Johnson's Russia List
#6087
20 February 2002
davidjohnson@erols.com
A CDI Project
www.cdi.org

[Note from David Johnson:
  DJ: HOTMAIL clarification: I will continue sending to some
Hotmail addreses but will have a zero-tolerance policy.
Rather than living dangerously you might consider switching.
  1. RIA Novosti: NUMBER OF STREET CHILDREN IN RUSSIA GETS CLOSE TO 3 MILLION.
  2. Luba Schwartzman: ORT Review.
  3. Ekspert: Natalya Arkhangelskaya, An Uncompromising Hunger. Russia and 
Europe are faced with the common problem of survival under the pressure from
the great, but alien American civilization.
  4. Reuters: Army reform could figure in Putin keynote address.
  5. gazeta.ru: Human Rights Activists Protest Against Russian 'Spymania' 
  6. strana.ru: Sergei Ivanov: Russia Can Defend Itself and Its Allies.
  7. Reuters: Chubais says to back journalists in TV6 tender.
  8. Reuters: Asset stripping cost Gazprom $2 bln a year. (Boris Fyodorov)
  9. Jamestown Foundation Monitor: THE MEDIA IN THE PROVINCES.
  10. RIA Novosti: OLYMPICS GALVANISE COLD WAR? 
  11. RIA Novosti: RUSSIA'S PROMINENT POLITICIAN SPEAKS OUT ON MIDEASTERN 
CONFLICT. (Primakov)
  12. RFE/RL Business Watch: YEVGENII PRIMAKOV: STILL ACTIVE ON RUSSIAN 
BUSINESS, POLITICAL SCENES.
  13. BISNIS Bulletin: Jeffrey Giddings, Doing Business in Rrssia today: 
steps for security.
  14. Carnegie Endowment for International Peace: William Chandler, on
Russia, 
Energy, and Global Climate Change.
  15. St. Petersburg Times: Nabi Abdullaev, Moscow Dies by the Knife and
Rope.]

*******

#1
NUMBER OF STREET CHILDREN IN RUSSIA GETS CLOSE TO 3 MILLION 

MOSCOW, February 19, 2002. /From RIA Novosti correspondent/--Experts estimate 
the number of street children in Russia as close to 3 million, Nikolai 
Makarov, Russia's deputy Prosecutor General, told a Tuesday conference 
entitled "Civil Society and Power." According to Makarov, criminalization of 
teenagers has reached a dangerous level. Last year, more than 1 million 
children were detained by law enforcing authorities for various 
infringements, out of which 17,000 had been inveigled into criminal 
activities and 345,000 never went to school. 

"The rights of children are violated almost everywhere," said Makarov. Last 
year, law enforcers registered more than 100,000 violations of children's 
rights. 13,000 legal acts dealing with the interests of children were 
declared unlawful. 

The prosecutor's office official pointed out the insufficiency of the 
country's effort to control potentially delinquent teenagers. The worst 
situation is registered in Moscow, a city that gathers thousands of street 
children from all parts of the country. 

******

#2
ORT Review
www.ortv.ru
Compiled by Luba Schwartzman (luba7@bu.edu)
Research fellow at the Institute for the Study of Conflict, Ideology and
  Policy at Boston University

HEADLINES,
Tuesday, February 19, 2002
- President Putin met with members of the Unity faction to discuss a wide
range of questions, from the socio-economic conditions to the State Duma's
spring agenda.
- An Su-24 front line bomber flying a training mission disappeared from
the radar screens about 15 kilometers north of Pskov.  An Mi-8 helicopter
and a team of search-and-rescue workers has been dispatched to the area.
- A special federal forces operation in the Chechen settlement of Starye
Atagi has been completed.  Over 20 fighters, including field commander
Khizir Khachukaev, were destroyed between February 14th and 17th; two arms
and ammunition caches were discovered.
- In the Leningrad oblast, police officers are still looking for two of
the three prisoners that escaped the Volhov-region jail.  One of the man
has been caught.  Special police units and interior troops are involved in
the investigation.- The two-year anniversary since the death of St.
Petersburg's first mayor, Anatoly Sobchak, was commemorated today.
Several hundred people visited the grave of the man who gave their city
its historic name back.
- The Abkhaz special services report that Chechen field commander Ruslan
Gelaev was recently seen in Abkhazia and plans to seize control of a
settlement near the border with Karachaevo-Cherkessia.  Abkhaz National
Security Chief Zurab Agumaa declared that Gelaev and his men would not
have been able to get back into Abkhazia without the help of the Georgian
authorities.
- Russian Prime Minister Mikhail Kasyanov visited the Ulyanovsk oblast
today.  He said that it was one of the five most problematic regions in
the Russian Federation.  He noted that the root of the problem lies in the
financial sphere.  Kasyanov also visited the oblast's Aviastar factory,
where Ruslan and TU-204 airplanes are assembled.
- Prime minister Kasyanov commented on the recent change in the Russian
government.  He does not plan on appointing a fifth deputy minister [to
replace Ilya Klebanov] in the near future.  He will officially
redistribute responsibilities in the next couple of days.
- Truck drivers in Kostroma protested the recent almost-fourfold increase
of road taxes by blocking traffic. 
- A bullet was fired through the 16-th floor window of the office of
Rustavi-2's "60 minutes" anchor, Akaky Gogichaishvili.  The office was
empty at the time.  The management of the Rustavi-2 television channel
suspects that the shot was meant to intimidate the journalist.
- A memorial service was held in Moscow for Major Mikhail Marchenko and
Major Boris Kurdibansky, officers of the special service's Alfa group, who
died in an ambush in Chechnya.  Federal Security Service Director Nikolai
Patrushev attended the ceremony.
- An unusual holiday -- International Whale Day -- was celebrated today in
the Maritime region.
- Federal Border Troops Director Konstantin Totsky has ended his three-day
visit to Latvia.  Preparations for a border agreement with Latvia have
been completed, but the agreement might not be signed until the problem of
the rights of Russian-speakers in Latvia is regulated.
- The second round of Russian-American talks on strategic stability will
be held shortly.  Russian Deputy Foreign Minister Georgii Mamedov and US
Undersecretary of State John Bolton are working on a nuclear-arms
reduction agreement. 

*******

#3
Ekspert
February 19, 2002
An Uncompromising Hunger 
Russia and Europe are faced with the common problem of survival under the 
pressure from the great, but alien American civilization
By Natalya Arkhangelskaya
(therussianissues.com)

At the turn of the 21st century, stunning events rolled in one after another, 
changing the picture of the world beyond recognition. These tendencies were 
like a landslide after September 11. Natalia Narochinskaya, a historian 
specializing in foreign affairs, comments on these tectonic processes within 
the Russia-U.S.-Europe triangle in an interview with Ekspert magazine. Ms. 
Narochinskaya spent about 10 years in New York, working at the UN 
Secretariat. Her monograph Russia and Russians in World History will be 
published in May.

There is an idea that Russia is at the crossroads of three civilizations - 
Western (European and American), Eastern (Chinese) and Southern (Islamic). It 
is constantly faced with the threat of being split and pulled apart by its 
neighbors unless it learns how to benefit from its position, becoming an 
intermediary among them. The growing aggressiveness of our surroundings makes 
this thesis especially pertinent today.

Russia, being a vast Eurasian power with its Orthodox tolerance of other 
religions, is destined to maintain a balance not only between states, but 
also between civilizations. Its imperial idea was dictated by circumstances. 
It was a multinational state even before it became an empire. Meanwhile, 
European countries were originally based on the idea of a mono-ethnic and 
mono-confessional state. Therefore, no matter what one may think of the USSR, 
one cannot fail to see that its demise did not result in Russia's entry into 
the so-called civilized community but marked the start of intense rivalry 
among the three civilizations for what Russia inherited from the USSR. And 
today we see how Russia is being squeezed out of the seas, how its possession 
of some territories is disputed and how its zones of national interests are 
being intruded upon.

Europe is not enthusiastic about joining the punitive operations in 
Afghanistan.

Anglo-Americans have reached the level of its global projects at which 
European interests have been pushed into the background. And Europe 
understands this. Remember the deplorable unanimity with which the Old World 
welcomed the actions in Yugoslavia? Today skepticism and irony prevail in 
Europe. And such sentiments are expressed not in the semi-marginal leftist 
press, but by respected papers like Le Monde, Corriere della Sera and Die 
Welt. Europeans felt embarrassed, in particular, by the tone of President 
Bush's State of the Union address to Congress: it was at the once peremptory 
and messianic. The U.S. in general leads the world in trampling all ethical, 
diplomatic and other norms of decency. The history of the past centuries is 
abundant in conflicts, but no one could ever have allowed itself to take on 
the tone that the U.S. has.

The U.S. has long suffered from a vivid messianic complex. Incidentally, this 
is true about Russia as well.

For Americans it is a political philosophy, following from religious 
Calvinist convictions - an expiator nation, a leader nation, and so on. This 
has given the Americans the possibility to identify their own interests with 
the moral and ethical canons of the universe, and they have learned to do 
that masterfully. 
 
After the events [on September 11], U.S. expansion has been so rapid and 
broad that one feels it had been well prepared for and they were only waiting 
for the signal to launch [their plans]. 

Yes, the dismantling of the bipolar world started long ago, but the process 
was slow and an extraordinary event was needed to turn it into an avalanche. 
The terrorist acts appeared to be very timely - they allowed such prejudices 
as, say, international law to be scrapped at once. Note that the term 
"terrorist act" was used only on the first day, but on the next day it was 
replaced by the term "war." It was "war" with which George Bush started his 
message to Congress. This substitution of notions gave the U.S. big 
opportunities: according to international law, an act of war allows a country 
to expand the retaliation zone as far as it likes. To do that, it would be 
enough to announce that the al-Qaida had moved from Afghanistan to another 
country - any country, in fact.

Why did the USSR's, and then Russia's, position weaken so rapidly beginning 
in the mid-1980s? Did we lose a lot of what could have been retained?

The point is that geopolitics and foreign policy became hostages to internal 
struggles - herein lies our tragedy. This does not happen anywhere else in 
the world; politicians may argue about anything, but as soon as national 
interests are concerned, they immediately come together. They may differ in 
methods, but not in goals. The age-old dispute between Westerners and 
Slavophiles has been resumed and the present-day Westerners are far more 
aggressive than their predecessors in the 19th century were. In recent years, 
the U.S. has behaved in such a way that it was sometimes simply indecent to 
join it. This fierce struggle has been going since Gorbachev.

The source of Putin's popularity is not that he raised pensions and budget 
workers' wages. I think the country has appreciated the fact that after a 
long period of degradation, he assumed the role of someone who "gathers the 
stones together."

That is true. There has been a rejuvenation of national life, if you like. 
Now there is a feeling that Russia has its own place in the world, that it 
continues its traditions, and so on. It finally became clear that while we 
reveled in "new thinking," the outside world, using the old methods, laid its 
hands on everything it could. The longer this goes on, the more difficult it 
will be to catch up. Understanding this fact is the achievement of the Putin 
era. I do not mean, in this context, his latest turn towards the U.S.- I 
don't quite understand that, so far.

But proceeding from the position assumed by President Putin, today we are 
closer to the U.S. than to Europe. 

Our love affair with the U.S. is not over yet. The authorities evidently are 
analyzing the situation intensely, although I don't know the details. 
Besides, I also don't know how much we depend on the U.S. financially - 
remember that 2003 is the year when $80 billion has to be paid, followed by 
presidential elections. Putin could lose if he has no funds to pay pensions 
and wages. And the U.S. can create such difficulties for us, say, by lowering 
the oil price down to ten dollars a barrel. As an expert in American studies 
who has lived in the U.S. for many years, I know that the United States cares 
least of all about the moral aspect in its policy. In general, this is quite 
typical of Anglo-Saxons. The 19th-century Russian author Danilevsky wrote in 
his article "Misfortune on the Winners": "Formalistic in home affairs, 
Britain has not adhered much to legality in its foreign policy. If it seems 
to be beneficial, it will not hesitate to bombard the capital of a country it 
is not at war with." The U.S. behaves in exactly the same way. This is 
understandable, but only to a certain extent. In any case, we should not show 
our sensitiveness to dependence on the West - it would only increase as a 
result.

*******

#4
INTERVIEW-Army reform could figure in Putin keynote address
 
MOSCOW, Feb 19 (Reuters) - Russian President Vladimir Putin could throw his 
weight behind a bold liberal-sponsored plan to slash the size of Russia's 
military in his annual state-of-the-nation address, a senior lawmaker said on 
Tuesday. 

Boris Nemtsov, parliamentary leader of the Union of Right-Wing Forces (SPS), 
said Putin stood to benefit electorally in presidential polls due in 2004 if 
he backed the introduction of the sweeping changes in the military from next 
year. 

Nemtsov said he had a private meeting with Putin in the Kremlin on Monday at 
which they discussed the SPS plan to create a volunteer regular army and 
improve pay by slashing Russia's armed forces over five years from 1.2 
million members today to 400,000. 

The new force would be supported by a 160,000-strong reserve of conscripts 
serving just six months. 

"I suggested to him that in his annual report to the Federal Assembly (both 
house of parliament) he mention that 2003 will be the starting date for the 
transformation," Nemtsov told Reuters in an interview in his parliamentary 
offices. 

"He promised me that he would make a special mention of this in his report, 
but it seems to me that he first wants to speak with some generals and the 
prime minister." 

Putin is expected to address a joint session of the State Duma and Federation 
Council in late March or early April. 

Nemtsov said sufficient funds were vital if military reforms were to be 
successful. And with foreign debt repayments peaking at $19 billion in 2003, 
next year was a golden opportunity to cut troop numbers while boosting basic 
pay for all ranks. 

Some SPS experts say the changes would entail only a two percent rise in the 
current $9.6 billion defence budget, although Nemtsov himself spoke of $1 
billion. 

"The financial opportunities are crucial," Nemtsov said. "He (Putin) was 
surprised that this (reform plan) is not that expensive. 

"Secondly, this is very popular and it seems to me that this is the real 
reason why he will agree finally, because of the election of 2004." 

Nemtsov says the plan has universal support except for the start date. The 
general staff is pushing for a 2010 launch date, preceded by pilot projects 
at divisional and regimental level. 

Defence analysts say military resistance is in part linked to a desire to 
save jobs and retain a large military machine. 

*******

#5
gazeta.ru
February 19, 2002
Human Rights Activists Protest Against Russian 'Spymania'

The International Helsinki Federation for Human Rights claims that by 
initiating numerous espionage cases, the Russian authorities are violating 
human rights standards. European human rights activists say that Russia fails 
to comply with the provisions of the European Convention on Human Rights and 
ignores its commitments as a member of the Council of Europe.

The Helsinki Federation is demanding the immediate and unconditional 
discharge of former naval officer, turned environmentalist-journalist Grigory 
Pasko, who at the end of the last year was sentenced to four years in prison 
on espionage charges. Pasko's verdict was based on two Defence Ministry 
decrees that were invalidated last week by the military board of judges of 
the Supreme Court of Russia. 

The International Helsinki Federation for Human Rights has launched a 
campaign to defend Russian citizens accused of espionage by the Russian 
secret services and military. In an open letter published on February 15, the 
IHF states that over the past couple of years, a series of criminal cases 
have been instigated against journalists, environmentalists and scientists 
who cooperated with foreign companies. 

Those individuals have been charged with espionage and high treason after the 
Federal Security Service and the investigative authorities claimed that the 
information the alleged spies exposed was classified as state secrets. 

The IHF insists that none of those accused of espionage used classified data 
and that all the information that they had used had already been published. 

In their open letter the IHF also express concern over breaches of court 
procedures in Russia and question the impartiality and independence of the 
Russian investigative authorities and judiciary. 

They claim that the investigations of each case were deliberately 
procrastinated and the suspects remanded in custody in pre-trial detention 
prisons and were often subjected to humiliating and inhumane treatment. 

A representative of the Moscow Helsinki Group Tatyana Lokshina told Gazeta.Ru 
that the IHF has long since been following the espionage cases in Russia and 
has funded the defence attorneys of the former diplomat Valentin Moiseyev and 
the historian Igor Sutyagin. 

In March the IHF plans to launch a new campaign in support of Russians 
accused of espionage and the heads of the national Helsinki committees in 41 
states and human rights organisations intend to protest to the Russian 
authorities about the espionage cases. 

The international human rights activists hope to draw president Putin's 
attention and persuade him to exert more control over the FSB, the 
organisation he once headed. 

Copies of the IHC's letter, or as Lokshina calls it - note of protest, will 
be also forwarded to the UNO, OSCE and to the Council of Europe. 

The IHF has already published and sent copies of its open letter in support 
of the journalist Grigory Pasko to the president of Russia and top court 
officials. 

The IHF addressed that letter to the Chairman of the Supreme Court of Russia 
Vyacheslav Lebedev, and forwarded copies to the Chairman of the 
Constitutional Court Marat Baglai, the Prosecutor General of Russia Vladimir 
Ustinov, Prime Minister Mikhail Kasyanov, and the head of the state Vladimir 
Putin. Copies have also been sent to Secretary General of the CE Walter 
Schwimmer, and to the PACE. 

Authors of the open letter assert that the verdict passed on Pasko, based on 
decrees that are no longer valid, was predetermined by the FSB's and the 
command of the Pacific Fleet's desire to punish Pasko for his investigative 
and often critical journalism regarding the fleet's handling of nuclear 
waste. 

The IHF activists say they have firm reasons to doubt that the military 
justice system functioning in Russia can ensure impartial and independent 
trials as stipulated in the provisions of the European Convention on Human 
Rights (Article 6). 

The IHF draws attention to the fact that the judges in Pasko's case were 
formally speaking the subordinates to the admirals who testified against 
Pasko and who called for him to be punished. 

In its letter the IHF points out that under the European Convention on Human 
Rights anyone charged with a crime has the right to face trial “within 
reasonable time”. The charges against Pasko have still not been determined 
after more than five years of investigation and court proceedings. 

The IHF also reminds the Russian judicial authorities and top state officials 
that the European Convention on Human Rights has been legally binding for the 
RF since May 5, 1998. According to Article 15 of the Russian Constitution, 
the Convention is a part of Russia's legal system and if the Convention 
stipulates rules contradictory to internal legislation, the rules of the 
Convention shall apply. 

Thus, the IHF concludes that by persecuting individuals like Pasko, Russia 
ignores the commitments it undertakes as a member of the Council of Europe. 

Human rights activists are demanding the immediate discharge of Pasko from 
custody pending the hearing of his appeal to the military board of judges of 
the Supreme Court of Russia. 

"The Pasko case represents another opportunity for the Russian Court System 
to establish a precedence and ensure that the European Convention on Human 
Rights is upheld, and to show the world that Russia is making further steps 
towards becoming a country governed by the rule of law, where individuals are 
protected against government violations of their human rights, not only on 
paper, but in real terms," the IHF says in its open letter in defence of 
Pasko.

*******

#6
strana.ru
February 19, 2002
Sergei Ivanov: Russia Can Defend Itself and Its Allies
"We have very many good, advanced items, which are much cheaper - and better 
- than Western samples": Ivanov
By Alexander Orlov

Ivanov said that although - at present - "we do not expect major wars or 
global conflicts," Russia was ready to ward off external threats of a local 
nature. He also confirmed that Russia was not going to revise its military 
doctrine. "I see no grounds for revising the doctrine," he noted. Russia's 
military doctrine, adopted 18 months ago, had absorbed "our grievous Chechen 
experience" among other things.

The defense minister said the Russian armed forces were in a position to, 
"ensure the security of this country and its allies." In his words, "Russia's 
armed forces have an adequate potential for the defense of our country and 
our allies."

Ivanov dismissed the allegations of some military experts that Russia 
significantly lagged behind the United States in the development of hi-tech 
weapons. "Much depends on finances - but not all," the minister pointed out. 
"Despite all the misfortunes of recent years, we have very many good, 
advanced items, which are much cheaper and better than Western samples, and 
can be used by ground troops and aviation alike. We have such high-precision 
weapons."

Military reform was one of the subjects of discussion when Union of Right 
Forces leader Boris Nemtsov met with President Vladimir Putin for a round of 
talks lasting three hours.

He told Strana.Ru that he had asked the president to, "put an end" to the 
debate on a timetable for military reform, adding that as far as the Union of 
Right Forces was concerned, it should get under way in 2003.

Nemtsov said President Putin had displayed a good deal of interest in the 
problem, and made several important telephone calls, including calls to 
Finance Minister Alexei Kudrin and the defense minister. He also said the 
president had promised to deal with the problem, and address it in his 
message to the Duma. 

*******

#7
Chubais says to back journalists in TV6 tender
  
MILAN, Feb 19 (Reuters) - The head of Russian electricity giant UES Anatoly 
Chubais said on Tuesday he would back a team of journalists hoping to bid for 
Russia's TV6 which was taken off the air in January. 

Asked by Italy's Il Sole 24 Ore if he would confirm his part in a financial 
backing group, Chubais said "Yes" but did not say whether he was going in 
with his own money or with UES. 

With TV6 off the air, the Kremlin gained control of all Russia's nationwide 
television channels for the first time since the Soviet era. 

Last week, a source said Chubais -- a former deputy prime minister -- had 
been involved in talks between a group of investors and former TV6 
journalists to tender for the channel, which was closed after a court upheld 
a shareholder's complaint that the station was bankrupt. 

Star TV anchor Yevgeny Kiselyov and a core team of reporters known for 
challenging the Kremlin on Russia's war in Chechnya want to bid for TV6's 
frequencies but are concerned their need for financial help could compromise 
their independence. 

"This wouldn't be Chubais TV or anyone else's TV but rather an independent 
channel with independent money," Chubais was quoted as saying. 

"I think the team of journalists from the channel have shown themselves to be 
independent and very professional so I support the idea that a group of 
Russian companies should join up to help the team to take part in the licence 
auction in March." 

Chubais declined to name other investors. 

"There is something going on in Russian television which gives ground for 
concern. Both I and my (Union of Right-wing Forces) party are critical of 
what the authorities have done," Chubais said. 

Last year, Kremlin-controlled gas giant Gazprom took over fellow independent 
channel NTV. 

The Kremlin says it has nothing to do with the shake-ups but President 
Vladimir Putin has not hidden his contempt for the stations' former owners. 

Last week, a representative of TV6's former boss Boris Berezovsky said the 
self-exiled Russian businessman wanted to sell its assets, including cameras, 
to whoever wins the tender so that the new owners do not have to start from 
scratch. 

*******

#8
INTERVIEW-Asset stripping cost Gazprom $2 bln a year
By Sujata Rao
  
LONDON, Feb 19 (Reuters) - Asset stripping under the old management at 
Russian energy giant Gazprom cost it $2 billion annually in the past decade 
and efforts are now being made to recover some of the losses, says a company 
director. 

Boris Fyodorov, a long standing critic of the old order told Reuters on 
Monday that measures by the new Kremlin-dominated board could finally put 
Gazprom on the path to financial success, with 2002 providing a key litmus 
test for the future. 

"Drainage of resources at Gazprom was about $2 billion a year through asset 
stripping," Fyodorov said in an interview. "Now the management is making real 
efforts to return these assets...to salvage whatever can be salvaged." 

He said another $1 billion would be saved by spinning off about 100 non-gas 
subsidiaries such as yacht clubs and hotels, while purchasing costs could be 
cut by up to 30 percent. 

"This year will not be a fantastic year for Gazprom but if all things 
promised are implemented, next year we will see a different company with a 
different capitalisation," he said. 

Gazprom has bought back medium-sized producer Purgaz from energy trader 
Itera, restoring a unit with about 500 billion cubic metres (bcm) in 
reserves. Itera bought Purgaz for $1,000 in 1999 when Gazprom was run by 
ex-CEO Rem Vyakhirev. 

The new board has also filed a bankruptcy suit against petrochemicals 
subsidiary Sibur to get back almost $1 billion it owes Gazprom. 

Vyakhirev was removed by the Kremlin last year and replaced by Alexei Miller, 
a loyal ally of President Vladimir Putin who is keen to restore control over 
the 38 percent state-owned firm. 

The rest is owned by a myriad of interests including private Russian 
individuals and some foreign investors. 

Vyakhirev's son Yuri who headed Gazprom's export arm was also recently 
sacked. 

CHANGES AFOOT 

Gazprom sits on a third of the world's gas reserves and is the biggest 
contributor to Russia's budget. 

Mismanagement, low domestic tariffs and share ringfences have kept the 
company's market capitalisation at a mere $13 billion although this could now 
start to change. 

Fyodorov's brokerage United Financial Group projects Gazprom's net profits 
this year to rise to $4.6 billion, up from forecasts of $411 million in 2001. 

"On all fronts except for liberalisation of the share market we are seeing 
progress -- asset return, cutting costs, more attention to investment as well 
as raising tariff issues with the government," Fyodorov said. 

"It is fair to say that Mr Miller after some hesitation has started getting 
his act together." 

A huge problem for Gazprom is that domestic tariffs are abysmally low with 
consumers typically paying a few cents a month. Fyodorov said the state's 
decision for a 20 percent rate hike instead of the 50 percent called for was 
"disappointing." 

"We have a strange situation when the government wants to get as much tax as 
possible from Gazprom but doesnt want to raise tariffs even in line with 
inflation," he said. "A 20 percent tariff hike is not enough even to maintain 
status quo." 

Low tariffs are seen as one of the causes of low investments and declining 
gas production in past years. Gazprom produced 496 bcm last year, down from 
554 bcm in 1998. 

But it is the sole exporter of gas to Europe, shipping 130 bcm a year through 
Soviet-era pipelines. It also is working on multi-billion dollar export route 
projects to Turkey and Europe. 

Fyodorov said a plan for a new $1 billion pipeline bypassing Ukraine was 
unlikely to materialise in the near future. 

"How many projects can Gazprom sustain? It is likely to concentrate on a 
project that is further ahead like the Blue Stream (to Turkey)," he said. 

"The big question is money.. we have to be much further ahead with cost 
cutting than we are now." 

*******

#9
Jamestown Foundation Monitor
February 19, 2002

THE MEDIA IN THE PROVINCES.
Nizhny Novgorod Oblast has become the source of new initiatives
aimed at regulating the activities of media and, in the view of
independent observers, of limiting press freedom. Deputies to
its legislative assembly have called on the State Duma, the
lower house of the Russian parliament, to amend the law so as to
allow media to be shut down as a result of a lawsuit by a
citizen or a corporation (Russian agencies, February 13).

At present, Article 16 of the Russian law on the mass media
states that a media outlet can be closed down only (a) by
decision of its founder or (b) by a court order in response to a
suit brought by the registering body or the Press Ministry.
However an amendment proposed by the speaker of the Nizhegorod
Oblast legislature, Dmitry Bednyakov, calls for Article 16 to be
amended so as to make it possible for a court to order the
closure of a media outlet in response to a suit brought by an
individual or a corporation about whom the given medium has more
than once over the course of 12 months disseminated information
recognized by a court to be false and which besmirches the
honor, dignity and business reputation of a citizen or
corporation (Lenta.ru, February 13).

Observers do not, however, believe that the Nizhegorod amendment
has much chance of being approved. According to Yury
Shchekochikhin, deputy chairman of the Duma's security
committee, his committee has already considered the amendment
and resolved not to support it, seeing it as "a fresh attack on
glasnost [openness] and on the last vestiges of press freedom
remaining in the country" (Russian agencies, February 14). Even
representatives of the Russian government expressed agreement
with this viewpoint, saying the proposed amendment could
"completely paralyze the activity of any publication" (Lenta.ru,
February 13).

The liberalism of the central authorities is easily explained.
The center now has all the means necessary to hinder the
activity of any media outlet it considers undesirable. The
relatively powerless regional authorities do not however have
such power and it is accordingly they who need the Nizhegorod
initiative. The passage of this amendment would permit the
regional authorities, which already control the judicial systems
in their regions, to stamp out criticism in the media in their
regions by the simple means of closing them down.

*******

#10
OLYMPICS GALVANISE COLD WAR? 

MOSCOW, February 19 /from Anatoli Korolev, RIA Novosti analyst) - As a 
controversy is raging on in Salt Lake City, Utah, round the Olympic pair 
skating gold, the International Skating Union came up with a revolutionary 
decision--only points taken by a random computer choice will be scored. 

Now, will passionless computers appease political passion as it seethes round 
the Russian figure skaters? 

As the correctness of referees' decision in favour of the Russian pair is put 
to doubt in public bickering, emphasis is made on an unsavoury allegation of 
the post-Soviet bloc referees plotting. The sheer fact that it was launched 
by The Globe & Mail, a highly respectable and widely-read Canadian-based 
daily, shows a Cold War aftermath surviving in the Western public mentality 
to regard Russia as an "evil empire" which tramples morals underfoot. The 
prejudice justifies even tougher moves than an Olympic victory reconsidered. 

Underlying the controversy are thwarted national ambitions, and a 
desire--whether conscious or subconscious, as the case may be--to develop a 
moral victory in the Cold War into a final rout of the opponent in every 
sphere where resistance can be expected, athletics being no exception. The 
situation brings an unwelcome ambiguity to what Jacques Rogge, International 
Olympic Committee President, said as additional gold was given to Canadian 
skaters: "I am happy! The resolution is fully in keeping with the Olympic 
Charter letter and spirit." Anton Sikharulidze of the Russian champion pair 
revealed his starry-eyed idealism as he commented the IOC decision, never 
seeing that it galvanised the late unlamented Cold War: "This is the best 
possible thing to do in the situation. I think figure skating will be better 
and cleaner after the present Olympics. Our nerves were on edge all these 
days. Now's the time to celebrate." His stance repeated the whole Russia's 
within the last ten years--a stance which makes attackers feel safe, and even 
prompts them to bite. 

Berezhnaya and Sikharulidze attended the repeated prizing to demonstrate 
their moral setback and invite more attacks, while the bronze Chinese pair 
was conspicuously absent. 

There is another, trivial aspect to the athletic and political Olympic 
controversy--good old money. There is big money in sports now, with huge 
investment and expensive advertising. So not only the Canadian pair gained 
with the scandal before switching to professional sport, but the entire sport 
business whom it promises skyrocketing profits. 

*******

#11
RUSSIA'S PROMINENT POLITICIAN SPEAKS OUT ON MIDEASTERN CONFLICT 

PARIS, February 19 /from RIA Novosti's Nikolai Vikhlyayev/ - None of the 
countries, be it Russia or the US, cannot resolve the Palestinian-Israeli 
conflict on its own today, Russian ex-premier Yevgeny Primakov told 
journalists at the International Press Centre as presenting his new book 
"Years in Labyrinths of Power," published in French by Syrtes publishing 
company. 

Mediation in the Mideastern conflict has been the USA's monopoly, something 
which has led regional developments to a blind alley, according to Russia's 
ex-foreign minister. 

It is teamwork of a group of countries and organizations, including the 
United Nations, Russia, the United States, European Union and Egypt, that can 
get the /peace/ process off the ground and impose a peaceful solution on the 
warring countries, according to Mr Primakov. 

The Russian politician pointed to the fact that there are Israeli and 
Palestinian leaders who would be glad to have peace conditions thrusted on 
them. 

Yevgeny Primakov described Ariel Sharon's current actions as a road to 
nowhere. The Israeli premier is trying to thwart the process of establishing 
the Palestinian state, without which, Mr Primakov is positive, neither 
Palestine nor Israel will be able to ensure their security. 

*******

#12
RFE/RL Business Watch
Vol. 2, No. 7, 19 February 2002

YEVGENII PRIMAKOV: STILL ACTIVE ON RUSSIAN BUSINESS,
POLITICAL SCENES (Part 1)
Russia's former foreign and prime minister, one-time spy chief, and
current head of the Russian Chamber of Commerce, Yevgenii Primakov
has maintained an image as an active and prominent political leader
for years. These days, Primakov's name is often associated with
Russia's accession to the World Trade Organization (WTO). Earlier
this month, Primakov's Chamber of Commerce sent a concept for
Russia's accession to WTO to the government. Although the chamber
warned of potentially unreasonable conditions for membership, the
document does not appear to say anything new, pravda.ru reported. The
chamber basically offered to reconsider the negotiation strategy with
the WTO -- and some say to cleverly oppose it from within. Today,
there are familiar voices in the Duma remarking that Russia would be
forced to compromise itself to join the WTO. The chamber has offered
to attract businessmen -- the oligarchs -- into the negotiation
process, saying they will be able "to promote Russia's interests."
This idea is not original. But the oligarchs must be mindful that,
according to WTO guidelines, only senior politicians negotiate with
the organization. (Otherwise, it would be extremely difficult to
avoid financial speculation in capital inflows.) Pravda.ru postulates
that with his authority and influence, Primakov will likely be used
by the oligarchs to reach out to the government, whose attitude has
dramatically cooled toward some of Russia's biggest businesses.
    Primakov, 71, assumed the post of president of the Chamber of
Commerce in September, after his predecessor Stanislav Smirnov
resigned following revealing reports by the chamber's control
commission on apparent financial misappropriations. Primakov was
unanimously elected to head the body by the chamber's 4th Congress.
Alternative candidates were not offered: "Primakov's election was
sanctioned by the Kremlin," gazeta.ru reported on 14 December.
Primakov's career had been in limbo since he resigned on 3 September
as chairman of the Fatherland-All-Russia political faction that had
45 seats in the 450-member Duma. On February 11, the Fatherland Party
officially disbanded, joining Unity and All Russia Party to form the
United Russia Party. His original resignation from Fatherland was
interpreted as Primakov's display of displeasure over the alliance
between Yurii Luzhkov's Fatherland faction and the pro-Kremlin Unity
party, according to gazeta.ru. Primakov said his resignation would
give a new parliamentary leader plenty of time to prepare for general
elections due in 2003. According to the "Financial Times," Primakov's
resignation prompted speculation that he might soon be offered the
post of foreign affairs adviser, or a post as special representative
to the Middle East by President Vladimir Putin. According to
gazeta.ru, Putin publicly treats his former contender for the
presidency with deference and respect.
    Primakov's election to the Chamber of Commerce presidency was
widely welcomed, gazeta.ru reported. Prior to his election, the
chamber played a marginal role in Russian business life. A politician
of the federal level, as well as Primakov's international
connections, were expected to enhance the chamber's role and
transform it into a sort of "business foreign ministry" aimed at
protecting Russian exporters' interests on world markets. When
elected, Primakov said he would expand the breadth of the chamber's
activities: "The Chamber of Commerce must become a main link
connecting entrepreneurship, business, and the government." Primakov
said the country's oligarchs should also unite with the chamber. "The
chamber should unite all levels of the Russian business," Primakov
stressed. According to gazeta.ru, the chamber has a chance to assume
some functions of the government. Primakov plans to suggest that the
government transfer a licensing right to the chamber. This would no
doubt provide the body with a new means of financing its expansion
plans.
    Primakov was Russia's prime minister for only eight months.
According to "Argumenty i fakty," Primakov was brought in as a
"political plumber" to save "the All-Russia house" from the effects
of the 1998 default. Primakov stated that his months at the head of
government were beneficial for both Russia and its people. In an
interview with Stringer information agency, Primakov said his
government led the country out of the August 1998 crisis, having
reached a general agreement with the International Monetary Fund
(IMF) and ensured domestic economic growth. In his book "Eight Months
Plus," Primakov said that those eight months also "revealed the
narrowness of the pseudo-liberalism which drew Russia into the abyss
of an ultimate crisis." Primakov expressed hope that his government's
proposals for building statehood, curbing corruption, and preventing
economic crime would be continued; but his period as prime minister
cannot be described as reformist. According to some sources, Primakov
ignored all the signs of "the Family's" plot to dismiss him -- a
reference to President Boris Yeltsin's inner circle of family members
and close associates. Boris Berezovsky was reportedly one of the main
protagonists. According to "Argumenty i fakty," Primakov became
dangerous for "the Family" and the oligarchs in those eight months.
To them, Primakov represented a return to the past and a threat to
their free-wheeling ways.
    On 12 September 1998, when Primakov was being appointed prime
minister, President Yeltsin's era was in fact already over, Stringer
offered. From that day, "the Family" began a frantic search for both
Primakov's and Yeltsin's successors. Primakov's was very different
from all other Yeltsin governments: It did not rely on Yeltsin,
Anatolii Chubais, Boris Berezovsky, or Roman Abramovich for its
decisions. Instead, Primakov's government relied on the support of
the Duma and the Federation Council.
    According to Stringer, Primakov created a new model of
governance for Russia. He created a mechanism for the gradual
transfer of power from the president to the prime minister. Later,
Kremlin adviser on information policy Gleb Pavlovskii said Primakov
created a model for opposition within power itself -- a means for a
power transfer from Yeltsin to Primakov. According to Pavlovskii,
this model was later used by the oligarchs in the operation called
"Successor," which ultimately resulted in the appointment of Vladimir
Putin. (PJ, TSK)

*******

#13
BISNIS Bulletin
February 2002
{US Department of Commerce)
Doing Business in Rrssia today: steps for security
by Jeffrey S. Giddings

Doing business in Russia today is not like it was in the earliest, exciting, 
post-Cold War days. Nor is it the challenge that it was at the height of the 
Yeltsin era. Nonetheless, precautions necessary in other countries, such as 
conducting the   necessary due diligence and providing for corporate--and 
personal--security, have to be considered and implemented.

Russia is no different from most foreign business venues: assumptions that 
apply to business practices in the United States may not hold true in Russia. 
A sound business strategy for operating in Russia and careful attention to 
the realities of the security situation are essential. Certain steps are 
important for establishing a presence in Russia and protecting a company's 
interests, assets, and personnel.

Precautions When Establishing a Presence

It is highly recommended that a U.S. company serious about the market 
establish a physical presence in Russia through use of its own staff or a 
joint venture. When considering the options for doing business in Russia, 
with a fully staffed office or through a joint venture with a Russian 
company, it is generally preferable to use local resources that have 
knowledge of the language, bureaucracy, political system, culture and customs.

*   Legal remedies for fraud, recovery of damages, or reimbursement on 
business losses as we know them in the United States do not exist in Russia. 
The U.S. judicial system provides unique recourse for both civil remedies and 
pursuit of criminal violations. Unfortunately, neither US/UK common law nor 
European civil law is the precise basis for the Russian system. Recovery of 
business losses incurred in doing business in Russia is extremely 
challenging; this makes preliminary investigations and evaluations all the 
more critical. In addition, the use of Russian legal counsel, whether or not 
affiliated with a major international law firm, may best address the 
ever-changing Russian legal system.

*    The character of business in Moscow is not the same as that in St. 
Petersburg; business transactions in one oblast are not going to be identical 
to those in another oblast regarding issues ranging from infrastructure to 
site-specific government regulations. The ins and outs, the peculiarities and 
idiosyncrasies of a specific market, vary by region and even by specific 
city. Many resources are available to assist in developing a region-specific 
market strategy, from U.S. Embassy staff to Department of Commerce resources 
to local business associations and other resources.

*    Due diligence investigations can assist in assessing the risk involved 
in any venture focused on Russia; such an investigation can determine whether 
a U.S. company will succeed or fail in Russia. The basic questions are: Are 
they who they say they are? and Can they do what they say they can do? The 
suggested due diligence will address the local agent, distributor, or joint 
venture partner, including the principals of any of these entities, as well 
as local subcontractors and suppliers. This means a review of background, 
credentials, and project-specific or industry-specific experience; checks on 
civil and criminal records; and some real input on personal and professional 
reputations. This is meaningful only through local, experienced professional 
contacts, who--in the new Russia--are typically drawn from former law 
enforcement or KGB personnel.

Precautions for Operating in Russia 

All U.S. businesses operating in Russia should be concerned with the security 
of office staff and personnel, and the integrity and safeguarding of the 
company’s products or services.

*    Background checks on employees and subcontractors working for your firm 
in Russia, whether domestic hires or expatriates living and working in 
Russia, are critical. Criminal statistics in Russia indicate that the vast 
majority of crime, particularly property crime--which can cripple a business 
venture--is committed by someone known to the victim. This includes employees 
and subcontractors. Background checks can uncover persons with criminal 
records or ties to organized crime, persons claiming false credentials (e.g., 
university degrees or inaccurate work experience), or applicants with other 
unsavory or undesirable characteristics.

*    The laws governing intellectual property and proprietary information in 
Russia are improving, but much improvement is still needed. Basic precautions 
should be taken to protect these assets. A detailed inventory and analysis 
should be performed to prevent intangible assets from "walking out the door" 
and to prevent your company from suddenly losing ownership rights to a 
product or service. Suggested safeguards include taking measures to protect 
against external threats on IT operations (such as viruses and hacking) and 
internal threats on IT files (theft of trade secrets or competitive 
intelligence), and understanding the current laws and incremental revisions 
that exist regarding intellectual property.

*    Crisis management plans for operating in Russia must address the classic 
concerns: (1) What do you want to protect, in terms of people, property, and 
operations? and, (2) What are your short and long-term goals? In the unique 
setting that is Russia today, these plans must go even further and address 
both potential terrorist threats and other possible political crises. These 
concerns may include Chechen operations directed at Russian interests that 
coincidentally strike innocent bystanders, as well as post-9/11 operations 
that target U.S. interests. In addition, President Putin has been aggressive 
in pursuing corruption and organized crime to the point that there may be 
backlash that causes local turmoil or political crisis.

*    A thorough security analysis of proposed facilities, staff and 
operations in Russia is essential. The chosen administrative offices and 
warehouses must consider the usual "gates and guards." But today's Russia 
must also take into account personal security, such as movement of U.S. staff 
between hotels or residences and company offices. The appropriate security 
plans and provision for immediate access to necessary resources need to be 
created and rehearsed. It is recommended that a reputable local corporate 
security firm be contacted to provide sound advice in this area.

Operating a foreign business in Russia is safer now than it was in the recent 
past, but U.S. companies must still take extra precautions to prevent basic 
losses due to corruption, fraud, and security-related incidents. You can 
enter Russia, but success will be a challenge unless you "play smart" and 
are well prepared.

Jeffrey S. Giddings is a Managing Director of Smith Brandon International 
(www.smithbrandon.com), based in Washington, D.C.

This report is provided courtesy of the Business Information Service for the 
Newly Independent States (BISNIS)

********

#14
Carnegie Endowment for International Peace
www.ceip.org
Russia, Energy, and Global Climate Change
February 07, 2002

Senior Scientist William Chandler speaks on Russia and global climate change. 
  
Speaker: Bill Chandler is Senior Staff Scientist and Director of Advanced 
International Studies at Battelle Memorial Institute's Pacific Northwest 
National Laboratory. Chandler is also an adjunct professor at Johns Hopkins 
University. Bill Chandler has worked in energy and environmental policy for 
30 years, and authored or edited 11 books. His latest monograph, "Energy and 
Environment in the Transition Economies," was released in September (2000) by 
Westview Press.

Mr. Chandler addressed key questions on issues related to global climate 
change and energy in Russia and other transition economies. Mr. Chandler 
noted that the economies of the former Soviet Union and Eastern Europe are 
the world's least energy efficient nations, and they produce more greenhouse 
gas emissions than all others except the United States and China. The energy 
sector remains the least-reformed sector in post-Communist countries. 
Nevertheless, the transition economies, and especially Russia, offer the 
largest and least expensive near-term opportunities for curbing gas emissions 
and could benefit from any emissions trading or joint implementation schemes. 

According to Mr. Chandler, planned economies tend to be more energy intensive 
than market ones. Over time, reform, or lack thereof, should be mirrored in 
the changing energy intensity of the transition economies. Since 1990, energy 
consumption in the Former Soviet Union and Eastern Europe has fallen by 25 
exajoules, which equals two-and-one-half times total demand for Africa. 
Energy demand fell roughly by one-third, with Ukraine falling the hardest, 
tumbling 40 percent since 1990.

High energy intensity in the former Soviet Union points to economic 
inefficiency. Energy intensity in the United States in 1996 was about 13 
megajoules per dollar of GDP, whereas Russia's was about three times higher. 
Russia's figure is distorted by the way GDP was measured. However, compelling 
evidence of energy waste, in the economic sense, remains even after 
converting Russian GDP to purchasing power parity. Energy intensity in the 
region was driven not so much by fuel type, be it coal, natural gas, or oil, 
but by economic factors stemming from central planning, such as the 
domination of heavy industry, distorted price signals, soft budget 
constraints, and stifled technological development. 

Advanced reforms in Central Europe resulted in improved energy efficiency, 
where energy intensity dropped by one-fifth. Conversely, in nations in which 
reform lagged, energy intensity has increased. Energy consumed per unit of 
GDP went up significantly in Ukraine and Central Asia during the 1990s. 
Energy use serves as an index of reform, and the experience of Central Europe 
demonstrates that implementing hard budget constraints, meaningful prices, 
institutional reform, and economic restructuring has paid off in economic 
recovery and environmental improvement.

Energy inefficiency existed throughout the history of the Soviet Union. 
Inability to get higher value-added services and light manufacturing stemmed 
from policy choices but was also evident in the technology of buildings, 
industry, and transportation. Some experts estimate the heat loss in the 
pipelines at up to 40 percent of total heat production. Buildings lacked 
basic energy efficiency measures and were built of such materials as cement 
blocks or prefabricated concrete panels that easily conducted heat to the 
outdoors. Another factor contributing to energy losses is lack of basic 
meters and controls of heating plants, built without sensors indicating 
demand for heat. The Soviet energy system mainly served heavy industry and 
military production that required large amounts of energy, particularly 
compared to its value.

In Russia's road to reform, the government chose to protect customers in the 
earlier phase of liberalization, and although energy prices increased, they 
did so more slowly than overall price index. Residents typically paid 
one-quarter or even less of the cost of housing and utilities, and heating 
accounted for most of that cost. Currently, both residential and industrial 
heat and power prices remain low. However, Russia has made progress in 
utility reform and increased the rate of utility collections to 85 percent of 
total billings in 2000. 

Mr. Chandler pointed out that in accordance with the Kyoto Protocol of the 
United Nations Framework Convention on Climate Change, Russia and Ukraine 
promised to hold their greenhouse emissions in 2008-2012 on the level of 
1990, while Europe, the United States, and Japan agreed to cut emissions by 
8, 7 and 6 percent, respectively. From 1990 to 2000, emissions in Russia 
dropped by 30 percent and in Ukraine by 40-50 percent. Opponents of Kyoto 
objected that by buying reductions made as a result of economic collapse 
since 1990, the United States, especially, could meet its targets without r 
educing its own emissions. Some European and developing countries opposed 
trading of "hot air," arguing that one ought to clean up one's own emissions, 
not hire someone else to do it. Supporters of emissions trading argue that it 
would reduce the cost of emissions reductions and provide badly needed 
financing for the transition economies.

After the United States withdrew from Kyoto Protocol in March 2001, the 
projected sale price of Russian emissions in 2010 fell from more than $60 per 
ton to less than $3 per ton, because the U.S. would account for a large share 
of the emissions trading market. Russia's potential revenue of emissions 
trading plummeted from a few tens of billions of dollars to just a few 
billion over a five year period to begin in 2008. However, the U.S. 
withdrawal put Russia in a position of strength because Russian emissions 
together with those of such countries as Japan, New Zealand, Canada, and 
Australia, now account for more than 55 percent of total emissions of Kyoto's 
participants that are needed for the Protocol to come into force. The "55 
percent" rule gives Russia a decisive vote. The goal of the Convention has 
become one simply of getting mechanisms for mitigation in place, and that the 
reduction targets become even less relevant. This was demonstrated at the 
recent Conference of Parties in Marrakesh, where Russia took a "belligerent" 
position and won more emission allotments.

In Mr. Chandler's opinion, Russia is unprepared to implement Kyoto and has 
little incentive to become so inclined. The nation's ability to participate 
in Kyoto is jeopardized because of lack of coordination among government 
agencies, and little guidance from top leaders. However, Russia will be vital 
to a cost-effective climate policy. Improved cooperation on climate between 
Russia and the west would both promote economic development and reduce the 
risk of climate change. The most useful form of cooperation would come in the 
form of finance and infrastructure development. Because the cheapest 
emissions reductions opportunities are probably in Russia and the formerly 
planned economies, creating the institutions for facilitating joint 
implementation or emissions trading is a priority. 

Summary by Marat Umerov, Junior Fellow, Russian and Eurasian Program.

******

#15
St. Petersburg Times (originally in Moscow Times)
February 19, 2002
Moscow Dies by the Knife and Rope 
By Nabi Abdullaev 
STAFF WRITER 

MOSCOW - Muscovites are nine times more likely to be murdered than Londoners, 
but two times less likely to be killed than are residents of Washington, the 
murder capital of the world. The weapon of choice is a kitchen knife, 
followed by a length of rope or some other method of strangulation.

These are among the grim statistics gathered by various scientific and law 
enforcement agencies that rank Moscow as one of the most dangerous cities in 
Europe. The statistics highlight the extent to which murder, suicide and 
accident rates in the city have escalated over the past 15 years, largely due 
to enormous social upheaval and the disorganization of law enforcement and 
social-welfare authorities.

Out of the 130,000 Muscovites who died last year, 15,457 died of unnatural 
causes - murder, suicide or accidents, the city's Bureau of Forensic Medicine 
said. About 1,700 of the deaths were murders, up 21 percent from 2000. The 
growth rate is about three times higher than the 7.3 percent increase for all 
of Russia last year.

Although murder figures have dropped from the peaks reached during the days 
of wild capitalism in the mid-1990s, they represent a huge increase on those 
recorded in Soviet times, said Vladimir Zharov, head of the Bureau of 
Forensic Medicine.

Zharov said the murder rate in Moscow began to climb in the late 1980s, when 
the country's economy started changing.

"From the 1960s to the late 1980s, there were 200 to 300 murder cases a year 
in Moscow and almost all murders happened in drunken brawls," Zharov said. 
"But in 1989, there were already 688 murder cases and in 1992 - when the 
country had officially turned to the market economy and property 
redistribution had started - 1,795 Muscovites were killed."

Zharov said the highest murder rate was recorded in 1994, when 2,863 people 
were killed in Moscow. Since then, the murder rate has dropped, reaching half 
the peak level in the late 1990s before climbing again last year, he said.

The motives for murder have also changed since the late 1980s. With the 
advent of capitalism, business-related slayings have become much more 
commonplace, now accounting for almost 20 percent of all murders, Moscow 
police say. In Soviet times, they made up less than 1 percent of the total.

However, the vast majority of murders are still caused by drunken and/or 
domestic arguments, which is reflected in the fact that the kitchen knife 
remains the weapon of choice in violent attacks, according to city police 
spokesperson Kirill Mazurin. Next comes the rope with a slipknot, followed by 
the hunting rifle, the pistol and other random objects such as bottles or 
forks.

Police solve such drink-fuelled murders quickly, Mazurin said.

"Very often when we arrive at the crime scene, the murderers are still there, 
intoxicated by alcohol or drugs," he said. "Even when the murder takes place 
in a drinking hole crawling with people day and night, the neighbors usually 
provide enough information about the victim's entourage to help us find the 
perpetrator."

Mazurin said that most murders take place among the poorest segments of 
society and that females are killed as often as males.

Such killings are usually caused by trivial arguments, law enforcement 
officials say.

"A stabbing can be sparked off by an unfinished glass of vodka or by the 
wrong word or even glance," said deputy city prosecutor Yury Sinelshchikov.

Moscow's murder statistics compare unfavorably with other major cities.

New York, which has a similar population to Moscow's - almost 9 million - saw 
643 murder cases in 2001 - not including the victims of the World Trade 
Center attacks, according to the New York Police Department's Web site. That 
was down from 671 murders in 2000.

A recent survey by The Guardian newspaper in Britain showed that the murder 
rate in Moscow is 22 victims per 100,000, more than nine times London's rate 
of 2.36 victims per 100,000. London's murder rate was the lowest of the 
cities selected for the survey and Washington's the highest, totaling 50.82 
people per 100,000.

Law enforcement officials and criminologists believe Moscow's high murder 
statistics are caused to a great extent by the collapse of the 
district-police system. 

In Soviet times, released prisoners had to report to district police officers 
every day. The officers also kept tabs on renowned drunkards, enabling them 
to avert potentially deadly situations. 

But experts say a lack of funding and control has meant that the system no 
longer works effectively. District police officers now spend most of their 
time chasing unregistered migrants from the Caucasus and reacting to citizens 
complaining of less urgent problems such as vandalism and noisy neighbors, 
they say.

Oleg Myasnikov, a criminologist at Moscow State University, believes that 
because homicidal attacks spring up so spontaneously among the poorest 
sections of society, the only way to lower murder rates is to establish 
constant preventive control over this potentially dangerous group - and that 
means rehabilitating the district-police system.

"A drunk vagrant walking on the street must be detained by police, even if he 
has committed no criminal offense," he said. "This man is potentially 
dangerous to the public and the task of law enforcement officials is to avert 
a potential crime he may commit."

Myasnikov admitted that such preventive measures would be given a hostile 
reception by human-rights groups, but said that the Soviet experience showed 
that it was worth it.

In 1986, for example, only 14,848 people were murdered in the whole Soviet 
Union. In 1990, 16,122 Russian citizens were murdered and by 2000, this 
figure had almost doubled to 31,829. A little more than 34,000 murders were 
committed in Russia in 2001, according to Interior Ministry statistics.

Myasnikov pointed to the example of New York under Mayor Rudolph Giuliani to 
show how crime levels can be reduced. 

In 1993, when Giuliani took control of the city, 1,927 New Yorkers were 
killed in violent crimes. In three years, this amount decreased by half, and 
by 2001, the murder rate was almost three times lower than in the early 
1990s, Myasnikov said.

Myasnikov believes that Giuliani's initiative of tougher police control over 
poor neighborhoods, populated mainly by ethnic minorities, was responsible 
for the drop in violent crime in the city.

"Giuliani was widely criticized by human-rights activists for his cops being 
hard on colored youths," he said. "But the positive outcome of such a policy 
is obvious."

As well as having a high murder rate, Moscow's suicide rate is roughly four 
times higher than in the United States and most Western European countries, 
with about 1,900 Muscovites committing suicide last year. 

This figure is in line with the Bureau of Forensic Medicine's statistics 
through the 1990s, which show that the number of suicides in Moscow hovered 
near 2,000, reaching a peak level of 2,365 in 1993. 

Suicide rates show a similar pattern to murder rates. In 1965, 17.1 people 
per 100,000 committed suicide in the Soviet Union, according to World Health 
Organization figures. By 1985, that figure had increased more than 30 percent 
to 24.6 people per 100,000.

Zharov said most suicides last year were caused by failed relationships.

"Most self-murderers are teenagers who couldn't overcome their problems - 
unrequited love the most frequent of them," he said. 

*******

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