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Published on Central Asia-Caucasus Institute Analyst (http://www.cacianalyst.org)

1 October 2008 News Digest

By Alima Bissenova (10/02/2008 issue of the CACI Analyst)

Armenia links issue of Abkhazia, S. Ossetia to N.-Karabakh

19 September

Armenia  will  not  recognize  the independence  of  Abkhazia  and  South Ossetia before Nagorno-Karabakh’s independence  receives  international recognition as "recognition of the independence of other states without the recognition of the independence of Nagorno-Karabakh is nonsense," an Armenian diplomat said on Friday. Armenia  itself  has  not  recognized  the independence of Nagorno-Karabakh,  an Armenian-speaking enclave in Azerbaijan, though there have been "political,  legal,  moral,  ethical,  ethnic and other reasons for this," Oleg  Yesayan,  Armenian  ambassador  to  Belarus,  told  a  news conference in Minsk. "The independence of the Republic of Nagorno-Karabakh was declared on October  2,  1991, in full conformity to the then constitution of the USSR and  international  law.  Then  a  general  referendum was held and supreme  bodies  of  state  authority  were  elected – a parliament and government.  On  January  6,  1992 – more than 16 years ago – the state independence of  the  Republic of Nagorno-Karabakh was proclaimed. Both then and  now Armenia had and has all necessary reasons to recognize the independence of Nagorno-Karabakh," Yesayan said. However,  there  began an international legal process of settlement of the Nagorno-Karabakh  conflict, and this is why Armenia has still not recognized the enclave's independence, he said. "It  is  for  the  same  reason that Armenia has not recognized the independence of Kosovo," the ambassador said. (Interfax)

 

Iran to meet Armenian energy demands
23 September
Iran will supply Armenia with enough natural gas through the Iran-Armenia pipeline to meet its energy demands for the winter, officials said. Reza Kasaei Zadeh, director of the Iranian Gas Export Co., told the Iranian Students' News Agency Tuesday Iran would surpass the original estimated gas exports of 2.5 million cubic meters per year. "Iran will pump 3 million cubic meters of gas to Armenia during this winter," he said. The $220 million, 87-mile pipeline began construction in 2007 during a ceremony attended by Armenian President Robert Kocharyan and Iranian President Mahmoud Ahamadinejad to bring diversity to the region. Russia was a primary exporter of natural gas to Armenia. Construction on the pipeline concluded Sept. 12.

 

Iran’s President Blames West for Georgia War
24 September
Iranian President Mahmoud Ahmadinejad said at the UN General Assembly that NATO’s “provocations” are to blame for the August war in Georgia. “The lives, properties and rights of the people of Georgia, South Ossetia and Abkhazia are victims of the tendencies and provocations of NATO and certain western powers and the underhanded actions of the Zionists,” President Ahmadinejad said. (Civil Georgia)

 

Iran, Pakistan to form IPI firm
24 September
Iran and Pakistan on the sidelines of the U.N. meeting in New York agreed to create a joint company to create revenue for a gas pipeline project. Iranian President Mahmoud Ahmadinejad met with Pakistani President Asif Ali Zardari to discuss implementation of the proposed Iran-Pakistan-India natural gas pipeline to bring resources from the South Pars gas field in Iran east. The joint firm will generate revenue in Iran, Pakistan and the Middle East, while Iran will provide a sovereign guarantee for the company, the Pakistani Dawn said Wednesday. India and Pakistan are facing a looming energy crisis, but pressure from Washington to avoid dealing with Iran and pricing deals have slowed progress on the proposed 1,724-mile pipeline. Pakistani Information Minister Sherry Rahman said the two countries also agreed to establish two bilateral committees to examine further details of the pipeline. "The two sides made good progress," she said. Foreign ministers from both sides plan to meet in October to discuss the way forward on the project. (UPI)

 

Reports: Kazakhstan Drops Oil Refinery Plans in Batumi
24 September
Kazakh state oil and gas company KazMunaiGas has dropped its plans to build a USD 1 billion oil refinery in Georgia’s port town of Batumi, Reuters reported. The decision, however, is not linked with the political situation in Georgia, an unnamed source from the company told Reuters. “We have a lot of interest in many different projects but we rely on economic feasibility when choosing,” the source said. “So you should not drag politics into this one.... Our experts have carefully studied it and decided that it is not feasible.” Kazakh Agriculture Minister Akylbek Kurishbayev told lawmakers that Astana had dropped plans to build a grain terminal in Georgia’s port town of Poti, citing “the current situation in Georgia.” Plans for an oil refinery in Batumi first emerged in March 2007, when KazMunaiGas went into partnership with Greenoak Group, the then owner of Batumi oil terminal and sea port. In February 2008, Greenoak Group, however, sold both the oil terminal and sea port in Batumi to KazMunaiGas for an undisclosed sum. (Civil Georgia)

 

Georgian opposition calls for expulsion of Kazakh gas company
24 September
Georgia's opposition Labor Party has demanded   the  expulsion  of  Kaztransgaz  from  the  country  and  the nationalization of Georgia's assets. Kaztransgaz owns the right to distribute natural gas in Tbilisi. "Without  any notice, from August 1 Kaztransgaz increased rates per cubic meter  of  gas  from 50 tetri (35 cents) to 70 tetri, and not only for businesses,  but  for  a certain group of individuals as well, so we demand that  Georgia  should  expel  this  company  and  nationalize its assets,"  one  of  the Labor party leaders Paata Dzhibladze told a press conference on Wednesday. "Kaztransgaz  is  robbing  Georgians  with  the help of the current Georgian  government,  which  in  effect  has interest in this robbery," Dzhibladze said. (Interfax)

 

U.S. Navy relief aid ship reaches Georgia
24 September
The U.S. Navy says it has joined humanitarian efforts to help Georgian refugees by sending a destroyer laden with 155,000 pounds of supplies. Officials with the Pentagon's European Command Sunday reported the USS McFaul arrived in Batumi, Georgia, with 82 pallets of hygiene items, baby food and care supplies, bottled water and milk donated by the U.S. Agency for International Development. "Our job was to get the supplies to Georgia as quickly as possible," Navy Capt. John Moore said. "The entire crew of this ship realizes the significance of their efforts in helping to provide comfort to the people of Georgia." Military officials also said two U.S. Coast Guard cutters have loaded humanitarian supplies destined for Georgia. One left Crete Thursday with more than 76,000 pounds of relief supplies and is to arrive in Georgia within a week. The officials said tens of thousands of hygiene kits have been flown into Georgia by U.S. Navy aircraft in the wake of its conflict with Russia. (UPI)

 

Former Russian MP Yamadayev killed in Moscow
24 September

Former  State  Duma member Ruslan Yamadayev has been killed in Moscow. "Unknown   people   opened  fire  from  assault  rifles  at  Ruslan Yamadayev's car at 6:30 p.m. outside N10 in Smolenskaya Naberezhnaya," a source in law enforcement authorities told Interfax. "As  a  result  of  the  shooting Yamadayev died on the scene," the source said.  Another  man  who  was with him inside the car is severely wounded, he added. (Interfax)

 

Tajikistan forces kill Afghan opium smugglers
25 September

Tajik border guards have shot dead a group of Afghan drug smugglers and seized more than 250 kg (550 lb) of opium and other drugs, a border guard spokeswoman said on Thursday.  Ex-Soviet Tajikistan lies on the main trafficking route out of neighbouring Afghanistan – the world's top producer of opium and its refined form, heroin – to western Europe.  Yelena Alekseyeva, the spokeswoman, said a number of Afghan smugglers were killed in a shootout with Tajik forces on the border but could not say how many.  "During the operation a large quantity of drugs was seized and a number of criminals were killed," she said.  With treacherous terrain and leaky borders, Tajikistan is a haven for drug smuggling out of Afghanistan which produced a record 8,200 tonnes of opium last year.  The impoverished nation has struggled to contain the problem since independence from Moscow, with analysts saying its security forces intercept only a fraction of the total traffic. (Reuters)

 

Yamadayev's murder blood revenge – Kadyrov
25 September

Blood revenge could be the leading theory in  the investigation of the murder of former Russian Duma member Ruslan Yamadayev, said Chechen President Ramzan Kadyrov. "I am  80-90%  sure  that  the murder might have been motivated by blood revenge," Kadyrov told journalists in Grozny on Thursday. "Sulim Yamadayev [Ruslan Yamadayev's brother] "was involved in many civilian kidnappings for ransom, and shot everyone for whom money was not paid," the Chechen president said. "In Chechnya, murder is something that will never be forgiven. The revenge may come even after one hundred years," Kadyrov said. "It is with great regret that I learnt about Yamadayev's death," he said. "A  hero  of Russia, a former MP, a Chechen killed in the center of Moscow.  How  can  I take it? I am very unhappy. If Ruslan Yamadayev was guilty of something, he should have been tried," Kadyrov said. (Interfax)

 

Ton of drugs seized in CSTO operation in Tajikistan
26 September
More than 954 kg (2,101 lbs) of drugs were confiscated in Tajikistan in the course of the special operation of regional security organization members between September 16 and 22, country's police official said Friday. A spokesman for the Tajik Drugs Control Agency said the drugs were confiscated during the first stage of the Channel-2008 anti-drugs operation, conducted by members of the Collective Security Treaty Organization (CSTO). "Within the stated period law enforcement bodies in cooperation with border guards detected and stopped 38 crimes, connected with smuggling and trade of drugs," the spokesman said. The operation, he added, was monitored by representatives of law enforcement bodies from Azerbaijan, China, Latvia, the United States and Ukraine. The CSTO is a security grouping comprising the former Soviet republics Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Uzbekistan and Tajikistan. Narcotics trafficking is an acute problem for the Central Asian republics due to the constant flow of illegal drugs from neighboring Afghanistan, the world's largest heroin and opium producer. The drugs are then smuggled via Russia's Urals region onto Western Europe. (RIA Novosti)

 

Turkmenistan backs multi-party politics for first time
26 September

The hermetic state of Turkmenistan formally endorsed political pluralism and market economics for the first time Friday, approving a new constitution that opens the door to ties with the West. Some 2,500 tribal elders and local officials at a meeting of the People's Council in the capital Ashgabat raised their hands to give unanimous approval to the new constitution, proposed by President Gurbanguly Berdymukhamedov. The reform marks a dramatic change for this long isolated and highly authoritarian ex-Soviet Central Asian state that has signalled it wants to open up to the West to encourage investment in its huge untapped gas reserves. Turkmenistan is strategically located on the Caspian Sea between Iran and Afghanistan and is seen by Western officials and multinational corporations as a potential key energy source that could reduce dependency on Russian reserves. "The new constitution corresponds to all international and democratic norms. By adopting it, we will show our country's authority at an international level," Berdymukhamedov told the People's Council ahead of the vote. He also said the old constitution was "outdated" and did not fit with Turkmenistan's "progress," a reference to timid reforms he has introduced since coming to power after long-time dictator Saparmurat Niyazov, who died in 2006. "Our country is now open and supports cooperation with every country in the world," Foreign Minister Rashid Meredov told the People's Council session. But experts quoted by Russia's Nesavisimaya Gazeta daily warned the new constitution had major faults such as the absence of a constitutional court and was aimed at pleasing Western partners instead of bringing true reform. "A constitution for the West," read a headline in the newspaper, which quoted Turkmen political observer Batyr Mukhamedov as saying: "Berdymukhamedov came up with it for export... The constitution is oriented to Western values." One expert, Farkhad Ilyasov, told Nezavisimaya Gazeta: "As far as democratic norms are concerned, as long as there are political prisoners, as long as there are no opposition parties and no free media, these are just words." The new constitution allows for the formation of multiple political parties in a country that currently only has one party. The Democratic Party headed by Berdymukhamedov is in practice the successor to the Soviet-era Communist Party. Also on Friday, the Turkmen president said parliamentary elections would be held before the end of the year. The last elections were held in December 2004 and were won by the Democratic Party with 100 percent of the vote. The People's Council, which was created by Berdymukhamedov's predecessor Niyazov to reduce parliament's authority, will now become a purely consultative body and the country's parliament will be enlarged from 65 to 125 seats. The constitution also enshrines market economy principles for the first time in this largely Soviet-era command economy, confirming the "right to private property" and support for the development of small businesses. (AFP)

 

GEORGIAN Parliament Endorses Law on Occupied Territories
26 September
The Georgian parliament has unanimously approved a draft law on the occupied territories imposing various restrictions on Abkhazia and South Ossetia, which are to remain in place until such time as Georgian jurisdiction is restored.  “Our goal is that this law does not create problems for Georgian citizens living there,” MP Pavle Kublashvili, co-author of the draft law, said. “Hence, the restrictions will concern only non-Georgian citizens.”
He said that the draft law envisages three restrictions. In particular, it will restrict free movement into the occupied territories, obliging foreigners to enter Abkhazia and South Ossetia from the rest of Georgia, in agreement with the Georgian authorities. The second restriction concerns property rights, which will have no legal force as long as the occupation lasts. And the third, dealing with business activities, will see real estate deals and investment in the two regions prohibited. “We should not create favorable conditions for investors carrying out business activities under the orders of the separatists,” Kublashvili said. The draft law geographically covers the Abkhazian Autonomous Republic and the former Autonomous District of South Ossetia. It also covers areas under Georgian control before the war, namely the Upper Kodori Gorge, the Akhalgori district and Georgian villages north of Tskhinvali, which are currently under Russian occupation. Parliamentary Chairman Davit Bakradze said that the draft law would be further improved before its final approval. (Civil Georgia)

 

Israel to sell armaments to Azerbaijan
26 September
The Israeli government has agreed to sell mortars, radio equipment and ammunition to the Caucasus state of Azerbaijan, signed agreements show. The agreements signed by the Israeli Defense Ministry and the Azerbaijani government say Israel will supply Azerbaijan with munitions including rocket artillery and mortars, Haaretz reported Friday. The international agreements, said to be worth hundreds of millions of dollars, will be supplied by the Israeli firms of Soltam, Israel Military Industries and Tadiran Communications. Former Israeli Defense Minister Benjamin Ben-Eliezer had previously said Azerbaijan would be a valuable ally for Israel due to its supply of oil and gas, Haaretz said. The Israeli newspaper said the Israel-Azerbaijan agreements come after a number of Israeli firms signed similar sales agreements with Kazakhstan, a country neighboring Azerbaijan. (UPI)

 

Azerbaijan should join the group of industrially developed countries – Aliyev
26 September
Azerbaijan should join the group of industrially developed countries, Azerbaijani President Ilkham Aliyev said, speaking late at night on Thursday at iftar (supper after a day’s fasting during the sacred month of Ramazan), which was held by the Spiritual Board of Muslims of the Caucasus.  Aliyev, who is running for presidency for the second time, formulated in this way the main objective of his work, in case he is re-elected president. The presidential elections are scheduled for October 15.  “During the years to come we shall continue to exert efforts in all directions. Stability will be preserved in Azerbaijan, and important steps will be taken for ensuring the democratic development of the country, consolidating its security, continuing the implementation of the economic reforms and of social programmes. Major infrastructure projects are planned to be implemented,” Aliyev said. According to his information, the 2009 state budget will amount to 15 billion dollars, which is bigger than the budget five years ago, when he became president, by almost 15 times. “This is unprecedented progress,” Aliyev stressed.  Aliyev said he was very much optimistic about the future and knew the future of Azerbaijan would be brilliant. “The tasks we planned have been partially fulfilled, partially are being fulfilled now, and a major part of them remains to be fulfilled in the future. I can state with confidence that Azerbaijan will join the group of industrially developed countries of the world. All the criteria in the economic, political, social and other spheres will be the same as those of the best developed countries,” Aliyev said.  He stressed he would further uphold the interests of his nation and consolidate the positions of the state. He pointed to the fact that Azerbaijan was a stabilising factor in the region, which became especially clear during the recent Caucasian crisis. “All our initiatives – in the political, economic, energy and transport spheres – are aimed at promoting regional cooperation, peace and security in the region,” the Azerbaijani leader said. He stressed that Azerbaijan’s influence and the role it plays in the region would continue to grow in the coming years, together with its feeling of responsibility. “We are taking all steps in the domestic and foreign policy with a deep feeling of responsibility,” he stressed. (Itar-Tass)


Lavrov: ‘Problem of S.Ossetia, Abkhazia Closed-Out’
28 September
Tbilisi’s aggression against South Ossetia has put an end to Georgia’s territorial integrity, Sergey Lavrov, the Russian foreign minister, said in an address to the UN General Assembly on September 27. In the speech Lavrov brought up the August war in the context of what he called U.S. “unipolar” policies, which he said had failed not only in Iraq and Afghanistan, but also had helped to provoke the August war. “The illusion of a unipolar world confused many,” he said. “For some people, it generated a desire to make an all-in stake on it. In exchange for total loyalty they expected to receive a carte blanche to resolve all their problems by any means. The all-permissiveness syndrome that they developed went rampant, out of all possible control, on the night before 8 August when the aggression was unleashed on South Ossetia.” “The bombing of the sleeping city of Tskhinval, the killing of civilians and peacekeepers trampled under foot all settlement agreements thus putting an end to the territorial integrity of Georgia.” Lavrov justified Russia’s military intervention by the need to save the lives of its citizens and peacekeepers. He said that Russia helped South Ossetia “to repel aggression.” He also said that the recognition of the independence of South Ossetia and Abkhazia by Moscow was “the only possible measure to ensure their security,” especially “taking into account all previous record of the chauvinistic attitude of the Georgian leaders.” He then mentioned Georgia’s late President Zviad Gamsakhurdia and said that Gamsakhurdia “under the slogan of ‘Georgia for Georgians’ ordered the deportation of Ossetians to Russia, abolished the autonomous status of South Ossetia and Abkhazia and later unleashed war.” He said that the current Georgian leadership pursued "a persistent policy" to undermine negotiating mechanisms through "continous provocations." “Finally [the Georgian leadership] trampled under foot the peace process by launching a new murderous war on the night before August 8,” Lavrov said. “This problem has been closed out now. The future of the peoples of Abkhazia and South Ossetia has been reliably secured by the Treaties between Moscow and Tskhinval and Sokhum,” he continued. “With the implementation of Medvedev-Sarkozy plan and our strong commitment, the situation around the two republics is going to be finally stabilized.” He also said that the foreign policy of the “Georgian regime” was aimed “exclusively at provoking confrontation in the world in the pursuit of their own objectives, which have nothing in common with the goal of ensuring security in the Caucasus.” “This crisis in the Caucasus proved again that it is impossible or even disastrous to try to resolve the existing problems in the blind folds of the unipolar world,” Lavrov said. (Civil Georgia)

 

Counter-terror workshop held in Uzbekistan
29 September
The Organization for Security and Cooperation in Europe held a workshop in Uzbekistan on Monday in a move to bolster counter-terrorism efforts in Central Asia. The two-day workshop is designed to improve cooperation in Central Asia among law enforcement and other security authorities to better combat transnational criminal organizations and terrorist groups operating in the region, the OSCE reported. Officials say the workshop, organized by the OSCE Strategic Police Matters Unit and the OSCE Action against Terrorism Unit, among others, includes more than 75 security experts discussing techniques and strategies to prevent and respond to terrorist attacks. "This meeting helps participants better understand the roles and responsibilities of the different institutions in relation to fighting terrorism," Kevin Carty, OSCE secretary-general senior police adviser, said in a statement. "We hope this will spark the creation of networks and lasting cooperation." (UPI)

 

Ceyhan refinery on hold

29 September
The price of real estate in the Turkish port of Ceyhan put joint plans by Kazakhstan and Azerbaijan to build a refinery there on hold.  The proposed refinery in the Turkish port between the state-run KazMunaiGas and the State Oil Co. of Azerbaijan Republic has stalled over the purchase of land in the region, the European weekly New Europe reported Monday. Ceyhan is a major energy hub in the Mediterranean, making further expansion of the infrastructure there attractive. About 1 percent of the world's oil travels through the Baku-Tbilisi-Ceyhan pipeline, and plans to expand several pipeline routes to northern Turkey and into Iraq make sense to several regional energy players. With the first suggestions of new development in Ceyhan, however, private investments in the real estate sector drove land prices sharply up. "A part of the land that was planned for the refinery belongs to the government of Turkey, while the other part has become private property. The prices that the private owners ask are exorbitant, driving the cost of the project up," an anonymous source in the Kazakh energy sector told New Europe. (UPI)

 

Rice: Russian Veto on NATO Expansion Impossible
29 September
Russia cannot be allowed to veto NATO membership for Ukraine and Georgia, U.S. Secretary of State Condoleezza Rice said on September 28. “We will not permit Russia to veto the future of NATO, neither the countries offered membership nor their decision to accept it,” Reuters quoted Rice as saying. “We and our European allies will give our help to Georgia ... The United States and Europe strongly support the independence and the territorial integrity of Russia’s neighbors,” she said. NATO rejected Georgia’s bid for a Membership Action Plan (MAP) at its April summit in Bucharest, but gave temporizing assurance that it would become a member of the alliance in the future. Rice also warned that the August war and Russia’s unilateral recognition of the independence of Abkhazia and South Ossetia could derail its efforts to join the World Trade Organization and the Organization for Economic Cooperation and Development (OECD).

 

South Ossetian, Abkhaz representatives to attend UN Security Council's meeting, apply for visas
29 September
Representatives of South Ossetia and Abkhazia  have  applied  for U.S. visas to be able to participate in the United  Nations  Security  Council's  informal  meeting in New York, South Ossetia's acting Prime Minister Boris Chochiyev announced Monday. "Russia  has initiated an informal meeting between Security Council members and representatives of Abkhazia and South Ossetia to discuss the situation  in  the Caucasus in the wake of Georgia's aggression. We have applied  [for  visas]  but no visas have been issued yet. So far we have not received permission to enter the United States," he said. Up  to  now,  the U.S. authorities have been refusing to let Abkhaz and South  Ossetian  representatives  attend  Security  Council meetings because they do not represent official UN member-states. Meanwhile, Moscow holds that an informal meeting of the council may be transferred to Geneva. "I  think the Security Council may transfer its informal session to Geneva due to the United  States' position on South Ossetia and Abkhazia,"  Russian Deputy Foreign Minister Alexander Yakovenko said in an interview published in the Rossiiskaya Gazeta early last week. The Security Council has previously convened outside its New York

headquarters. "It's time to resume this practice," the diplomat said. (Interfax)

 

 

Kyrgyz president's son questioned
30 September
Investigators  from  the  Kyrgyz Prosecutor  General's  Office have questioned the Kyrgyz president's son Maksim Bakiyev,  following  a  claim  made by the former chairman of the country's Central Elections Commission (CEC). "Investigators  from  the  Kyrgyz  Prosecutor  General's  Office on Tuesday  questioned  Maksim  Bakiyev,  the  son  of  President Kurmanbek Bakiyev,  as  part  of  the  investigation opened following a videotaped address  by  former Central Elections Commission chief Klara Kabilova on the basis  of an article dealing with 'impeding the work of an elections commission,'"  Uchkun Karimov, an official with the Prosecutor General's Office, told reporters. At  the end of last week, the Kyrgyz opposition issued a videotaped address  by  Kabilova,  in which she said she was receiving threats from the Kyrgyz  president's  younger  son,  which she links to the October 5 elections  in  Kyrgyzstan,  and  announced  her  decision  to  resign as chairman of the Central Elections Commission. Bakiyev's  questioning  lasted for about an hour, Karimov said. The official  would  not  give  any  details,  citing  the  interests of the investigation. In  addition,  Karimov  said  Kyrgyz opposition activists, who made Kabilova's  statement  public,  have been summoned to come to the Kyrgyz Prosecutor  General's  Office  for questioning on October 2. Among these people are  Kyrgyz  parliamentarians,  members  of the opposition Social Democratic  Party,  the  leader  of  the opposition party Ata Meken, and former Kyrgyz parliament speaker Omurbek Tekebayev. (Interfax)

 

AIG Unit Says No Plan to Sell Kazakh Business

30 September
The Kazakh unit of AIG said on Tuesday it had no intention of selling its insurance business in the Central Asian state. On Monday, Kazakhstan's No.1 insurer Eurasia said it had made a formal offer to buy the Kazakh unit of the U.S. insurance company which was bailed out by the Federal Reserve this month. On Tuesday, it responded by denying the possibility. "Yesterday a number of news agencies reported that a takeover offer had been made with regard to AIG Kazakhstan which is part of the American International Group Inc. (AIG) group of companies," it said in a Russian-language statement. "We officially announce that AIG Kazakhstan's business is not for sale. ... Our ability to work in the usual mode has not been affected in the light of recent events. ... We continue to work in our usual mode." Eurasia, owned by the three key shareholders of mining giant ENRC, said in a statement on Monday it had sent the offer to AIG's London office on Sept. 24. The Kazakh company did not say how much it was ready to pay for AIG Kazakhstan, but said it could consider further bids for AIG assets. AIG, once the world's largest insurer, was forced to seek a government rescue earlier this month after its shares crashed, leading ratings agencies to cut its credit ratings and forcing the company to post billions of dollars in additional collateral on derivatives contracts it insured. (Reuters)

 

Wal-Mart takes action on Uzbekistan child labor

30 September
Wal-Mart Stores Inc. said Tuesday it has told suppliers to stop acquiring cotton from Uzbekistan to try and put an end to forced child labor in cotton harvesting. The world's largest retailer said it has formed a coalition representing 90 percent of U.S. purchases of cotton and cotton-based merchandise. "There is no tolerance for forced child labor in the Wal-Mart supply chain," said Rajan Kamalanathan, Wal-Mart's vice president of ethical standards. On Sept. 12, the Uzbekistan government issued a plan detailing steps to stop the use of child labor, following a letter from a number of industry trade groups demanding the end of forced child labor in cotton harvesting. Wal-Mart will modify its stance once these steps can be independently verified. (AP)

 

EU Observers Start Patrols in Georgia
1 October
The EU Monitoring Mission (EUMM) officially started patrols on October 1. The first patrols, each consisting of two vehicles, have already started patrolling in Samegrelo and Shida Kartli regions.  Local and international media reported that the EU monitors have entered the buffer zone around breakaway South Ossetia, despite a Russian official saying on September 30 that EU monitors would not have immediate access to the so-called “security zone” inside Georgia. Vitaly Manushko, a Russian peacekeeper spokesman, stressed the necessity for a memorandum between the Russian and Georgian sides and the European Union to clearly define the EUMM mandate, as well as the strength of Georgian police, who will enter the Georgian villages currently occupied by Russian forces after the latter withdraw.  The EUMM, comprising unarmed monitors, aims to stabilize the situation and ensure compliance by Georgia and Russia with an EU-brokered peace plan. The EUMM will work in close coordination with the UN Observer Mission in Georgia (UNOMIG) and the OSCE Mission in Georgia.   Over 200 monitors from 22 EU members-states will conduct permanent patrols on the ground. The total international mission personnel, including HQ staff, will be 352.The HQ is in Tbilisi, with regional field offices in Tbilisi/Bazaleti (96 monitors), Gori (70 monitors), Poti (30 monitors) and Zugdidi (70 monitors).The mission has a budget of Euro 35 million and is expected to remain for at least one year. (Civil Georgia)

 

20 EU military observers enter security zone to monitor situation
1 October
October 1 (Itar-Tass) - Twenty military observers from the European Union have entered the security zone in the Georgian-South Ossetian conflict area to monitor the situation, Lieutenant-Colonel Vitaly Manushko, representative of the Russian peacekeepers’ headquarters in the conflict zone, told Itar-Tass on Wednesday. He said, “Two groups of military observers accompanied by observers of the Russian peacekeeping forces in the zone of the Georgian-South Ossetian conflict entered the security zone at 10:00 Moscow time today.” “The first group of EU military observers entered the security zone through the check point of the Russian peacekeeping forces in the area of Kvenatkopa populated locality and is monitoring the situation on the Kvenatkopa-Abisi route in both directions. The second group entered the security zone through the check point of the Russian peacekeeping forces in the area of the populated locality of Karaleti and is monitoring the Karaleti-Tkviavi route,” the spokesman said. (Itar-Tass)

 

Uzbekistan: Wal-Mart Bans Cotton

1 October
Wal-Mart Stores said it was requiring its suppliers to stop sourcing cotton from Uzbekistan in an effort to end child labor there. Wal-Mart’s move follows similar steps by retailers including the British grocery chain Tesco and the department store chain Debenhams, which have already banned Uzbek cotton in products they sell. Wal-Mart said instructions to suppliers to stop buying cotton and cotton materials from Uzbekistan came after months of work with industry trade associations, government agencies, nongovernmental organizations and socially oriented investment groups. Wal-Mart said four industry trade groups, including the National Retail Federation, sent a letter to officials of Uzbekistan on Aug. 18 asking for an end to forced child labor in cotton harvesting. Wal-Mart said that the Uzbekistan government responded on Sept. 12 by outlining steps to stop child labor; the chain said it would revisit its decision once it can verify those steps. (Reuters)


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