapons scattering the country seemed more appealing than dabbling in its equities or bonds, mainstream international funds suddenly seem unable to consume enough. Where Moscow-based market strategists used desperately to seek listeners for their efforts to talk up the market, they now spend much of their time travelling to London and New York to address packed halls. Specialists from other countries suffering from the global financial services sector shake-out - and the specific negative view on emerging markets in most of the rest of the world - are arriving fast to see if there are any jobs going. But is the turnround taking place just a little too hastily? There is a risk that the sudden surge of interest in Russia may end up giving everyone a sharp bout of indigestion. There is no doubt that on paper, the Russian "story" looks very positive. As successive recent reports from the World Bank and the Organisation for Economic Co-operation and Development have pointed out, the changes in the past two years have been impressive. For the first time in its history, Russia is running a budget surplus. Foreign debt is being serviced. Economic liberalisation that was long stalled under Boris Yeltsin has progressed apace under President Vladimir Putin. The rouble is stable, inflation is relatively low and unemployment declining. It would be unfair to claim that this is all a result of the boost to domestic competitiveness driven by the August 1998 devaluation, and the fortuitous sharp rise in commodity prices that followed, providing unexpected gains to companies and the government alike. After all, the government could have given in to temptations to use the windfall for higher expenditure, rather than exercising self-constraint in its spending patterns. It could have simply continued to service foreign debts, but it has instead accelerated repayment. And Mr Putin has taken steps to implement proposals discussed without result for years. Suddenly, Russia has a flat-rate 13 per cent personal income tax, as well as simplified and lower corporate profits taxes. Initial steps have been made to reform the labour code, permit the sale of land and restructure the unwieldy state pension scheme. But the curious thing is that most of these steps were already under way nine months ago. Little fundamental has altered in Russia since then, at least in comparison with the scale of the reforms of the first few months of Mr Putin's presidency. The main change, of course, is a sudden love-fest between the US and Russia. A year ago, the US administration of George W. Bush thought it could simply ignore Russia. September 11 changed that, and more precisely September 24, when Mr Putin pledged support for the international coalition against terrorism. The two leaders now talk about their close personal relationship and trust. From that has followed a wave of more positive statements, official visits and good publicity. Russia has, objectively, also provided a rare safe haven of strong economic - and markets - growth against a more gloomy wider picture. But the hardest part for Russia is still ahead. Mr Putin and his government face the challenge of implementing the ambitious series of laws that they have introduced. Tax reforms are one thing; persuading inspectors to agree to them quite another. Fighting back thousands of federal and local bureaucrats who make a living from them will be far from easy. Furthermore, the electoral clock seems already to be ticking. Parliamentary elections are scheduled for next year, and Mr Putin's term comes up in 2004. Yet already many of the - admittedly vast - reform plans now under way have a second, controversial and potentially unpopular element that only begins after these dates. That may be one reason why - even while portfolio investors are submitting to the appalling bureaucracy of Moscow's Sheremetyevo airport - direct investors are staying at home. Foreign direct investment in China last year alone substantially exceeded the total amount for the past decade into Russia. There have been some notable exceptions, including Exxon's multi-billion dollar pledge late last year to develop the Sakhalin-1 oilfield in the Russian Far East. But companies committing large sums for the long term - the experience and money of which arguably offer the most to build a stronger Russia - remain cautious of corruption, bureaucracy and legal rights. What looks good at the macro level may be translated into disappointing micro results. And what swings rapidly one way - whether it is personal bonds between presidents, or the conversion to good corporate governance by former robber barons - always risks swinging back the other. ****** #2 Date: Sun, 17 Feb 2002 15:07:36 -0500 To: davidjohnson@erols.com From: "Richard Thomas"Subject: Erickson Memorial Dear David, Those of us who were privileged to have known and worked with John Erickson are pleased that you have included articles about him in the JRL but we have a favor to ask. Those articles did not include mention of a Memorial Service that is planned for him and of a Memorial Fund at the National Library of Scotland. I received the following from Ljubica Erickson today. "All friends and colleagues are invited to a memorial service on 5th May 2002, 3.30pm, St. Mary's Cathedral, Palmerston Place, Edinburgh. No memorial flowers, but donations to The National Library of Scotland (c/o Ian McGowan, NLS, George IV Bridge, Edinburgh, EH1 1EW) would be much appreciated." David, we would appreciate your including this in the JRL. Many thanks. Dr. R. Thomas Center for Strategic Technology Texas A&M University r.thomas70@verizon.net ******* #3 Lucky Kyrgyzstan finds Afghan war a boon By Sebastian Alison BISHKEK, Feb 18 (Reuters) - Few countries in the world are as remote, little known or hard to pronounce as Kyrgyzstan, a mountainous land of five million on the furthest fringe of the former Soviet Union's Central Asian empire. But the cash-strapped nation, with few resources and half its population living in poverty, stands to become a major winner from the war against the Taliban and Osama bin Laden's al Qaeda network in nearby Afghanistan, and its leaders have not been slow to realise it. "Of course it's very difficult to say any war has a positive influence, but in an economic sense the long-term effect will be positive," says Ulan Sarbanov, chairman of the central bank. Foreign Minister Muratbek Imanaliyev is just as optimistic. "For us it was obvious that the changes in the situation in Afghanistan after October 7, when the anti-terror campaign started, were in many ways favourable for the general situation in the region," he told Reuters. Kyrgyzstan lies close, but not too close, to Afghanistan -- another ex-Soviet state, Tajikistan, forms a handy buffer -- and the U.S. airforce has chosen Manas airport, close to the small and down-at-heel capital, Bishkek, as its main centre of operations in the region. Already some 500 U.S. and French troops are there, building an entirely new base, named after firefighter Peter J. Ganci who lost his life in New York's World Trade Center on September 11, within the existing airport. Up to 3,000 personnel will be there in the next six to eight weeks. The existing troops are already making their mark. "There will be positive economic and business benefits to the airport and to Kyrgyzstan," said Colonel Bill Montgomery of the 86th Air Mobility Squadron, normally based in Ramstein, Germany. "We purchase supplies, food, furniture, we're leasing buildings." But the impact goes far beyond this. TERRORIST PAST Kyrgyzstan, like other former Soviet Central Asian states, has long suffered from Islamic militias funded from, and in some cases trained in, Afghanistan, penetrating its borders and attacking government troops in an effort to set up an Islamic state in the region modelled on Taliban lines. "In Central Asia and especially in Kyrgyzstan, people awaited the appearance of terrorists every spring starting in 1999," Foreign Minister Imanaliyev said. "The anti-terror campaign, the destruction of the Taliban, the war with terrorist groups including al Qaeda were very serious elements for peace and stability. This is why Kyrgyzstan supported the forces of the United States and other countries. We are extremely interested in this war." Kyrgyzstan's instability caused by the terrorism, and unwelcome headlines when a group of Japanese geologists and a party of U.S. mountaineers were kidnapped in 1999 and 2000 respectively, have helped keep foreign investment to a minimum. This may now change, although Imanaliyev was at pains to stress this was not a reason for offering the coalition support. "We're not doing this because we want to receive any economic, financial or trade dividends. Our starting point is that this is about the war against terrorism," he said. But rebuilding Afghanistan will surely help countries nearby. Imanaliyev cites such basics as cement, bricks and glass which Kyrgyzstan expects to start exporting there, as well as specialists. The country also stands to become an important aid route. END TO DRUGS Central Bank Chairman Sarbanov points out another benefit: Kyrgyzstan, like Tajikistan and other countries in the region, is on a major drug-trafficking route stretching from Afghanistan to Russia and on to markets in Europe and beyond. "Resolving the Afghan problem has short-term and long-term positive aspects," he told Reuters in an interview. "In the short term some problems may emerge but in the long term it will be positive beyond any doubt, including the fact that if the Afghan question is resolved, then the drug traffic though Kyrgyzstan will stop." The benefits of cosying up to Washington are clear, but Kyrgyzstan borders China and has overwhelmingly important trade links with Russia. Does Imanaliyev fear that its new links with the United States will put strains on these relationships? "I see no difference in our relations with these countries," he said, adding that ties were already excellent. On the contrary, the whole sequence of events has been a benefit to his country. "I really don't see any minuses." BUSY AIRBASE Back at Manas airbase, on a beautiful crisp morning with snow lying thick on the ground, soldiers who had until recently never heard of Kyrgyzstan were hard at work at their exotic new posting. "You can say they're enjoying themselves," says Lieutenant-Colonel Betrand Bon of the French detachment. "Our first impressions of the country are good. Of course most people in France don't know much about Kyrgyzstan." The base is already busy, with typically eight to 15 military aircraft, mostly Boeing 747s, or military C-5, C-17 and C-141 cargo planes passing through every day. This number will rise sharply as more troops arrive. A huge tent city has already been erected to house the troops, who are getting used to a diet of a cooked breakfast, an "MRE" (Meal Ready to Eat) packed lunch and a hot dinner -- usually spaghetti, lasagne or chicken. But creature comforts are not too far away. "We had 160 guys in the chow hall at 4:00 a.m. the other day to watch the Super Bowl (American football championship)," says U.S. Air Force Captain Kristi Beckman. "That was something." ******* #4 Moscow Times February 18, 2002 No Sushi Satisfaction By Matt Bivens WASHINGTON -- The Financial Times is fresh back from a sushi lunch with Anatoly Chubais, and the result is an article so, ahem, odd, that I can't let it pass. Several years ago, Chubais parceled out the oil fields and nickel mines via rigged auctions to insiders who came to be dubbed "the oligarchs." Back in 1996, when anger was high, Chubais admitted it had been a "mistake" to let oligarchs organize the auctions and also to win them. (I'm actually grateful he did it that way: It provides a certain clarity.) This mistake was "ethical" and not "legal", he said, adding, "We must remember that Russia is a transition economy." I never was clear on how being a "transition economy" justified rigging government auctions. But if this is now boring stuff, there are a dozen other questions one might ask Chubais -- from his role in the Russian debt market that collapsed in 1998, to his rocky stewardship of the national power monopoly. (No one even laughed when Chubais insisted he'd use auctions and tenders to bring in reforms at Unified Energy Systems -- or at his desperate public flirtation with "strategic partner" Enron as late as September 2001. Chubais told the newspaper Vedomosti he would demand Western suitors get serious: "It won't be a conversation along the lines of 'Dear Ken [Lay], how do you feel about energy restructuring in Russia?,' but a conversation like 'Here are four projects for you, they cost this much and these are the parameters, how much time do you need to give me a 'yes' or 'no'?") Personally, I'd have been curious to hear Chubais talk about jockeying to get "Dear Ken" involved in Russia. The FT, alas, approaches Chubais with far too much deference for that. Along with endless detail about the Izumi sushi restaurant, the Feb. 16 article "Lunch with the FT: Anatoly Chubais" breaks the following news: Chubais arrived on time. He has lost weight. He was polite to the waitress. He was meeting the prime minister later that day, a fact mentioned three times. The only real news is that Chubais, a Vladimir Putin supporter, professes alarm that Russia is drifting toward a police state. That would have been a good moment to ask Chubais about his own three minutes of hate -- he used to insist even meek questions about the war in Chechnya made one "a traitor." (Or what of reports that Boris Yeltsin's campaign manager Chubais threatened newspaper editors at a 1996 Kremlin meeting? As quoted by editor Vitaly Tretyakov, Chubais told those assembled: "You will do what the owners [of your paper -- i.e., the oligarchs] tell you. And if you don't, bones will crack.") And privatization? The FT says Chubais "forced capitalism of a harsh and wild kind on Russia. It made a few people very rich and left a lot of people very poor. Most Russians hated him for it." This perpetuates the myth that ordinary people are angry about privatization because they are jealous losers unable to function in a market. Let the record show: Russia was already a market, with people building their own businesses, long before Chubais showed up to take credit for it all simply because he gave away the oil companies to his friends. The FT falls for this absurd chestnut, stating that thanks to privatization, "Russia will have private property for generations to come." It quotes Chubais crowing, "And I did it. With all the mistakes. Despite all the criticism. I did it." This is where a journalist would probably ask questions like: By mistakes are you referring to the fact that the oil companies were sold at rigged auctions? Or: The government will soon be selling another stake in LUKoil -- does it matter this auction will probably also be rigged? (When should they stop being rigged?) Or: When you announced your UES restructuring in 2000, $2.5 billion in company value evaporated as panicking shareholders dumped UES stock -- why do you think they did that? Instead, the FT opts for a slo-o-o-w fade to black: "The time is coming for Chubais to leave [the restaurant]. ... He decides against dessert and seems faintly irritated when a plate of creamy sticky things arrives, compliments of the house. I see him off, pay the bill and wander out on to Spiridonovka. "It looks little changed but then it always was a posh street. More of Moscow, and of Russia, is catching up with it. The privatized economy is beginning to work. In a sense, Russia is coming round to Chubais's way of thinking. "And he is still only 46. For all his protestations to be happy in business, I would eat my chopsticks if he did not have his eye on the Russian presidential election of 2008, when Putin's second term is over. And at Izumi, the chopsticks are made of stainless steel." So he's a future president now? Well, with such uncritical media treatment, you never know. "Lunch with the FT: Anatoly Chubais" amounts to an argument in a world-class publication that government corruption on a massive scale -- while perhaps "a mistake," and certainly not something a polite person brings up over sushi -- has no wider significance for the economy, or democracy, or the nation. Wow. Matt Bivens, a former editor of The Moscow Times, is a Washington-based fellow of The Nation Institute [www.thenation.com]. ******* #5 Newsweek International February 25, 2002 In the Germ Labs The former Soviet Union had huge stocks of biological agents. Assessing the real risk By Fred Guterl and Eve Conant Bakyt Atshabar has worked for the anti-plague Institute for more than 25 years, and for much of that time there was little need for security guards and fences and heavy metal doors with keypad locks. As an unofficial part of the Soviet Union’s vast bioweapons program, the institute routinely kept dozens of different strains of anthrax, plague and tularemia stored in unlocked refrigerators. But Moscow’s ironclad control over life in Kazakhstan protected the labs. So did a veil of secrecy that hid the institute’s bioweapons role from local residents. WHEN THE SOVIET UNION collapsed, however, the thick shrubs surrounding the institute’s campus began to attract petty thieves and drunks. “We had bums right outside my window here,” says Atshabar, now director of the institute, which is located in a leafy suburb of Alma-Ata, the largest city in Kazakhstan. “They would sleep there”—he points to a tuft of trees—“and drink vodka.” Criminals once broke in and stole an aluminum part of a centrifuge, useless except as scrap metal. It would have been even easier to rob—or smuggle out—a small vial of nasty germs to sell on the black market. As far as anybody knows, no such theft ever occurred at the institute (formally known as the Kazakh Science Center for Quarantine and Zoonotic Diseases). But keeping close track of pathogen cultures is next to impossible, even for the most tightly run lab. And at the Alma-Ata institute, vials of anthrax are kept in coffee cans, which themselves are stored in a 40-year-old refrigerator secured with a simple padlock. In the wake of September 11, the Big Fear—the one driving President George W. Bush’s most important decisions and dire pronouncements—is that a terrorist group like Al Qaeda will eventually get its hands on weapons of mass destruction. These worries are heightened because U.S. officials have learned that Osama bin Laden’s network was trying to acquire such weapons. Documents recovered from Qaeda safe houses and camps in Afghanistan “show that bin Laden was pursuing a sophisticated biological weapons research program,” CIA Director George Tenet told Congress earlier this month. Bush has used such concerns to justify his warnings against Iraq, Iran and North Korea—what he calls the “axis of evil.” Such countries “could provide these arms to terrorists,” he declared in his State of the Union Message. In large part, it’s the fear of WMD in the hands of terrorists that is behind large increases in spending on the military and on home-land defense. JOBS WITH AL QAEDA But the “rogue states” are not the only concern when it comes to WMD proliferation. Some experts worry that the countries of the former Soviet Union, with enormous stockpiles of pathogens, high levels of corruption and grim conditions for scientists, could be vulnerable to terrorists looking for highly destructive agents. Al Qaeda itself appears to have targeted ex-Soviet weapons scientists for recruitment. According to U.S. intelligence reports, some Russian experts traveled to Kandahar for job interviews with unidentified Qaeda leaders. Intelligence officials believe the Russians turned down the chance to work for bin Laden, however, and by all accounts Al Qaeda’s efforts to make or acquire bioweapons have gone nowhere. So how worried should we be? At their peak, the Soviets probably employed upwards of 60, 000 people on bioweapons projects, which produced a greater volume and variety of deadly agents than any other country. When Ken Alibek, a senior Soviet bioweapons official, defected in 1992, he described a staggering offensive bioweapons production capacity—4,500 metric tons of anthrax a year, for instance—and an alarming array of deadly pathogens, including smallpox and antibiotic-resistant anthrax. Gennady Lepyoshkin was Alibek’s deputy in the Soviet era, and later took his job as head of the giant production facility at Stepnogorsk in Kazakhstan. In its heyday, the facility, with fermenting tanks as tall as four-story buildings, could produce 1.5 tons of weaponized anthrax in only 24 hours. Lepyoshkin has more than 20 years’ experience in biowarfare, a doctorate in biology and another in microbiology. Now he’s unemployed. (Russian born, he was replaced recently by a Kazakh.) As he walks along the perimeter fence at Stepnogorsk, where he no longer has clearance, he drinks a shot of cognac in honor of his old haunt. “Most of our scientists left for Russia, Ukraine or Belarus,” he says. “But the ones who stayed—biological and chemical engineers—make ends meet by driving to Omsk to buy sausage and cheeses and then selling them here.” A few years ago the U.S. government estimated that 7,000 former Soviet bio-weaponeers were a “proliferation concern,” says Amy Smithson, a bioweapons expert at the Stimson Center in Washington. After September 11, they upped the figure to 10,000. Suddenly, formerly benign activities began to look worrisome—veterinary institutes, for instance, hold livestock pathogens that in the wrong hands could devastate a nation’s farms. FROM WEAPONS TO VACCINES For the past eight years the State Department has been retraining former weapons scientists and helping institutes turn their bioweapons programs into peaceful, commercial ventures. The incoming Bush administration initially regarded this—and similar efforts to help Russian scientists—with deep suspicion. But 9-11 changed that. Now the Defense Department’s work on former Soviet bioweapons facilities is to be greatly expanded, from $17 million in the current fiscal year to $55 million. Early this year the State Department’s assistance program received a one-time appropriation of $30 million, which it will use to dismantle the Stepnogorsk military fermenters and put former Soviet scientists to work making vaccines. “They do a great job with the resources they have,” says Smithson, “but even with the extra money they’re only getting at the tip of the iceberg.” Not everyone agrees. It would be irresponsible for an expert like Smithson not to be concerned, but many respected specialists believe the numbers of unemployed bioweapons scientists are exaggerated. Alibek, the Soviet defector, has said that there are perhaps 100 former Soviet scientists capable of building a soup-to-nuts bioweapons factory. Western bioweapons experts put that figure higher—”the low hundreds,” says one. But the more important point, says an intelligence source, is that “we think we know where almost all of those people are.” An effort by Iran to recruit former Soviet scientists in 1997, in fact, helped invigorate the U.S. push to pay the scientists to stay in place. “We said, ‘Work with us and you will get funding for real collaborative research; work with Iran and you will never see a penny of our money’,” says Elisa Harris, who handled nonproliferation programs in the Clinton administration. Experts also stress, moreover, how difficult it is to turn a pathogen into a bioweapons agent like the “aerosolized” anthrax sent through the U.S. mail system in October. (Although investigators haven’t ruled out a foreign source, the prevailing theory is still that the anthrax came from within the United States.) But what about ready-made stockpiles of weaponized agents, or even just virulent strains? Two years ago the DOD began helping former Soviet bioweapons labs to beef up security. The institute in Alma-Ata, which houses cultures of nonweaponized, but still dangerous, germs, now boasts a 2.5-meter concrete wall topped with barbed wire. Two guards armed with stun guns and tear gas patrol the front and rear entrances. But still, nobody is searched upon entering or leaving the building. And on a recent visit, no security guards were posted at the door to the “highly hazardous infections” wing. The larger problem is that the Alma-Ata lab is about as good as it gets. Kazakhstan alone has eight other anti-plague institutes and about 140 minor labs. None of them have had the benefit of the DOD program. Beyond Kazakhstan, throughout the ruins of the Soviet empire, hundreds of laboratories holding samples of bioweapons agents also are poorly guarded. September 11 spurred the Bush administration to take the issue more seriously. But when success includes anthrax vials in coffee cans, it’ll be a long time, if ever, before anybody feels absolutely secure. With John Barry, Mark Hosenball and Adam Rogers in Washington New Fears About an Old Threat U.S. officials have long worried about lax security at former Soviet bioweapons facilities. These concerns were heightened after the September 11 attacks. Select from the cities below to find out where bio-weapons agents are located in Russia Kirov - Plague, Anthrax Koltsovo - Smallpox, Hemorrhagic fevers (including Ebola, Marburg, Lassa Viruses and others) Minsk - Anthrax, Tularemia, Plague Obninsk - Hemorrhagic fevers (including Ebola, Marburg, Lassa Viruses and others) Omutninsk - Plague, Tularemia Penza - Anthrax Rostov - Anthrax, Tularemia, Plague Samara - Anthrax, Tularemia, Plague Saratov - Anthrax, Tularemia, Plague Sergiyev Posad - Tularemia Stavropol - Anthrax, Tularemia, Plague St. Petersberg - Anthrax, Tularemia, Plague Tbilisi - Hemorrhagic fevers (including Ebola, Marburg, Lassa Viruses and others) Volgograd - Anthrax, Tularemia, Plague Yekaterinburg - Tularemia, Botulism ****** #6 Date: Sun, 17 Feb 2002 Subject: re: Aslund's response to Reddaway /6078 From: mikhail tsypkin Don Jacobsen (6082) has dealt very well with Anders Aslund's very selective approach to the text of Peter Reddaway's and Dmitri Glinskii's The Tragedy of Russia's Reforms: Market Bolshevism against Democracy. This book is a major contribution to our understanding of the developments of the last decade -- and I say this even though there are inevitably some points on which I disagree with the authors. Aslund begins his attack on Reddaway (and it's really Peter Reddaway as an individual, not Reddaway and Glinskii as scholars, who is the target of Aslund's attack) by saying that "few people have made so many incorrect predictions of impending Russian disasters." I don't want to get into an argument over who predicted what and when about a situation that's still unfolding. But I would like to remind the readers of JRL that in the summer of 1989 Peter Reddaway was the first (to the best of my knowledge) of Western specialists on the Soviet Union to state in print (in the Report on the USSR, published by the RFE/RL Research Institute) that the USSR was likely to disintegrate in the near future. Pretty good, especially given the sorry record of the rest of us in this matter. I also remember very clearly a conversation I had with Peter Reddaway in the early fall of 1986, in his office at the Kennan Institute. At the time, I was working at the Heritage Foundation and was writing a backgrounder on human rights situation in Russia, which was pretty grim at the time. I came to discuss the subject with Reddaway, as the leading expert on this subject. And Reddaway really shocked me by saying that Dr. Andrei Sakharov will be released from internal exile within several months. At the time, I thought that Reddaway's forecast was wishful thinking, but I certainly had to change my view of his powers of prediction in December of that year, when Sakharov was indeed released from his exile. Reddaway has always paid attention to social phenomena viewed at the time as marginal by most other scholars. This was the case with Soviet dissidents: he not only embraced them as a cause, but also drew important conclusions about stability of the Soviet system from studying dissent, a phenomenon most other Western scholars of the Soviet Union considered irrelevant. Today, Reddaway is interested in considerably less appetizing characters in Russian politics -- but they are presumed marginal by many other experts, and thus methodologically important to Reddaway. Mr. Aslund's misrepresentation of Reddaway's interest in Shafarevich, Zyuganov et al. as sympathy to their views is most disconcerting and reminiscent of Soviet attacks on dissidents. Finally, I would like to address Mr. Aslund's thinly veiled smear of anti-Semitism against Reddaway. ("Igor Shafarevich, Russia's leading anti-Semite, is lauded on three pages.") Don Jacobsen has already demonstrated convincingly that Aslund's charge has no foundation whatsoever. It is truly sad that an academic employed by the highly respected Carnegie Endowment tries to smear with anti-Semitism a man with Peter Reddaway's record of standing up for human rights. Not to mention that Mr. Aslund's attempt, to put it mildly, it's not very smart. Having spent the first half of my life as a Soviet citizen, I sometimes wonder how my Western friends and colleagues would have fared had they lived as my contemporaries under the Soviet regime. I know that Peter Reddaway would have ended up in jail for speaking the truth and defending the defenseless. I wonder where Mr. Aslund would have ended up... ******* #7 Financial Times (UK) 18 February 2002 Sponsor's frozen vodka to melt Olympic hearts By Matthew Garrahan in Salt Lake City Officials in the Russian Olympic Committee like to celebrate with shots of frozen vodka and there was plenty consumed at the Winter Olympics in Salt Lake City this week, notably at a reception marking the arrival of Russian Aluminium as one of the organisation's principal sponsors. The sponsoring of Olympic teams by large corporations is not new. Well-known brands can benefit from international exposure and enhance their domestic standing by supporting national sporting endeavour. But the RusAl deal with the Olympic team signals a turning point in the evolution of business and sport in Russia. Since the collapse of communism, state investment in Russian sport has all but dried up. Money from western sponsors was the largest source of income and funded the team's participation in sporting events. "It was a ridiculous situation," says Alexander Livshits, former economic adviser to Boris Yeltsin and deputy general director of RusAl. "The sponsors were Smirnoff, Adidas, Samsung, Reebok and Coca-Cola. Not a single Russian company." That has all changed at the Salt Lake games, where Russian companies account for 22 of the team's 24 sponsors. For RusAl, the world's second largest aluminium producer, the move into sports sponsorship is an opportunity to raise its profile, particularly in the US, which takes 30 per cent of the company's exports. Aluminium producers require huge amounts of power to smelt their metal. With the US domestic aluminium market reeling from the effect of the California energy crisis last year, non-US providers have the opportunity to improve their market share. Of equal importance to Mr Livshits is improvement in RusAl's corporate governance and its relationships with the world's financial centres. "The US market is important to us but more important is the company entering financial markets and having contact with US-based bankers and investment funds," he says. Mr Livshits wants to introduce more accountability and business practices akin to western companies. This comes at a time when other Russian companies have started taking matters of corporate governance more seriously and have started improving certain practices, such as increasing dividends to investors. RusAl was created from the merger of the country's main aluminium producers. Since then, the company has reduced the number of third parties who traditionally sold the company's products, and moved instead to a model of direct sales. This was particularly difficult in the Russian domestic market, which is in a constant state of flux and dogged by lawlessness and improper conduct. RusAl itself has not escaped unsavoury allegations. Oleg Deripaska, RusAl's general manager, has been denied entry to the US following charges of racketeering and corruption brought by two of the company's former partners. Image problems aside, Mr Livshits is keen to improve the company's practices, which he says will change the way it, and Russia, are perceived. "We want to show the world that Russia is changing," he says. ****** #8 Moscow Times February 18, 2002 Break-in Highlights Nuclear Security Problems By Nabi Abdullaev Staff Writer In broad daylight, a State Duma deputy, two Greenpeace activists and three NTV cameramen sneaked into a supposedly high-security industrial complex in western Siberia and spent several hours near storage facilities containing 3,000 tons of spent nuclear fuel. The six men took dozens of photographs, shot a video and returned to Moscow undisturbed. "We entered through two-by-two-meter holes in the barbed wire and walked on well-trampled paths, probably made by local citizens," Sergei Mitrokhin, a liberal lawmaker in the Duma's Yabloko faction, said of his break-in at the Krasnoyarsk Mining and Chemical Plant, which was shown in a special report by NTV broadcast Thursday night. "The guards drove past us several times, and we passed by their sentry boxes, but we pretended to be locals and nobody stopped us." In November, the Krasnoyarsk plant received 41 tons of spent nuclear fuel from the Kozlodui plant in Bulgaria under a controversial new law allowing the import of spent nuclear fuel for reprocessing and storage. Advocates of the law, which was signed by President Vladimir Putin in July, argue that Russia could earn $20 billion over the next decade by importing some 20,000 tons of spent nuclear fuel. However, environmentalists have fought the law, saying that turning Russia into the world's leading nuclear recycling facility would cause far greater ecological damage than the billions earned could repair. When the first consignment of spent nuclear fuel arrived in Russia from Bulgaria in November, Greenpeace activists demonstrated outside the Nuclear Power Ministry in gas masks and chemical protection suits. At a news conference in Moscow on Friday, Mitrokhin said that his break-in at the Krasnoyarsk plant was designed to show that Russia is not ready to import radioactive material. The country's system of nuclear safety is not just poor but "nonexistent," he said. Mitrokhin, a member of the presidential commission on controlling imports of spent nuclear fuel, said that during a hearing on ecological safety in the Duma on Feb. 7, the Nuclear Power Ministry assured deputies that there were no security problems at its facilities. But Mitrokhin said Friday that he could have easily climbed onto the roof of the Krasnoyarsk plant's storage building and got inside it. "I was shaken to see it," he said. "Anybody can come to a depository with extremely dangerous materials and do whatever he wishes near them. And the Nuclear Power Ministry plans to bring 20,000 tons of nuclear supplies from abroad here and leave it adrift." According to Mitrokhin, safety measures at most of Russia's 96 nuclear plants and research centers are not covered by the federal budget at all. As a member of the international coalition fighting terrorism, Russia must be more responsible for the safety of its nuclear facilities, Mitrokhin said, otherwise it will become "the weakest link of the coalition and a potential target for terrorists." Vladimir Chuprov, a Greenpeace nuclear expert, shared his fears. "Several dozen kilograms of regular explosives would be enough to trigger a new Chernobyl there," he said Friday. Chuprov said the plant's storage facilities contain 1 billion curies of radioactive waste. The radioactive discharge from Chernobyl was about 50 million curies, he said. However, the management of the Krasnoyarsk plant insisted last week that security at its storage and transportation facilities remained unbreakable. "We employ several hundred guards, and one regiment of Interior Ministry troops is delegated to guard us," Vasily Zhidkov, the head of the plant, said in the NTV report. It was unclear whether Zhidkov was aware of Mitrokhin's break-in at the time. Zhidkov could be reached for comment about Mitrokhin's claims Friday. Mitrokhin said that he would send a video about the break-in to Putin. In addition, Greenpeace said it has sent letters about the security breaches at the plant to the Federal Security Service and to the Prosecutor General's Office. ******* #9 The Times (UK) February 18, 2002 What the Russian papers say from Alice Lagnado in moscow ONLY 10 per cent of Russian teenage boys actually want to sign up for their compulsory two years in the army, where hard labour, beatings and torture are commonplace. This spring the army again had to press-gang boys off the streets. Once drafted, many desert, shooting dead anyone who gets in their way. This week Aleksei Khozeyev, an 18-year-old conscript, fled his base in southern Russia and is suspected of shooting dead two officers with his Kalashnikov. A fortnight earlier two deserters killed nine people in a bid for freedom. Last week the Russian Government finally agreed on a new law allowing conscientious objectors to apply for alternative service instead of the army. “This day will be seen as a turning point in the fate of dozens of young people,” Izvestia said. “The Government has taken care of its pacifists,” Vremya Novosti said. The introduction of alternative service is a great victory for campaigners and a big step on the road to army reform. Boris Yeltsin promised Russians a professional army but could not provide it. President Putin is starting the process. But talks led by the Government in recent weeks revealed the chasm between current thinking in the Defence Ministry and that in Russian society. In Itogi news magazine, Leonid Radzikhovsky recalled a speech by a hardliner: “He said, if this alternative service is to be allowed, it is at least necessary to introduce the same kind of bullying, to send alternative servicemen thousands of kilometres away from home. In other words, ‘I’ll teach you how to love your motherland!’ ” According to the final Bill, set to apply in 2004, boys will be able to live at home during alternative service instead of at army bases as proposed by the General Staff. They will be able to take menial jobs, cleaning streets and working in hospitals, orphanages and homes for the elderly. But conscientious objectors must spend four years working for the State and prove before a local military board that they have strong grounds to do so — a procedure which some say will be extremely vulnerable to bribery. ******* #10 From: IRASTRAUS@aol.com (Ira Straus) Date: Sat, 16 Feb 2002 Subject: uncut version Dave, Here's an article that appeared in The Russia Journal this week. This is a pre-edited version; they cut out a paragraph to make it fit, I thought you'd prefer the original. Best, Ira The Russia Journal February 15-21, 2002 Paranoia about the West and TV-6: A tale of a dark world filled with enemies external and internal By Ira Straus Our story begins in the first months of the Putin government in 1999. Russia is going through a strange kind of war scare. Fears of the U.S. and NATO were recently whipped up by the Primakov government, when NATO was bombing Yugoslavia. In the streets it was said that the U.S./NATO were bombing "Belgrade today, Moscow tomorrow". People seriously think NATO might intervene next on Russian soil. Defense Minister Sergeyev says Russia is fighting in Chechnya against a U.S.-NATO scheme to drive Russia out of the entire Caucasus. In a poll by the Public Opinion Foundation, 73% say that foreign enemies might attack Russia, 48% naming the U.S. as that enemy. A new Military doctrine is developed in this atmosphere, pointing to NATO as an threat. So is a new Information doctrine and the idea of the "information war". The mass media are seen as an arm of the U.S./NATO enemy, the advance forces of the New World Order, leading NATO first in Kosovo, next into Chechnya. The reality, to be sure, was different. The U.S. was supporting the Russian military in Dagestan, cooperating with Russia on intelligence against the rebels, and backing Russia's goals if not its tactics in Chechnya. But Russia heard the rhetoric in the Western mass media and listened to its fears, not the facts. Lurid theories were spread about the New World Order (NWO) and the mass media as its ruling elite. Onto a button of truth was sewn an entire jacket of paranoia. It was as if the Western mass media were all consistently manipulating the countries of the world to some single dark purpose. That purpose was described in various ways -- the global unipolarist diktat of the West led by the U.S. was the moderate version, building on the language of Messrs. Primakov and Zyuganov. Alternatively, it was the "Hassid-Masonic world government", as one author put it in Nezavisimaya Gazeta, writing in the name of an analytical center of the Putin administration. In either case, the media were pegged as a key part of the apparat of the New World Order. (As a matter of full disclosure, I should admit that one of my cousins is Hassidic. Also, that I made myself a business card a few years ago reading "International Jewish Bankers Conspiracy, Official Membership Card". Also, I wrote the article "Unipolyarnost’: Kontsentricheskaya struktura Novogo Mirovogo Poryadka" in the journal Polis 1997 No. 2. Funny thing, though; American journals weren't interested enough in unipolarity to publish the article, they were mostly writing in favor of multipolarism just like Primakov. Only in Russia was there enough interest to publish the article.) It was also being said that TV made it impossible for the U.S. to fight a traditional war; it could win only by a quick air war without U.S. casualties. There was some merit in this view. It was contradictory to the first view -- of the media as an apparatus of a U.S.-NWO conspiracy -- but the two views were spread together anyway. The enemy was the same, after all; what mattered was to throw mud at it, never mind logic. In a further leap in logic, the fear of the media's role was transposed from the West straight to the Russian scene in Chechnya. The Russian government wanted to forget the main reasons for its difficulties in Chechnya, so it blamed the media for losing the first Chechen war. To win the second Chechen war, it would win the "information war". To do this, it would fight a shadow war against the independent mass media. The Western media were beyond its reach, but there was always NTV: it had won the trust of Russian viewers and the plaudits of Westerners; it could be pictured as an agent of the Western media-NWO. In reality, NTV, like the rest of society, was fairly supportive of the government in the second Chechen war. It was very different from the first Chechen war. There was no need for the "information war"; it was not a defensive battle of the state, but an offensive act of a statism that was winning anyway. It was as if the regime didn't to want to lose a chance to knock off its supposed enemies. NTV was, you see, a part of the enemy-conspiracy that was destroying Serbia and Russia. It was part of the open society conspiracy that was infiltrating Russia everywhere. It was not really an "independent TV", it was Gusinskiy TV, it followed the Soros line, it was the internal enemy linked to the external enemy. It had to be destroyed. This attitude was in evidence long before the Kursk submarine sank. NTV seized upon that tragedy, both as honest news and as a chance to fight back against the government's war on the media. The government's mishandling of the disaster was, after all, partly a result of the "information war": it misinformed itself as well as the media, suppressing the warning signs that might have led it to correct its mistakes. It accused the U.S. of ramming the Kursk, blaming its own disaster on the supposed external enemy. It repeated lies for days on end, until the time had passed when it might have been any use to ask for foreign help. However, Mr. Putin was not yet in a mood to learn from these facts; he dug in his heels and redoubled the attack on honest journalists. He blamed them for having discredited the military and caused its deterioration and thus the sinking of the Kursk. He had enough popular support that he could get away with this. NTV fought the good fight against the "information war", but it lost. It was beaten with the simplest authoritarian-populist arguments: that its fight was unseemly, that it had tried to embarrass the government, that it was being used by Gusinskiy as a pawn in his struggle with Putin. The issue of the mass media, you see, wasn't about getting out the information that was needed, it was about the dignity of the power structures. From that time on, the government strove to destroy or take over NTV. It required many months, but in the end it succeeded. The government played the role of hidden hand behind private legal maneuvers. Minister Lesin played a particularly curious role, offering Gusinskiy a deal to get out of jail in return for handing over NTV. Despite this war on the media, not because of it, a sense of stability was returning to Russia. Mr. Putin had recentralized power from the regional fiefdoms. People stopped predicting the disintegration of the country (in a 1999 poll of elites, over 30% had said Russia might break apart). The Chechen rebels were driven into the hills without any NATO intervention. Fears subsided of a NATO plot to drive Russia out of the Caucasus. Attitudes toward the West recovered part-way. Russia no longer felt itself under siege. The mass media were no longer suspected of being the first wave of a NATO military intervention in Russia. The fears that had driven the "information war" were dissolving. With its motives fading, it seemed that the information war might be called off. The leading NTV journalists, headed by Kiselyov, were allowed to regroup within TV-6, financed by Berezovsky. The restructured, taken-over NTV was itself allowed to continue a somewhat more independent and honest broadcasting line than was permitted the other state-dominated channels. But the line of attack soon shifted onto TV-6, coupled within further pressures on NTV. The terrorist attacks of September 11 provided a second chance for scrapping the information war. The U.S. and Russia faced a common enemy. In a November 2001 poll (Public Opinion Foundation), Afghanistan surpassed America as the most likely enemy in the minds of Russians: 61% feared attack by a foreign enemy (November 2001 Public Opinion Foundation poll), 19% naming Afghanistan as that enemy, 13% naming the US -- still too many, but no longer the mass hysteria of 1999. Another poll showed that as many Russians considered America an ally as an enemy. Mr. Putin himself soon followed in the path of TV-6 in advocating an alliance with the U.S. against terrorism, leaving the state-dominated TV channels behind in their anti-Americanism. The old reasons for the information war had faded into the mists of time. The information war went on anyway, but it seemed absurd. People wanted to hope that it would be called off. Mr. Lesin and Mr. Putin gave assurances that the TV-6 journalistic team would have their support. And then the plug was pulled on TV-6. The TV-6 team might yet be allowed to reclaim its station, but probably only if its tender amounts to a self-mutilation. For now, the logical conclusions seem these: 1. Once Mr. Putin decides something is a domestic enemy, his goal is to destroy that enemy. He clings to that attitude like a bulldog, no matter if facts prove there was no enemy or if his or Russia's practical needs have changed. 2. He is more forgiving of countries than of individuals: he accepts the reality of the external world, he knows it is beyond the range of his manipulation. He has made his peace with the West. But he will have to think again and show some real capabilities for introspection, if he is to find the moral resources to make peace with the authentic staffs of TV-6 and NTV. ******* #11 The Independent (UK) 18 February 2002 New laws to suppress academic research By Charles Arthur Technology Editor Laws being introduced by the Government would give it the power to see academic papers before they are published and suppress them. It could also prevent the use of e-mails between foreign colleagues. The Export Control Bill, being steered through the Lords by the Department of Trade and Industry, could also mean foreign students working in British laboratories would need "licences". The Bill, a revision of the 1939 Export Control Act, will include powers that put software, e-mail and even speech under official control. "This has serious implications for academic freedom," said Dr Ross Anderson, of the security research group at Cambridge University. Dr Anderson, an expert in cryptographic systems, went on: "The DTI is trying to extend the scope of the Export Control Bill to interfere with all the nooks and crannies of science and technology. They like the idea of being able to exercise a pre-publication review – which they've never been able to do in the past. If you submit a patent, it could be suppressed for defence reasons but scientific papers never had that." The DTI insisted the laws would not be applied to information already in the public domain and the legislation contained an exemption for "basic scientific research". But determining whether the science was "basic" or "applied" – which would need licensing – would require the scientist to contact the DTI. The areas covered could change all the time. In the House of Lords, Baroness Hendon argued that the Secretary of State would have a "continuous power" to make fresh orders that could add to or detract from the type of goods governed by the legislation. That would let the minister change the reason software or even e-mail would require a licence – and what subjects were proscribed from communication. Peter Cotgreave, director of the pressure group Save British Science, said: "It's all very well saying they won't use these powers themselves but they are creating these powers, and who knows who will be in charge a few years down the line?" He added: "This is especially ironic, given that this Government claims to be in favour of freedom of information. Anything that stops the publication of any serious peer-reviewed work is bad. "We've seen from the examples of BSE and genetically modified organisms that the only way to get people to trust scientists is to be completely open – not to stop them doing something on the grounds of national security." The DTI said European regulations that recently became law already controlled the export outside the European Union of "dual-use" items and ideas, which could have civil or military uses. The new laws would be used principally to cover military uses and the export of any objects or concepts that could be used for nuclear, biological or chemical weapons. But Dr Anderson noted important implications for universities. "Teaching medicine to a foreign national would appear to require a licence – many of the core curriculum subjects, such as bacteriology, virology, toxicology, biochemistry and pharmacology are central to a chemical and biological weapons programme. South Africa's programme was set up and run by P W Botha's personal physician. Other problematic subjects include not just nuclear physics and chemistry but aerodynamics, flight control systems, navigation systems, and even computational fluid dynamics." Dr Anderson said he had been told by the DTI that the e-mails he swapped with scientists in Norway and Israel in the late 1990s, when they were developing a cryptographic technique for a competition, would be subject to licensing under the revised Act. A DTI spokeswoman said she could not comment on a specific case. The Bill is a piece of "primary legislation" that creates a legal framework; and is made enforceable through "secondary legislation" that specifies the objects covered by the new law. However, the Government has not published the secondary legislation – only a dummy version. During debate in the Lords last week, Lord Sainsbury of Turville said the new Bill was the result of a detailed examination of the former Act called for by the Scott report into the arms-for-Iraq scandal in 1996. That report said arms controls were too lax and there were not enough checks to make sure items had the use that was claimed for them and they reached the destinations they were said to be bound for. ******* #12 Russian Olympic Chief Blames Media February 18, 2002 By LARRY SIDDONS SALT LAKE CITY (AP) - The head of the Russian Olympic committee blamed ``an extensive campaign'' by the American media for the pairs skating controversy and raised questions about U.S. wrestler Rulon Gardner's upset of a Russian superstar in Sydney. While it had ``the full moral right'' to protest the decision that cost Alexander Karelin a fourth gold medal, Leonid Tyagachiov said, the Russian Olympic panel refrained ``in order not to sow discord.'' Tyagachiov also said that ``no protests will follow'' from his committee over the decision by the International Olympic Committee to award duplicate gold medals to Jamie Sale and David Pelletier of Canada, who finished the competition second to Elena Berezhnaya and Anton Sikharulidze of Russia. ``We respect the decisions of the IOC and the international sports federations, and specifically this decision,'' Tyagachiov said in a statement. He said the Russian pair would participate and the Russian anthem would be played at the ceremony where Sale and Pelletier receive their medals Sunday night. But Tyagachiov said the action by the International Olympic Committee and the International Skating Union resulted from ``an extensive campaign began in the United States and Canadian press concerning a revision'' of the pairs' results. ``This likely caused certain moral damage to the Russian athletes ... and at the same time provided powerful support for'' the Canadians, Tyagachiov said. ``As a result, the executive board of the IOC decided to present the Canadian pair with a second set of gold medals. ``In this case, public opinion played the role of referee, which by all respects cannot replace the institution of the sports referees, even with all of its imperfections.'' IOC president Jacques Rogge and ISU president Ottavio Cinquanta acknowledged massive media and public criticism of the silver-medal finish for Sale and Pelletier but insisted the double-gold solution resulted solely because a French judge had been pressured to vote for the Russians. Tyagachiov expressed ``doubts in regard to the legitimacy'' of changing results after events are finished. Specifically, Tyagachiov pointed to Gardner's gold-medal victory over Karelin in the 286-pound class of Greco-Roman wrestling at the 2000 Games, perhaps the greatest upset in Olympic wrestling history. The loss was Karelin's first in 13 years. Tyagachiov said the American won because of ``a judging mistake'' but that the Russian Olympic committee, did not protest ``in order not to sow discord in the Olympic family and to not create a dangerous precedent.'' The U.S. Olympic Committee declined to comment. Gardner's 1-0 win in Sydney wasn't assured until after a 90-minute review of tapes by the judges, who determined that he held his grip on Karelin while the Russian lost his during a clinch. While there were some complaints of judging bias at the time, other commentators in Moscow blamed Karelin's recent entry into politics for distracting him from wrestling. Gardner is hospitalized in Idaho in fair condition with frostbite, after getting lost on a snowmobile trek and surviving a frigid night in the Wyoming backcountry. ******* Web page for CDI Russia Weekly: http://www.cdi.org/russia Archive for Johnson's Russia List: http://www.cdi.org/russia/johnson With support from the Carnegie Corporation of New York and the MacArthur Foundation A project of the Center for Defense Information (CDI) 1779 Massachusetts Ave. NW Washington DC 20036