No. 63, Part I, 29 March 1995

We welcome you to Part I of the Open Media Research Institute's Daily
Digest. The Digest is distributed in two sections. This part focuses on
Russia, Transcaucasia and Central Asia, and the CIS. Part II,
distributed simultaneously as a second document, covers East-Central and
Southeastern Europe.  Back issues of the Daily Digest, and other
information about OMRI, are available through our WWW pages:
http://www.omri.cz/OMRI.html

RUSSIA

OSCE SEES INTENSIFICATION OF PROBLEMS IN CHECHNYA. As Russian forces
continue to pound areas around the towns of Shali and Germenchuk using
planes, tanks, helicopters, and artillery bombardment, an OSCE diplomat
has raised fears that the situation is deteriorating at an alarming
pace. Istvan Gyarmati told reporters in Moscow, "It seems the danger of
the war spreading to the neighboring republics is much greater than at
the time of my last visit one and half months ago," according to AFP.
Gyarmati warned that, as Chechen fighters retreated towards the borders
of Ingushetia and Dagestan, the chances increased that the fighting
would spill over into those areas as well. Another problem voiced by
Gyarmati was threat that the number of refugees in the region would
increase. Estimates indicate there are more than 200,000 refugees in
Ingushetia alone. The office of the United Nations High Commissioner for
Refugees claims that 1,000 refugees a day are pouring into Dagestan, up
from 500 last week. Ron Redmond, a UNHCR spokesman, told Reuters in a 28
March report that, in addition,"local authorities think 30,000
[refugees] are leaving or have already left and are within a triangle,"
referring to the zone between Argun, Shali, and Gudermes. He added,
"We're afraid of cholera this spring" because of poor sanitation in the
crowded refugee camps. The OSCE plans to establish a permanent mission
in Grozny as early as mid-April. Gyarmati warned the, as yet, unnamed
head of the mission, "As an encouragement, I would like to tell my
would-be colleague that these six months will probably be the most
interesting experience of his life--if he survives," reported AFP. --
Bruce Pannier, OMRI, Inc.

YEGOROV DESCRIBES EVOLUTION OF CHECHEN CRISIS. Deputy Prime Minister and
Minister for Nationalities Nikolai Yegorov said federal authorities
could not have used force against Chechnya three years ago, Interfax and
Russian television reported 28 March. After the collapse of the Soviet
Union, many of the Russian republics and regions began declaring
sovereignty, he said. At that time, the use of force against the Chechen
leadership could have caused an explosion throughout the Northern
Caucasus as well as in other parts of the country. According to Yegorov,
Chechen leader Dzhokhar Dudaev understood the state of affairs at the
time, but did not take into account that the situation in Russia would
eventually change, and one republic could not continue to test the
strength of the entire country. -- Robert Orttung, OMRI, Inc.

"STABILITY" DEFENDS USE OF FORCE IN CHECHNYA. In its first official
press conference as a registered Duma faction, the Stability group
called the use of force in Chechnya justified in order to defend the
Russian Constitution and the country's territorial integrity, Ekho
Moskvy reported on 25 March. The group's political coordinator Alexei
Alexandrov told journalists that the period of "emotional democracy" in
Russia was finished, and that Stability would fight for "organized and
pragmatic democracy, with a strong state system," NTV reported.
Stability, which calls itself a "centrist" group, was created in
February to provide a base of support for Yeltsin in the Duma. Alexei
Levushkin, a co-chairman of the group, did not rule out the creation of
an all-Russian Stability movement to participate in the December 1995
elections. -- Laura Belin, OMRI, Inc.

KOZYREV: HASTY NATO EXPANSION HELPS ULTRA-NATIONALISTS. Before departing
for his trip to the Middle East, Russian Foreign Minister Andrei Kozyrev
again waved the ultra-nationalist card to dissuade NATO expansion,
Interfax reported on 28 March. Kozyrev cited the recent budget deal as a
significant step forward for Russian reforms but cautioned that the West
should not "undercut" the progress made so far by being too hasty with
NATO expansion ideas, especially in light of the upcoming election
campaign. He thinks such action will "provide the ultra-nationalist
forces with arguments, though artificial, for encouraging xenophobia."
He pleaded with Western leaders to "act more carefully so as not to
hinder the efforts of Russia's president and government, rather than
simply proclaiming their sympathy with our reforms." Nevertheless, most
opinion polls suggest that despite the rightist bombast, the Russian
electorate is much more preoccupied with domestic and economic issues
than foreign policy. -- Michael Mihalka, OMRI, Inc.

RUSSIAN DUMA MEMBERS DENOUNCE TURKISH INCURSION. A group of 30 Russian
State Duma deputies signed an appeal against what they called the
"genocide" of the Kurdish people in Southern (Iraqi) Kurdistan by
Turkish forces, Interfax reported on 25 March. According to them, the
problem of the Kurdish people should be resolved using political means
at a round-table conference "where the Kurdish side should be recognized
as an equitable participant in the talks." They recommended that the
Russian Foreign Ministry call on the UN Security Council to consider the
"numerous violations of international commitments by Turkey." -- Lowell
Bezanis, OMRI, Inc.

SETBACK FOR RUSSIAN SPACE BUSINESS. A new Russian space booster based on
the SS-25 intercontinental ballistic missile apparently failed to place
three satellites in orbit following a 28 March launch. ITAR-TASS had
first reported the successful launch of a "Start" booster rocket from
the Plesetsk launch site in northwestern Russia but several hours later
said that no contact could be established with the three satellites sent
aloft. The Russians have been touting the "Start" as a flexible and
reliable launch system that can place small loads into geostationary
orbit from virtually any spot on the globe. Interfax indicated that the
payload included an Israeli satellite and a joint Russian-Mexican
effort, raising the possibility that Russia will have to pay
compensation to its foreign partners. -- Doug Clarke, OMRI, Inc.

FUNDING TO COME BEFORE DEFENSE ORDERS. Presidential aide Alexander
Livshitz said defense orders in 1995 will be placed "exclusively on the
basis of the budget," Interfax reported on 28 March. He said the
government is determined not to repeat last year's difficulties caused
by military orders being placed before a source for funding had been
found. Livshitz indicated that defense enterprises could be helped if
President Yeltsin's 1994 decree on reducing unfunded war reserve stocks
in factories would be "made to work." In the past, factories had to set
aside capacities and personnel in order to be prepared to meet their
secret military wartime orders but were not compensated for those
efforts. -- Doug Clarke, OMRI, Inc.

AGRICULTURE AND FOOD MINISTRY TO COMPLETE AGRO-INDUSTRIAL PRIVATIZATION.
The Russian Agriculture and Food Ministry plans to complete the
conversion of the country's collective and state-run agroindustrial
enterprises into joint-stock companies in the third quarter of 1995,
Interfax reported on 28 March. Only 1,302 out of 2,327 agricultural
businesses to be privatized have reached that goal. The ministry said
the privatization process has moved slowly and indicated that not one
agroindustrial enterprise in the Arkhangelsk, Ulyanovsk, Kurgan and
Kemerovo oblasts, and the republic of Kalmykia has been denationalized.
The Novosibirsk, Tomsk, and Irkutsk oblasts have privatized up to 13% of
enterprises in the sector. -- Thomas Sigel, OMRI, Inc.

GOVERNMENT AND FARMERS SIGN AGREEMENT ON MUTUAL OBLIGATIONS. The
Association of Russian Farmers and Agricultural Cooperatives has signed
an agreement with the government on mutual obligations that gives
farmers the right to a share of state subsidies proportional to the
amount of land they cultivate, association president Vladimir Bash-
machnikov told Interfax on 28 March. He said up until now farmers in the
non-state sector had received only 2%-5% of the money spent on
agriculture although they worked 10% of the land. Now, however, the
government has committed itself to allocating 10% of loans, subsidies,
and other funds directly to the farmers. In exchange, the farmers'
association, which unites about 70% of Russia's private farmers, will
organize the delivery of agricultural produce to federal and regional
food funds in volumes set jointly by the association and the Federal
Food Corporation. According to Bashmachnikov, pricing policy is now
being discussed. Last year, Russia's 300,000 non-state farmers harvested
5.7% of the total yield of grain, 5.7% of sugar beets, and 14% of
sunflower seeds. -- Penny Morvant, OMRI, Inc.

LITTLE INVESTMENT IN MACHINE-BUILDING SECTOR. The State Committee for
Machine-Building has failed to attract private investors, Interfax
reported on 28 March. The committee blamed high inflation,
disadvantageous tax laws, and a lack of coherent business plans in the
machine-building enterprises themselves for the poor results. The
machine-building sector has suffered a severe fall in output since the
onset of market reforms. In the early part of last year, production
declined by almost 50% in comparison with the same period in 1993. The
situation subsequently improved slightly, but output is still falling.
-- Penny Morvant, OMRI, Inc.

CHAIRMAN OF PRIMORSKY DUMA THREATENS STRIKE. If the Russian government
does not provide financial assistance to the Primorsky Krai, its
residents will hold a territorial strike and block the Trans-Siberian
Railroad and seaports, Chairman of the Primorsky Duma Igor Lebedinets
announced on 28 March in Vladivostok, Interfax reported. The Duma has
sent a letter to the federal authorities demanding immediate action. The
Russian armed forces owe Primorsky defense enterprises 200 billion
rubles, while the government has never provided the 144 billion rubles
allocated for the upkeep of municipal housing. Under present
circumstances, the territory has a deficit of more than 400 billion
rubles. The deputies demanded that a meeting take place of the Russian
government in the krai by 1 May. -- Robert Orttung, OMRI, Inc.

TRANSCAUCASIA AND CENTRAL ASIA

KYRGYZ PARLIAMENT OPENS. The deputies of Kyrgyzstan's new parliament
held their first session on 28 March. One of their first accomplishments
was to elect Mukar Cholponbayev as chairman of the Legislative Assembly,
the lower house. Cholponbayev, 50, who was previously Kyrgyzstan's
justice minister, told journalists that the main objectives would be to
pass bills on facilitating economic expansion and improving law and
order, according to Interfax. About 25 draft laws are ready for review,
including electoral reforms, a new tax code, a package of economic
reforms, and rules on foreign investment, Reuters reported. Kyrgyz
President Askar Akayev is scheduled to address a joint session of
parliament on 29 March, and a debate on the agenda is also expected to
begin. Although the assembly has begun work, not all of the seats in the
legislature are filled. Several electoral areas did not register the
minimum required turnout of 50%, leaving six seats vacant in the
Legislative Assembly and 10 in the People's Assembly, the so-called
part-time upper house. Runoff elections are scheduled for 29 April,
Interfax reported. -- Bruce Pannier, OMRI, Inc.

KARIMOV ON UZBEK REFERENDUM. The Uzbek Electoral Commission announced
that 99.6% of eligible voters, or 11.25 million people, cast ballots in
the 26 March referendum extending President Islam Karimov's rule until
the year 2000, Reuters reported on 28 March. In a televised speech the
day after the referendum, Karimov said he was "amazed" at the unanimous
support for his policies, Interfax reported on 29 March. He pledged to
work for stability and peace in Uzbekistan and said all branches of
power should "function in the same vein." -- Lowell Bezanis, OMRI, Inc.

CIS

UKRAINE PROTESTS OVER RUSSIAN ACTIVITIES IN CRIMEA. Ukrainian First
Deputy Prime Minister Borys Tarasyuk said his government has formally
asked Russia to halt the activities of its consular workers in Crimea,
AFP reported on 28 March. The workers had been handling requests for
Russian citizenship instead of providing other services for Russian
citizens in the region. Tarasyuk said this violated his country's law
and Russia had not notified Ukraine about the mission's activities in
Simferopol. The head of the mission, Aleksis Molochkov, would not say
how many Russian passports had been handed out and there was no
immediate response from the Russian Foreign Ministry to Kiev's request.
-- Ustina Markus, OMRI, Inc.

[As of 1200 CET]
Compiled by Victor  Gomez

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