Category: Eastern Europe

  • Are Russia and Turkey Trying to Alter the Nagorno-Karabakh Peace Process Format?

    Are Russia and Turkey Trying to Alter the Nagorno-Karabakh Peace Process Format?

    Confronted with widespread international criticism over its actions in Georgia, Russia is eager to show that it can still serve as a peace broker the post-Soviet area. A primary Kremlin aim appears to be checking any further advance of the North Atlantic Treaty Organization.

    “The South Ossetian crisis will not constitute a precedent,” Russian Foreign Minister Sergei Lavrov told the Federation Council’s Foreign Affairs Committee on September 18. “We will continue to responsibly fulfill our mediation mission in the negotiation process and peacemaking [and] that fully applies to [the separatist conflicts of] Transdniester and Nagorno-Karabakh,” he said.

    The signal the Kremlin wants to send is that “it is not restoring its empire and that it is ready to reconcile warring parties while playing a leading role in the process,” wrote Sergei Markedonov of the Moscow-based Institute for Political and Military Analysis in the September 16 issue of Russia’s “Kommersant” daily.

    Russia has been expending a lot of energy since the August crisis to revive the Transdniester and Nagorno-Karabakh peace processes outside the framework of the existing international settlement mechanisms.

    Concerning Karabakh, Russian President Dmitry Medvedev met twice in September with his Armenian counterpart Serzh Sargsyan and once with

    EurasiaNet Eurasia Insight – Are Russia and Turkey Trying to Alter the Nagorno-Karabakh Peace Process Format?.

  • MORE SPEED, LESS HASTE RESULTS IN TURKISH NUCLEAR TENDER FIASCO

    MORE SPEED, LESS HASTE RESULTS IN TURKISH NUCLEAR TENDER FIASCO

    By Gareth Jenkins

    Thursday, September 25, 2008

     

    Turkey’s latest attempt to acquire nuclear power resulted in humiliating failure on September 24, when only one consortium submitted a bid to build the country’s first nuclear power plant at Akkuyu, near the eastern Mediterranean port of Mersin.

    In the six months following the announcement of the contract in March, 13 consortia bought tender documents. However, almost all had subsequently expressed reservations about the project; not least about the terms of the state guarantee to buy electricity for the first 15 years of the proposed plant’s operating life. Their concerns were exacerbated by the recent turbulence on the international markets and increased uncertainty about the prospect of securing financing for the project. In the run-up to the September 24 deadline for bids, there were repeated calls for an extension of the deadline pending a resolution of ambiguities in the tender terms and a decline in the turbulence on international financial markets (see EDM, September 23). The ruling Justice and Development Party (AKP), however, remained adamant that the process would continue as scheduled.

    “Turkey has already waited until very late for nuclear energy. It doesn’t have the luxury of being able to afford a postponement,” Prime Minister Recep Tayyip Erdogan declared on September 22 (Anadolu Ajansi, September 22).

    As a result of the AKP’s intransigence, all but one of the potential bidders declined to make an offer. Humiliatingly for the government, the opening of the bids at 14.30 on September 24 was carried live on national television. Although officials from the tender commission reported that they had received six responses, it soon became clear from the five slim envelopes and single large parcel sitting on the desk in front of them that they had received only one bid. The five slim envelopes contained letters thanking the commission for its time and politely declining to submit an offer. The sole bidder was a joint venture between the state-owned Atomstroyexport of Russia and the Turkish Ciner Group (NTV, CNNTurk, CNBC, September 24).

    What happens now remains unclear. In theory, the tender process consists of three stages. In the first, the consortium presents the commission with a sealed envelope indicating an intention to bid. In the second stage, the technical details of the bid are forwarded in a sealed envelope to the Turkish Atomic Energy Authority (TAEK) to be examined for compliance with the project’s safety standards. If TAEK approves the project, a sealed envelope containing the proposed price of the electricity is opened (Referans, Dunya, Anadolu Ajansi, September 25).

    The AKP appears to have assumed that despite all the expressions of concern, several consortia would present bids and the government would be able to choose the cheapest. When asked by a Turkish journalist whether the single bid meant that the tender would now be cancelled, Haci Duran Gokkaya, the general manager of the state-owned Turkish Electricity Trading and Contracting Inc. (TETAS), huffily replied: “The fact that there was a bid means that the competition process is continuing” (NTV, Anadolu Ajansi, September 24). Gokkaya did not specify the identity of the rival with whom the Atomstroyexport-led consortium is now competing.

    The Turkish media is in doubt about why, alone of all the consortia that bought tender documents, it was the one led by a Russian state-owned monopoly that submitted a bid. Turkey currently obtains almost two thirds of its natural gas and approximately one third of its oil from Russia (see EDM, September 9).

    “The reason Russia was interested in the project was because it is the largest supplier of natural gas to Turkey, which gives it extraordinary bargaining power,” noted columnist Metin Munir in the daily Milliyet. “One of the main reasons the other companies kept their distance was concern about payment for the electricity that they would produce. Russia has no such worries. It is confident that all it would have to do would be to give the government a kick in the backside by cutting off the gas for a couple of days in the middle of winter” (Milliyet, September 25).

    Although it has received less coverage in the Turkish media, a decision by the AKP to award the contract to Atomstroyexport would undoubtedly also have political repercussions. Even before the tension sparked by the war between Russia and Georgia in August, the United States would have been unlikely to welcome Turkey’s choosing the same company that has been so heavily involved in Iran’s nuclear program. In the current political climate, awarding the contract to build Turkey’s first nuclear power plant to a Russian company would doubtless be regarded in Washington as not just an economic but also a strategic decision.

    Despite Gokkaya’s comments, the general consensus in Turkey is that the AKP will eventually have to cancel the nuclear power tender. It is currently unclear whether it would simply invite private companies to submit bids in a new tender or whether it would look for some kind of public-private partnership. Although the Nuclear Power Plant Law, which was promulgated in November 2007 (Law No. 5710, published in the Official Gazette, November 21, 2007), provides for the state to build the plant on its own if necessary, the Turkish public sector lacks the expertise to do so.

    Whichever option the AKP decides to take, the result is likely to be a further loss of time and credibility, both of which are already in increasingly short supply. Turkey currently has a total installed electricity production capacity of 40,834 megawatts (MW) (www.tetas.gov.tr); but 13,393 MW is from hydroelectric plants, which can operate only at a limited capacity as the result of declining rainfall. A recent study by the state-owned Turkish Electricity Transmission Company (TEIAS) forecast that, even if the nuclear plant at Akkuyu is completed, Turkey will still face severe electricity shortages over the next decade. The TEIAS study was based on worst case and best case scenarios, taking into account the expected growth in electricity demand over the period from 2008 to 2017. According to the best case scenario, Turkey will add 12,917 MW in installed capacity by 2017. Under the worst case scenario, just 8,599 MW will be added; but the study also found that in order to keep pace with expected demand, the country will need a minimum of 22,000 MW in extra capacity by 2017; and if the economy continues to grow at a reasonable rate, it is more likely to need an additional 34,155 MW.

    “Whatever we do, we face a crisis,” noted Songul Selvi in a commentary on the report in the daily Dunya. “The only question is how bad.” (Dunya, September 25).

  • Turkey accepts Russian bid for nuclear

    Turkey accepts Russian bid for nuclear

    ANKARA, Turkey, Sept. 25 (UPI) — The only firm to respond to Turkey’s tender for bids for a nuclear plant will be assessed.

    Only one firm, Russia-based Atomstroyexport, submitted an offer for the construction and operation of Turkey’s first nuclear power plant, Anatolia news agency reported.

    The Turkish Electricity Trading and Contracting Co. Inc. held its fourth tender process in Ankara Wednesday for the construction and operation of a nuclear power plant in the Akkuyu region of the southern province of Mersin.

    In the first three tenders, TETC received no bids and was not able to move forward with its controversial plans for a nuclear plant.

    After receiving an offer from Atomstroyexport, Turkey’s Atomic Energy Agency will assess the offer and review the company. If Turkey accepts the bid, it will move on to Turkey’s Council of Ministers for their approval.

    Atomstroyexport, AECL Atomic Energy of Canada Ltd., Suez Tractebel, Unit Investment N.V., Hattat Holding-Hema Ortak Girisim Grubu and Ak Enerji all submitted closed envelopes, but only Russian Atomstroyexport’s envelope included an offer.

  • Gazprom ups gas price for Armenia

    Gazprom ups gas price for Armenia

    MOSCOW, Sept. 25 (UPI) — Russian energy giant Gazprom will increase the price of gas exported to Armenia by 40 percent beginning in April 2009, officials said Thursday.

    Karen Karapetian with the joint Russian-Armenian natural gas pipeline project ArmRosGazprom said starting April 1 the price for gas would increase from $110 per 1,000 cubic meters to $154.

    Another price increase, to $200 per 1,000 cubic meters, is scheduled to go into effect in 2010, and in 2011, Gazprom will peg the price to conditions in Europe, the Azeri Press Agency said.

    Earlier, Azerbaijan denied reports there were plans to alter the route of the Western-backed Nabucco pipeline through Armenian territory, citing a territorial dispute between the two countries.

    On Tuesday, however, Iran pledged to meet Armenian winter energy demands through a $220 million, 87-mile natural gas pipeline.

    “Iran will pump 3 million cubic meters of gas to Armenia during this winter,” said Reza Kasaei Zadeh, director of the Iranian Gas Export Co.

  • Armenia Strives to Maintain Balanced Foreign Policy

    Armenia Strives to Maintain Balanced Foreign Policy

    Yerevan to host NATO exercises as it chairs Russian-backed security body.

    By Ara Tadevosian in Yerevan (CRS 461 25-Sep-08)

    The August war between Armenia’s close ally Russia and close neighbour Georgia rocked its foreign policy of “complementarity”, but analysts say President Serzh Sarkisian is working hard on maintaining a balance between Russia and the West.

    Following Moscow’s recognition of the independence of Abkhazia and South Ossetia on August 26, the Russian leadership sought the support of its allies in the Commonwealth of Independent States Collective Security Pact, of which Armenia is now the chairman, signalling that it wanted them to follow the Russian lead over the two territories.

    But two days before the members of the security pact were due to meet in Moscow, Sarkisian made it clear that he would not be recognising the two breakaway territories.

    On September 3, Sarkisian told foreign diplomats in Yerevan, “Armenia cannot recognise the independence of Abkhazia and South Ossetia, not having recognised the independence of Nagorny Karabakh.”

    The Nagorny Karabakh Republic, which declared independence in December 1991, is strongly supported by Armenia but not recognised as an independent state by it, or any other country.

    One senior western diplomat in Yerevan described Sarkisian’s statement as an “elegant move”, to get himself out of a serious dilemma.

    Fyodor Lukyanov, editor-in-chief of the journal Russia in Global Politics, told IWPR, “They understand in the Kremlin that this is a very serious issue. Armenia is in an especially delicate position because of the problem of Karabakh. I don’t believe Moscow will put pressure on Yerevan.”

    Analysts say that Armenia was put in a tricky position by the crisis but is hoping to manoeuvre out of it and not alienate any of the country’s partners.

    “Armenia will not have to make a decisive choice and to ‘swear on its blood’ its loyalty to one or other partner,” said Lukyanov.

    “On the other hand Russia of course demonstrated a new kind of behaviour [during the August crisis] and will try to consolidate its sphere of influence, something which will objectively lead to greater rivalry for the post-Soviet space and for the Caucasus.

    “Russia has never concealed that it thinks of politics in this part of the world as highly competitive. Basically, the United States has thrown off appearances and adopted the same position.”

    From the American side, Ron Asmus, director of the Transatlantic Centre of the German Marshall Fund in Brussels, said, “It may well become harder for Armenia to maintain the balance it seeks to achieve in its policy of complementarity.

    “But it won’t be the US that will pressure Armenia to make any choice. We will respect the choice of Armenia and defend its right to decide where it wants to belong.”

    Armenia relies on both Russia, its main trading partner, and Georgia, its main transit route to the outside world, for economic survival and the war hit the Armenian economy very hard.

    The blowing up of a railway bridge in central Georgia on August 16 disrupted trade to Armenia and caused two weeks of fuel shortages.

    Around 70 per cent of imports to Armenia come through the Georgian port of Poti, which was occupied by Russian forces during the conflict, while land connections to Russia via Georgia have been severely restricted for almost two years.

    In mid-August, in the midst of the Georgia crisis, Sarkisian told his security council that Russia is a “strategic ally” of Armenia, while Georgia is a “friendly country”, indicating his strategic preference while aiming not to offend either.

    Interestingly, Armenian opposition leader and former president Levon Ter-Petrosian has taken an openly pro-Russian position during the crisis.

    “No one can dispute that it was Georgia who unleashed the war and did it with the aim of liquidating the Republic of South Ossetia,” said Ter-Petrosian in an interview to the A1+ internet news site. “No one can also dispute that by its decisive intervention, Russia saved the South Ossetian people from genocide. If Russia had delayed its assistance even by six hours, South Ossetia would not exist today.”

    Alexander Iskandarian, director of the Caucasus Media Institute, said that he did not expect Georgian-Armenian relations to suffer, despite the identification of Armenia with Russia. He said that the tensions between the two countries were typical of neighbours and the leaders on both sides were able to stop them deteriorating.

    On taking on the chairmanship of the CIS Collective Security Pact, Sarkisian also hinted at unhappiness with other members of the organisation. Without naming them, he appeared to be referring to Kazakstan and Uzbekistan which have given support to Azerbaijan.

    The word complementarity was coined in 1998 when Sarkisian’s predecessor, Robert Kocharian, was elected president to describe the country’s policy of staying friends with its military ally, Russia, and the United States, which has a large Armenian diaspora as well as Europe and Iran.

    One of the main aims of the policy of complementarity is to avoid “putting all your eggs in one basket”. One consequence of this is that, despite the downturn in relations between Russia and the West and the virtual suspension of the Russia-NATO council, Armenia is pressing ahead with NATO exercises later this month as part of the Partnership for Peace programme.

    The Cooperative Longbow/Lancer exercises will take place in Armenia from September 26 to October 21 and will be the biggest ever such NATO exercise to be held in the South Caucasus.

    Around 1,100 soldiers will take part from 21 countries from NATO, its partners and also the United Arab Emirates.

    Western officials and analysts say that it is unfair to force Armenia to make a choice in its foreign policy.

    US deputy assistant secretary of state Matt Bryza told the Armenian news agency Mediamax, “Armenia is an independent country with a sovereign government elected by its citizens. It can pursue any path it wishes. The United States is a close friend of Armenia’s, and remains committed to helping Armenia achieve the goals of its complementarity foreign policy.”

    Ruben Safrastian, director of Armenia’s Institute of Oriental Studies, noted that one consequence of the American-Russian stand-off in the Caucasus was Turkey’s new initiative for a Caucasus Stability and Cooperation Platform, currently being presented at the United Nations General Assembly, which Moscow had endorsed more enthusiastically than Washington.

    Safrastian said that because it saw itself as having a stronger position in the South Caucasus, Moscow did not see the possible normalisation of Armenian-Turkish relations as a threat and would be supporting this process.

    Ara Tadevosian is director of Mediamax news agency in Yerevan.

  • Russia engages in ‘gangland’ diplomacy as it sends warship to the Caribbean

    Russia engages in ‘gangland’ diplomacy as it sends warship to the Caribbean

    Russia flexed its muscles in America’s backyard yesterday as it sent one of its largest warships to join military exercises in the Caribbean. The nuclear-powered flagship Peter the Great set off for Venezuela with the submarine destroyer Admiral Chabanenko and two support vessels in the first Russian naval mission in Latin America since the end of the Cold War.

    “The St Andrew flag, the flag of the Russian Navy, is confidently returning to the world oceans,” Igor Dygalo, a spokesman for the Russian Navy, said. He declined to comment on Russian newspaper reports that nuclear submarines were also part of the expedition.

    The voyage to join the Venezuelan Navy for manoeuvres came only days after Russian strategic nuclear bombers made their first visit to the country. Hugo Chávez, the President, said then that the arrival of the strike force was a warning to the US. The vehemently antiAmerican Venezuelan leader is due to visit Dmitri Medvedev, the Russian President, in Moscow this week as part of a tour that includes visits to Cuba and China.

    Peter the Great is armed with 20 nuclear cruise missiles and up to 500 surface-to-air missiles, making it one of the most formidable warships in the world. The Kremlin has courted Venezuela and Cuba as tensions with the West soared over the proposed US missile shield in Eastern Europe and the Russian invasion of Georgia last month. Vladimir Putin, the Prime Minister, said recently that Russia should “restore its position in Cuba” – the nation where deployment of Soviet nuclear missiles in 1962 brought Russia and the United States to the brink of nuclear war.

    Igor Sechin, the Deputy Prime Minister, made clear that Russia would challenge the US for influence in Latin America after visits to Venezuela, Nicaragua and Cuba last week. He said: “It would be wrong to talk about one nation having exclusive rights to this zone.”

    Moscow was infuriated when Washington sent US warships into the Black Sea to deliver aid to Georgia after the war. Analysts said that the Kremlin was engaging in gunboat diplomacy over the encroachment of Nato into the former Soviet satellites of Georgia and Ukraine.

    Pavel Felgengauer, a leading Russian defence expert, told The Times: “It’s to show the flag and the finger to the United States. They are offering a sort of gangland deal – if you get into our territory, then we will get into yours. You leave Georgia and Ukraine to us and we won’t go into the Caribbean, OK?” He described the visit as “first and foremost a propaganda deployment”, pointing out that one of the support vessels was a tug in case either of the warships broke down.

    Latin America was one of the arenas of the Cold War in which the US and the Soviet Union battled for ideological dominance. Russia has agreed to sell more than $4 billion (£2 billion) worth of armaments to Venezuela since 2005 and disclosed last week that Mr Chávez wanted new antiaircraft systems and more fighter jets.

    Mr Dygalo denied any link with Georgia and said that Mr Chávez and Mr Medvedev had agreed on the exercises in July.

    Sea power

    — In the Battle of Tsushima in 1905 – the largest naval battle since Trafalgar – the Russian fleet sailed 18,000 miles (33,000km) to Port Arthur in the Pacific, where it was outmanoeuvred and destroyed by Japanese forces

    — During the 1962 Cuban missile crisis, the Soviet Navy conducted 180 voyages on 86 ships to transfer weapons to Cuba

    Sources: Times Archive; russojapanesewar.com

     

    The Times  23 September 2008