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KAZAKH PRESIDENT SAYS UNIFIED ECONOMIC SPACE NOT AN ALTERNATIVE TO CIS. Nursultan Nazarbaev, on an official visit to Moldova, told journalists in Chisinau on 17 September that as far as he is concerned, the unified economic space being formed by Russia, Belarus, Ukraine, and Kazakhstan is not intended as an alternative to the CIS, nor is it intended to wreck the CIS as it presently exists, RIA-Novosti and khabar.kz reported. He was presumably responding to speculation in the Russian media that the association grouping the four strongest economies in the CIS would put an end to the commonwealth. Nazarbaev described the unified economic space as another attempt to create an association within the framework of the CIS to promote regional integration. The Kazakh president's visit to Moldova is intended to expand economic ties between the two countries, he said (see Moldova item, "RFE/RL Newsline II"). BB
Belarusian President Alyaksandr Lukashenka met with his Russian counterpart Vladimir Putin in the Russian Black Sea resort of Sochi on 15 September to discuss recent controversies in bilateral relations. Discussions focused on the Kremlin's decision to stop selling natural gas to Belarus at preferential prices and on Minsk's reluctance to sell a stake in the Beltranshaz gas-transportation company to Gazprom and adopt the Russian ruble as the Belarusian currency in 2005. Judging by the news conference that both leaders held following their six-hour informal talks in Sochi, the above-mentioned controversies have not been overcome in full.
The most important outcome of the meeting seems to be both presidents' agreement that Moscow and Minsk should now switch to "market relations" in the gas sector. "We have come to the conclusion that it is necessary to change over to market relations in this sphere without stopping the negotiations about the creation of a joint venture [to operate] a single gas-pipeline system," Putin told journalists. He added that Moscow may also consider allowing Belarusian enterprises to participate in gas extraction on the territory of the Russian Federation.
At present, Gazprom sells gas to Belarus at about $29 for 1,000 cubic meters. How much will Belarus have to pay after switching to the "market relations?" Lukashenka said Putin assured him during the talks that a new price of gas for Belarus will be determined in talks with Gazprom and that it will not be higher than that paid by Russia's other CIS partners. Lukashenka said Minsk will react to the higher gas price by increasing tariffs for the transit of Russian gas across Belarus, to which Putin reportedly agreed. And Lukashenka presented his own calculation, according to which Belarus will not lose on this forthcoming price switch. "Ukraine takes $1.5 for the transit [of 1,000 cubic meters] of gas from Gazprom, while Belarus takes $0.40, that is, three times less," Lukashenka said. "If Gazprom starts selling gas to us at the Ukrainian price [$50 per 1,000 cubic meters], then our tariffs for transit will become equal to the Ukrainian ones, and in such a case neither we nor Gazprom lose anything."
Both presidents also discussed the introduction of the Russian ruble in Belarus. Addressing Lukashenka's recently voiced demands that Russia provide guarantees that Belarus's sovereignty will not be impaired in the planned currency union, Putin said during the news conference that Russia sees no need for providing such guarantees since the currency union "has no relation to sovereignty." To alleviate Lukashenka's fears about the introduction of the Russian ruble, Putin cited examples of the present EU currency union and the late currency union between Belgium and Luxembourg -- in these monetary unions, Putin claimed, no country had to surrender its sovereignty.
Lukashenka, however, seemed to be unconvinced. He repeated his position voiced earlier this month in a letter to Putin that the introduction of the Russian ruble in Belarus should be connected with the adoption of a constitution of the Russia-Belarus Union. "We see a currency accord within the framework of a constitutional act [of the Russia-Belarus Union] and a broad package of [other] agreements," Lukashenka told journalists. "For the time being, we are not leaving these positions, even if we concur with the Russian side that we can take any issues out of this process and resolve them, including monetary ones." Lukashenka pledged to continue talks on the currency union with Russia.
The question of whether and when the Kremlin will make Minsk pay higher gas bills is open. But one thing seems to be obvious after the 15 September meeting between Putin and Lukashenka: Moscow has solidly placed its relations with Minsk on a pragmatic foundation and is firmly set to pursue economic, rather than political, integration. It is not clear, however, whether Lukashenka fully realizes this new situation. Some of his pronouncements in Sochi testify to the fact that he may not yet have grasped these new circumstances.
"There are some bad processes going on behind our backs, but I think our meeting will help put an end to all sorts of insinuations coming from both sides," Lukashenka told Putin in Sochi. "I will tell you face to face what is going on behind our backs, but those processes are bad and I think the unity -- the aspiration for unity between our two peoples -- has suffered a most serious blow." Russian journalists immediately took the clue and asked Russian Prime Minister Mikhail Kasyanov -- who ordered Gazprom to stop selling cheap gas to Belarus and who, moreover, is often seen behind Putin's back on official occasions in the Kremlin -- if he is the instigator of those "bad processes" Lukashenka referred to. Kasyanov said Lukashenka's words have no relation to the Russian government. Putin in Sochi also seemed to be ignorant of any wicked deeds being done behind his back. This may mean that what Lukashenka sees as "bad processes" in Russian-Belarusian integration is what Moscow perceives as politically appropriate and expedient.
Apart from his criticism of the allegedly backstage "bad processes," Lukashenka seemed to have no other weighty arguments to support his vision of Belarusian-Russian integration. "We in no way should move down to a lower level [of integration] than we are now," Lukashenka said in what Belarusian commentators construed as a reference to the 1999 union treaty he signed with then-Russian President Boris Yeltsin. In particular, this treaty provides for the creation of supranational bodies with controlling powers over the Russia-Belarus Union. But the Yeltsin days in Belarusian-Russian integration are long over. Now the Kremlin appears to have "forgotten" some political provisions of the 1999 treaty while pushing for the economic integration that will arguably give Moscow considerable levers of political control over Belarus without surrendering any political control over Russian affairs to Minsk.
"I want to confirm once again that Belarusians and Belarus, including Lukashenka, have never opposed and will never oppose the unity of our nations. For Lukashenka it would mean political death," Lukashenka said during the news conference in Sochi. The first assertion seems to be fairly questionable. The second one -- about Lukashenka's possible political demise in the event that he drops the integration game with Russia he began nine years ago -- may be prophetic.
UKRAINIAN PARLIAMENT BACKS ACCESSION TO CIS ECONOMIC ZONE... The Verkhovna Rada voted 291-13 to adopt a resolution vowing to support an accord on the creation of a single economic zone with Russia, Kazakhstan, and Belarus (see "RFE/RL Newsline," 16 September 2003) provided that it does not contradict the Ukrainian Constitution, laws, or international commitments, the "Ukrayinska pravda" website (http://www2.pravda.com.ua) reported. The resolution was supported by lawmakers from the pro-presidential majority as well as from the Communist Party and the Socialist Party. Our Ukraine and the Yuliya Tymoshenko Bloc, which oppose such a step, did not take part in the vote. In the resolution, the Verkhovna Rada expressed its hope that a single economic zone including Ukraine, Russia, Kazakhstan, and Belarus would enhance "the level of cooperation and international labor distribution," as well as help create new jobs, boost economic growth, and improve living standards in Ukraine. President Leonid Kuchma is expected to sign the accord during a CIS summit in Yalta on 18-19 September. JM
...AS DOES GOVERNMENT. Premier Viktor Yanukovych's cabinet has also endorsed the draft accord on the creation of a single economic zone by those four CIS countries -- with one reservation -- "Ukrayinska pravda" reported on 17 September, quoting government spokesman Taras Avrakhov. Avrakhov said the reservation essentially says Ukraine should commit itself only to those provisions of the accord that do not contradict Ukraine's constitution or international agreements. "The formation of a single economic zone should be implemented in the forms and within limits that will not hamper the pursuit of Ukraine's course toward European and Euro-Atlantic integration, and will not obstruct Ukraine's accession to the World Trade Organization in the shortest possible time," Avrakhov added. JM
KAZAKH PRESIDENT IN MOLDOVA. Visiting Kazakh President Nursultan Nazarbaev agreed in talks with his Moldovan counterpart Vladimir Voronin on 17 September to export 100,000 tons of wheat to Moldova at a moderate price in order to help Moldova overcome the effects of this year's drought, BASA-press and ITAR-TASS reported. The two presidents said they agreed to base future economic relations on the "principle of the free market." Nazarbaev and Voronin also discussed the possibility of Moldova purchasing Kazakh gas. Asked by reporters about the likelihood of Russia objecting to such a deal, since it would undercut prices charged by Russian gas suppliers, Economy Minister Marian Lupu said the Kazakh gas would transit Russian and Ukrainian territory and transit fees would help compensate Russia for possible losses. Officials representing the two sides signed agreements on boosting economic cooperation, exchange of information in the struggle against economic crime and tax evasion, and cooperation in culture. Nazarbaev invited Voronin to pay a visit to Astana. He also met with Prime Minister Vasile Tarlev and parliamentary speaker Evgenia Ostapciuc. MS
Belarusian President Alyaksandr Lukashenka met with his Russian counterpart Vladimir Putin in the Russian Black Sea resort of Sochi on 15 September to discuss recent controversies in bilateral relations. Discussions focused on the Kremlin's decision to stop selling natural gas to Belarus at preferential prices and on Minsk's reluctance to sell a stake in the Beltranshaz gas-transportation company to Gazprom and adopt the Russian ruble as the Belarusian currency in 2005. Judging by the news conference that both leaders held following their six-hour informal talks in Sochi, the above-mentioned controversies have not been overcome in full.
The most important outcome of the meeting seems to be both presidents' agreement that Moscow and Minsk should now switch to "market relations" in the gas sector. "We have come to the conclusion that it is necessary to change over to market relations in this sphere without stopping the negotiations about the creation of a joint venture [to operate] a single gas-pipeline system," Putin told journalists. He added that Moscow may also consider allowing Belarusian enterprises to participate in gas extraction on the territory of the Russian Federation.
At present, Gazprom sells gas to Belarus at about $29 for 1,000 cubic meters. How much will Belarus have to pay after switching to the "market relations?" Lukashenka said Putin assured him during the talks that a new price of gas for Belarus will be determined in talks with Gazprom and that it will not be higher than that paid by Russia's other CIS partners. Lukashenka said Minsk will react to the higher gas price by increasing tariffs for the transit of Russian gas across Belarus, to which Putin reportedly agreed. And Lukashenka presented his own calculation, according to which Belarus will not lose on this forthcoming price switch. "Ukraine takes $1.5 for the transit [of 1,000 cubic meters] of gas from Gazprom, while Belarus takes $0.40, that is, three times less," Lukashenka said. "If Gazprom starts selling gas to us at the Ukrainian price [$50 per 1,000 cubic meters], then our tariffs for transit will become equal to the Ukrainian ones, and in such a case neither we nor Gazprom lose anything."
Both presidents also discussed the introduction of the Russian ruble in Belarus. Addressing Lukashenka's recently voiced demands that Russia provide guarantees that Belarus's sovereignty will not be impaired in the planned currency union, Putin said during the news conference that Russia sees no need for providing such guarantees since the currency union "has no relation to sovereignty." To alleviate Lukashenka's fears about the introduction of the Russian ruble, Putin cited examples of the present EU currency union and the late currency union between Belgium and Luxembourg -- in these monetary unions, Putin claimed, no country had to surrender its sovereignty.
Lukashenka, however, seemed to be unconvinced. He repeated his position voiced earlier this month in a letter to Putin that the introduction of the Russian ruble in Belarus should be connected with the adoption of a constitution of the Russia-Belarus Union. "We see a currency accord within the framework of a constitutional act [of the Russia-Belarus Union] and a broad package of [other] agreements," Lukashenka told journalists. "For the time being, we are not leaving these positions, even if we concur with the Russian side that we can take any issues out of this process and resolve them, including monetary ones." Lukashenka pledged to continue talks on the currency union with Russia.
The question of whether and when the Kremlin will make Minsk pay higher gas bills is open. But one thing seems to be obvious after the 15 September meeting between Putin and Lukashenka: Moscow has solidly placed its relations with Minsk on a pragmatic foundation and is firmly set to pursue economic, rather than political, integration. It is not clear, however, whether Lukashenka fully realizes this new situation. Some of his pronouncements in Sochi testify to the fact that he may not yet have grasped these new circumstances.
"There are some bad processes going on behind our backs, but I think our meeting will help put an end to all sorts of insinuations coming from both sides," Lukashenka told Putin in Sochi. "I will tell you face to face what is going on behind our backs, but those processes are bad and I think the unity -- the aspiration for unity between our two peoples -- has suffered a most serious blow." Russian journalists immediately took the clue and asked Russian Prime Minister Mikhail Kasyanov -- who ordered Gazprom to stop selling cheap gas to Belarus and who, moreover, is often seen behind Putin's back on official occasions in the Kremlin -- if he is the instigator of those "bad processes" Lukashenka referred to. Kasyanov said Lukashenka's words have no relation to the Russian government. Putin in Sochi also seemed to be ignorant of any wicked deeds being done behind his back. This may mean that what Lukashenka sees as "bad processes" in Russian-Belarusian integration is what Moscow perceives as politically appropriate and expedient.
Apart from his criticism of the allegedly backstage "bad processes," Lukashenka seemed to have no other weighty arguments to support his vision of Belarusian-Russian integration. "We in no way should move down to a lower level [of integration] than we are now," Lukashenka said in what Belarusian commentators construed as a reference to the 1999 union treaty he signed with then-Russian President Boris Yeltsin. In particular, this treaty provides for the creation of supranational bodies with controlling powers over the Russia-Belarus Union. But the Yeltsin days in Belarusian-Russian integration are long over. Now the Kremlin appears to have "forgotten" some political provisions of the 1999 treaty while pushing for the economic integration that will arguably give Moscow considerable levers of political control over Belarus without surrendering any political control over Russian affairs to Minsk.
"I want to confirm once again that Belarusians and Belarus, including Lukashenka, have never opposed and will never oppose the unity of our nations. For Lukashenka it would mean political death," Lukashenka said during the news conference in Sochi. The first assertion seems to be fairly questionable. The second one -- about Lukashenka's possible political demise in the event that he drops the integration game with Russia he began nine years ago -- may be prophetic.