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From the Vol.1,No.12 issue of Electronic Intelligence Weekly
RUSSIA AND EASTERN EUROPE NEWS DIGEST

Putin Addresses Russian Leadership on Eve of Bush Summit

On the eve of his summit with President George W. Bush, who arrived in Moscow May 23, Russian President Vladimir Putin spoke to an expanded session of the Presidium of the State Council, presenting to a number of Russian regional leaders his vision of Russian foreign policy. In his remarks, Putin made sure to locate the summit with Bush as just one of a number of important events on the diplomatic agenda this month and next: the annual Russia-European Union summit, the summit of the Shanghai Cooperation Organization, and the NATO-Russia summit in Rome. Putin emphasized that Russian diplomacy must look both West and East. He also said that "the anti-terror operation in Afghanistan has completed its most acute phase," leading now to the need for "a new quality in international cooperation."

Putin stated that the number-one goal of Russia's foreign-policy strategy, is "to create optimal conditions for the development of the Russian Federation's economy." This theme, Putin also took up on May 23 with the leadership of the Russian Union of Industrialists and Entrepreneurs. In this context, he referred to the very modest economic component of the U.S.-Russian summit agenda—Russia's push to be rated (by the United States) as "a country with a market economy."

But, Putin also departed from his usual practice of not responding tit-for-tat to diplomatic and undiplomatic provocations, to regret that "unfortunately, on the eve of this visit the U.S. Congress postponed action on the Jackson-Vanik amendment" (which linked normal trade relations between the USSR and the USA, to Soviet Jewish emigration). Putin called this "a somewhat peculiar decision," insofar as the Jackson-Vanik amendment had to do with the freedom to emigrate, but is now tied up with commerce in chicken legs. Putin said this showed "the tension of competition on international markets." He revealed that a few days ago he sent Bush a memorandum on the steel industry, to prepare for discussing Russian steel exports to the United States, which were affected by the recent tariff.

Another Voice for a National Policy of Economic Reconstruction

Indicating that a huge debate has broken out in Russia, on the future of the Russian national economy, Trud recently published a commentary by Georgi Boos, the former Minister of Taxation in the Primakov government, which echoed similar statements by leading economist and Duma member Sergei Glazyev (see below, for more on Glazyev).

Boos begins by saying that, in order to meet Putin's demand that economic growth reach 8-10%, the economy must adopt "a different rhythm," adding, "it is wrong to think that we cannot live in that rhythm." But, Russia needs a different economic policy to achieve this.

Today, Russia depends on raw material exports, like oil, Boos says, but, "exports alone will not save Russia's economy." The market of resources is unstable and tends to shrink, he adds, and states: "So, we have no other way than to expand the domestic consumer market and thus to stimulate national economic growth." The way to do this, is, "accumulating an investment capability of the national economy through a correct taxation, and monetary and crediting policy. And we have to stimulate the growth of the real incomes of the population."

Where are these investments going to come from?, asks Boos. It is a delusion to think they will come from abroad, he says; they must come from within, and they will, if the authorities "provide conditions in which the banks crediting what we call the real sector get guarantees from the government." Boos then points to the catastrophic demographic crisis in Russia: losing 800,000 people each year, "mainly because of the disastrous social and economic conditions of the greater part of the population." Boos concludes: "Unless we make an economic breakthrough, the population decrease will become irreversible."

Foreign Minister Demands: What is U.S. Doing in Central Asia?

Russian Foreign Minister Igor Ivanov warned, that at the Bush-Putin summit, Russia "will demand from the United States, transparency in the transportation and presence of a foreign military contingent in Central Asia," according to Itar-Tass May 21. Like President Putin, Ivanov said that the Afghanistan operation was essentially done: "We have almost done away with the threat to Russia and other CIS member countries through the defeat of terrorists on the territory of Afghanistan." Now, there should be multilateral security measures for Central Asia, involving the recently upgraded CIS Collective Security Treaty, as well as the Shanghai Cooperation Organization."

Primakov Builds Up His Team as 'Shadow Government'

Former Prime Minster Yevgeni Primakov last week named Sergei Glazyev as head of a Committee on Foreign Trade, under the Russian Chamber of Commerce and Industry, which he heads. Primakov expanded his team in other ways, leading some to talk about it as if it were a shadow cabinet. according to Izvestia May 17. He appointed Alexander Korzhakov, former President Boris Yeltsin's chief of security in 1993-1996 (until dumped during the ascendancy of Anatoli Chubais), as head of the Security Committe of the same Chamber of Commerce and Industry. Korzhakov, like Glazyev, is an elected member of the State Duma. Igor Yurgens, former chairman of the Russian Association of Insurers, will head the Finance Committee of Primakov's organization.

Glazyev To Run for Governor of Krasnoyarsk Territory?

Russian economist Sergei Glazyev held a press conference May 21—his first after being named head of a special committee on foreign trade—at the Russian Chamber of Commerce headed by former Prime Minister Yevgeni Primakov. Although a transcript of the event is not available at this writing, his reply to a question from NTV, about recent rumors that he will run for Governor of Krasnoyarsk Territory, is one point posted on his website. The previous Governor, Alexander Lebed, formerly a close political associate of Glazyev, was killed in a helicopter crash April 28.

Glazyev left the door wide open for his candidacy, saying: "The National-Patriotic forces will most likely take part in the Krasnoyarsk gubernatorial elections, but I am not yet prepared to say if I shall be a candidate. The residents of Krasnoyarsk Territory should have something to say about this first, and not only the so-called 'left' wing of the electorate," said Glazyev. He stressed that the economic situation in Krasnoyarsk is very bad, elaborating the national significance of the situation there: "This resource-endowed region, developments in which shape Russia as a whole, is currently in 88th place [among constituent territories of the Federation], second from the last, in standard of living. A program is being developed for sustained economic growth and raising the standard of living in Krasnoyarsk Territory. Soon this program will be presented for public consideration. At that point, a decision will made on a candidate from the National-Patriotic forces in the Sept. 8 election, as well as on my personal participation in those elections."

While candidates could officially announce, beginning now, they have until early August to register, by submitting 20,000 signatures. The National-Patriotic bloc is the Communist Party-led electoral coalition, on whose slate Glazyev was elected to the State Duma, although he is not a Communist Party member. Krasnoyarsk Territory, in central Siberia, stretches from the southern steppes to the Arctic Ocean. It is home to most of Russia's aluminum industry, built near the hydroelectric plants on the huge Angara-Yenisei River system, and the nickel and platinum industry city of Norilsk.

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