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President Obama and President Medvedev agreed to meet in Prague, the Czech Republic, on Thursday, April 8, to sign the Treaty on Measures to Further Reduction and Limitation of Strategic Offensive Arms (the “New START Treaty”).

Statement

 The Arctic belongs also to Russia. Restrictions on Moscow’s access to the development of hydrocarbon fields in the Arctic, which accounts for over 25% of global oil and gas reserves, is unacceptable, President Dmitry Medvedev said at a session of the presidential Security Council.

The Arctic BBC world News

“We have seen attempts to limit Russia’s access to the exploration and development of Arctic deposits which is of course unacceptable from a legal point of view and unfair from the point of the geographical location and the very history of our country,” Medvedev highlighted and stressed that “polar countries are taking active steps to expand their economic and even military presence in the Arctic zone.”

The five Arctic nations — Canada, Denmark, Norway, Russia and the United States — are locked in a tight race to lay claim to vast riches believed to be hidden beneath the ice and snow in the Arctic.  They have claimed overlapping parts of the region estimated to hold 90 billion untapped barrels of oil. Under international law, each of the five Arctic Circle countries has a 322-kilometer (200-mile) exclusive economic zone in the Arctic Ocean.

 Medvedev did not specify which nations his comments were addressed to. Russia claims a large part of the Arctic seabed as its own, arguing that it is an extension of its continental shelf. Moscow has undertaken two Arctic expeditions – to the Mendeleyev underwater chain in 2005 and to the Lomonosov Ridge in the summer of 2007 – to support its territorial claims in the region.

It first claimed the territory in 2001, but the United Nations demanded more conclusive evidence.

Russia has said it will invest some 1.5 billion rubles ($50 million) in defining the extent of its continental shelf in the Arctic in 2010.

 In 2008, Medvedev signed an Arctic strategy paper saying that the polar region must become Russia’s “top strategic resource base” by the year 2020.

The document called for strengthening border guard forces in the region and updating their equipment, while creating a new group of military forces to “ensure military security under various military-political circumstances. “It said that by 2011 Russia must complete geological studies to prove its claim to Arctic resources and win international recognition of its Arctic borders.

 The Kremlin is officially against any arms race in the Arctic. In summer 2009 Denmark announced its plans to establish an Arctic military command and a task force.

MAP By BBC

 After a deep recession in 2009 Central and Eastern Europe have emerged from the economic crisis but steady growth will be slow to come and unemployment will remain high, the Vienna Institute for International Economic Studies (WIIW) said in a report edited by news agency AFP.

Poland was the only country in the region to post growth in 2009 and it was expected again this year to boost the 10 new EU members’ average, forecast at 1.0 percent after a negative 3.6 percent last year.

 But individual figures were less positive: while Hungary, Bulgaria and Romania were expected to post zero-growth in 2010, gross domestic product (GDP) was likely to shrink in Estonia, Latvia and Lithuania, by 1.5 percent, 4.5 percent and 3.0 percent respectively.

 WIIW forecast 1.0 percent growth for Czech Republic, Slovakia and Slovenia and 2.5 percent for Poland. “We expect all countries in the region to be growing again only by 2011,” the institute said.

“That growth may accelerate slightly in 2012, but will in general be slower than in the pre-crisis period,” it added.

 For next year, WIIW forecast average growth for the 10 new EU member states at 2.8 percent, followed by 3.6 percent in 2012. WIIW also predicted massive growth for non-EU members Kazakhstan, Russia and Ukraine starting this year. However, a prerequisite for growth was a global recovery, prompting increased imports to the region, since rising unemployment would curb private consumption, the institute insisted.

 The jobless rate was also expected to peak this year, before falling slowly in the years to come.

A further danger was the effect of Greece’s current problems on the region’s eurozone prospects, the institute said. “That may well cross the plans of the new member states that have based their medium-term economic strategy on the earliest possible adoption of the euro,” it noted.

President Yanukovych

 Five years after the Orange Revolution ousted him Viktor Yanukovych has sworn in as President of Ukraine. He took the oath of office in the Verkhovna Rada, the Ukrainian Parliament.

 The former USSR republic “is in an extremely difficult situation,” he said in his first speech as Head of State. “There is no state budget for the current year. The debts on foreign loans are colossal. Poverty, a ruined economy, and corruption are only part of the list of the troubles that constitute Ukrainian reality.” The meaning of his words is clear: it’s time to dig the axe of war and start to work together.

 His electoral opponent’s refusal to concede defeat and step down from the premiership threatens to prolong the political wrangling that has paralyzed the country since 2006. Yulia Tymoshenko continues to accuse him of having won the run-off through fraud. But Joao Soares, president of the OSCE Parliamentary Assembly, called Ukraine’s election “an impressive display” and “a victory” for democracy.

 The voting pattern showed a sharp split between Russian-speaking voters in the industrial east and south who backed the new President and Ukrainian speakers in the west and in the centre who voted for Tymoshenko. Yanukovych’s margin of victory was only 3.5 percentage points.

 The former Soviet republic can not wait for political peace anymore. Last autumn, the International Monetary Fund froze a $16.4 billion bailout.  Ukraine’s gross domestic product plunged by 15 percent in 2009, according to the World Bank. IMF officials will visit Kiev on April 7th.

  Ukraine will embark on a foreign policy,” Yanukovych highlighted, “that will allow our country to fully benefit from equal and mutually beneficial relations with Russia, the European Union and the United States.” His first foreign official visit as Ukrainian leader will be to Brussels, the second to Moscow.  In Yanukovych’s idea his country will come back to be “a bridge between the East and the West, integral part of both Europe and the former USSR”.

 The new President will simply correct the too westwards Yushchenko’s policy into a more natural ‘non-aligned’ one. When Yanukovych served as Prime minister under Kuchma’s presidency he supported national economic interests against the Russians in many tenders and had a good relationship with the USA. His best advisers are American still now.

 The new President has indicated he would put an end to Ukraine’s drive to join NATO and renegotiate a gas-supply deal with Moscow, which some believe would enable him to establish closer ties with Russia’s Gazprom. He has proposed the creation of a consortium (33% stakes each to Ukraine, Russia, and EU) to run the national gas pipelines and has hinted at possible concessions to the Kremlin over the future Russia’s Black Sea fleet  forces in Crimean peninsula. Yanukovych needs to find a good solution for Khrushchev’s poisoned present and for the use of Russian as official language. Around 20 million people can not use their mother tongue in state documents.

 The European Union and Russia need stability in Ukraine for raw materials’ transit . On the same day Yanukovych swore in, the European Parliament has issued a document which leaves the door open to a future Ukrainian membership to the EU and expresses the hope that the new President will cancel his predecessor’s recent decree that gave the honorary title of national hero to Stepan Bandera. Brussels will study a road map to guarantee no-visa EU entry to the Ukrainians in the next future and, as a first step, free of charge Schengen visa.

 Yanukovych has much to gain from the international situation, using his country’s new geopolitical importance. Financial and technological aids from West and East may be crucial for the modernization of Ukraine and for its European integration.

Giuseppe D’Amato

 Iran is Israel’s arch foe and the Jewish state accuses Tehran of trying to develop a nuclear weapon. By contrast, Russia has the strongest ties with Iran of any major power and has repeatedly urged restraint in the nuclear standoff.

  Israel, like the U.S. and much of the international community, believes ayatollahs’ program is aimed at developing a nuclear bomb, which Iran denies. While Jerusalem says it hopes diplomacy will resolve the nuclear standoff, it has not ruled out military action and Iran has frequently mentioned it could suffer a military strike from Israel or its allies.

  Israel has been on the forefront of pushing for sanctions, and Mr. Netanyahu said Monday they could be effective since 80 percent of the Iranian economy was based on energy. Russia generally has resisted new sanctions but has shown increasing frustration over the past week as Tehran proceeds with uranium enrichment despite international pressure.

  Mr. Netanyahu highlighted that in his talks with Mr. Medvedev he noticed a shift in the Russian position. “I can say that Russia definitely understands there is a need to prevent Iran from obtaining nuclear weapons and it understands that steps must be taken,” he said. “I think that Russia understands Iran’s direction very well and is considering what to do with other members of the Security Council.”

  Last week, Iran announced its decision to enrich uranium to higher levels, sparking warnings from President Barack Obama of punishing sanctions against the Islamic regime.

  Russia has also yet to fulfil a contract to deliver sophisticated S-300 missile systems to Tehran, a deal that has worried Israel as it would significantly strengthen Iranian air defences against military action. 

The deputy secretary of the Russian security council Vladimir Nazarov said Sunday there was no reason not to send Iran the S-300 missile system, saying a “contract was signed which we must fulfil.”

 These declarations were also meant to send a message to Israel that it does not approve the resumption of its arms sales to Georgia, which were frozen in August 2008.  According to the Itar-Tass, Israel resumed the sale of arms to Georgia and “is no longer limiting itself to the sale of UAVs [drones],” which are perceived to be defensive weapons. The truck-mounted S-300 can shoot down hostile missiles or aircraft up to 150 km [90 miles] away. 

  In 1981, Israeli warplanes destroyed an Iraqi nuclear reactor, and what is believed to be an Israeli air attack in 2007 destroyed what the U.S. says was a nearly finished nuclear reactor in Syria that would have been able to produce plutonium.

See : Article in  The Jerusalem Post – Russia: S-300 delivery delayed’

Nord Stream go-ahead

13 Feb 2010

  Finnish environmental officials have given the final permission. The Nord Stream, a German-Russian joint venture, is to begin building the pipeline later this year.

 “In May 2011 the construction is to be completed on the sea section and on land in Germany and Russia,” Russian prime minister Vladimir Putin said. “And gas will start to be pumped in September (2011).”

 Following the approval by Danish, German, Russian and Swedish authorities, Finland was the last country in the region to grant permit. About 375 kilometers of the pipeline will run through Finland’s exclusive economic zone in the Gulf of Finland.

 The Nord Stream project involves building a 1,223-kilometer pipeline to deliver gas to western Europe from Russia, bypassing Eastern Europe. When finished, it will cross the Baltic sea and will connect the Russian port of Vyborg with the German port of Greifswald.

 The first branch of the pipeline with a capacity to ship 27.5 billion cubic meters a year will become operational in two years. The addition of a second branch will double capacity to 55 billion m³ a year. The overall cost of the project is put at about 7.4bn euros.

 Russia’s Gazprom  has a 51% stake in the Nord Stream AG joint venture. BASF/Wintershall and E.ON Ruhrgas each have 20% stakes and N.V. Nederlandse Gasunie has 9%.

Critics

 This pipeline, that in the past was called by some Polish politicians “the new Molotov-Ribbentrop pact”, becomes the first transit option for Russian gas for European customers that avoids networks in Ukraine. A 2009 dispute between Kiev and Moscow forced Gazprom to cut supplies for weeks. Polish Foreign Minister Radosław Sikorski said that this project is only “a waste of European consumers’ money”. The Polish authorities have pointed out several times that the Russo-German consortium has not been able to explain why a sea route is better than the cheaper land option. Warsaw and other ex-communist Baltic Sea states such as Estonia and Lithuania have warned that the pipeline will increase Europe’s direct dependence on Russia for natural gas

History and reasons

 The senior project, Nord Stream, emerged in 1997 as a projected route for the direct transportation of gas from Russia to Northern Germany and Western Europe via the Baltic Sea. The new pipeline was intended not only to diversify the export routes for Russian gas in case of problems with the transit states, but also to pave the way for Gazprom to enter new markets in Europe.

Gas extraction in the North Sea is decreasing, and the current producers and net exporters of this raw material, Denmark, Holland and Great Britain, are gradually turning into importers. The reduced version of the Nord Stream project (an idea to build a branch to Great Britain was abandoned)  will be build now.

One of Moscow’s reasons for constructing new routes, as we said before, is that in the current system of gas transportation to Europe, transit via Ukraine, Belarus and Poland is perceived as a risk factor. However, the projected new routes cannot solve the problem of Gazprom’s transit dependence, as they cannot fully replace the Ukrainian route.

 The second branch of Nord Stream  (the gas for the first branch has now almost fully entered into contracts) could transport the gas now sent by the Yamal-Europe pipeline via Belarus and Poland (about 31 billion m³). Theoretically, some portion of the gas now sent via Ukraine could be redirected to Nord Stream’s second branch, but this would require constructing new branches and connectives between the gas mains on Russian territory.

Environmental worries

The Regional State Administrative Agency for Southern Finland says that while the construction of the pipeline is expected to release substances like dioxins, metals and nutrients from the seabed they would not cause long-term damage to marine habitats.

The agency added that construction would impose temporary limitations on marine traffic, with a long-term impact on fishery. The Nord Stream consortium is to pay compensation to the fishing industry. The risk of damage to the pipeline is low.

 More than 100m euros have been spent on environmental research. “I believe that Nord Stream will be environmentally safe and reliable”, guaranteed Vladimir Putin.

 Some Baltic countries fear the project could stir up toxins lying on the sea bed, especially those inside a vast number of WWII-era armaments. “It’s serious. We are worried about the dioxins and other poisons on the seabed,” Estonian Prime Minister Andrus Ansip said. “We expect our scientists to get full information about it all.”

 There are also other worries. According to a report on Swedish television, Russian boats dumped barrels of radioactive material, from a military base in Latvia, into Swedish waters in the early 1990s.

 The Baltic is one of the most polluted area in the world and is in danger of becoming a dead sea. In 2007 the countries of the region set the goal of restoring the environmental situation by 2021.

Giuseppe D’Amato

 Warriors of Ukrainian nationalists OUN-UPA are now officially considered fighters for Ukraine’s independence. The decision was taken by outgoing president Viktor Yushchenko, who issued a decree. Some days earlier the Ukrainian leader awarded the honorary title of national hero to Stepan Bandera, one the most divisive figures of Ukraine’s 20th century history. This new status, Yushchenko said, “had been awaited by millions of Ukrainian patriots for many years” and was a fitting reward for his “demonstration of heroism and self-sacrifice in fighting for an independent Ukraine”.

 Bandera is regarded as a hero in nationalist western regions of the country, which looks more to the West for inspiration. But the Russian-speaking East, which has historical links with Moscow, views him as a Nazi collaborator and a war criminal. During the WWII millions of Ukrainians (from 5 to 7) fought within the Red Army and few hundred thousands, mainly from the regions of Galicia and Volhynia, joined the Germans, hoping in a future independence, that was actually never promised by Berlin.  

 Bandera was the leader of the Organization of Ukrainian Nationalists (OUN), a pro-independence guerrilla movement that briefly allied with Nazi Germany during the invasion of the Soviet Union in 1941. The alliance was short-lived. Bandera was soon arrested and interned in a concentration camp in Sachsenhausen. His followers carried out partisan operations against the German occupiers, but when the Germans finally retreated, the OUN continued the fight against the Soviets. Bandera was assassinated by a KGB agent in Munich in 1959.

 Moscow is furious that Mr Yushchenko made these steps.  A legal action demanding the recognition of Stepan Bandera as a Nazi criminal, guilty of the genocide of Poles, is being prepared in Poland, a representative of the Russian Union of Former Minor Prisoners of Nazi Concentration Camps told. In Rabbi Berl Lazar’s opinion Yushchenko’s decision  promotes a “false and distorted” view of the activities of his OUN. The Simon Wiesenthal Centre highlighted in a statement that Stepan Bandera and his followers were linked to the deaths of thousands of Jews. Mark Weitzman, the centre’s government affairs director, thinks that it was a travesty to grant the honour to Bandera as the world paused “to remember the victims of the Holocaust on Jan. 27.” Simon Wiesenthal lived in Lviv many years and was acquainted with the OUN activity. They brutally murdered hundreds of thousands of Jews, Poles, Russians and Ukrainians.

 Ukraine will choose Yushchenko’s successor on February 7th. Viktor Yanukovich and Yulia Tymoshenko, are competing for voters on both sides of the county’s East-West divide. Both candidate at the run-off avoided any comment fearing to alienate some section of the population. The posthumous honour for Bandera will be seen as a last ditch attempt by Yushchenko to sabotage his successor and stick a middle finger up at Kremlin. In 2007 he similarly honoured Roman Shukhevich, a no-less controversial contemporary and comrade of Bandera.

 “It’s up to the people to decide whether Stepan Bandera deserves the hero title or not. But the president shouldn’t escalate through his action the confrontation between the older and younger generations, and between the country’s east and west. That we don’t know the true history of Bandera’s activity is a fact. But the president should always act wisely,” the first Ukrainian post Soviet independent president Leonid Kravchuk said.

 When politicians start dealing with history a big damage is always made to their countries. The historical truth can be established only by independent professional historians and not decided under the pressure of the moment or of different interests. These issues are often used to cover other more tough problems.

Giuseppe D’Amato

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 The blunt-spoken Yanukovych against the ‘gas Princess’ at the runoff. There was no surprise at the first round of the Ukraine’s presidential election. The former CEO of the National Bank, Serhiy Tihipko, didn’t succeed in overtaking Yulia Tymoshenko, but he got more than 3 million votes.

 The Orange Revolution is over. President Viktor Yushchenko, who led it in 2004, trailed in the polls with just over 5 percent. He completely wasted the popularity he conquered 5 years ago when millions of people supported him and his policy.

 The Orange Revolution had an incredible impact on the former USSR similar to the one caused by the Berlin’s Wall fall on Central Europe. After centuries the Russian pole has found a great competitor in the EU and the regional balance has moved westwards. The European enlargement to the East in May 2004 indirectly helped the creation of this favourable situation for the oranges. Since then, the Ukraine’s membership in the European Union has become a popular topic in Brussels. Ukrainians will remember the Orange Revolution for the hope they acquired for a better future at home and for the disappointment they got for the broken promises and the long period of political paralyses.

 Despite warnings of large-scale election fraud in the days leading up to Sunday’s vote, officials and election observers said the ballot seemed fair and orderly. There was no evidence of voter intimidation or organized fraud.

 “Ukraine is a European democratic country”, said Yushchenko in a sort of political will at the polling station. “It is a free nation and free people.” This point of view can be shared. In these years Ukraine has demonstrated to be probably the most developed democracy in the former USSR. Where might another real multi-parties system be found as in Kiev? Where is the same full freedom of speech guaranteed in the Soviet area?

 Thus, the Ukrainian disappointment for not having become a EU member with a new formula during the orange power can also be shared, especially if we consider the membership given to the problematic Bulgaria and Romania in 2007. Brussels would have had a better position in the control of the strategically important gas and oil pipelines from Russia and Asia.

 Despite Tymoshenko’s second place finish, her sharp political instincts give her the edge in the runoff vote. Oleksandr Turchynov, the head of Tymoshenko’s election headquarters, said they are sure that the voters backing Tihipko, Yuschenko, Change Front head Arseniy Yatsenyuk and some other contenders in the first round will support Tymoshenko in the runoff regardless of the position of the candidates themselves.

 But Tihipko said he did not intend to support any candidate in the runoff even if he was offered the post of prime minister. He had personal links with Tymoshenko’s circle when he was the regional Dniepropetrovsk’s leader of the Komsomol, the Communist Union of Youth in the late Eighties. Tihipko has also been for years one of the most faithful advisers of former Ukrainian president Leonid Kuchma, who chose  Yanukovych as his successor in 2004.

 The next Ukrainian president will likely concentrate on consolidating power and shoring up the economy. Ukraine’s currency crashed in 2008, the economy sputtered and the IMF had to step in with a $16.4 billion (euro11.41 billion) bailout. Ukraine’s gross domestic product plunged by 15 percent in 2009, according to the World Bank.

 Wealthy businessmen are likely to retain a tight grip on the economy and the main enterprises and to hold sway over politics. They will be the main security against a too strong Russian influence on their country in next future.

Giuseppe D’Amato

 For the first time in many years the power is actually at stake in Kiev. Eighteen are the candidates at the first round of the presidential election. There are not really great ideological or ethnical differences among them. The image of the candidate will give him or her the victory. 20% of the electors are uncertain who to vote for. Some experts say that the central Ukrainian regions along the river Dnepr will be crucial in the second round runoff.

 Sunday’s election for president, the fifth since independence from the Soviet Union in 1991, takes place amid deep economic gloom in Ukraine where the global recession has hit jobs, family budgets and pockets.

 According to several polls taken this week, Viktor Yanukovych will collect more than 30 percent of the vote Sunday, while prime minister Yulia Tymoshenko will get 15 percent to 20 percent. The outgoing President Viktor Yushchenko is supported by slightly more than 3 percent of the electorate. He is widespread considered the main responsible for the economic crisis and the political paralyze after 2006. For Russia’s VTsIOM the former CEO of the National Bank, Serhiy Tihipko, might be the surprise. Yushchenko may agree with him to knock out his prime minister and have better guarantees for the future.

A December 2009 poll found that 82 percent of Ukrainians expect vote rigging, as in 2004. These fears are shared by election observers, both international and domestic. The later also fearing the lack of an independent exit poll.

 Both Yanukovych and Tymoshenko have been accused of having close links with Russia. But Ukraine is not coming back under Kremlin’s supervision. National entrepreneurs have their own interests that are often in contrast with those of their Russian competitors. Kiev will continue its way towards a better integration with the European Union and one day will be a full EU member.

Yushchenko’s main mistake in foreign policy was to force this westwards direction and to want a fast membership in NATO at any cost. He forgot the historical roots of his mainland.  

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