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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?


To: Jon Koplik who wrote (1071)10/29/1999 12:45:00 AM
From: CIMA  Respond to of 1301
 
Russia Pressures Georgia

Summary:

Russian border guards, withdrawing from offices in the Georgian
capital Tbilisi, left behind a little present - an anti-personnel
mine. The Russian gesture is a small example of a much broader
concerted campaign by Russia to reassert its influence over Georgia
and the rest of the Caucasus region. Russia must reassert control
over the southern Caucasus in order to ensure its continued control
over the northern Caucasus and continued influence over Central
Asian resources. The current Georgian government is an obstacle to
Russia's goals - an obstacle Moscow is now committed to removing.

Analysis:

The headquarters of the Republic of Georgia's State Border Guard
Department was evacuated Oct. 27 when what media described as an
"anti-personnel cluster land mine" was discovered in an office
previously occupied by Russian troops. The incident marred
ceremonies commemorating the withdrawal of Russian border guards
from the building, part of an overall withdrawal of Russian border
guards from Georgia. Georgian border guards commander Lt. Gen.
Valery Chkheidze charged that Russian officers refusing to accept
that Russia had lost another "colony," masterminded the incident.

But while Chkheidze framed the incident as a petty reprisal, the
mine incident and other Russian moves against Georgia are better
interpreted as a campaign to recover its lost colony. Russia's
departing gift was just a small example of the increasing pressure
Moscow is exerting on Tbilisi.

In Dagestan and Chechnya, Russia has finally set out to reverse its
national retreat. But Russia cannot regain lasting control of the
northern Caucasus without the cooperation of the southern Caucasus,
and Georgia and Azerbaijan have been anything but cooperative.
Moscow has accused both countries of assisting the Chechen rebels
by providing a conduit for the movement of people and supplies.

Georgia and Azerbaijan have also made clear their desire for
membership in Western European political, economic and military
organizations, including NATO. In an Oct. 25 interview with the
Financial Times, Georgian President Eduard Shevardnadze stated his
intention to "knock loudly on NATO's door" within five years.
Georgia and Azerbaijan are already members - along with Ukraine,
Uzbekistan and Moldova - of the decidedly pro-Western GUUAM group,
which has grown from an economic alliance to include security
cooperation.

Part of that cooperation is already evident in the joint force
established to defend the new Baku-Supsa pipeline from Azerbaijan
to the Black Sea coast of Georgia. The pipeline and plans for
others like it add to Russia's motivation to reassert its
influence. The explicit purpose of the Baku-Supsa pipeline and the
planned Baku-Ceyhan pipeline through Georgia to Turkey is to create
a route for oil from Central Asian countries outside the control of
Moscow - posing both an economic and strategic threat to Russia.

Therefore, in conjunction with its campaign in Chechnya, Russia has
begun to increase pressure on Georgia. This pressure currently
takes three main forms: threatening military intervention on
Georgia's border with Chechnya; backing Georgia's three separatist
regions, Abkhazia, South Ossetia and Ajaria; and finally,
supporting the major Georgian opposition party.

First, Russia has explicitly warned Georgia to cease its support
for the separatist Chechen government and its armed forces. Russia
insisted that, if Georgia does not seal off the 80-km border it
shares with Chechnya, Russia will. In an Oct. 26 interview with
Moskovsky Komsomolets, Lt. Gen. Gennady Troshev, leader of Russian
troops in Chechnya, said Russia would "slam shut" the border in an
upcoming operation.

Moscow charges that not only has Georgia provided safe haven and
free transit for Chechens in the past, but that hundreds of Chechen
guerrillas have mingled with the refugees fleeing into Georgia and
are now massing in Georgian territory. Former Georgian Defense
Minister Tengiz Kitovani confirmed the Russian accusations,
claiming Oct. 27 that more than 450 armed Chechens were massing in
the village of Birkiani, in the Akhmeta district, near the border
with Dagestan.

Georgia's Border Guards Department vehemently denied the charges.
President Shevardnadze also denied that Georgia allows armed
Chechens to transit its territory, but refused to close the border
to refugees. If there is any truth to the Birkiani story, Georgia
could see a repeat of the Omalo incident, where Russian aircraft
"accidentally" bombed a Georgian village en-route to targets in
Dagestan.

On a second front, Russia is exploiting its influence in the
separatist regions of Georgia. In late September, Russia abrogated
a bilateral agreement and opened its border with the breakaway
region of Abkhazia, providing economic and military opportunities
for the region. [ stratfor.com ]
Though it temporarily resealed the border in October, Russia
reopened it Oct. 26. Abkhazian leader Vladislav Ardzinba stated his
intention to ally with Russia against Georgia and its NATO
aspirations. Abkhazia has also reportedly begun taking over
facilities and equipment left behind by withdrawing Russian border
guards - items that technically should have become the property of
the Georgian border guard service.

South Ossetia has also demonstrated an affinity for Russia.
President Lyudvig Chibirov told Georgia's Prime-News on Oct. 25
that the region's government fully supported the Russian campaign
against "terrorists" in Chechnya. Chibirov said Russian Prime
Minister Vladimir Putin is "on the right track." Chibirov called
Putin a "businesslike person," who would likely contribute to the
economic recovery of South Ossetia.

Russian border guards also reportedly left behind artillery in the
separatist region of Ajaria that has since been taken over by that
region's government. Ajaria has been Georgia's greatest bane
recently, withholding taxes from the federal government and
refusing to allow representatives of the ruling party into the
region. Ajarian police also reportedly confiscated and destroyed
ruling party campaign materials for the Oct. 31 parliamentary
election.

The third part of Russia's campaign in Georgia is concentrated on
the upcoming election. Shevardnadze alleged that Russia is
financing the opposition Union of Georgia's Democratic Revival,
which is headed by Ajarian leader Aslan Abashidze. Abashidze is
widely seen as pro-Russian, and has supported the Abkhazian
government against the Georgian government. Shevardnadze describes
the opposition campaign as an attempt to stage a parliamentary coup
- not by force of arms, but by bribery, blackmail and threats. The
goal, argued Shevardnadze, is to take control of Parliament and
subsequently undermine and overthrow the president.

Shevardnadze's accusations are likely more than mere campaign
rhetoric: Moscow previously stated its intent to support pro-
Russian officials and candidates in the Ukrainian election. In
fact, the Russian military commander in the Ajarian capital of
Batumi, Maj. Gen. Vyacheslav Borisov, publicly declared that the
opposition Democratic Revival groups would not only win the
election, but would proceed to sign a treaty allowing Russia to
maintain bases in Georgia for 25-30 years. Georgian officials
condemned Borisov's statement as gross interference by Russia in
internal affairs and declared the general persona non grata in the
country.

Russia has Tbilisi in a difficult position. Georgia's separatist
regions are allying with Russia, the major opposition party is
Russian-backed and Russia has threatened a combat operation to seal
off Georgia's border with Chechnya. The assassination and hostage
crisis in Armenia Oct. 27 only intensifies this pressure. Russia's
main ally in the southern Caucasus, Armenia, is now politically
destabilized, and has already appealed to Russia for help. The
Russian Federal Security Service's elite Alpha commando unit was
deployed to Yerevan Oct. 28, and the pro-Russian Armenian military
has issued a public warning to the government that it will not
stand idly by while the country's security is threatened.
[ stratfor.com ]

In response to events in Chechnya and Armenia, Georgia's State
Border Guard Department announced Oct. 28 that it had doubled the
number of troops and mobilized all officers along the Armenian
border. And although Georgia has tightened control over its border
with Azerbaijan, the effort comes as too little, too late. Closing
off the Armenian border will not keep Russian influence out of
Georgia.

Russia has launched a full campaign to reassert control over the
southern Caucasus, and NATO is nowhere near riding to the rescue.
Armenia and Georgia are only a foretaste of Russia's strategy for
recovery of its lost empire. The campaign does not require Russian
armies to roll against its now independent former satellites.
Rather, Russia stands ready to bolster its allies in the region and
to exploit crises as they arise - or as they are created. The
strategy is in place in Georgia and Armenia. Azerbaijan can only be
next.

(c) 1999, Stratfor, Inc.
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To: Jon Koplik who wrote (1071)11/12/1999 7:03:00 AM
From: CIMA  Respond to of 1301
 
Russia Unleashes Final Offensive on Chechnya

Summary

After weeks of demanding that they alone be allowed to determine
the course of the 2 and a half month Chechen conflict, Russia's
military leadership is suddenly indicating that it is willing to
shorten the war. On its face, it appears that the military is
capitulating to intense domestic pressure. But the military will in
fact use the calls for negotiations as cover for an intensified
offensive. Winter is setting in. The Russian Army is strained. And
it is now poised to seize victory quickly, most likely leveling the
capital, Grozny.

Analysis

Defense Minister Igor Sergeyev told the Interfax news agency on
Nov. 11 that the Russian offensive in Chechnya might be over by the
end of the year. Shortly after, Foreign Minister Igor Ivanov told
reporters that the Russian government was eager to end the conflict
quickly and "start the process for a political settlement."

Until now, the Russian military has very publicly insisted that it
be allowed to run the war its way -- and complained bitterly at
even the hint of interference from civilians. Both men's comments
contrasted sharply with a Nov. 10 statement by Gen. Viktor
Kazanstev that the conflict could continue for as long as three
years -- unless the full might of the military was unleashed, in
which case the war would take one week.

But the latest turn of events does not in fact point toward
negotiations between Moscow and Grozny, as Western governments are
increasingly demanding. Both Russia's military and civilian
politicians have said that the only successful resolution is the
reclamation of Chechnya. Even leftist political leader Grigory
Yavlinsky, the harshest critic of the campaign, has demanded that
the rebels lay down their weapons before any peace talks begin. As
the rebels are unlikely to do this, there is little danger of this
sort of political solution.

Even though Russian forces are enjoying a vast advantage over the
rebels, internal and external pressures are mounting to bring a
quick end to the conflict. The Russian military has Grozny in a
state of siege, subject to air, rocket and artillery attacks. Novye
Investia reports as many as 100,000 Russian troops are deployed in
the breakaway republic, many occupying the Terek range above
Grozny, and surrounding Chechnya's second largest city, Gudermes.

Some of this military advantage will disappear with the onset of
winter. Some of Russia's front-line aircraft -- such as the Su-25
and Su-24 warplanes, and the MI-25 attack helicopters -- are not
well-suited for winter sorties. In addition, a long, cold winter
siege is both expensive for the army and hard on personnel. These
concerns argue for pushing the military campaign forward, and soon.

Politically, the war's popularity is waning in Russia and it is
increasingly time to find and claim victory. The chief sponsor of
the war, Prime Minister Putin, has been buoyed by the conflict,
which remains relatively casualty-free. Putin's popularity among
voters has reached a record level. The private Public Opinion
Foundation reports 29 percent of voters intend to vote for Putin in
the presidential election, Agence France Press reported Nov. 3.
Putin does not want to see the reputation of his war tarnished.

Yet on the cusp of Duma elections, public opinion may be turning.
Though political polling in Russia is often unreliable, only a
third of Russians surveyed in a recent poll said that they believed
their forces would win the conflict. In another poll, two-thirds of
Russians said that they were concerned or "ashamed" about the
conflict, the London Guardian reported Nov. 11. Civilian
politicians in Moscow are also growing squeamish about Western
calls for negotiations with the rebels. Alarmed at civilian deaths
and the flow of refugees, the European Union is increasing pressure
on Russia to halt.

The Europeans in turn are pressuring the United States to confront
Russia. State Department spokesman James Rubin accused Russia on
Nov. 10 of violating the Geneva conventions. The Organization for
Security and Cooperation in Europe (OSCE) is reportedly planning to
force the issue with Russia at an upcoming summit in Istanbul,
Turkey on Nov. 17. More than mere criticism, politicians in Moscow
are worried about the eventual impact on Western investment and
loans.

But there is no way that the Russian military will let politicians
snatch defeat from the jaws of victory.
[ stratfor.com ] In advance
of any kind of political settlement, the military is likely to push
forward -- decisively -- to secure its gains and grab as much of
Chechnya as possible. The military is eager to claim the victory it
was denied in 1996 when one of their own, Gen. Alexander Lebed,
arrived for truce negotiations; the generals are not about to let
politics interfere in Grozny this time. Playing the leading role in
Russia's foreign policy, the military-security apparatus is equally
disinterested in how this all plays in the West.

The military is now likely to break out of its combination of siege
and air strikes to unleash a renewed offensive against three
targets: the cities of Gudermes, Grozny and Bamut. The
second-largest city in Chechnya, Gudermes is surrounded and troops
are reportedly set to occupy the city. Tanks are now within range
of Grozny, according to the military. And 200 tanks are reported in
the area of Bamut. Apparently fearing a new offensive, President
Aslan Maskhadov, has intensified calls for talks.

From there, Russian forces could easily push remaining rebels into
the southern mountains, isolating them in the winter and picking
them off as opportunities allow. This would also easily set the
stage for eventual Russian probing -- if necessary -- along the
Georgian border. Instead of peace, renewed war is in the offing.

(c) 1999, Stratfor, Inc.
__________________________________________________

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STRATFOR.COM
504 Lavaca, Suite 1100
Austin, TX 78701
Phone: 512-583-5000
Fax: 512-583-5025
Internet: stratfor.com
Email: info@stratfor.com
___________________________________________________