The Rise of the Russian Empire: Russo-Armenian Relations

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Russia to show off bombers and ICBMs at Victory Day parade

Sophisticated military hardware will be paraded during May's Victory Day Parade in Moscow for the first time since the split up of the U.S.S.R, a military official said on Wednesday. Celebrations to mark the end of Russia's participation in WWII are to be held on Red Square on May 9. The victory parade will see a display of the country's most advanced military technology, such as BMP-3 infantry fighting vehicles, BTR-80 armored personnel carriers, T-90 tanks, Topol-M intercontinental ballistic missile mobile launchers, Tu-160 and Tu-95MS strategic bombers. "After a 17-year-long break, the president of Russia took the decision to resume military parades with military hardware," Moscow Military District Commander General Vladimir Bakin said, adding that the Topol-M launchers would not be carrying missiles during the parade. Bakin also said over four thousand fireworks would be launched at the celebrations. The first Victory Parade was held on Red Square on June 24, 1945 on the order of the then-Supreme Commander-in-Chief, Joseph Stalin.

Source: http://en.rian.ru/russia/20080305/100715307.html

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Gazprom struck again...

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Russia halves Ukraine's gas

Gazprom announces another 25% gas cut to Ukraine: http://www.youtube.com/watch?v=Udz7AZNVO8g

Moscow halved gas supplies to Ukraine on Tuesday in a payments row that threatened to disrupt gas flows to Europe from Russian gas export monopoly Gazprom, the power base of president-elect Dmitry Medvedev. A similar row between Moscow and Kiev disturbed supplies to Europe early in 2006, leading to questions about Russia's reliability as a supplier of a quarter of Europe's gas needs. Gazprom said it could reduce supplies further if no deal is reached, a tactic the International Energy Agency (IEA) called "excessively harsh". Kiev hinted it could retaliate by drawing on Russian gas flowing to Europe through pipelines across its soil if it ran short of domestic supplies. "The Russian side expects Kiev to intensify its efforts to quickly settle debts for deliveries," Russian agencies quoted Medvedev as telling Ukrainian President Viktor Yushchenko, who had phoned to congratulate him on a "brilliant" victory in Sunday's presidential elections.

Medvedev, Gazprom's chairman and a close ally of the current President Vladimir Putin, has vowed to follow the policies of his mentor, who has been often accused by the West of using energy as a tool of intimidation. Yushchenko, who has managed to improve ties with Moscow in the past months, has major political differences with his former ally the current Ukrainian prime minister, Yulia Tymoshenko, whom he has accused of failing to keep to gas payment schedules. Both Ukraine and Gazprom said deliveries to Europe were running normally, but Deutsche Bank said this could change should Gazprom cut volumes further. "We view the current situation as a major challenge to Gazprom's status as a reliable gas supplier to Europe," it said. "In the long run, this may have an impact on European consumers' preferences as they try to diversify sources of gas away from Gazprom," said Pavel Kushnir from Deutsche Bank.

APPROPRIATE ACTIONS

Ukrainian state firm Naftogaz said it would guarantee transit to Europe as long as it had enough gas for local needs. "Naftogaz reserves the right to introduce appropriate, asymmetrical actions to defend the interests of Ukrainian consumers," spokesman Valentyn Zemlyansky told journalists adding that mild weather and sufficient reserves would allow Ukraine to cope for now. Not everyone in Ukraine was convinced it could do so. "Reductions will firstly affect production areas with round-the-clock operations, like steel and chemicals," said Anatoly Kinakh, head of the Ukrainian Union of Industrialists. "They will hit equipment and quality of output so it cannot go on for any length of time. There is no basis for any suggestion that we could live for a month on our reserves."

Gazprom's cuts started with a 25 percent supply reduction on Monday as it says Kiev owes $600 million (300 million pounds) in unpaid bills and had not resumed negotiations since last week. It followed up with another 25 percent reduction on Tuesday evening. Ukraine will get around 70 million cubic metres of gas a day, 50 percent of usual levels. By comparison, Gazprom's supplies to Europe currently run at around 360 mcm a day. Though all of Gazprom's exports are reaching Europe, Ukraine said the firm had paid no transit fees for gas going to Europe since December, a statement denied by Gazprom.

Yushchenko last month clinched a deal on arrears and supplies with Putin, but that appears to have unravelled after a visit by the more strident Tymoshenko to Moscow. Tymoshenko opposes the existence of any intermediaries in gas trade. "Everything is linked to the fact that Tymoshenko is now in power and her attempts to eliminate intermediaries from the gas trade. This is what has caused the increased tension," said Volodymyr Fesenko from Penta, a Kiev-based think tank. Tymoshenko, who last week said the gas cutoff would never happen, made no comment on Tuesday. Diplomats say most key Gazprom decisions are taken personally by Putin, who is set to be prime minister under Medvedev, who will be inaugurated in May.

Source: http://www.iht.com/articles/reuters/...INE-RUSSIA.php

Ukraine likely to cut gas deliveries to Europe

Ukraine's state gas company Naftogaz said Tuesday that it may reduce gas supplies to Europe if Russia cuts gas deliveries to Ukraine by another 25 percent. "Naftogaz recognizes that it can guarantee uninterrupted gas transit to Europe, but we reserve the right to take appropriate action if Ukraine's energy security comes under threat," Naftogaz said in a statement. The statement came on the same day when Russia's natural gas company Gazprom said it will cut gas deliveries to Ukraine by another 25 percent as of 8 p.m. Moscow time (1700 GMT) Tuesday, following a previous 25-percent cut Monday. Gazprom spokesman Sergei Kupriyanov said Monday Ukraine had consumed without Russian authorization around 1.9 billion cubic meters of Russian natural gas from the beginning of this year, worth some 600 million U.S. dollars. The gas row was triggered after the two sides failed at the last minute to sign a deal, under which they would agree that Ukraine would pay its debt for Russian gas deliveries and that a new delivery scheme would be worked out. In the statement, Naftogaz also called on Gazprom to resume negotiations to achieve a mutually-beneficial agreement. Ukraine sits on the main transit route for Russia's gas exports to Europe, where yearly a quarter of Europe's gas comes through Ukraine. A similar dispute between Moscow and Kiev sent jitters into European customers in 2006 as Gazprom cut all gas supplies to Ukraine.

Source: http://news.xinhuanet.com/english/20...nt_7718326.htm

[Armenian]

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Russia hopes for "peaceful settlement" of violence in Armenia

Russia said Monday it hoped for a 'peaceful settlement' in Armenia after violent clashes between police and protestors that left eight dead. The Foreign Ministry statement expressing 'heartfelt condolences' was the first comment from Moscow on the 14-days of mass unrest in the post-Soviet state that is Russia's closest ally in the Caucasus. President Vladimir Putin was the first foreign leader to congratulate Prime Minister Serzh Sarkisian - seen as the establishment and Moscow-friendly candidate - for his outright victory in the first round of presidential elections. Putin described Sarkisian's win as 'contributing to the stability in the Caucasus.'

Days of thousands-strong opposition protest calling the February 19 vote rigged culminated in overnight clashes with security forces that left eight people, including one policeman, dead on Sunday. Armoured vehicles and troops with assault rifles were patrolling the capital Yerevan after outgoing President Robert Kocharian declared a 20-day state of emergency, in the wake of the violence. The Russian Foreign Ministry said Monday it 'hoped that the measures taken by the Armenian leaders will bring about the settlement of the domestic political situation ... ensuring the security of the Armenian people and the country's stable development.' The Russian embassy in Yerevan said Russian citizens were among those injured on the weekend, news agency Interfax reported. Local media reported dozens of injured opposition supporters of failed presidential candidate Levon Ter-Petrosian, while the police said 33 of its members were hurt. The small Caucasus state of 3.2 million has emerged as a strategically important region, lying along gas routes from the energy-rich Caspian Sea region to Europe.

The United States also has an interest in competing with Russian influence in the country because of Armenia's proximity to Iran and the presence of a Russian military base. Western powers fear instability in the region could disrupt gas routes and further undermine a fragile security situation with Armenia's neighbours. Landlocked Armenia faces blockades along two of those borders with Azerbaijan over a protracted territorial dispute and with Turkey, which has been angered by Yerevan's lobbying for international recognition of the killing of Armenians by the Turkish Ottoman Empire as a genocide. Sarkisian is expected to keep the line set by his political mentor incumbent Kocharian during his decade at the helm, particularly strong ties with Russia, to offset its difficult relations in the region. Kocharian on Monday congratulated Kremlin favourite Dmitry Medvedev on his landslide victory in Russian presidential elections. 'Armenia highly appreciates partnership relations of the two countries and their strategic cooperation in all directions,' Kocharian was quoted by Interfax as saying.

The weekend violence was the worst in Armenia's post-Soviet history, causing opposition leader Ter-Petrosian to call for a 20-day halt to demonstrations, abiding by the rules of the emergency law. But he promised to renew protest at the end of the interval. Ter-Petrosian refuses to accept official results which showed him with 21.43 per cent of the vote, far behind Sarkisian who won just over the 50-per-cent hurdle needed to avoid a run-off with the second-place finisher. The opposition has lodged an appeal with the Constitutional Court to invalidate the results, complaining of mass voting violations, including the beating and kidnapping of its supporters at the polls. Meanwhile, the Organization for Security and Cooperation in Europe's vote-monitoring arm declared the elections mostly in adherence with international standards.

Source: http://news.monstersandcritics.com/e...nce_in_Armenia

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Russian bomber again intercepted near U.S. Navy ship

A Russian bomber aircraft approached a U.S. aircraft carrier off the Korean coast on Wednesday and was intercepted by American fighter jets -- the second such incident in less than a month, U.S. defense officials said. According to the U.S. officials, a Russian bomber came within three to five nautical miles and flew 2,000 feet (610 meters) above the USS Nimitz aircraft carrier and its accompanying ships. Two U.S. F/A-18 fighters were launched to intercept the Russian aircraft and escort it out of the area, according to one defense official. Russian bombers over the past year have increased their flights near U.S. territory and U.S. naval assets, demonstrating their long-range strike capability. In February, two Russian bombers approached the Nimitz near Japan and one flew over the carrier, escorted by a U.S. fighter jet. That was the first Russian overflight of a U.S. carrier since 2004. Those operations come as Russian officials say they will revive some of the military power and reach allowed to collapse with the Soviet Union. U.S. defense officials on Wednesday said they did not consider the Russian bomber flight a threat or concern.

Source: http://news.yahoo.com/s/nm/20080305/...y_dc&printer=1

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Q&A: Why Europe needs Russian gas

The threat from Russian state monopoly Gazprom to cut off the gas flow to one of its neighbours, Ukraine, has again raised questions about the security of Europe's energy supply.

Why is this a worry for European countries?

Gazprom controls about a third of the world's gas reserves and it is responsible for a quarter of Europe's supplies. Most of Europe's gas is piped via Ukraine, and when Gazprom shut down the pipeline in 2006, the flow to the rest of Europe fell, in some areas, by 40%.

Is the latest deal between the two presidents the end of the matter?

For the moment, yes. President Putin has said that Gazprom is satisfied with Kiev's commitment to begin paying its bills. Gazprom says Ukraine amassed debts of $1.5bn since November 2007, while Kiev argues the figure is closer to $1bn. But it is the way payments are made that is at the heart of the dispute and that may not have been resolved. The debt is owed not to Gazprom but a subsidiary RosUkrEnergo, part-owned by two Ukrainian businessmen. Ukrainian Prime Minister Yulia Tymoshenko wants an end to the system that allows RosUkrEnergo to import the gas and another intermediary, UkrGasEnergo, to sell it. Gazprom says it is prepared to negotiate once the bills are paid.

Is this politics or economics?

Analysts in Moscow say it is all about cash, and Western Europe has dramatised it as a political dispute. But Europeans are edgy. It seemed odd that the threatened cut-off coincided with a rare visit to Moscow by Ukrainian President Viktor Yushchenko. Ukraine's ambition to join Nato was as high on the agenda as the Gazprom crisis.

Is Moscow doing anything to secure Europe's supply?

Gazprom has embarked on plans for pipelines that bypass Ukraine and Belarus, former Soviet states which are currently essential for transit. Gazprom has two major projects, Nord Stream and South Stream. Nord Stream will run for 1200km along the bed of the Baltic Sea, and South Stream under the Black Sea. Gazprom has signed up big European partners: Italy's ENI for South Stream, and German companies E.ON Ruhrgas and Wintershall - along with Dutch provider Gasunie - for Nord Stream.

Is the EU happy about relying on Russian gas?

The EU has major concerns about security of supply and is moving ahead with a pipeline plan of its own. Nabucco will bring gas from Central Asia and the Caspian across Turkey into the European Union. But it will have only enough capacity to provide a small proportion, perhaps 5%, of Europe's needs.cSo Europe needs Gazprom, and that is why European companies and their governments have actively embraced the two projects. Austria is likely to serve as a hub for both. EU officials say that even during the Cold War the Russian gas supply was stable, so it is better to rely on Gazprom than potentially unstable sources such as Turkmenistan and Uzbekistan.

Source: http://news.bbc.co.uk/2/hi/europe/7240462.stm

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

Although it does not have any oil or gas reserves, Armenia today is playing an integral part within the region's "Great Game." With Moscow pressing the West with its virtual monopoly of Central Asian gas and oil distribution networks, western projects such as the Nabucco and the Baku-Ceyhan are gaining great strategic importance. So, why was did the West not jump on the Levon Ter-Petrosian bandwagon? Most probably this was because the West knew Levon could not succeed against the well organized authorities in Yerevan and the resulting chaos, if any, could potentially undermine Armenia's political stability. And in the eyes of many political analysts, an unstable Armenia could mean resumption of war in the Caucasus - a risk no one today is willing to take. These are some of the geostrategic factors that shape regional politics. These are the factors that the "people" need to be educated about.

Armenian

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Troubling news from the Caucasus

Bloodshed in Armenia worries both Russia and the West

THE day after Dmitry Medvedev's presidential victory, Moscow's leading papers turned their attention away from the long-predicted result to the unexpected bloodshed in Armenia. At least eight people were killed in clashes between security forces and opposition supporters protesting against alleged fraud in the country's presidential elections. “An election won with some blood”, ran the headline in Kommersant, a leading business daily. Small, complicated and with names that are hard to spell, Armenia has long been out of the mainstream of world news. Yet what happens in this country has implications not only for the whole of the Caucasus, a region vital for Europe's energy security, but also for Russia. The story of rigged elections, corrupt officials and dead protesters is particularly unnerving for Russia, a country that prides itself on its stability. On February 19th Armenia held presidential elections. The incumbent prime minister, Serzh Sarkisian, assisted by a biased media and occasional stuffing of the ballot boxes, won 53% of the vote. If the election had been conducted fairly, there is a good chance he would have faced a second round and a possible defeat. But Mr Sarkisian had the backing of Robert Kocharian, the current president, which swung the result. (Mr Kocharian, it is said, fancies the job of prime minister—not unlike his Russian counterpart.)

International observers did not cover themselves in glory. The Organisation for Security and Co-operation in Europe pointed out many shortcomings, yet said in an initial statement that the ballot was “mostly in line with the country's international commitments”. The opposition, led by Levon Ter-Petrosian, an academic and Armenia's first president, demanded a re-run of the election. His supporters took to the streets. Mr Ter-Petrosian is no democratic angel. In 1996 he is widely believed to have rigged the presidential election in his favour. Still, those who voted for him this time did so largely in protest against the local mafia, corruption and unemployment now associated with Mr Kocharian. For 11 days the government put up with the peaceful protest. But on March 1st, the police moved in on the pretext that protesters were carrying firearms, which some observers say were planted. Mr Ter-Petrosian was placed under de facto house arrest and the crowd was dispersed. Predictably it regrouped and gathered in front of the French embassy in Yerevan. Mr Kocharian sent in the army, and the area was soon lit up with tracer fire. Eight people were killed, cars were torched and shops were looted. Many protesters were armed with stones and metal poles. But the responsibility ultimately lies with the government which allowed the situation to deteriorate into chaos. The state of emergency now imposed by Mr Kocharian for 20 days, including a media blackout and the arrest of opposition figures, may temporarily suppress the protests, but it is unlikely to resolve the underlying problems. These include corruption, low living standards and an economic blockade by Azerbaijan and Turkey because of Nagorno-Karabakh, the Armenian-populated enclave inside Azerbaijan that was conquered by Armenia in 1994. This conflict has long been frozen. But three days after the violence in Yerevan, Armenian and Azerbaijani forces were involved in their worst firefight in a decade. Both Armenia and Azerbaijan accuse each other of starting the skirmish, which caused a disputed number of deaths on both sides.

Claiming that Kosovo's declaration of independence last month has emboldened Armenian separatists, Azerbaijan's president, Ilham Aliev, has given warning that he is buying weapons to retake Nagorno-Karabakh by force, if necessary. A renewed war could destabilise the region and jeopardise a strategic oil pipeline to Turkey that runs only 15 kilometres (ten miles) from the ceasefire line. Nagorno-Karabakh remains an open sore. Mr Ter-Petrosian's downfall in 1998 was mainly caused by his hints of a more flexible approach to a peace settlement with Azerbaijan. Both Mr Kocharian and Mr Sarkisian are from Nagorno-Karabakh and fought in the war, but they have done little to move towards peace. In a recent commentary in the Washington Post, Mr Ter-Petrosian dismissed the notion that only hardliners from Nagorno-Karabakh can solve the conflict. Indeed, he argues that Mr Sarkisian, whose presidency is now marred by bloodshed and incompetence, will be even less able to govern. Russia and the West have an interest in Armenia's stability, and they need to work to maintain it. This could be Mr Medvedev's first foreign test as president.

Source: http://www.economist.com/world/europ...ry_id=10809006

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Moscow becomes world's billionaire capital - Forbes

Moscow now has 74 billionaires with average wealth of $5.9 bln, placing it above New York, Forbes Magazine said in its annual rich list published on Thursday. According to the list, New York has 71 billionaires, followed by London with 36, Istanbul with 34 , and Hong Kong with 30. Russia is second only to the United States in the number of its super-rich. An additional 35 Russians have crossed the $1 bln mark in the past year, helped along by the continued rise of the ruble against the dollar. "Sixteen years after the collapse of the Soviet Union, Russia, with 87 billionaires, is the new No. 2 country behind the U.S., easily overtaking Germany, with 59 billionaires, which held the honour for six years," said Forbes associate editor Luisa Kroll. The Unites States accounts for 469 (42%) of the world's billionaires. Topping the list of Russia's billionaires is Oleg Deripaska with $28 bln, placing him ninth in the world, ahead of the more famous Roman Abramovich with $23.5 bln, in 15th place. Deripaska's holding company Basic Element owns huge assets in insurance, auto manufacture, and aluminum, while Abramovich, since selling his oil company Sibneft to Russian state-controlled gas giant Gazprom in 2005, has bought up steel and mining assets. He also owns Chelsea Football Club. Russia's richest woman remains Elena Baturina, the 45-year-old second wife of Moscow Mayor Yury Luzhkov, 71. Forbes estimates that she has added $1.1 bln to her personal wealth in the past year, bringing it up to $4.2 bln and putting her in 253rd place globally. Baturina founded Inteko in 1991, which became Moscow's largest construction firm in the years after her husband became mayor. In late 2006 she sued the Russian edition of Forbes over a cover story. The world's richest man this year is U.S. investor and philanthropist Warren Buffet, ousting his friend Bill Gates from the top spot, which the Microsoft founder had held for 13 years. The two reportedly play regular games of online bridge together, and Buffet has pledged most of his wealth to the Bill & Melinda Gates Foundation, a charity focused on healthcare improvement and poverty reduction. Buffet's wealth has shot up to $62 bln with the stock growth of his holding Berkshire Hathaway, while Gates is now worth $58 bln, $2 bln more than last year, putting him in third place. In second place is Mexican telecoms tycoon Carlos Slim with an estimated $60 bln.

Source: http://en.rian.ru/russia/20080306/100793187.html

[Armenian]

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Putin Backs Armenian Crackdown

Russian President Vladimir Putin voiced support Thursday for the Armenian government's crackdown on the opposition that comes in the wake of a disputed presidential election. Putin's backing contrasted with calls by the United States and others in the West for Armenia's president to lift a state of emergency imposed in the wake of weekend clashes between protesters and security officials that left eight people dead and more than 100 injured. Speaking by telephone with outgoing Armenian President Robert Kocharian, Putin "expressed certainty that the efforts made by the Armenian leadership will serve to provide for constitutional order," the Kremlin said. The bloodshed was the worst political crisis to hit this strategically located, volatile former Soviet land in nearly a decade. Armenia has close ties with Russia, which maintains a military base in the Caucasus Mountain nation. The government crackdown came after round-the-clock protests by opposition supporters alleging fraud in the Feb. 19 election. Official results put the opposition candidate, Levon Ter-Petrosian, a distant second to Prime Minister Serge Sarkisian, Kocharian's favored successor. Kocharian declared the 20-day state of emergency Saturday night, following a day of clashes that erupted when police broke up an opposition tent camp, then used tear gas and fired in the air to disperse thousands of demonstrators. More than 100 people were detained during the protests and in their aftermath and several have been formally arrested, including top allies of Ter-Petrosian.

Source: http://ap.google.com/article/ALeqM5g...zRKywD8V89RJ80

[Armenian]

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Armenia-Russia relations have rich future - Sarkisyan

Armenian-Russian relations have a rich future, in the view of Armenian Prime Minister Serzh Sarkisyan who has been elected President. “Armenian-Russian relations have a rich past, very good present and I’ m certain, a rich future,” the president-elect stressed in an interview published by the Nezavisimaya Gazeta daily on Friday. “I’m glad with the fact that over the past five-seven years the trade turnover between our countries has grown several times. Russia is the main investor in the Armenian economy. Out of every three dollars invested in our state by foreign partners one dollar is Russia’s share,” Sarkisyan noted. “Russian businesses in Armenia are feeling very comfortable. Well-known Russian companies work in various spheres of our economy,” he said. Sarkisyan believes that in the sphere of politics the bilateral relations are also at a very high level: “They are of strategic partnership nature, which meets both the interests of Moscow and Yerevan. This is mutually advantageous cooperation.” At the same time the existing potential of relations between Armenia and Russia so far is not fully used not only in the sphere of politics and economy, but also in other spheres, believes Sarkisyan. Prime Minister Serzh Sarkisyan was elected new President of Armenia, Armenian Central Election Commission (CEC) Chairman Garegin Azaryan said on December 20 after 100 percent of ballots were counted. According to preliminary data, Sarkisyan got 52.86 percent of votes (863,544 electors). Levon Ter-Petrosyan got 21.5 percent (351,306 people) and Artur Bagdasaryan 16.6 percent (272,256 people).

Source: http://www.itar-tass.com/eng/level2....6654&PageNum=0

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Georgian leader slams Russia for lifting sanctions on Abkhazia

Georgia's president has called Russia's decision to lift sanctions from Georgia's breakaway republic of Abkhazia illegal. "This is an immoral and illegal decision. A most serious provocation aimed at destabilizing the situation in the Caucasus that will lead to an unpredictable development of events," Mikheil Saakashvili said. Russia lifted trade, economic, financial and transport sanctions against Abkhazia Thursday, and urged other CIS countries to follow suit. The CIS is an alliance of former Soviet republics. "We declare zero tolerance regarding Abkhazia's militarization. All responsibility for these actions will lie with the Russian leadership," Saakashvili said, adding that the sanctions first of all included a ban on bringing armaments, troops and foreign military instructors into the unrecognized republic.

The parliament of Abkhazia appealed Friday to the United Nations and Russia to recognize its independence, citing Kosovo as a precedent. "The unrecognized republic has established itself as an independent, democratic state," the statement said, adding that the recognition of Kosovo by the U.S. and the majority of European countries in mid-February had irrevocably altered the geopolitical situation. Abkhazia and another self-proclaimed republic, South Ossetia, with populations of about 200,000 and 100,000 respectively, were involved in bloody conflicts with Georgia after proclaiming independence following the split-up of the Soviet Union in 1991. Georgian Foreign Minister David Bakradze told Georgian media in Belgium that Tbilisi's official position on the issue will be announced at a special press conference to be held by Georgia's representative to the UN. Georgia, which has sought to regain control over the separatist republics, called Russia's decision to lift economic sanctions against Abkhazia "a blunt attempt to violate its sovereignty and territorial integrity." It also threatened retaliatory measures to protect its interests. On Friday, it summoned the Russian ambassador to Georgia to register a protest over Moscow's actions.

Moscow has repeatedly said the recognition of Kosovo will set a precedent for other breakaway regions, including in the former Soviet Union. Russia's lower house of parliament, the State Duma, is to discuss Abkhazia and South Ossetia on March 13. Justifying its decision on Thursday, Russia cited "a change of circumstances" and blamed Georgia for a "non-constructive" policy toward Abkhazia. Moscow said preserving the sanctions no longer made sense and "is harmful for the region's socio-economic development." Analysts said the Kremlin's decision to restore trade ties with Abkhazia was partially prompted by plans to use the neighboring Black Sea region's resources to build an Olympic infrastructure in the resort of Sochi for the 2014 Winter Games. Russia will also not now have to justify the acquisition of land and property in Abkhazia.

Source: http://en.rian.ru/world/20080307/100951292.html