Gazprom to control Serbia’s oil

Serbia is being offered a secure gas supply in return for its oil monopoly

Russia and Serbia have signed a controversial energy deal that will hand Russian gas giant Gazprom control of NIS, Serbia’s oil monopoly.

Under the deal, Gazprom is to build a gas pipeline through Serbia and an underground gas storage facility there.

Russia’s President Dmitry Medvedev and his Serbian counterpart Boris Tadic signed the agreement in Moscow.

The plan is for Serbia to host part of a new pipeline called South Stream, to deliver Russian gas to southern Europe.

Gazprom is taking a 51% stake in NIS for 400m euros (£380m; $560m), officials say.

Diplomatic tensions

Both countries signed an energy co-operation agreement in January, but the details have only just been finalised. Belgrade had delayed signing because a small party in Serbia’s ruling coalition had argued that the terms on offer to Gazprom were too generous.

Critics say Russia’s pledges to build South Stream by 2015 are not firm enough, given the current economic downturn.

South Stream is designed to take Russian gas under the Black Sea to Bulgaria and then to Serbia for transit towards the lucrative markets of southern Europe.

Washington and the European Union are backing a rival pipeline project called Nabucco, to bring gas from Central Asia, which would bypass Russia.

Correspondents say the planned pipeline could undermine the European efforts, which aim to reduce European dependency on Russian gas.

Serbia’s energy diplomacy is complicated by the fact that Nabucco has EU backing – yet Serbia wants to join the EU.

Political tensions over Kosovo are also a complicating factor, with the EU supporting Kosovo’s independence, while Belgrade and Moscow insist the territory remains part of Serbia.

Ukraine ‘must live without fear’

Mr Cheney aims to strengthen ties with Russia’s neighbours

US Vice-President Dick Cheney has said Ukraine has the right to live without fear of invasion, adding that the US stands by its bid for NATO membership.

Mr Cheney met both the prime minister and president in Kiev, the last stop of a tour aimed at underlining support for US allies in the former Soviet Union.

Mr Cheney reassured the president that the US had a “deep and abiding interest” in Ukraine’s security.

Analysts fear Ukraine could be the next flashpoint between Russia and the West.

“We believe in the right of men and women to live without the threat of tyranny, economic blackmail or military invasion or intimidation,” Mr Cheney said, in an apparent reference to Russia’s military intervention in Georgia.

‘Hostage’

Mr Cheney arrived in Ukraine just days after the country was plunged into political turmoil.

Earlier this week, Prime Minister Yulia Tymoshenko’s party blocked a motion condemning Russia’s actions in Georgia, and sided with the opposition to vote for a curb on the president’s powers.

Members of President Viktor Yushchenko’s party walked out of the coalition government in protest, leading the president to warn that he could be forced to call a snap general election.

Mr Cheney urged the politicians to heal their divisions and be “united domestically first and foremost”.

“Ukraine’s best hope to overcome these threats is to be united,” he said following separate meetings with Mr Yushchenko and his former ally turned political rival, Yulia Tymoshenko.

Mr Cheney expressed support for Ukraine’s bid to become a member of Nato.

“Ukrainians have a right to choose whether they wish to join Nato, and Nato has a right to invite Ukraine to join the alliance when we believe they are ready and that the time is right,” he said.

Russia is strongly opposed to any further expansion eastwards of Nato, and is furious that Ukraine and Georgia have been told that, one day, they will be offered membership.

But Mr Cheney – recognizing Ukraine’s contributions to NATO missions in Afghanistan and Kosovo – said that no country beyond NATO would be able to block Ukraine’s membership bid.

President Yushchenko says Ukraine is a hostage in a war waged by Russia against ex-Soviet bloc states.

The strategically-located country is important to Russia, with pipelines that carry Russian gas to European consumers and its Black Sea port, home to a key Russian naval base.

Russia has a powerful tool at its disposal, namely the large ethnic Russian population in Ukraine’s southern province of Crimea.

Open aggression

Mr Yushchenko has restricted Russia’s naval operations, and insists Moscow must leave when an inter-state treaty expires in 2017.

Ukraine has said it is ready to make its missile early warning systems available to European nations following Russia’s conflict with Georgia.

Mr Cheney’s visit comes at an awkward time for President Yushchenko, with the country’s largely pro-Western ruling coalition divided in its attitude toward Russia.

The leaders’ faltering relationship has now boiled over into open aggression, with Mr Yushchenko threatening to dissolve parliament and call a snap election.

The president has been a staunch supporter of his Georgian counterpart, Mikhail Saakashvili.

But Ms Tymoshenko has avoided outright condemnation of Russia, leading analysts to suggest she may be hoping for Moscow’s backing in a possible bid for the presidency in 2010.

Russia accused of abusing truce

Shoulder and helmet badges mark out Russia’s peacekeepers

The US and France have accused Russia of failing to comply with the terms of its ceasefire with Georgia by creating buffer zones and checkpoints.

Russia announced the full withdrawal of combat forces from Georgia proper on Friday but insisted hundreds of other troops could stay under the ceasefire.

France brokered the ceasefire to end fighting over Georgia’s pro-Russian breakaway province of South Ossetia.

Its terms are vague about the extent of any buffer zones, analysts say.

A White House spokesman, Gordon Johndroe, said the checkpoints and buffer zones set up by Russia were not part of the ceasefire agreement.

A spokesman for the French foreign ministry, Eric Chevalier, said a United Nations Security Council resolution was needed to clarify exactly what the ceasefire agreement covers.

The Russian military say they intend to maintain a peacekeeping presence in Georgia, controlling buffer zones around both South Ossetia and the other breakaway province, Abkhazia.

The zones include sections of the main highway from the capital Tbilisi to the Black Sea as well as Georgia’s main airbase at Senaki.

‘Clearly stated’

US President George W Bush and his French counterpart Nicolas Sarkozy agreed in a telephone conversation on Friday that Russia was “not in compliance [with the ceasefire] and that Russia needs to come into compliance now”, Mr Johndroe said.

“Compliance means compliance with that plan,” he added.

“We haven’t seen that yet. It’s my understanding that they have not completely withdrawn from areas considered undisputed territory, and they need to do that.”

PEACE PLAN No more use of force Stop all military actions for good Free access to humanitarian aid Georgian troops return to their places of permanent deployment Russian troops to return to pre-conflict positions International talks about security in South Ossetia and Abkhazia

“Establishing checkpoints, buffer zones, are definitely not part of the agreement,” US state department spokesman Robert Wood added.

The French spokesman told that the ceasefire had stipulated that Russia’s forces “should go back to the situation before the hostilities started”.

“The idea is that, yes, for a temporary period some Russian peace forces could stay on… next to the [border] line of Ossetia but it’s temporary, it should be for patrolling and it should be until we have an international mechanism,” Mr Chevalier said.

“It was clearly stated that this presence first has to be through patrolling, no fixed presence and, second, should not have an effect on the freedom of movement on roads and trains in this place.”

The UN Security Council split this week over a resolution, with rival drafts submitted by Moscow, and the US and its allies.

Western diplomats fear that Moscow is determined to define the parameters of the interim security arrangements on its own terms.

Part of the problem, he adds, is the extraordinary vagueness of the EU-brokered ceasefire deal, which speaks only of “additional security measures” in “the immediate proximity of South Ossetia” – proximity being defined as a distance of “several kilometers”.

‘Zone of responsibility’

Moscow intends to maintain a peacekeeping presence of nearly 2,600 troops in the buffer zones for the foreseeable future, backed by armoured cars and helicopters.

Of these, 2,142 will be deployed along Abkhazia’s de facto border and 452 on the de facto border of South Ossetia, the Russian military said.

Russia’s so-called “zone of responsibility” also includes Georgia’s main airbase at Senaki, some 40km (25 miles) from the boundary with Abkhazia, which sits astride vital road and rail links to the Black Sea port of Poti.

Correspondents on the ground say they have seen what appears to be a significant Russian troop movement out of Georgia.

Correspondents in Igoeti – just 35km (21 miles) from the capital, Tbilisi – says he saw Russian troops leave the town, joining a column of hundreds of armoured vehicles on the road towards South Ossetia.

Our correspondent says buses of Georgian police are arriving in Igoeti to take control after Russian troops removed their roadblocks and pulled out.

But another correspondent in the nearby town of Korvaleti says Georgian police vehicles there are still being blocked at checkpoints.

Russia’s four-day war with Georgia began after Tbilisi tried to retake South Ossetia – which broke away in 1992 – in a surprise offensive on 7 August.

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Russia to keep posts in Georgia

A senior Russian general says Moscow intends to maintain a military presence of more than 2,000 troops in Georgia.

Gen Anatoly Nogovitsyn said Russian forces would be stationed around the breakaway regions of Abkhazia and South Ossetia, the focus of recent conflict.

Correspondents on the ground say they have seen what appears to be a significant troop movement from Georgian positions to South Ossetia.

Georgia has said it will not accept any “annexation” of its land by Russia.

Russia’s land forces commander earlier said that all Russian combat troops would be moved back from Georgia proper to South Ossetia by the weekend and that most of the soldiers sent to the region as reinforcements would return to Russia within 10 days.

Correspondent says he has witnessed hundreds of Russian armored vehicles, including tanks and armored personnel carriers, withdrawing from the town of Igoeti, about 35km (21 miles) from the Georgian capital, Tbilisi.

Our correspondent says buses of Georgian police are arriving to take control after Russian troops removed their road block and pulled out.

There are also reports of a pull-back from the Georgian flashpoint town of Gori to South Ossetia.

‘Snail’s pace’

At a briefing in Moscow, the deputy chief of the Russian military general staff, Gen Nogovitsyn, said the withdrawal of all combat troops was going according to plan.

“The troop pull-back has been started at a rate to make sure that the Russian troops be within the zone of responsibility of the Russian peacekeeping contingent by the end of 22 August,” he said.

“We are not going to correct this plan or increase the speed of withdrawal.”

Gen Nogovitsyn said Russian troops were setting up checkpoints on the borders of South Ossetia and Abkhazia with Georgia.

The so-called zone of responsibility also includes Georgia’s main airbase at Senaki, and cuts across Georgia’s main east-west highway, which stretches from Tbilisi to the Black Sea.

Russian officials say the zone was established in principle in an agreement between Russia and Georgia which pre-dates this month’s conflict, but was never put into force.

Georgian State Minister for Reintegration Temur Iakobashvili told Reuters that such a zone was “a violation of any agreement”.

PEACE PLAN No more use of force Stop all military actions for good Free access to humanitarian aid Georgian troops return to their places of permanent deployment Russian troops to return to pre-conflict positions International talks about security in South Ossetia and Abkhazia

Russia’s four-day war with Georgia began after Tbilisi tried to retake the Moscow-backed breakaway province of South Ossetia on 7 August, following days of clashes with separatists.

The fighting ended with an EU-brokered ceasefire deal, and a promise by Moscow to pull back its forces by 22 August.

But the commander of US forces in Europe, Gen John Craddock, said Russia was taking too long to pull back, saying “if they are moving, it is at a snail’s pace”.

The first of the Russian Black Sea Fleet warships, which have been deployed off the west coast of Georgia’s province of Abkhazia, has returned to its base at Sevastopol in Ukraine.

Ukraine’s President Viktor Yushchenko criticised Russia’s use of ships from the base leased to Moscow, saying there was a danger of his country being passively drawn into an international conflict against its will. Protesters reportedly greeted the ship’s return on Friday.

The United Nations High Commissioner for Refugees, Antonio Guterres, has arrived in the capital of South Ossetia, Tskhinvali, to assess the humanitarian situation there.

Thousands of civilians are reported to be in urgent need of relief supplies.

The UN estimates that nearly 160,000 people have been displaced across the whole of Georgia since the conflict began.

The Georgian government is seeking $1-2bn (£0.5-1bn) in aid to repair and develop infrastructure following the conflict with Russia, the head of the US government aid agency, USAid, said. The World Bank has also announced that it is sending a team of experts to the country to assess its reconstruction needs.

‘War with Nato’

Diplomatic efforts at the UN have reached deadlock over rival resolutions on the crisis from France and Russia.

Thousands of civilians are reported to be in urgent need of relief supplies

Russia has reiterated its opposition to a rival French text, which reaffirms Georgia’s territorial integrity.

Georgia’s President Mikhail Saakashvili told the BBC he would never accept what he called Russia’s “annexation of its territory”.

He warned that Russia’s involvement in South Ossetia, Abkhazia and Georgia were intended to send a strong message to the West.

“If Nato fails now to come up with a united response, nobody’s safe, even if they are in Nato already,” he said.

“It’s all about reconsidering the role of Nato, the role of international law and borders in this part of the world. This is no longer about Georgia anymore.

“Russia decided to win war with Nato without firing a single shot at it.”

A Nato spokeswoman says Russia’s defence ministry has decided to halt all military co-operation with the bloc to protest at what Moscow calls the alliance’s biased, pro-Georgian view of the conflict.

The move by Moscow followed a Nato statement that there would be no “business as usual” with Moscow unless its troops pulled out of Georgia.

Rebels push to sever Georgia ties

Russian TV showed a huge crowd at the rally in Abkhazia

The separatist leaders of Georgia’s breakaway regions of Abkhazia and South Ossetia have urged Russia to recognize their independence, at mass rallies.

Russian Foreign Minister Sergei Lavrov said Moscow’s response to their pleas would depend on the conduct of Georgian President Mikhail Saakashvili.

Russia says it will keep troops in a security zone around South Ossetia.

The zone will stretch several km into Georgia proper. Russia also plans to reinforce its South Ossetia force.

“Tomorrow, eight checkpoints will be established in the security zone in which 500 peacekeepers will be deployed, no more than that,” said Mr Lavrov, quoted by Reuters news agency.

It is still not clear to what extent Russian military forces have withdrawn from Georgia, despite Moscow’s promise to pull out most of its troops by the end of Friday.

Russian troops moved far into Georgia from the breakaway regions

Russian news agencies say an armored column, consisting of more than 40 vehicles, has passed through South Ossetia, on its way to the Russian border.

A correspondent in the Georgian village of Igoeti, just 35km (21 miles) from the capital Tbilisi, said he saw the Russian military pulling back towards South Ossetia early on Thursday afternoon. Russian forces were also reported still to be dug in around Georgia’s main Black Sea port of Poti.

Russia poured troops into Georgia after Georgian forces tried to retake South Ossetia on 7 August. Russian-led peacekeeping troops had been deployed there since a war in the early 1990s.

Thousands of people attended pro-independence rallies in the Abkhaz capital Sukhumi and war-ravaged South Ossetian capital Tskhinvali on Thursday.

The world-renowned conductor Valery Gergiyev – himself an Ossetian – plans to give a concert in South Ossetia with his St Petersburg orchestra on Thursday.

Chill in NATO-Russia ties

Meanwhile, Russia says it is reviewing its co-operation with NATO, which has insisted that Moscow pull its troops out of Georgia, in line with a French-brokered ceasefire agreement.

PEACE PLAN No more use of force Stop all military actions for good Free access to humanitarian aid Georgian troops return to their places of permanent deployment Russian troops to return to pre-conflict positions International talks about security in South Ossetia and Abkhazia

Nato said on Tuesday there could be no “business as usual” with Moscow.

At an emergency meeting, NATO suspended formal contacts with Russia because of the Russian military presence in Georgia.

“Relations with NATO will be reviewed,” Russian Deputy Foreign Minister Alexander Grushko was quoted as saying by Interfax news agency on Thursday.

“This will apply to the military co-operation programme,” he said.

Nato has accused Russia of failing to respect the truce, which requires both Russian and Georgian forces to pull back to the positions they held before heavy fighting erupted in South Ossetia.

On Wednesday, Norway’s defence ministry said Russia had informed Norwegian diplomats that it was planning to freeze co-operation with Nato.

Norway’s Aftenposten newspaper said Oslo was trying to establish exactly what impact the Russian decision would have on existing co-operation, such as joint rescue operations and border controls. Norway shares a border with Russia in the Arctic.

A statement from the Norwegian defence ministry said: “Norway notes that Russia has decided that for now it is ‘freezing’ all military co-operation with Nato and allied countries.

“We expect that this will not affect planned activities in the areas of coastguard operations, search and rescue and resource management, because on the Russian side these are handled by civilian authorities.”

Russia has not yet given Norway formal written notification about its suspension of co-operation, a ministry spokesperson said.

Russia’s permanent envoy at Nato headquarters in Brussels, Dmitry Rogozin, has been recalled to Moscow for consultations, Russia’s Itar-Tass news agency reports.

He said that in light of Nato’s position on the Georgia conflict, relations with Nato “really cannot remain as before”, but he added that “there will not be a cold war”.

A state secretary in Norway’s defence ministry, Espen Barth Eide, said “there’s no doubt that our relationship to Russia has now chilled”.

Ukraine offers West radar warning

Mr Yushchenko said only a collective security pact could protect Ukraine

Ukraine has said it is ready to make its missile early warning systems available to European nations following Russia’s conflict with Georgia.

The foreign ministry said Moscow’s abrogation earlier this year of an accord involving two tracking stations allowed it to co-operate with others.

President Viktor Yushchenko said his country could ensure its sovereignty only through collective security.

Last week, Kiev limited the freedom of movement of Russia’s Black Sea Fleet.

The move came after several of the fleet’s warships, based at Sevastopol in Ukraine’s Crimea’s peninsula, were deployed along the Georgian coastline.

Moscow denounced the restrictions as anti-Russian and said its military commanders would answer only to the Russian president.

‘Unprecedented situation’

In a statement, Ukraine’s foreign ministry said that because the country was no longer party to the 1992 agreement with Russia on the use of its radar stations, it could now “launch active co-operation with European nations”.

Only a collective security system will provide the highest international guarantees… that could prevent any actions like those which occurred in… South Ossetia President Viktor Yushchenko

This might include “the integration of Ukrainian elements of missile early warning and space control systems with those of foreign countries that are interested in gathering space data”, it said.

Earlier this week, President Yushchenko issued a decree putting an end to Ukraine’s participation in the accord in view of Russia’s abrogation of it.

He said the situation was unprecedented and showed that his country could only ensure its national sovereignty through collective security.

Only that, he said, “could prevent any actions like those which occurred on 7-8 August at first in South Ossetia, and then in other regions of Georgia”.

The decision is evidence Ukraine is now more desperate to embrace the West as its fear of Russia intensifies and Moscow seemingly becomes more determined to prevent any neighboring states from joining Nato.

Russia clearly sees Nato as America’s sphere of influence, despite US President George W Bush’s insistence that it is a purely defensive alliance of sovereign democracies, our correspondent says.

Increasingly, the events of the past 10 days demonstrate Russia has gone back to arm-wrestling with its neighbours and the West after the immediate post-Soviet years, when it felt too weak, he adds.

Russian troops ‘start withdrawal’

Moscow’s troops continue to operate deep inside the Caucasus republic

The Russian commander of front line forces in Georgia has told that a gradual withdrawal of Russian forces from Georgia is under way.

Maj Gen Vyacheslav Borisov said he had given the order for Russian soldiers to be replaced by peacekeepers.

Russian forces in position 35km (22 miles) from the Georgian capital, Tbilisi, on the road to Gori, close to South Ossetia.

Russia said it did not have a timetable for a full withdrawal from Gori.

Russia still controls almost all of the main arterial highway running east-west through Georgia, and the main towns along the route.

Russia’s claimed redeployment comes a day after Moscow signed a French-brokered peace plan to end the crisis.

Conflict between Georgia and Russia erupted on 7 August when Georgia launched an assault to retake its Russian-backed separatist province of South Ossetia.

It led to a massive counter-offensive by Russia, with Russia moving deeper into Georgian territory.

The US has demanded Russian troops pull out, but Moscow says it will only withdraw from Georgian territory once extra security measures are in place.

International attention

French President Nicolas Sarkozy, who mediated the peace deal on behalf of the European Union, has warned Moscow that the ceasefire bars its forces from any “major urban area” in Georgia.

However, in a letter addressed to his Georgian counterpart, Mikhail Saakashvili, Mr Sarkozy said Russian troops did have the right to patrol “a few kilometres” beyond the conflict zone in South Ossetia.

But he underlined that clauses in the agreement permitting Russia to implement additional security measures “in no way limit or put in danger the freedom of movement and travel along the road and rail axes of Georgia” and could not be applied in any towns or cities.

PEACE PLAN No more use of force Stop all military actions for good Free access to humanitarian aid Georgian troops return to their places of permanent deployment Russian troops to return to pre-conflict positions International talks about future status of South Ossetia and Abkhazia

“I am particularly thinking of the city of Gori,” he said, which is the largest town close to the South Ossetia border.

There is a much reduced Russian military presence in the town compared with Saturday – though Russian soldiers still control the town’s key entry and exit points.

He says that even if Russian peacekeepers replace soldiers, local residents say it will not make much difference.

Meanwhile, US President George W Bush has reiterated his staunch support for ally Georgia.

The German Chancellor, Angela Merkel, is due to hold talks with Mr Saakashvili in Tbilisi later on Sunday.

Meanwhile, Human Rights Watch has called on the Russian authorities to immediately take steps to end attacks by South Ossetian militias on ethnic Georgians in Gori and to allow vital humanitarian aid to reach vulnerable civilians.

“The Russian military has effective control of the Gori region, making it responsible for the security and well-being of all people living there,” said Rachel Denber, HRW’s Europe deputy director.

Russian control

The BBC’s Richard Galpin, who has spent the past two days traveling from the Black Sea port of Poti to Tbilisi, says Georgian forces seem to be surrendering control of the highway to the Russians.

The UN puts the number of those displaced in the conflict at 118,000

In the western town of Senaki, our correspondent saw large numbers of Russian troops moving around on Saturday.

Further east in Zestafoni, he witnessed the panic of local residents as the word spread that the Russian army was approaching.

Cars sped away from roadblocks set up by the Georgian police, the drivers realizing their hopes of reaching Tbilisi had been dashed.

When the Russians arrived, they stayed only a few minutes after apparently being told there was no military base to take over.

Our correspondent says he then followed the Russian troops as they entered the central town of Khashuri, where they were given an escort by the local police.

He spoke to one Russian soldier who said he believed their final destination would be the Georgian capital, although the Kremlin flatly denied this. Another soldier said he expected to be in Georgia for a year.

Georgia has meanwhile accused pro-Russian Abkhaz separatist fighters of taking over 13 villages and a hydroelectric power plant. There has so far been no independent confirmation.

Security steps

Among the six points in the ceasefire deal, both sides agreed to pull back their forces to their positions before hostilities began on 7 August.

Diplomats have said that the UN Security Council is expected to vote later on Sunday on a draft resolution formalising the ceasefire agreement.

President Bush has said Mr Medvedev’s signing of the truce is “hopeful”, but that there can be no question that South Ossetia and Abkhazia will remain within Georgian borders, which are internationally recognised.

Reports suggest Mr Saakashvili only reluctantly agreed to another of the plan’s clauses – international talks about the future status of South Ossetia and Abkhazia.

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