http://www.isn.ethz.ch/news/sw/details.cfm?ID=10456


Unassailable Putin to stay the course

More than anything, the Russian president's lengthy annual press
conference last week highlighted the meekness of domestic and
international forces in the face of a tough administration quick to
sacrifice civil liberties for fast-track reforms designed to
strengthen the federal government.

By Nabi Abdullaev for ISN Security Watch (28/12/04)

Some 700 journalists attended last Thursday's annual press conference
hosted by President Vladimir Putin, and unlike the four previous ones,
it was not a general recount of the year's achievements and future
goals. Instead, it was a three-hour collective psychotherapy session
conducted by the president - an immensely influential figure with whom
the Russian people still look to for a better future, even as fatigue
and disappointment with the lack of economic progress, the ineptness
of security structures, a corrupt officialdom, and collapsing civil
liberties begin to overwhelm the nation. Putin's answers to
uncomfortable and challenging questions posed by journalists were,
without exception, successfully executed attempts to reassure an edgy
public. Putin repeatedly stressed that the ongoing political,
administrative, and social reforms - such as the state's controversial
and surely underhanded takeover of Yuganskneftegaz, the core
production unit of the privately owned Yukos oil giant - have been
executed in accordance with the law and for the good of the public.
Concerning foreign policy, the president chose to focus on
contradictions, slamming the West for using double standards to foment
velvet revolutions in former Soviet republics - such as Georgia and
Ukraine - but with a dose of caution to avoid overtly antagonizing
Washington. Surprisingly, not one of the 51 questions posed by
journalists at the Kremlin conference related to the September Beslan
hostage-taking tragedy or the armed conflict in Chechnya - the most
tragic event in Russia this year and the largest threat to Russia's
security, respectively.
The interference card

European observers strongly criticized Moscow's overt intervention in
presidential elections in Ukraine, Georgia's separatist republic of
Abkhazia, and Chechnya, where the Kremlin made its influence felt in
an attempt to ensure that incumbent regimes would stay in power to
avoid opposition victories that would likely herald Kremlin-unfriendly
regime changes. During the press conference, Putin did not attempt to
justify Moscow's intervention in those regions, but focused on
criticizing the West, the European Union, and particularly, Polish
President Aleksander Kwasniewski, who had recently opined "Russia
without Ukraine is better than Russia with Ukraine". After churning
out figures aimed at indicating Poland's poor economic progress during
the 1990s, Putin accused the West of pursuing a foreign policy
designed to isolate Russia, and of "establishing elements [in
Chechnya] that would destabilize the Russian Federation". Moscow has
long been making overtures that the Chechen conflict is propelled to
some degree by forces and institutions abroad, including in the West,
though those institutions have never been specifically named. In
Ukraine, Putin personally and very publicly voiced his support for
Prime Minister Viktor Yanukovych, the hand-picked heir of outgoing
Ukrainian President Leonid Kuchma. Despite his blatant interference in
Ukrainian elections, Putin last week denounced what he called
"dangerous attempts to solve political issues through non-legitimate
means", referring to the so-called Orange Revolution in which
opposition supporters held mass public protests in Ukraine, and the
Rose Revolution in Georgia last year, which brought a pro-Western
candidate to power there. Denying the possibility of genuine public
protest in Georgia and Ukraine, Putin stressed that the two
revolutions "were planned somewhere", and particularly noted that US
financier and philanthropist George Soros was bankrolling the salaries
of the senior Georgian officials. The Russian president unleashed much
of his wrath for the Organization for Security and Cooperation in
Europe (OSCE) for its refusal to recognize the results of the runoff
presidential vote in Ukraine in November and to endorse presidential
elections in Chechnya in August, while being willing to accept
election results in Afghanistan - where a US-backed candidate won -
and in Kosovo, and to participate in organizing elections in volatile
Iraq. Nonetheless, Putin said he was satisfied with US-Russian
relations, in which both partners were driven by national interests,
such as energy cooperation and the "war on terror" - rather than
"momentous, semi-scandalous… tactical issues". Putin also managed a
few curt remarks to some foreign journalists, telling a Japanese
reporter that Moscow had no plans to give up any of the disputed Kuril
islands, and telling a Greek reporter why Russia would vote pro-Turk
on UN issues related to Cyprus, pointing to Turkey's interests in the
Russia economy.
Yuganskneftegaz deal was `legal'

Twice during the press conference Putin returned to the scandalous
takeover by state-run Rosneft of the core production unit of the Yukos
oil empire of imprisoned tycoon Mikhail Khodorkovsky. Earlier in the
day, Rosneft had announced its acquisition of the Baikal Finance
Group, a mysterious shell company that grabbed Yuganskneftegaz at an
auction just over a week ago for a bid of US$9.4 billion. Putin
defended the deal, saying it had been achieved by "market methods". In
an apparent attempt to change public opinion about the deal, which had
already been influenced by harsh criticism from many liberal and
foreign commentators, Putin recalled the heavily rigged auctions that
took place under former president Boris Yeltsin, when multibillion
dollar oil assets were privatized for a symbolic sums by those who
later emerged as oil oligarchs, including Khodorkovsky himself. As for
the recent injunction by a US court barring state-owned Gazprom from
participating in the Yuganskneftegaz auction, Putin blamed the court
for incompetence rather than bias, saying that the US judge likely did
not even know where Russia was located and questioning his knowledge
of basic international law. Speaking about the corrupt officialdom,
Putin said the state must withdraw from those spheres in which its
presence was groundless - apparently not referring to oil, for which
the state has now become the second largest producer after the
privately owned Lukoil. Since July, Rosneft has been headed by Putin's
top adviser and member of the presidential administration, Igor Sechin.
No domestic policy problems, say Putin

Putin responded rather casually to the topic of freedom of the press,
which many in Russia believe is being seriously jeopardized by the
panoply of anti-terrorist laws that were submitted to Duma by the
so-called siloviki - representatives of the law enforcement, military,
and security community - after the Beslan hostage crisis in September.
The president used an anecdote from an Italian movie to compare the
relationship between the state and the media: "a decent girl must
resist, while a true man must keep insisting." What should bother the
government, Putin said, was securing the economic independence of the
media - a rather bizarre statement to make after a state-orchestrated
financial attack put an end to the existence of two of the country's
major independent television channels, NTV and TV6. It was also a
strange statement to make at a time when Russian courts are routinely
issuing rulings in defamation cases that threaten the mere existence
of many newspapers. As for scrapping the popular election of governors
- which was proposed by Putin shortly after the Beslan tragedy as a
measure to increase the accountability of the regional bosses and
adopted into a law by the Russian parliament earlier in December - the
president denied that the move was an assault on democracy. Since
regional parliaments would be endorsing candidates hand-picked by the
president, their role as bodies of representative democracy would
increase dramatically, he claimed. But he carefully omitted any
mention of the law's provision that regional parliaments would be
dismissed if they declined presidential candidates three consecutive
times - hardly a measure strengthening the regional legislatures.
Putin also defended the highly unpopular initiative to replace in-kind
social benefits to the needy with cash payments and to shift the full
burden of paying for communal facilities to the end user. The
president said those innovations, which will come into force in the
new year, were a necessity for the state, which has been pumping money
into social services only to have it embezzled or misused by corrupt
officials. That response was viewed by many observers as a highly
inappropriate one coming from a leader portraying himself as a tough
administrator.
Trends locked in place

Putin's longest appearance before the press has shed further light on
the trends Russian foreign and domestic politics will likely follow in
the future: further alienation from Europe on issues related to human
rights and civil liberties, while pressing European partners into
cooperation and engagement by using trade as a major tool; securing
cooperation with the US in the "war on terror"; further boosting the
state's role in the oil market, including through ownership of
production units; the state's withdrawal from socially loaded and
problematic sectors like communal facilities; continuing lack of
confidence in genuine civil society forces, including independent
media, and replacing them with representative but dirigible bodies;
and strengthening the state's grip on regional elites. Most of the
trends are detrimental to the development of democracy and liberal
values in Russia, but the rather meek internal and external responses
to the increasingly controversial actions of the Russian government
throughout the year have demonstrated that there are no forces -
either domestic or international - that can effectively reverse these
trends.

Nabi Abdullaev is ISN Security Watch's correspondent in Moscow.
He also works for the Moscow Times.























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