Johnson's Russia List #6122 8 March 2002 davidjohnson@erols.com A CDI Project www.cdi.org [Note from David Johnson: 1. AP: Russian Journalists Join Forces. 2. Luba Schwartzman: ORT Review. 3. The Russia Journal: Otto Latsis, Economic horizon cloudy. 4. The Russia Journal: Andrei Piontkovsky, Integration into Europe raises security issues. 5. The Guardian (UK): Ian Traynor, The old enemy moves closer to home. Nato's latest wargames are giving the Russian military the jitters and provoking old suspicions. 6. Moscow Tribune: Stanislav Menshikov, OIL DRAMA CONTINUES. High-placed lobbyist falsifies statistics. 7. Reuters: U.S. troops can stay, Kyrgyz leader says. 8. Reuters: Georgia says al Qaeda in its rebel Abkhazia zone. 9. New York Times book review: Michiko Kakutani, Russia's New Appetite (For Those Who Think Young). (revie of HOMO ZAPIENS by Victor Pelevin) 10. The Electronic Telegraph (UK): Marcus Warren, Briton stars in Russian epic of war on fanatics. 11. Wall Street Journal editorial: Putin's Shadow. 12. Moscow Times: Maria Gorban, Sergei Guriyev and Ksenya Yudayeva, WTO: Myths and Realities. 13. Reuters: Russia's Putin fetes women, urges street kids aid. 14. Baltimore Sun: Douglas Birch, Going to the dogs in Moscow. Strays: In the Russian capital, the official policy on homeless animals of catch-and-kill is being replaced with catch-sterilize-release.] ******* #1 Russian Journalists Join Forces March 7, 2002 By MARA D. BELLABY MOSCOW (AP) - Journalists who ran Russia's last independent national TV station agreed Thursday to join forces with a broadcasting group created by former Prime Minister Yevgeny Primakov in a bid to get back on the air. The team of journalists, led by Yevgeny Kiselyov, decided to merge their newly created Channel Six company into Media-Sotsium, a nonprofit organization that reportedly has the Kremlin's blessing. That makes it a favorite to win permanent broadcasting rights on Channel 6, which will be awarded on March 27. Kiselyov said Thursday that his group, backed by about a dozen investors, will bid jointly with Media-Sotsium for the broadcasting rights. Thirteen other companies are competing in a contest watched throughout Russia as a test of media freedom. The winner of the bid will take over the frequency once held by TV6, which was yanked off the air in January after losing a legal battle with a minority shareholder, which had ties to the government. Kiselyov blamed the station's demise on a government crackdown against an independent media outlet - a charge the Kremlin has denied. Kiselyov denied Thursday that the journalists were putting their independence at risk by joining with such a high-profile political figure as Primakov. ``Having such a political heavyweight as Yevgeny Primakov on the team is a big plus,'' Kiselyov said, according to the Interfax news agency. ``Many TV companies in the West dream of having on their board of directors a former premier, a former foreign minister or even a former foreign intelligence chief. And here, we have all of them in one person.'' Primakov has occupied all those posts in a long career. Kiselyov said his team of journalists ``look at many things absolutely differently from Primakov ... but this is no obstacle to our cooperation,'' according to Interfax news agency. Other applicants for the Channel 6 broadcasting rights include TNT, a network that is majority owned by the state-connected natural gas monopoly Gazprom. Last year, Gazprom took over NTV, at the time Russia's premier independent station. Kiselyov and other TV6 journalists worked at NTV, but left in protest after the takeover. TNT said it hoped to create a sports and entertainment station on Channel 6. Another notable applicant was the Gorbachev Foundation, headed by former Soviet President Mikhail Gorbachev. Gorbachev told Interfax on Thursday that he wanted to create a channel that was ``serious, national, responsible and qualified.'' He declined to provide further details. ******* #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, - Russian men may be relieved to know that this year 500 more tons of flowers have been imported to Moscow from countries like Holland, Colombia, Ecuador, Turkey, Israel and Spain than in 2001 (bringing the total to 4,500 tons). Domestic flowers only make up about 10% of the market. - The Ukrainian Parliament held its last meeting before the next elections. - Another round of Russian-Chinese consultations on strategic arms reduction has been completed in Beijing. The two nations agree that the US decision to unilaterally withdraw from the 1972 Anti-Ballistic Missile (ABM) Treaty had a negative effect on the issue of non-proliferation of weapons of mass destruction. - On the eve of the International Women’s Day, First Lady Ludmila Putina visited the residence of the Japanese Ambassador to Moscow. She viewed the collection of dolls set up by the ambassador’s daughter to celebrate March 3rd, the Japanese holiday Girl’s Day, and took a lesson in ikebana -- the traditional Japanese art of arranging cut flowers. - In Chechnya, military servicewomen in the federal forces were honored at a ceremony dedicated to the International Women’s Day. - Workers have begun to tear down the Intourist hotel, considered an eyesore by many Muscovites. The skyscraper, commissioned by Nikita Khrushchev after a visit to New York, will be replaced by a building half its height. The demolition and construction will cost at least $130 million. - In Moscow, Russian Security Council Chairman Vladimir Rushailo met with his Moldovan counterpart Valerii Gurbuli to discuss bilateral cooperation on security issues; the officials also discussed Moldova’s domestic political situation. Speaking with journalists after the meeting, Gurbuli declared that the Moldovan government is seeking a political solution to the conflict concerning the mandatory Russian classes in public schools. - Investigators in Krasnodar have begun interrogating three criminals who escaped from a convoy a week ago. The men were captured last night in Adygea’s Psekups settlement. A total of seven men made the getaway on May 1st. One was captured immediately; three others are still on the run. Police officers suspect that one of the guards was in on the escape. - Russian Foreign Minister Igor Ivanov met with his Lithuanian counterpart [Antanas Valionis] to discuss the visa regime for Kaliningrad oblast residents. Ivanov will also meet with other Lithuanian officials to discuss the development of the Kaliningrad oblast in the context of Lithuania’s entrance into the European Union and the future of the North Atlantic Treaty Organization. - Russian customs officers have detained two Estonian truck drivers who were smuggling precious metals out of Russia. - The Russian Cabinet has approved some changes to the Russian postal system. Several technical innovations will be introduced and new investments will be sought for the development of the communications system. The ministers also discussed changes to the system of housing and utilities payments. Prime Minister Mikhail Kasyanov began the meeting by congratulating Russia’s women on their holiday. - In honor of International Women’s Day, President Putin met with a group of female educators to discuss abandoned children, child homelessness, the institution of the family in Russia, orphanages, foster homes and education. - Seventy-seven Russian athletes will attend the 2002 Paralympic Winter Games in Salt Lake City. - Georgian computer-game aficionados are playing a game created about six months ago but oddly appropriate to recent developments: In the scenario, American special forces hunt for terrorists on the Russian border. - Two people died and two others were injured a shoot-out in a Moscow-center apartment. An argument between five men got out of hand and guns were drawn. Two of the men were killed and one injured. The fourth victim, Marina Groyetskaya, was a neighbor who came out to investigate the disturbance. The two other men took flight. An investigation and a search have been initiated. ******* #3 The Russia Journal March 7-13, 2002 Economic horizon cloudy By OTTO LATSIS Presidential economic advisor Andrei Illarionov recently held another press conference at Alexander House, the place where the so-called Gref program – the government economic strategy – was drawn up two years ago. Illarionov began by warning journalists that he was essentially going to give a lecture on the real exchange rate and economic growth. With charts, slides and detailed explanations, the result really was something of a lecture. What’s important, however, isn’t how Illarionov spoke, but what he said. The links between the exchange rate and economic growth are an issue of interest to specialists. What interests the wider public are the many facts about the state of the Russian economy that formed the background to Illarionov’s learned thoughts. These facts point to serious changes in the economic situation over recent months. The government is still full of optimism, repeating all the indicators of economic success over 1999-2000. With growth rates at a record 30-year high, the last three years really were good, no matter what the reasons for the success. Looking at the results – not for the three-year period overall but for each year separately – it’s clear that the best year was 2000, when the GDP increased by 8.8 percent. In 2001, growth slowed noticeably to 5.5 percent by preliminary figures. The government forecast for 2002, which the budget calculations are based on, is for growth of 3-4 percent. For the United States or some other highly developed Western country, this would be a decent result, but for Russia, which still has a long way to go to catch up in many areas, this is insufficient, though still noticeable, growth. A closer analysis shows, however, that Russia might not achieve this growth rate this year. The fact is that basic indicators (industrial and agricultural output, freight-transport volumes, investment) have shown no growth month-on-month since the beginning of October 2001. According to preliminary estimates, GDP in the fourth quarter was in stagnation or even decreased a little. True, fast growth in the third quarter improved the overall picture for 2001, and there was still an increase in production volume compared with the fourth quarter of 2000. If the stagnation continues, however, this optimistic picture given by statistics will last a few more months and make it possible to speak of economic growth in January 2002 compared to January 2001. But, compared to December 2001, growth slowed in January 2002 for the fourth month in a row. These kinds of three-month standstills in growth have happened more than once before over the last three years. Economists haven’t always been able to explain convincingly why and, anyway, no one showed much interest, so long as growth then picked up again. Foreign economists have tended to put Russia’s economic success down to higher oil prices, while Russian economists have given more complex interpretations. Illarionov made no attempt this time to link the halt in growth to last year’s fall in oil prices. Instead, he argued that the rise in the ruble’s real exchange rate is to blame. This rise, in turn, he put down above all to growth in the non-market sector of the economy. Under the term "non-market sector," Illarionov includes all state expenses (federal, regional and local budget spending and extra-budgetary funds) and the output of natural monopolies regulated not by the market, but by the state, which sets their tariffs. Despite (or maybe thanks to) direct regulation of their goods and services (gas, electricity, freight transport, pipelines), the natural monopolies’ tariffs are rising much faster than the general price index. But, rather than spurring economic growth, rising incomes for the natural monopolies dampen it. Illarionov said the bigger the share of the non-market sector in the GDP, the lower the economic growth rate, and vice versa. Statistics back this up – between 1992 and 2000, the non-market sector was generally reduced, and its share in the GDP dropped from 69 percent to 44.9 percent. Over the same period, there was at first a slowdown in economic decline and then a halt in decline followed by fairly rapid growth. But, in 2001, the non-market sector rose to a 47.5 percent share of the GDP and economic growth decreased. Unfortunately, the non-market sector is forecast to expand further in 2002. This goes for both state spending and the natural monopolies. Illarionov doesn’t see the situation as catastrophic yet. He noted that the government has now abandoned plans to considerably increase natural-monopoly tariffs and has set a stricter framework for them than was initially expected. But the fight goes on. The government has admitted it thinks gas tariffs are a bit too low and plans to review them in May, and the electricity people and railways are also trying to push the government into deciding on a real increase in tariffs. Debates on borrowing policy are also not over yet. The government is still holding (though not very confidently) to its new foreign-debt strategy – borrowing has been minimal over the last two years and the debt has begun to decrease. But, recently, the government has been talking more and more of increasing domestic borrowing. It was excessive domestic borrowing that helped cause the 1998 financial crisis. Illarionov thinks that, so long as there is a primary budget surplus, there isn’t a need for domestic borrowing. Illarionov has a reputation for being an economic pessimist. At the beginning of the 1990s he left his job as economic advisor to Prime Minister Viktor Chernomyrdin because he didn’t agree with what he saw as too generous a state-spending policy. Illarionov was proved right by the "black Tuesday" financial crisis in October 1994. In the spring of 1998, Illarionov had a serious dispute with a large part of the liberal economic elite as he tried to prove that the "currency corridor" policy that kept the ruble at a high exchange rate was mistaken. Prime Minister Sergei Kiriyenko didn’t listen to these warnings, and the country paid with the financial crisis in August of that same year. This time, Illarionov isn’t sounding the warning bells so loudly and thinks the government’s mistakes can be fixed. But is he right this time and, if he is, will the government listen? As presidential advisor, he’s in a stronger position than ever before. But cutting back state spending would cause President Vladimir Putin a number of problems, too. ******* #4 The Russia Journal March 7-13, 2002 Integration into Europe raises security issues By ANDREI PIONTKOVSKY Russia’s integration into Europe is completely senseless and absurd so long as mutual suspicions regarding military security persist. The Russian political elite must get over the schizophrenic attitude that has it enthusiastically discussing the prospects of political and economic integration with European countries, while at the same time seeing these same countries as the "aggressive" NATO bloc creeping ever closer to Russia’s frontiers. In this respect, Russia’s relations with Poland since it joined NATO provide a positive model. Relations between the two countries have shown visible improvements over this period. There is nothing surprising here: Having secured its place within European organizations, Poland has been able to put behind its historic "Russian complex" and can now look on Russia without prejudice as a normal and friendly neighbor for the first time in its history. The issue of creating a European security system often comes up in debates on Russia’s integration into Europe. At the risk of sounding paradoxical, I would put forward the idea that Europe does not need a "security system." The fact of the matter is that, in using this term, we forget that it implies the existence of acute hostility between this or that country that could potentially spark an armed conflict. The purpose of a "security system" is to codify this state of hostility and prevent it from turning into armed conflict. There’s no need today to create a security system to prevent a war between France and Germany, though this would have been a perfectly reasonable aim in the second half of the 19th century or first half of the 20th century. But today, there’s simply no way these countries could go to war. Similarly, Russia’s relations with European countries have reached such a level now that here, too, a war is inconceivable. Russia’s integration into Europe raises other security issues with origins beyond the European continent. These are the issues Russia would bring with it. Russia’s real, not phantom, security issues are concentrated on its southern and far eastern borders. It wouldn’t seem right for Russia to burden its European allies with these problems. The United States could play a significant part in this respect. The Americans have already demonstrated how this would work when they pursued above all their own aims in Afghanistan and at the same time brought a long-term solution to one of Russia’s most pressing national-security issues – preventing Islamic extremists from entering the Central Asian republics. If we agree that Russia is through with several centuries of searching for its geopolitical self-identity and has finally decided that it is part of Western civilization, then there is no avoiding problems within the triangle (United States, Europe, Russia) forming this new West. The events of last September-December clearly demonstrated a number of trends that experts had spoken about but that politicians hadn’t yet become aware of. Europeans now realize fully that they will never close the military technology gap between Europe and the United States, and that attempts to do so by increasing defense spending will only undermine the European economy, while the gap will just continue to grow. But there is another, more serious, problem. What is the sense of the European Union’s defense policy, and what kind of wars should its armed forces be prepared for? The European Union faces no threat on the European continent itself, and the United States isn’t going to call on its allies in operations in other parts of the world, preferring if need be to make use of local ad hoc coalitions. But what, then, is NATO’s raison d’etre? European politicians’ initial reaction to these thorny questions has been irritation and an increase in complexes when it comes to the United States. It would be a great temptation for the Russian and European elites to unite around these common gripes and mutual complaints against their American partner. But this would be a purely emotional approach and not constructive at all with regards to a genuinely serious problem, namely, how the West (Russia, the European Union) should build its relations with its Big Western Brother. This big brother may not always live up to our ideals and expectations, but will stay on top for the next 20 years at least and will remain our natural geopolitical ally. Above all, we absolutely must not let ourselves sink into an irrational anti-American knee-jerk reaction and distance ourselves from the United States on any world-politics issue or use each other as pawns in our own games with the United States. We should debate jointly with the United States on a narrow range of issues, basing ourselves on two criteria – the importance of our security and the extent to which our position is convincing and intellectually well-founded. (The writer is director of the Center for Strategic Research.) ******* #5 The Guardian (UK) 7 March 2002 Moscow dispatch The old enemy moves closer to home Nato's latest wargames are giving the Russian military the jitters and provoking old suspicions By Ian Traynor It is difficult becoming pals with the biggest enemy you've ever had. And Russian generals are finding it particularly irksome to embrace Nato as a cuddly new partner despite the orders issuing from the Kremlin that the top brass has to learn to love the Pentagon and Nato. It's easy to see why. A quick glance at a map of Nato's fictional states (Woodland and Treeland, Limeland and Blueland) provides ample grist to the mill of Russian suspicions of the western military alliance. In the changed days since September 11, Tony Blair, Vladimir Putin, George Robertson and George Bush have decided that Nato and Russia are to be allies and partners against global terror. And so far they have been. The relationship is to be deepened further this year with notions of a new Nato forum giving Russia a full veto in the areas selected for common decision taking. According to plans being drafted in Brussels and Moscow, Russia will in effect enjoy the status of full Nato membership in areas such as international peacekeeping, search and rescue missions, non-proliferation of weapons of mass destruction, combating terrorism and joint exercises. Yet already the hawks in the Russian military and the parliament are grumbling that the new forum will be no better than the old, an exercise in consultation that the defence minister, Sergei Ivanov, has already denounced as a useless talking shop. A map of Woodland may be mythical to Nato planners hunched over their computer graphics in Brussels, but to the Russian top brass, there is little that is fictional about the wargames in Blueland and Limeland. These "areas" are currently the theatre for some of the biggest Nato military exercises in years and they are taking place directly on Russia's western borders at the same time as the US is engaged in some of the toughest fighting of the Afghan war. More than 25,000 troops are taking part in two mock military campaigns in Poland, close to Kaliningrad, and in northern Norway close to Russia's border in the Arctic. In the real world to the south, the Americans are about to move into Georgia on Russia's border after establishing footholds in the post-Soviet states of Uzbekistan, Tajikistan, and Kyrgyzstan. Nato's "Strong Resolve 2002" exercises include the participation of Uzbek forces a long way from home as well as troops of the local post-Soviet Baltic states of Estonia, Latvia, and Lithuania who hope to gain admission to the western alliance at a summit in Prague later this year. The Nato scenario for a fictional foe in the wargames includes the country of "Granica", the Russian word for border. If you are a Russian general, you don't need to be paranoid to be feeling less than comfortable. "The alliance's exercises in Norway and Poland yet again confirm our doubts about Nato's role in guaranteeing European security," noted General Anatoly Kvashnin, the hardline chief of the Russian general staff. The wargames in Poland see Nato practising a rapid response peacekeeping operation in a mock crisis involving partition, ethnic clashes, guerrilla warfare, and black propaganda - the kind of nightmare scenario prevalent in the Balkans for the past decade but which Russian commentators say could also potentially apply, for example, to Latvia with its large Russian minority. In the Norwegian wargames, meanwhile, Nato's pledge of common defence is invoked to defend a Nato member against attack by a neighbouring country on the alliance's northern flank. There are not many candidates for the identity of the fictional invader. "The exercises demonstrate the constant Nato view that the likely adversary is from the times of the cold war - that is Russia, Belarus, and other [ex-Soviet] states," commented Ivan Yegorov in the Gazeta newspaper. Krasnaya Zvezda, the Russian armed forces newspaper, demanded to know "why Russia, which has become the west's solid ally in combating terrorism, is not taking part in these exercises...Nato is obviously learning how to defend itself against possible aggression from Russia." The alliance's planning, the paper added, is ten years out of date and Nato seems to be rushing forward into the past. ******* #6 Moscow Tribune March 7, 2002 OIL DRAMA CONTINUES High-placed lobbyist falsifies statistics By Stanislav Menshikov Early this week two top OPEC executives visited Moscow to talk with Mikhail Kasyanov about oil exports in the April-June quarter. Their purpose was to convince the Russian prime minister that continued co-operation with OPEC is a wise policy. In the first quarter, Russia had agreed to reduce its exports by 150 million barrels per day. Due to similar reductions by other independent exporters (Mexico, Norway and Oman) and a much larger cut by OPEC itself, world oil supply came into balance with market demand. Consequently, oil prices, which had hit a low point in last October, recovered to $19 per barrel for Urals crude. This is considered satisfactory by the Russian government, which has planned its budget for 2002 based on oil prices in the $18 - 25 range. If Moscow chooses to keep the arrangement in the second quarter, it would further help maintain adequate prices or even improve them. Because oil is a touchy subject in Russia where oil companies and the government do not necessarily see eye to eye on various matters, Kasyanov did not give a definite answer. A decision is expected later in the month, presumably after the OPEC ministerial meeting in mid-March. The prime minister's position all along has been one of caution. The government favours keeping the arrangement for pragmatic budgetary reasons. On the other hand, some domestic oil concerns and the US administration exercise pressure to break it up. This is not an easy position to be in. Waiting another fortnight and watching the market reacts to general economic news is another good reason not to rush. Our guess is that eventually Kasyanov will opt for keeping the OPEC arrangement intact until at least mid-year. That is in spite of Andrei Illarionov's public insistence on the contrary just a few hours before the prime minister saw his visitors. Illarionov, top economic adviser to president Putin, has adamantly opposed agreement with OPEC for many months now. Last December he predicted that interfering with free market forces in the oil market would inevitably end in disaster. The government and president then ignored his advice. Now that his doomsday scenario went wrong, he is suggesting new arguments for taking a tough line towards the oil cartel. Point 1. According to Illarionov, OPEC does not observe its own quotas, so why should Russia keep its word? However, actually the cartel has lived up to its decisions to the extent of 90%, not a bad performance in view of lenient control mechanisms in most cartel countries. Point 2. Russia should restore the share of the world oil market that the Soviet Union enjoyed 15 years ago. According to Illarionov, the share, which was then 12 percent, has now fallen to only 7 percent. The Kremlin adviser does not reveal the source of his figures but statistics published by the International Energy Agency are different. According to the IEA, countries of the former Soviet Union in 2001 accounted for 15.9 percent of total net global oil exports, out of which Russia accounted for around 12 percent. Today Russia exports more than 200 million tons of oil and oil products, while the Soviet Union in 1987 sold 196 million tons. Contrary to Illarionov 's claim, no loss at all has occurred. Point 3. Illarionov claims that in recent years Russia was loosing its oil export markets while OPEC was profiting at its expense. Well, consider the following IEA statistics. Between 1998 and 2001 Russian oil exports increased by 35 million tons while OPEC oil exports fell by 45 million tons. Russia is indeed becoming a strong competitor to the oil cartel, which in previous years practically ignored it. It cannot afford to do so any more. When the current world slump is over Russia will be in a good position to expand its oil exports further. Point 4. Industrial production in Russia has been stagnating in the last few months while oil output grew. If exports are cut, Illarionov says, that would exacerbate overall recession. His assertion would be correct if the reduction in oil exports was large. In fact, it is only 1.5 percent of oil output which is 12 percent of total industrial production. Consequently, the negative effect on industry as a whole is only 0.18 percentage points - too small to cause a general slump. Apparently, the president's adviser has made his points privately to the prime minister and his aides but was politely turned down. He then chose to voice his objections in public knowing full well how much the media loves scandals at the top. This, of course, is in flagrant breach of normal procedure that prescribes a negotiating government to speak in one voice only. If Illarionov dares disregard this rule, he must have strong support from the oil lobby and certain foreign interests. Whatever the explanation, using rotten statistics to prove one's point is a sign of incompetence or evil design or both. Let us hope that the government ignores this escapade and reaches its decision based on solid facts and the national interest. ******* #7 INTERVIEW-U.S. troops can stay, Kyrgyz leader says By Peter Starck STOCKHOLM, March 7 (Reuters) - U.S. troops may use their brand-new military base in remote Kyrgyzstan for as long as it takes to pacify and stabilise Afghanistan, Kyrgyz President Askar Akayev said on Thursday. In a Reuters interview, the leader of the former Soviet republic spelled out terms for an extended U.S. military presence in his small but strategically located Central Asian country, on China's western border and south of Russia. Akayev, who said he will adhere to the Kyrgyz constitution and step down when his third five-year term runs out in 2005, signalled the base could operate long after the expiry of a one-year agreement in effect since December. Led by the United States, more than 1,000 troops from six countries have arrived at the rapidly expanding facility at Manas international airport on the outskirts of Bishkek. The United States sought the use of bases in Central Asia in the wake of the September 11 attacks, in its bid to root out Saudi-born Osama bin Laden and his protectors in Afghanistan's hardline Islamist Taliban government. "Of course we consider the deployment of the coalition as an interim or temporary shield...we are talking about one year, but we are realists and we understand that we may need even more time," Akayev said, speaking through an interpreter. NOT A PERMANENT BASE? Senior U.S. officials have said the plan is not to establish a permanent base in Kyrgyzstan, but they have given no indication of how long the troops might remain in place. U.S. and Kyrgyz authorities have said the base may grow to some 3,000 soldiers and 40 aircraft. Critics in China and Russia fear that Kyrgyzstan is handing the United States the keys to Central Asia on a silver platter, permanently altering the sensitive power balance in the politically unstable region. "As responsible politicians we understand that we need to bring this mission to a complete end," Akayev said. He defined such an end as an Afghanistan with a government capable of looking after the interests of all groups, ensuring internal security and safeguarding a secular development. "It is highly unlikely that all problems in Afghanistan will be solved in one year and if need be, of course in consultation with our regional partners on security, we can find a positive solution to the question," he said of extending the mandate. "Both Russia and China also exhibit some understanding on the issue because they are both also interested in terrorism being eliminated in the region," said Akayev. The Kyrgyz president began a four-day official visit in neutral and militarily non-aligned Sweden on Wednesday. NO DEBT TRADE-OFF Some analysts have said Kyrgyzstan, with a huge foreign debt relative to the size of its economy, had no choice but to accept Washington's request to establish a base on its territory. But Akayev said: "The two processes are not linked at all." Negotiations between the International Monetary Fund and the Kyrgyz government are going on and James Wolfensohn, the head of the World Bank, is scheduled to visit Bishkek next month. "Our decisions were not motivated by any pressure from outside. This was our own choice," he said in a speech at the Swedish Institute of International Affairs. He said the Kyrgyz army fought militant Muslims who entered the country from training camps in Afghanistan a few years ago. Such "terrorist gangs" were "like a forest fire" that knew no borders and countries, especially developed ones, which believed they could hide from the threat were mistaken, he said. "We welcome the energetic activities of the United States in building a wide international anti-terrorist coalition," Akayev said, adding, that Kyrgyzstan would "continue to act in close coordination with Russia as our strategic partner and ally." "Our activities are also carried out in consultation and in conditions of mutual understanding with our great neighbour China." Asked by Reuters whether he believed that Russia and China could co-exist peacefully with U.S. troops and contribute to stability in Central Asia, Akayev said: "Yes. I believe that this is positive. It is a good chance for Afghanistan to start a new life but it also opens new opportunities for the region." ******* #8 Georgia says al Qaeda in its rebel Abkhazia zone By Niko Mchedlishvili TBILISI, March 7 (Reuters) - Georgia said on Thursday militants from Osama bin Laden's al Qaeda network were in rebel Abkhazia, raising the spectre of military action by Georgian forces under the banner of the U.S.-led war on terrorism. Georgia grabbed world headlines this month when Washington said it would send elite troops to train and equip Tbilisi's rag-tag armed forces to restore order in its lawless Pankisi Gorge, where al Qaeda members are said to have taken refuge. The move spurred speculation that Georgian President Eduard Shevardnadze might use his newly-trained troops to retake the Black Sea region of Abkhazia, lost in 1993 to local rebels in the most humiliating setback of his political career. Despite Shevardnadze's assurances that he would do his best to find a peaceful settlement, his ministers on Thursday seemed to have started preparing public opinion for action against Abkhazia. "I am sure that Abkhazia is in contact with al Qaeda," Interior Minister Mamuka Nachkebia told Georgian television. "Arab Muslims and African nationals have surfaced there." Security Minister Valery Khaburdzania said reports of an al Qaeda and Taliban presence in the breakaway territory stemmed from information gleaned from Afghans arrested as they tried to cross Abkhazia's border into Georgia. PRESIDENT WELCOMES U.S. HELP The imminent arrival of U.S. army instructors has further soured Georgia's uneasy ties with northern neighbour Russia, which complained it had not been informed about the move. Speaking on Thursday on Georgia's private Rustavi-2 network, Shevardnadze said the arrival of the U.S. experts was an important boost to Georgia's security, but played down talk of permanent American bases in the former Soviet republic. "If I said that the Americans had a strong desire to set up military bases here, it would not be correct," he said. Moscow, which has given strong support to the global U.S. anti-terrorism campaign in the wake of the September 11 hijack attacks, has suggested a joint operation to rid the Pankisi Gorge of militants, but been rebuffed by Shevardnadze. Russia says the gorge has become a rear base for rebels fighting Moscow's forces in Chechnya, which borders the Pankisi. Shevardnadze said he did not rule out joint operations with U.S. forces at some time in the future, "but I don't think we will have to go that far." He mentioned no area by name, but appeared to be referring to Pankisi rather than Abkhazia. Moscow has voiced concern Tbilisi might use force against Abkhazia, which has sought Moscow's protection. Russian President Vladimir Putin has said Shevardnadze had promised him he would not send troops into the region. Russia's Foreign Ministry said on Thursday it had received U.S. assurances it did not expect U.S.-trained Georgian troops to fight in Abkhazia or Georgia's unruly South Ossetia province. ****** #9 New York Times March 8, 2002 book review Russia's New Appetite (For Those Who Think Young) By MICHIKO KAKUTANI Viking HOMO ZAPIENS By Victor Pelevin. Translated by Andrew Bromfield. 250 pages. Viking. $24.95. Victor Pelevin, the enfant terrible of post-Soviet Russian literature, is a cultural magpie, borrowing the hip poses of MTV and disaffected argot of the Beat poets and combining them with elements reminiscent of his great countrymen: the ferocious satire of Mikhail Bulgakov and the phantasmagorical sense of the absurd purveyed by the dissident writer Andrei Sinyavsky. At its best, Mr. Pelevin's pastiche has resulted in hilarious and unsettling works like "Omon Ra," which leave the reader with a coruscating vision of the cold-war-era Soviet Union and post-Glasnost Russia. At its worst, as in his new novel, "Homo Zapiens," it results in a messy hodgepodge of philosophizing and manic invention, perfunctorily glossed with druggy stream-of-consciousness ruminations and lots of willfully juvenile humor. "Homo Zapiens" quickly became a cult best seller in Russia, where it was published as "Generation P" (meaning, the author has said, "Generation Pelevin" or "Generation Pepsi"). But while the novel gets off to a rousing start, satirizing contemporary Russia's headlong embrace of consumerism, it quickly devolves into a self-indulgent (and frequently incoherent) rant about everything from the mass media to the Russian Mafia to the evils of advanced capitalism. The hero of "Homo Zapiens," Babylen Tatarsky, belongs to the generation that grew up with memories of Communist rule and came to maturity in the chaotic days that followed the breakup of the Soviet Union: a lost generation, cut off from its parents' past and uncertain about the future; in thrall to Western pop culture but skeptical of the West's promises; eager for change but cynical about politics. Though Tatarsky was once intent on a career as a poet, he decides that with the collapse of Soviet power his verses — which were concerned with eternal verities, things that were "unchangeable, indestructible" — have "lost their meaning and value." With the help of a friend, he becomes an advertising copywriter, which he jokingly compares to being a propagandist under the old Soviet regime. In the opening chapters, Mr. Pelevin provides an amusing look at the personal fallout that the momentous social changes in Russia have had on people like Tatarsky, and he also finds considerable humor in Tatarsky's efforts to tailor American ads to the tastes of Russian consumers. There are some shameless attempts to enlist the help of Shakespeare in selling laundry soap and Calvin Klein clothes and exploitive allusions to Russia's Parliament to promote Parliament cigarettes. One of Tatarsky's ads uses Chekhov to market Gap clothing and reads: "Russia was always notorious for the Gap between culture and civilization. Now there is no more culture. No more civilization. The only thing that remains is the Gap. The way they see you." Mr. Pelevin's initial descriptions of his hero's dabbling in psychedelics — he ingests some hallucinogenic mushrooms and experiences a series of bizarre visions — are entertaining enough. But as Tatarsky becomes increasingly invested in supernatural promptings, the book's narrative grows more and more flaccid and long-winded. A session with a Ouija board leads to an encounter with the spirit of Che Guevara and a portentous Marxist- Freudian disquistion on the evils of television and capitalism and modern man's obsession with money. An acid trip similarly leads to a dreamlike encounter with a dragonlike creature that discourses upon subjects like the Tower of Babel, assorted Sumerian gods and the "fire of consumption" that is eating away the soul of modern man. These experiences seem to have little effect on Tatarsky's determination to continue his copywriting career, and he soon finds himself working for a mysterious organization that supposedly manufactures virtual-reality versions of Russian politicians. It is suggested that for years politicians — in both Russia and America — have been animated three-dimensional images, created and orchestrated by teams of computer-graphics technicians working in concert with scriptwriters. "Our scriptwriters are 10 times as good" as the Americans', says one Russian patriot. "Just look what rounded characters they write. Yeltsin. Zyuganov, Lebed. As good as Chekhov." Although this conceit is mildly amusing, it feels like a pale echo of the uproarious conclusion to "Omon Ra," which purported to reveal that the Soviet space program was an elaborately contrived fraud. What's more, in this novel Mr. Pelevin does not even try to make the most of his story's satiric possibilities, allowing his story line to dribble away in silly hallucinatory subplots involving Tatarsky's being selected as the husband of the ancient goddess Ishtar. As a result, "Homo Zapiens" ends with a whimper, not a bang, a conclusion unworthy of a writer of Mr. Pelevin's antic talents. ****** #10 The Electronic Telegraph (UK) 8 March 2002 Briton stars in Russian epic of war on fanatics By Marcus Warren in Moscow AS a salute to the war on terrorism - and for good timing and symbolism - no film can hope to rival a new Russian blockbuster pitting a Siberian thug and a doubt-torn British liberal against Islamic fanatics. The work of Russia's most bankable production team, War is set in the mountains of Chechnya. It has already been billed as a guide to "killing Russian-style", outdoing earlier hit films by the same director, Alexei Balabanov, in strident nationalism. War follows a young Briton as he tries to rescue his girlfriend from the dungeon where she is held hostage. Under the tuition of a tough but noble-hearted Russian called Ivan, the Englishman, John, metamorphoses from a weedy victim whining about human rights into a gunman taking bloody revenge on the kidnappers. "If you play Dostoevsky, I go," the Siberian tells John halfway through his transformation when the Briton agonises over the morality of killing their Chechen foes. "The director saw himself as grinding a Western liberal's nose into the hard realities of what Russia thinks it is doing in Chechnya," said Ian Kelly, the British actor who stars in the film. He and the Lithuanian actress Ingeborga Dapkunaite, playing his British girlfriend, were both protected by bodyguards to deter real life kidnappers during filming in the North Caucasus. The cast and crew were on location in the mountains on September 11, when the attacks on New York and Washington cast the film in a new light. The attacks came as little surprise to Mr Balabanov. "The numbers who died are not important," he said. "What is important is that the terrorists wanted to kill the maximum amount of unbelievers, that is you and me." Recent developments in the region have made the film, to be premiered next week and expected to be this year's Russian-produced box office sensation, even more topical. The Chechen kidnappers first abduct the British couple in neighbouring Georgia. Presumably, they are smuggled into Russia via the Pankisi gorge, claimed by America to be a safe haven for al-Qa'eda sympathisers. According to Mr Balabanov, the plot was inspired by the fate of four telecommunications engineers, three Britons and one New Zealander, kidnapped, murdered and then beheaded by their Chechen captors in 1998. The on-screen events also suggest parallels with the ordeal of the British aid workers Camilla Carr and Jon James, seized in Chechnya and tortured but released alive earlier the same year. Mr Balabanov showed some of the cast videos of the executions, torture and beatings of hostages filmed by Chechen kidnappers in order to terrorise their families or taunt the security forces. While Mr Balabanov's films have been seen as the cinematic expression of President Putin's promise to "waste" Chechen terrorists, War is a far cry from the jingoism favoured by the Kremlin. The character Ivan is an idealist loner in a world of corruption, betrayal and greed, with parts of the Russian state often in league with the Chechen gangsters they pretend to be fighting. Despite its patriotic message and the cult status of their previous films, if the makers of War thought that they would receive special help from the military in shooting the film, they were disappointed. Not only did they have to pay for all co-operation from the armed forces, but army incompetence and bureaucracy delayed the supply of weapons and ammunition and put filming weeks behind schedule. ******* #11 Wall Street Journal March 8, 2002 Editorial Putin's Shadow Mention Chechnya and human rights in the same sentence and it is often said that Vladimir Putin comes unhinged. The Chechens are terrorists, the Russian army is behaving itself, the war is winnable. There is no Chechen problem. But like a rich uncle who was generous at a crucial time but ever after demands favors in return, the Russian president's dubious political beginnings continue to extract a price. Mr. Putin was born -- politically speaking -- in Chechnya. The first war in Chechnya was a military and political disaster, nearly costing Boris Yeltsin his job. Russia withdrew in defeat in 1996. When Russian troops returned to Chechnya in September 1999, having been driven out three years earlier, then-Prime Minister Vladimir Putin was an obscure official, a career spy plucked seemingly out of nowhere by President Boris Yeltsin to be his successor. A spate of apartment bombings around Russia , killing nearly 300 Russian civilians and injuring more than 550, was blamed on Chechen terrorists. Mr. Putin vowed to make Russia safe again and root out the Chechen threat once and for all. Their defeat, he pledged, would be swift. But the Russian army remains mired in an unwinnable campaign against a war-hardened, destitute people who have nothing to lose by continuing to repel a hegemon that has caused them mostly suffering since Stalin's time. There are two reasons for recalling this history now. First, the annual State Department human-rights report out this week is a reminder that at a time when Slobodan Milosevic is on trial in The Hague for war crimes, Russian forces in the breakaway republic continue to behave deplorably. According to the State Department, Russians in Chechnya have "demonstrated little respect for basic human rights." The State Department cites "credible reports" of torture, extortion and killings by Russian troops. The Kremlin dismisses the charges as politically motivated. Russia's foreign ministry issued a statement yesterday blaming the criticism on "certain circles in the U.S. . . . who oppose the constructive development in Russian-American relations." Then there is the lurking question of the pretext for the second war in Chechnya -- the apartment bombings. This was Russia's Oklahoma City, except the death toll was higher and the bombing got a war started and changed the course of Russian politics by determining beyond question who would be the country's president for a while to come. But there are other differences from Oklahoma City -- the main one being that we still don't know who did it. The Kremlin has always blamed "Chechen terrorists." Some presumed culprits were arrested and a trial closed to the public conducted. But it turned out not to have anything to do with the bombings themselves. There are still no answers. Now the controversial self-exiled oligarch Boris Berezovsky has fulfilled his threat to release evidence that the attacks were orchestrated not by Chechens but by Mr. Putin's own Federal Security Services. Mr. Berezovsky doesn't accuse Vladimir Putin of ordering the attacks but says he must have known "such things" were taking place. "The FSB thought that Putin would not be able to come to power through lawful democratic means," he theorized at a press conference Tuesday. The "evidence" turns out to be not so much a smoking gun as a catalogue of suspicious circumstances that raise reasonable doubt. For the uninitiated it must be said that Boris Berezovsky is not known as a great defender of democratic values. Whether fairly or not, his wealth is often attributed to his close ties to the Yeltsin family during the 1990s. He left Russia to escape corruption charges (which he says are politically motivated). There is not much mutual fondness between Mr. Berezovsky and Yeltsin's successor, Mr. Putin. But Mr. Berezovsky is by no means the only one to have suspected the 1999 bombings might have been an inside job. The theory has been around for years. The circumstantial evidence centers around the one bomb attack that didn't come off -- on Sept. 22, 1999, in Ryazan, 125 miles southeast of Moscow. Bags of white stuff with a detonator were found there by local police following a tip from a suspicious resident. The FSB claimed that it was simply a prop in a training exercise, nothing more than sugar and a fake detonator. Local police experts on the scene differed with this account but have apparently since come under pressure to hold their tongues. Mr. Berezovsky produces other supposed pieces to the puzzle, but Ryazan -- foiled FSB attack or bizarre training exercise? -- is the most intriguing. The idea of a state security service committing mass murder would seem too ludicrous to be entertained until you remember that the FSB was the renamed KGB, whose raison d'etre for decades was basically institutionalized terror in the service of the Communist Party. It is not entirely unfathomable that some cell of the FSB might have done something truly horrific. What gives these allegations legs is not that the bombings provided the pretext for a war that helped elect a president. It is that the most horrific crime of the post-Soviet era has not been solved and authorities seem to have lost interest. The Duma twice voted down proposals for an independent investigation . The public has been kept in the dark about who or what might have caused so much fear. It would be as if the American government dropped the ball after Oklahoma, failed to catch Timothy McVeigh and then shrugged its shoulders two years later. Could the bombers strike again? Nobody knows. But questions about those attacks, like Russia's conduct in Chechnya, continue to follow Mr. Putin like a shadow. ******* #12 Moscow Times March 8, 2002 WTO: Myths and Realities By Maria Gorban, Sergei Guriyev and Ksenya Yudayeva Maria Gorban, Sergei Guriyev and Ksenia Yudayeva work at the Center for Economic and Financial Research in Moscow. The full version of this report is available at: www.cefir.org Although the Russian goverment has decided to join the World Trade Organization, there is no consensus in society regarding WTO membership and the consequences of it for the economy. Moreover, despite growing public awareness, many stereotypes still prevail concerning accession. Below we offer a review of the main stereotypes or myths, and look at the arguments on which they are based. Myth 1: Russia will be flooded with imports and the country's industry will be wiped out. This assumes that tariffs currently protect domestic industry against outside competition, that WTO membership will lead to a drastic reduction of tariff barriers and that the government will lose all instruments for protecting industry. The truth is more complex. First, average tariffs are between 7 percent and 15 percent, which is fairly low by international standards. Moreover, due to the poor functioning of the State Customs Service only about half of tariff payments are actually collected. Second, joining does not necessarily mean a reduction in tariffs. Tariff rates will be decided during accession negotiations, and some tariffs may even be raised. However, it is true that tariffs will be more or less fixed -- a point that might not appeal to Russian manufacturers, many of whom are used to the idea that tariffs can be arbitrarily changed at any time. It is important, therefore, that both the government and industry think very carefully about tariff policy before the agreement is signed. Third, the government will not lose its ability to protect domestic industry, since WTO members are allowed to implement temporary defensive measures. Furthermore, the exchange rate provides a lever for protecting industry. Finally, it is true that exposure to international competition may be detrimental in the short run to certain sectors of the economy. However, the long-term consequences of not joining could be even more damaging, if serious industrial restructuring does not take place. Myth 2. Agriculture will be destroyed and the country will become dependent on food imports. Claims that the agricultural sector will cease to develop if the economy becomes more open are unfounded. Many of the problems in this sector will persist regardless of whether Russia joins the WTO or not. These include soft budget constraints, ill-defined property rights and farmers' lack of access to credit. WTO rules allow for substantial support and protection for agriculture -- in fact, to a much greater extent than is currently the case in Russia. Myth 3. The financial sector will wither away. Advocates of this myth claim that since the banking system, insurance industry and pension funds are still too weak to face foreign competition, and that joining the WTO will lead to the collapse of financial institutions. Many people favor continued protection of the financial services market. However, as the experience of the past decade has shown, without the credible threat of foreign competition banks lack proper incentives to improve their operations. It should be noted, however that WTO membership will not immediately saturate the market with foreign banks, as a period is provided for acclimatization to a more competitive environment. Myth 4. Lower tariffs will cause imports to surge and discourage foreign investments. The logic of this myth is that countries with poor investment climates have to choose between imported goods and foreign investments. If the domestic market is protected by tariffs, it is cheaper to build a factory inside the country. If the market is open goods will be produced abroad and imported. However, this is not corroborated by the experience of other countries that have joined the WTO. Their experience shows that accession works as an invitation for foreign direct investment. Not only do member countries receive more FDI than non-members, but also the accession process itself tends to be accompanied by FDI growth. However, we emphasize that improving the investment climate remains a prerequisite for achieving long-term economic growth, regardless of whether Russia joins the WTO or not. Above are just the main myths regarding WTO membership. Such stereotypes are widely used by both pro- and anti-globalization campaigners to support their causes, while the most important issue of what needs to be done tends to be ignored. WTO accession alone will not help Russia to survive in the global economy, just as staying out of the WTO will not save the country from structural unemployment, lack of investments etc. To better prepare for competition, Russia needs to pursue policies aimed at increasing mobility and flexibility. At this stage, it is crucial that both government and business get more information about WTO rules and are fully briefed on potential benefits as well as the problems that may arise. ******* #13 Russia's Putin fetes women, urges street kids aid March 7, 2002 By Ron Popeski MOSCOW (Reuters) - President Vladimir Putin decried the plight of vast numbers of street children as Russia geared up Thursday for a Women's Day holiday dominated by speeches about the feminine virtues of its long-suffering womenfolk. Putin received a dozen social workers and child-care specialists with pomp in the Kremlin on the eve of the holiday, one of the most popular on the calendar of many ex-Soviet republics. His prime minister, hosting a vast banquet, pledged to do more to put women into positions of authority. Russian men, incited by huge posters to be good to their "dearest beauties," scurried through markets ahead of the holiday to scoop up flowers for wives, girlfriends and sisters. Roses were selling in Moscow for about $3 apiece, a third more than usual, with prices due to rise further Friday. Putin resorted to Soviet-era tradition in praising women for "giving society that something without which it cannot develop: intuition, goodness and beauty." But, two days after calling for a new moral code to help children find their way, he asked his guests for ideas on improving the lot of hundreds of thousands of what he said was a "third wave" of abandoned children. "The first two waves were linked to the (1918-20) civil war and the Great Patriotic War (World War II), when children were left without parents," he said in televised comments. "Today we know that 80 percent of abandoned children have parents who are still alive. What prompts parents to reject their children or children to run away from home?" Russia's economic transition was partly to blame, but children's welfare was not an issue "on which to be sparing with money." Putin, who last year feted businesswomen, presented flowers and a watch to each guest, including Siberian Natalya Kolesnikova, mother of five children and foster mother to 12. She called for reinstatement of the Soviet-era honor of "mother heroine" bestowed on women with 10 children or more. GIFTS FOR WOMEN SERVING IN CHECHNYA Television also showed pictures of Russia's top officer in Chechnya offering tulips and other gifts to women serving in the 2 1/2-year-old campaign against Chechen separatists. But the charity Medecins Sans Frontieres, in an Internet message written by a Chechen woman, said there would be "little celebratory spirit among tens of thousands of women ... who have lost their sons or husbands in the war in Chechnya." International Women's Day, March 8, was vaunted in Communist times as a festival underscoring the equality of the sexes said to be lacking in the capitalist West. That equality has been exposed largely as a sham, with women subjected to heavy labor, confined to low-paid jobs and offered little access to contraception other than abortion. Though many social problems have been addressed, women bear much of the burden of day-to-day post-Soviet problems, with high rates of alcoholism and domestic violence blighting their lives. ****** #14 Baltimore Sun March 8, 2002 Going to the dogs in Moscow Strays: In the Russian capital, the official policy on homeless animals of catch-and-kill is being replaced with catch-sterilize-release. By Douglas Birch MOSCOW - When workers renovating the Bolshoi Theater complex found a couple of dogcatchers stalking four stray mutts that live at the theater, the intruders told a preposterous tale. Under a new city program, the dogcatchers claimed, they wanted to spay or neuter the scruffy animals, vaccinate them and tattoo them with a serial number. Then they would release the strays back on the steps of the Bolshoi, a short stroll from the Kremlin. Moscow's dogcatchers are known for ruthlessness and cunning. "Why should we trust them?" muttered Viktor Kuznetsov, deputy construction manager. The dogs at the Bolshoi serve as the 1,000-member construction crew's mascots. They're fed chicken soup with noodles and allowed to trot through the buildings being renovated. The construction workers protect them. Amid curses and threats, the dogcatchers fled. But in an unlikely twist, their story turns out to be true. In this cold and cynical city, animal rights activists have persuaded officials to adopt a sterilize-and-release policy for homeless dogs. And to make sure the new program works, some of these same animal lovers are muscling in on the private firms that since the mid-1990s have been paid by the city to nab stray cats and dogs. The new policy - designed with the aid of wildlife biologists - is barely 7 months old. And there is still some fierce resistance, from business interests and the minority of dog-loathing Muscovites. But advocates say the program is very popular, and it appears to have reduced the population of homeless pets in Moscow's core. "It's a great victory," says Tatiana N. Pavlova, the crusading chief of the Department of City Fauna. The failure of communism taught Russians to fear idealistic schemes, and the economic shocks of the 1990s nearly discredited the word "reform." But Russians are crazy about their pets (the Moscow government plans to erect a monument to cats and dogs), and the animal rights movement is one of the nation's few native grass-roots reform efforts. Several years ago, biologists surveyed Moscow and determined that its garbage bins and Metro stations support a stable population of about 25,000 homeless dogs. These strays occupy an ecological "niche" in Russia's capital. Rounding up and killing animals never made much difference. Exterminate a dog, the biologists say, and another will take its place. But replace fertile females with sterilized ones, and the population will gradually decline. After the adoption of the new program last August, Pavlova's dogs should rank among the most protected strays in the world. But animal rights activists say the animals are still prey for politically connected private companies that provide dog-catching services. These companies claim to be following the new rules, Pavlova and others say, but in reality continue to destroy homeless pets. Some dog-catching services, Pavlova alleges, continue to kill animals, while charging the city $70 apiece for sterilization. Some sterilize males but not females - which are the key to controlling the population. Both scams undermine the program. A year ago, dogcatchers snatched two pets of an elderly woman. One dog had lost an eye in an accident. Pavlova suspected a company called ZooService, but employees insisted the woman's dogs weren't there. Pavlova went to the company anyway, opened a freezer, found a stack of yellow bags and started to dump them on the floor. Dead dogs fell out. "'The second dog to fall out of a sack was the one-eyed dog," she says. "After that trip, I could not eat and I could not sleep for three days." Police, she says, refused to investigate. Later, letters began arriving in city government offices accusing Pavlova of scheming to defraud the city and of leading a terrorist animal rights group. Pavlova went to court, accusing the director of ZooService, Ilya Musnitsky, of slander. She says he wrote 20 of the letters, using a pseudonym. "He's clever, diabolically clever," she says. Musnitsky, meanwhile, describes himself as an honest businessman victimized by Pavlova's "dirty campaign" against him. He insists that ZooService scrupulously obeys the city's new catch-and-release regulations and its ban on destroying animals. "Our company has nothing to do with killing animals," he says. "I wouldn't do it for one simple reason. For each animal, I am paid 50 rubles a day." Animal rights advocates say the city once treated strays brutally. Soviet public health programs in the 1930s had animals shot to death on the street, sometimes in front of children. "'Somehow," Pavlova says, "the cruelty of Soviet society filtered down to animals." After the Soviet Union dissolved, Moscow turned to the private sector for animal control. Companies sprang up that charged the city $8 a head to catch strays, $1.60 a day to hold them. If the owners didn't show up, the animals were destroyed. But the bounty system led to abuses. Some contractors killed animals, animal rights advocates say, then billed the city for feeding and housing them anyway. Moscow's animal rights revolution began in 1997 when Mayor Yuri Luzhkov was rumored to be planning a massive roundup and disposal of strays, in preparation for Moscow's 850th-anniversary celebrations. Reports of this plan drew the wrath of French screen idol Brigitte Bardot. "Muscovites, please protect your cats and dogs from Luzhkov!" Bardot wrote in an open letter published in a Moscow newspaper. "He wants to kill them! He must be stopped from shooting them down." Animal rights advocates mobilized an intensive lobbying campaign. Orthodox Patriarch Alexei II appealed to the mayor to halt dog fighting. Luzhkov had a change of heart. He hired Pavlova to run city animal programs, implemented the sterilize-and-release law and last fall blocked plans for Moscow's first bullfight. The leaders of Moscow's animal rights movement include Yelena Khatskalyova, a stylishly dressed woman who is married to the vice president of an oil company. A couple of years ago, Khatskalyova and a wealthy friend set out to try to use the catch-and-release technique to reduce the number of homeless dogs. They hired staff, bought the trucks, surgical supplies and office furniture, and went into the dog-catching business. Their spaying and neutering center, ObzorZoo, is in an old vivarium - where lab animals were once housed. The nonprofit group has been so successful that animal rights activists hope to set up another soon and expand operations to more Moscow districts. They're also pressing for investigations of some of the companies that hold city contracts. "'Unfortunately the fight against those who have been in the dog business - catching and murdering them - is still going on," Khatskalyova says. After ObzorZoo's dog catchers left the Bolshoi, a shy dog called Mukha - "Fly" - had six pups. When they are old enough, says Kuznetsov, the deputy construction manager, the puppies will be taken to other construction sites to serve as mascots. Meanwhile, they're cared for by Lida Lisyanskaya, a 41-year-old bricklayer. She is touched by the dedication of the parents, Mukha and Palkon: "They are a very tender couple. He never leaves her." Access to the Bolshoi site is strictly controlled. But two elderly women come every day with a few scraps of food for the dogs. The guards wave them inside. "We cannot deny someone the pleasure of feeding the animals," Kuznetsov says. ***** 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