RFE/RL NEWSLINE Vol 2, No. 91 Part I, 14 May 1998

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RFE/RL NEWSLINE Vol 2, No. 91 Part I, 14 May 1998

A daily report of developments in Eastern and Southeastern
Europe, Russia, the Caucasus and Central Asia prepared by
the staff of Radio Free Europe/Radio Liberty.

This is Part I, a compilation of news concerning Russia,
Transcaucasia and Central Asia. Part II covers Central,
Eastern, and Southeastern Europe and is distributed
simultaneously as a second document. Back issues of RFE/RL
NewsLine and the OMRI Daily Digest are online at RFE/RL's
Web site: http://www.rferl.org/newsline

xxxxxxxxxxxxxxxxxxxSPECIAL REPORTxxxxxxxxxxxxxxxxxxxxxx
COMMUNIST HOUSING: A FLAW IN THE DESIGN
More than 170 million people in Eastern Europe and the
former Soviet Union live in decaying housing complexes. This
five-part series examines the issues, compares East Berlin's
rehabilitation success story with Prague's less than
successful efforts, and describes the state of U.S. public
housing.
http://www.rferl.org/nca/special/housing/

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Headlines, Part I

* GOVERNMENT APPROVES DRAFT LAW ON BUDGETARY DISCIPLINE

* YELTSIN PROPOSES RUSSIAN VENUE FOR G-8 MEETING IN 2000

* MINSK GROUP CO-CHAIRMEN IN YEREVAN

End Notes: THE COMING GENERATIONAL SHIFT
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RUSSIA

GOVERNMENT APPROVES DRAFT LAW ON BUDGETARY DISCIPLINE. The
government on 14 May approved a bill that would block laws
from going into effect if they do not specify sources of
financing for all expenditures not foreseen in the federal
budget, NTV reported. The government will soon submit the
draft to the State Duma. According to ITAR-TASS, some
cabinet ministers suggested that the measure might be
unconstitutional because it could deprive of citizens of
benefits to which they are entitled under federal law. Prime
Minister Sergei Kirienko instructed the Justice Ministry to
examine that question but argued that citizens' rights are
violated when the parliament adopts laws without providing
financial sources for their implementation. LB

KIRIENKO SEEKS TO 'ERADICATE LOBBYING.' Kirienko on 14 May
announced that during his planned meeting with President
Boris Yeltsin the same day, he will discuss measures to
"eradicate lobbying," ITAR-TASS reported. Kirienko has
already signed a directive whereby the government will not
consider proposals involving increased budget expenditures
unless those proposals specify sources of revenue to fund
the new spending, "Kommersant-Daily" reported on 14 May. He
and Yeltsin are to discuss a draft presidential decree that
would oblige the presidential administration to impose
similar conditions for its consideration of measures that
would increase expenditures. "Kommersant-Daily" argued that
such measures will largely "save paper" rather than money.
The newspaper noted that the cash-strapped government is
already unable to implement numerous presidential decrees
and government directives. LB

YELTSIN PROPOSES RUSSIAN VENUE FOR G-8 MEETING IN 2000.
Boris Yeltsin has proposed that the venue for the 2000
annual meeting of the world's leading industrial nations be
changed from Nagano, Japan, to somewhere in Russia, AFP
reported on 12 May. Yeltsin said in a live Internet session
that he wants to host that meeting as it will be the last
year of his presidency. As the scheduled host nation, Japan
has the right to accept the change. The following day,
Yoshio Hatiro, the secretary-general of the Japanese
Association for Friendship with Russia, said he favors the
change of venue as a "sign of concession," just as Japan
hopes for a similar sign from Russia over the issue of the
Kuril Islands. The Russian-Japanese peace treaty formally
ending World War II between the two countries is due to be
signed in 2000. BP

ZYUGANOV ON START-2, INDIA. Communist Party leader Gennadii
Zyuganov on 13 May spoke out against ratifying the START-2
arms control treaty, Russian news agencies reported. He
called for postponing ratification until after Russia has
adopted a "security concept." He added that Russia and the
U.S. had nuclear "parity" when the treaty was signed but
that the current condition of the Russian defense industry
makes it "impossible" to achieve an equal status. Regarding
the recent nuclear tests conducted by India, Zyuganov said
India "once again confirmed that it is a major global power
to be reckoned with." He added that he was pleased to learn
that "even the CIA was not informed" about the tests in
advance. But while Zyuganov said he supports a "strategic
partnership" between Russia and India, he noted he would not
like India to threaten the security of any other country. LB

RUSSIA ADAMANT ABOUT S-300S TO CYPRUS. The press service of
the Russian arms export company Rosvooruzhenie issued a
statement on 13 May reaffirming its commitment to proceed
with the delivery to Cyprus this summer of S-300 air defense
missiles, the "Turkish Daily News" reported. The Russian
Foreign Ministry told Interfax the same day that Moscow's
position on Cyprus remains unchanged, stressing that the S-
300s are a "purely defensive" weapon. Over the past week, UN
Secretary-General Kofi Annan and French Foreign Minister
Hubert Vedrine have both tried to persuade the Greek Cypriot
leadership not to go ahead with the planned deployment. LF

ZHIRINOVSKY STILL HOPING FOR GOVERNMENT POSTS. Liberal
Democratic Party of Russia (LDPR) leader Vladimir
Zhirinovsky on 13 May expressed the hope that members of his
party may yet be invited to join Kirienko's cabinet, ITAR-
TASS reported. He noted that although Yeltsin has now
appointed all the ministers, the LDPR is seeking several
posts as deputies or first deputies in ministries. The LDPR
Duma faction voted unanimously to confirm Kirienko as prime
minister in the third and decisive vote. LB

NO CHARGES FILED IN BOOK SCANDAL... The Moscow Prosecutor's
Office will not file criminal charges against former
officials who earned $90,000 each, allegedly for co-
authoring a book on privatization. Prosecutor Sergei
Gerasimov told Interfax on 13 May that since a private firm
paid the officials, there is no evidence that they embezzled
money from the state. He added that although examination of
the manuscript suggests the publisher paid excessive fees,
it is not a crime to pay authors too much. The Segodnya-
Press publishing house, which is partly owned by
Oneksimbank, paid the fees to, among others, former First
Deputy Prime Minister Anatolii Chubais, former State
Property Committee Chairman Alfred Kokh, and former State
Property Minister Maksim Boiko. Many commentators have
charged that the payments were tantamount to bribes, noting
that firms linked to Oneksimbank won two controversial
privatization auctions in 1997. LB

...WHILE KOKH STILL FACES CHARGES. Gerasimov told Interfax
on 13 May that Kokh is still under criminal investigation
for a separate book deal, in which he received $100,000 from
a Swiss firm while he headed the State Property Committee.
The deal raised eyebrows because of apparent connections
between the Swiss company and Oneksimbank (see "RFE/RL
Newsline," 2 October 1997). Gerasimov said the Russian
Prosecutor-General's Office has requested information from
the Swiss Prosecutor's Office relating to the case. Kokh,
who is currently in the U.S., told ITAR-TASS on 13 May that
his book will soon be published in English. He added that he
plans to return to Moscow, where he faces criminal charges
for allegedly misusing his official post to obtain a
desirable apartment (see "RFE/RL Newsline," 6 May 1998). LB

PROMINENT DUMA DEPUTY LEAVES OUR HOME IS RUSSIA. Nikolai
Travkin has left the Our Home Is Russia (NDR) Duma faction,
"Nezavisimaya gazeta" and "Kommersant-Daily" reported on 14
May. A statement released by the NDR said Travkin quit the
faction because he wants to run as an independent candidate
for governor of Moscow Oblast, ITAR-TASS reported. But
"Nezavisimaya gazeta" quoted an unnamed source as saying
Travkin is dissatisfied with the "bureaucratic style" of the
NDR leadership. Travkin, the founder of the once-prominent
and now marginal Democratic Party of Russia, was sacked as
that party's leader in late 1994 and was one of the NDR's
top 10 candidates in the 1995 Duma election. His defection
is the latest sign that prominent politicians are reluctant
to maintain links with the NDR now that the movement's
leader, Viktor Chernomyrdin, is no longer prime minister
(see "RFE/RL Newsline," 7 May 1998). LB

ROKHLIN'S MOVEMENT TO SUE DEFENSE MINISTRY. Duma Defense
Committee Chairman Lev Rokhlin's Movement to Support the
Army is preparing to sue the Defense Ministry for failure to
meet its financial obligations toward military personnel,
"Kommersant-Daily" reported on 14 May. Rokhlin says his
movement will also ask the Prosecutor-General's Office to
open a criminal case on charges that chronic arrears are
driving soldiers to suicide. Rokhlin recently sought
unsuccessfully to have the Duma initiate impeachment
proceedings against Yeltsin. He is expected to lose the
chairmanship of the Defense Committee when the seven Duma
factions complete the reallocation of leadership positions
in the chamber. That reorganization was scheduled for
January, but negotiations stalled over a few posts and were
further delayed by events surrounding the cabinet dismissal
and confirmation of Prime Minister Kirienko. LB

GOVERNMENT LIKELY TO DELAY OIL SECTOR PRIVATIZATIONS. First
Deputy State Property Minister Aleksandr Braverman told
Interfax on 13 May that the government is likely to postpone
auctions for stakes in the Tyumen Oil Company, the Eastern
Oil Company, and the Slavneft Oil Company (which is partly
owned by Belarus). Braverman expects the sales to be
postponed until the fall. He noted that several recent
attempts to sell shares in those companies have fallen
through because of lack of demand. The State Property
Ministry is considering several options for selling off the
shares but will make a final decision based on the situation
on the stock market and the result of an upcoming auction
for a 75 percent stake in the oil company Rosneft. That sale
is planned for late May, but several potential investors
have balked at the high price the government has set as the
minimum bid. LB

RUSSIA EXPORTING MORE OIL BUT FOR LESS MONEY. Russian oil
exports during the first quarter of 1998 totaled 29.66
million metric tons, up nearly 3 million metric tons
compared with the same period in 1997, Interfax reported on
13 May, citing the State Customs Committee. However, the
total value of Russian oil exports for the first quarter of
the year was some $2.6 billion, down $0.92 billion compared
with the same period the previous year. First Deputy Finance
Minister Aleksei Kudrin announced on 11 May that the federal
budget will lose an estimated $1.5 billion to $2 billion in
1998 as a result of slumping oil prices on world markets,
ITAR-TASS reported. LB

YELTSIN SIGNS LAW ON PRIVATE PENSION FUNDS. Yeltsin has
signed a law establishing a foundation for the activities of
Russia's non-state pension funds, which have existed for six
years, "Kommersant-Daily" reported on 13 May. The main cause
of the long delay in adopting the law was a dispute over
whether the Labor Ministry or the Federal Securities
Commission would be granted the authority to monitor the
funds. Then First Deputy Prime Minister Boris Nemtsov broke
the impasse in March at a meeting involving several high-
ranking officials and parliamentarians. Soon after, the
Federation Council approved the Duma's version of the law,
which puts the funds under the supervision of the Labor
Ministry. Federal Securities Commission Chairman Dmitrii
Vasilev lobbied unsuccessfully for a presidential veto.
Implementing the law will require the adoption of various
government resolutions regulating the activities of the non-
state pension funds. LB

LEBED, ZUBOV FACE OFF IN TV DEBATE. Former Security Council
Secretary Aleksandr Lebed and Krasnoyarsk Krai Governor
Valerii Zubov clashed in a televised debate on 13 May, four
days before the second round of the krai gubernatorial
election. Zubov fielded questions well and cast doubt on
many of Lebed's campaign claims, RFE/RL's correspondent in
Krasnoyarsk reported. For example, he noted that the krai
already has a law outlining a process for recalling elected
officials, including the governor. (A major theme of Lebed's
campaign is the need to adopt such a law.) Zubov also
defended his record on attracting investment to the krai.
However, Lebed had a better television presence than the
governor, according to RFE/RL's correspondent. He appeared
confident, steady, and unruffled, while Zubov came across as
nervous. LB

ZYUGANOV KEEPS UP ATTACK ON LEBED... Communist Party leader
Zyuganov again blasted Lebed on 13 May, warning that his
victory in the Krasnoyarsk election would allow the
resource-rich krai to "dictate terms" to the federal
authorities and eventually could lead to the "destruction of
Russia," RFE/RL's Moscow bureau reported. He alleged that
Lebed has flouted campaign finance regulations, while
Yeltsin and the Central Electoral Commission keep silent.
Zyuganov also repeated his call for voters to support
Zubov's plans to appoint a coalition government. LB

...BUT COMMUNIST CAMP SPLIT OVER KRASNOYARSK RACE. The
Communist camp is not united over the party leadership's
endorsement of Zubov, RFE/RL's Moscow bureau reported on 13
May. Duma Deputy Petr Romanov, the Communist candidate who
placed third in the first round of the election, told RFE/RL
that Communist leaders should have warned the public about
the dangers of electing Lebed earlier. He claimed that such
warnings might have prevented Lebed from doing so well in
the first round. Romanov believes that the stance of the
Communist leadership now works to Lebed's advantage. Romanov
will travel to Krasnoyarsk to encourage the krai branch of
the Communist Party not to change its recommendation that
residents vote against both Lebed and Zubov. LB

BOMB EXPLODES IN MOSCOW SYNAGOGUE. A bomb explosion caused
extensive damage to a synagogue in downtown Moscow on 13
May, ITAR-TASS and Reuters reported. Rabbi Berel Lazar of
the Lubavitch Marina Roshcha synagogue said it was not the
first act of terrorism against the synagogue. Lazar called
the bombing a "clearly anti-Semitic act" and demanded that
the authorities find those responsible "in order to assure
the Jews of Moscow and Russia they are safe." Worshippers
had left the synagogue following the Lag B'Omer service just
minutes before the bomb went off. The explosion did not
prompt the Jewish community to cancel plans to hold a
religious procession. "We will not be intimidated by this
act," Lazar said. Meanwhile in Irkutsk, vandals damaged or
destroyed 149 tombstones at a Jewish cemetery, ITAR-TASS
reported on 13 May. It was the third act of vandalism at the
cemetery since December. BP

FOUR KILLED IN GROZNY BOMBING. Four people were killed on 13
May when a bomb exploded in the Chechen capital. Magomed
Koriev, first deputy director of the Chechen Security
Service, said the bomb was directed at Deputy Prosecutor-
General Magomed Magomadov, who is in charge of anti-
kidnapping operations. Magomadov heads the Chechen team
investigating the 1 May abduction of Russian presidential
envoy to Chechnya Valentin Vlasov. LF

RUSSIA DENIES RANSOM DEMANDED FOR VLASOV. Interviewed by NTV
on 13 May, Russian Interior Minister Sergei Stepashin denied
claims by Federal Security Service Deputy Director Viktor
Zorin that Vlasov's abductors have demanded a large ransom
for his release. But "Segodnya" the next day reported that
the kidnappers have proposed exchanging their prisoner for
acting Ingush Interior Minister Daud Korigov, who is
currently under investigation in Moscow. Also on 13 May,
Yeltsin's representative in Chechnya, Georgii Kurin, met
with Chechen Deputy Prime Minister Kazbek Makhashev to
discuss Vlasov's kidnapping, ITAR-TASS reported. LF

DAGESTANI ORGANIZATIONS OPPOSE CHECHEN-DAGESTAN UNION. The
leaders of 20 Dagestani political and public organizations
issued a statement in Makhachkala on 13 May condemning the
creation last month of a Congress of Chechen and Dagestani
Peoples, Interfax reported. The signatories to the statement
pointed out that they did not send delegates to the
congress, which proclaimed its commitment to the peaceful
unification of Chechnya and Dagestan. Claims that all
Dagestani ethnic groups and political forces were
represented at the congress are therefore "groundless," the
statement said. LF

TRANSCAUCASUS AND CENTRAL ASIA

MINSK GROUP CO-CHAIRMEN IN YEREVAN. The three co-chairmen of
the Organization for Security and Cooperation in Europe's
Minsk Group met in Yerevan on 13 May with Foreign Minister
Vartan Oskanian, who outlined Armenia's new approach to
resolving the Karabakh conflict. Yerevan rejects the
"phased" peace plan, which was proposed by the Minsk Group
last year and which Azerbaijan has accepted. Instead, it
insists on a "package" solution that resolves all
contentious issues within one framework document. Armenia
also wants direct, unconditional talks between Baku and the
leadership of the unrecognized Nagorno-Karabakh Republic.
The co-chairmen declined to comment on those demands, but
Azerbaijani Presidential adviser Vafa Gulu-Zade has made
direct talks with the Karabakh leadership contingent on the
latter's acceptance of autonomy for Nagorno-Karabakh within
Azerbaijan, Noyan Tapan reported. Oskanian told journalists
that the co-chairmen made no new proposals. LF

ARMENIAN PARLIAMENT APPROVES GOVERNMENT PROGRAM. Speaker
Khosrov Harutiunian on 13 May declared the parliament's
approval of the program presented to lawmakers the previous
day by Prime Minister Armen Darpinian, RFE/RL's Yerevan
bureau reported. The parliament had lodged no formal
objections to that program. Harutiunian congratulated the
premier on what he termed a "vote of confidence" in the
government. Darpinian, for his part, acknowledged informal
criticisms by several parliament factions that the program
is not specific enough, Noyan Tapan reported. LF

GEORGIAN, NORTH OSSETIAN PRESIDENTS MEET. Aleksandr
Dzasokhov was in Tbilisi on 13 May for talks with his
Georgian counterpart, Eduard Shevardnadze, on resolving the
South Ossetian and other Caucasian conflicts. Dzasokhov
argued that it is important to achieve a breakthrough in
resolving one of those conflicts in order to create a
precedent. He endorsed Shevardnadze's proposal that Georgia
become a federal state, urging the Georgian leadership to be
"generous" in deciding the degree of autonomy South Ossetia
should receive. Dzasokhov warned that unless such
federations are created in the Caucasus, the region risks
"global disintegration into nation states," Interfax
reported. Shevardnadze called for expediting the
repatriation to South Ossetia of both Ossetian and Georgian
refugees and displaced persons. He also praised the
"positive" role of the Russian peacekeeping force in South
Ossetia. LF

ANNAN WANTS BETTER PROTECTION FOR OBSERVERS IN GEORGIA. UN
Secretary-General Annan has proposed deploying a 294-man UN
force to protect the unarmed UN observer mission in western
Georgia, Reuters reported on 13 May. Four members of that
mission were abducted in February; three were subsequently
released and one escaped. Annan said the Georgian government
has approved his proposal, while the Abkhaz leadership has
expressed reservations. LF

AZERBAIJANI LIBERAL PARTY PROTESTS HARASSMENT. The
leadership of the Azerbaijan Liberal Party has called on the
prosecutor-general to take action against police officers
who forced entry into the party's headquarters on 8 May,
Turan reported on 13 May. The officers temporarily detained
two of the party's members. LF

KYRGYZ PRESIDENT OVERSEES BATTLE WITH "EXTREMISTS."
Presidential spokesman Kanybek Imanaliyev told a press
briefing on 13 May that Askar Akayev is personally
supervising the battle against religious extremism, ITAR-
TASS reported. Imanaliyev said the president is concerned
about the "appearance of Wahhabi missionaries." Kyrgyzstan,
like neighboring Uzbekistan, has ordered all mosques to be
registered. And according to Reuters, it will "keep track of
who preaches there, where they are from. If they do not meet
our standards they must account for themselves." However,
Emil Kaptagaev, the chairman of the government Committee on
Religious Affairs, told journalists his committee has found
no evidence of Wahhabi activity in Kyrgyzstan. But Adylbek
Kadyrbekov, the chairman of the parliamentary Committee on
Defense and Security, was also at the briefing and
contradicted Kaptagaev's statement. BP

WORLD BANK GRANTS LOAN TO KYRGYZSTAN. The Kyrgyz
presidential press service announced on 13 May that the
World Bank has approved a loan for the country worth $50
million, Interfax reported. The loan is intended for
agricultural programs, in particular improving irrigation
techniques. BP

KAZAKH PARLIAMENT REJECTS POLYGAMY PROPOSAL. The lower house
of the parliament on 13 May voted down a proposal to re-
introduce polygamy, in accordance with Islamic law, ITAR-
TASS reported. "We want to be a civilized country not only
of an Asian but also of a European type," a parliament
statement said. BP

TRANSNATIONAL COMPANY SUES KAZAKH GOVERNMENT. A
transnational corporation is suing the Kazakh government for
breach of contract, ITAR-TASS reported on 14 May. The
Toronto-based World Wide Minerals corporation--which is also
registered in the U.S., where it has filed suit--signed a
contract to mine and process uranium ore in the Stepnogorsk
region. The corporation assumed the debts of the previous
owner, a Kazakh company, and paid wage arrears and pensions
to workers. World Wide Minerals planned to sell the uranium
to the U.S. company Consumers Energy but claims it has lost
$220 million because the Kazakh government has failed to
grant it an export license. BP

END NOTE

THE COMING GENERATIONAL SHIFT

by Paul Goble

	Many post-Soviet states are now confronting a problem
that some of their leaders thought they could put off
dealing with or even avoid: how to transfer power from one
generation to another in a way that does not compromise
stability, independence, and national aspirations.
	Both the problem and the different ways national
leaders are addressing it have been thrown into relief by
two recent events: Russian President Boris Yeltsin's renewal
of his government last month and Azerbaijani President
Heidar Aliev's 75th birthday celebrations on 10 May.
	In the Russian Federation, Yeltsin sacked his longtime
prime minister, Viktor Chernomyrdin, a man of his own
generation and hence of longtime Soviet experience. In his
place, Yeltsin installed Sergei Kirienko, someone a
generation younger who came of age in the post-Soviet world.
And the Russian president has advanced the careers of a
number of other young reformers.
	Many in Russia and abroad have greeted this move. Not
only does it suggest that Yeltsin is prepared to push
further and faster on reform than Chernomyrdin was doing,
but it also allows a new group of officials to gain the
kinds of experience that will make them credible as
candidates for more senior positions, including eventually
the one that Yeltsin now occupies.
	But others in both places have been more skeptical. On
the one hand, Yeltsin is likely to have far more influence
over Kirienko than he sometimes had over Chernomyrdin. And
because Yeltsin has proved so changeable over time, his
influence may push Kirienko's government in very different
directions than some now hope and others fear.
	And on the other, the sacking of Chernomyrdin may have
cleared the way for Yeltsin to run for yet another term as
president if his health holds up. While in office,
Chernomyrdin had gained the kind of experience that made him
plausible as a successor to Yeltsin. Kirienko does not yet
have that experience and consequently does not appear a
likely candidate.
	There thus appear to be two possibilities: either
Yeltsin runs again, despite an apparent constitutional
prohibition against a third term, or the candidates for that
office will likely have little or no experience in the post-
Soviet Russian central government, a situation that could
adversely affect future developments there.
	In Azerbaijan, by contrast, Aliev has not yet begun
this process of renewing elites, even though it is quite
obvious that the issue of transferring power to a younger
group of leaders while maintaining the stability and
independence of his country is now very much on his mind.
	But because of his age, Aliev's failure to push this
process further could call into question the very
achievements he is most interested in guaranteeing: removing
Russian troops from his country, attracting sizable Western
investment, and helping build the economic and political
bridge between Central Asia, Georgia, Ukraine, and the West.
	Indeed, even as leaders from around the region and the
world greeted him on his 75th birthday, Aliev appeared
particularly unwilling to explore ways in which he could
renew his own regime and guarantee that his achievements
will survive their creator.
	Last month, Aliev proposed new legislation to regulate
the October presidential elections. Because of its
restrictive provisions which appear to give the incumbent
unfair advantages, five leading members of the opposition
issued a joint declaration that they would refuse to run if
the law were adopted.
	Even more problematic than this declaration of the
five, Azerbaijani police dispersed a demonstration of some
400 people protesting the legislation in Baku late last week
and arrested more than 100. Among those taking part and
possibly among the arrested were former government officials
and opposition activists.
	The lack of any bridge between Aliev and these people
or of a means of including at least some of the social
forces they represent in the government suggests that the
transition after Aliev could be a very rocky one.
	Despite the steps he has taken, Yeltsin has not yet
solved this problem. Indeed, if he uses Kirienko's lack of
experience to keep himself in office, Yeltsin may make
matters worse. But Aliev's approach until now is a reminder
that failing to address the problem head on is not a
solution but rather a guarantee that the problem itself will
become even more pressing.

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