In this issue:

Putin-Schroeder Meeting Opens Iraq Discussions in Europe

Putin, Chirac Announce Russian-German-French War Avoidance Perspective

Russian President: Franco-German-Russian Call Is Historic

Putin: Russia Might Invoke Security Council Veto vs. Military Action

British Petroleum Buys Big into Russian Oil

From Volume 2, Issue Number 7 of Electronic Intelligence Weekly, Published Feb. 19, 2003
Russia and Central Asia News Digest

Putin-Schroeder Meeting Opens Iraq Discussions in Europe

In Berlin on Feb. 9, Russian President Vladimir Putin emphasized the "practically identical" positions of Russia, Germany, France, and China against a war in Iraq. Addressing the press after meeting Chancellor Gerhard Schroeder, Putin declared: "We spent much time discussing Iraq. We agreed it is necessary to continue the efforts for a peaceful resolution of the conflict. Unilateral action could only lead to suffering for millions of people and to an escalation of the situation in the region."

Referring to Colin Powell's performance at the UN, Putin said, "We are convinced that international observers should check this information," but he immediately added, in categorical language: "We see no basis for the use of force against Iraq."

Implicitly referring to insinuations by the U.S. ambassador to Berlin, and others, that the German government's position on Iraq was "anti-American," Putin declared, "We see no reason for anti-American feelings around Iraq. I agree with the German Chancellor, that pressure should be put on Baghdad. But we must emphasize the work of the international inspectors. Only after receiving their reports, should the UN Security Council decide on any further actions."

Putin, Chirac Announce Russian-German-French War Avoidance Perspective

Having met with Russian President Vladimir Putin Feb. 10 in Paris, President Jacques Chirac of France told the press: "Nothing today justifies a war. This region really does not need another war." The resolution calls for Iraq's weapons capacity to be neutralized as quickly as possible, but says war can only be a last resort.

Putin said: "We are against war. Both of our countries insist on the need to solve the problem and the crisis diplomatically, and we consider that ... careless action could lead to unknown results." He also said, that "Iraq is offering more information and has shown a greater wish and willingness to cooperate."

Chirac said that all three nations favored strengthening of the "human and technical capacity" of inspections.

Russian President: Franco-German-Russian Call Is Historic

Russian President Vladimir Putin gave an interview to French television channel TF-1 on Feb. 11, the second day of his official visit to France. He took the opportunity to describe in the strongest terms, the historic importance of the joint statement by France, German and Russia on a peaceful solution for the crisis around Iraq (see previous item), as the first attempt in postwar history to settle an acute international crisis outside of military-political blocs. "This is the first step towards creating a multipolar world," said Putin, adding that "this could not have happened anywhere else but in France." The initiative for the statement came from French President Chirac.

As he had done the previous evening, at his press conference with Chirac to announce the joint statement, Putin in his TV interview emphasized the strong international opposition to the unilateral use of force. He noted that the Foreign Minister of Brazil had informed Russian Foreign Minister Igor Ivanov about a document, similar to the Franco-German-Russian one, adopted by several Ibero-American countries. "While I was in Berlin," Putin reported, "the Prime Minister of Turkey called me and said he was against a war."

At the same time, Putin called for continued pressure on Iraq to disarm and to cooperate with the inspectors. He also asserted that the "U.S. hard line" had played a role in pushing Iraq to cooperate. Putin said his friendship with U.S. President George Bush "does not mean that there cannot be different points of view on specific problems."

The Putin-Chirac press conference received major play in Russian newspapers under headlines like Izvestia's "Putin and Chirac Find a Common Language." Izvestia also reported Igor Ivanov's making a special point of observing that the trilateral declaration was not a "secret plan" to send in thousands of UN blue helmets to Iraq, as the German weekly Spiegel attributed to France and Germany. Russian wires also played up the official statement from China, which welcomed the Franco-German-Russian declaration.

Putin also addressed an audience at the French Academy of Sciences, and another meeting, composed of different generations of Russian emigrés in France.

Putin: Russia Might Invoke Security Council Veto vs. Military Action

In an interview to French television channel TF-1 on Feb. 11, Russian President Vladimir Putin said that while Russia "does not yet see a need to use its veto" in the UN Security Council, he does not exclude this possibility. "We value the unity of the Security Council very highly," said the Russian President, "but at the same time, if something is now done that could lead to an unjustified use of force, we will act, either with France or alone."

British Petroleum Buys Big into Russian Oil

Russia's third-biggest oil company will now be 50% owned by British Petroleum, after a deal announced Feb. 12. BP made a deal with the Alfa and Access-Renova groups, which are the parent companies of TNK and Sidanko oil. BP already owned a 25% stake in Sidanko, on top of which it is now investing $6.75 billion. TNK, Sidanko, and two smaller companies are merging into one, which ranks third behind Lukoil and Yukos (previously, TNR ranked fifth and Sidanko eighth). This is the single largest foreign acquisition of stock in a Russian company.

According to an article in the London Independent of Feb. 12, the deal increases BP's current oil and gas production by 15% and its proven reserves by 605. BP gains half share in daily production of approximately 1.2 million bpd, and reserves estimated at between 5.2 billion and 8.6 billion barrels.

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