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111. Russia's Winter Woes: Tariff Setting for Local Utilities in a Transition Economy

Author:
Sergei Sivaev, Raymond J. Struyk, Valentin Andrianov, and Emin Askerov
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
During the past two winters, breakdowns in district heating services in Russia have grabbed international headlines. In Russia these services and water and sewerage services are the responsibility of municipal governments; these governments set the tariffs for these services. This article examines the tariff-setting process during 1997–2001 for these two services with particular emphasis on the decision process for considering tariff increases. We find that little progress has been made during the transition period in developing the legal base for rational tariff-setting procedures. Overall, tariff increases have been substantially less than the rate of inflation. Statistical analysis confirms that decisionmaking is highly politicized and that in times of extreme inflation tariff increases lag even further behind inflation, with the sector being used as a kind of shock absorber to cushion the full impacts of inflation on the population. There is an obvious acute need for leadership at the national level to address these problems.
Topic:
Development, Energy Policy, and Government
Political Geography:
Russia, Europe, and Asia

112. Transatlantic Energy Security and the Caspian Basin: Moving Towards a Common Agenda

Author:
Adam N. Stulberg and Hendrik Cosijn
Publication Date:
08-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Once considered an impediment to stable development and a catalyst for a new “Great Game,” Caspian energy may play a stabilizing role in world markets and geopolitics after all. With the West's growing dependence on hydrocarbon imports, growing tensions in the Middle East, and Moscow's emergence as a major player in 21st century energy politics, the Caspian region is poised to become a focal point for cooperation between the United States, Europe, and Russia. Policymakers in Washington, Brussels, and Moscow share a common interest in preventing the Caspian Basin from lapsing into another Persian Gulf, where windfalls in oil revenues have fueled instability and extremism. They also recognize that efforts to extract and export Caspian energy must advance regional development and stability. Thus far, however, shared interests have not yielded real transatlantic partnership on Caspian energy issues. Different strategic orientations and preferred approaches for unlocking Caspian energy threaten to mar prospects for broadening and deepening transatlantic cooperation in the region. To date, the U.S., Europe, and Russia have pursued parochial interests in the Caspian Basin without much regard for each other. The time is ripe for American, European, and Russian policymakers to take stock of the burgeoning confluence of interests, mount a concerted effort to prevent backsliding, and cement a common agenda by forging a trilateral dialogue on Caspian energy issue.
Topic:
Security and Energy Policy
Political Geography:
Russia, United States, Europe, Washington, Asia, and Moscow

113. The United States, Europe, and Russia: Toward a Global Energy Security Policy

Author:
David L. Goldwyn
Publication Date:
08-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Together, the United States, Europe, and Russia can help to diversify the global energy supply by creating a Global Strategic Petroleum Reserve (GSPR) filled largely with oil from Russia and other states in the Caspian Basin. Such a move would mitigate U.S. and European dependence on Middle East oil and help to stabilize world oil prices. Other important beneficiaries of a GSPR would be the Asia-Pacific economies outside the OECD that currently lack strategic reserves. A GSPR offering access to China and other Asian economies would help anchor these states in an important, positive-sum arrangement that highlights shared energy security interests with Russia and the West. If managed responsibly, creating the GSPR will not antagonize OPEC countries, which themselves benefit from stable energy markets. Moreover, developing the GSPR will encourage the reform and modernization of Russian and other transition countries' energy economies and give real substance to collaboration on energy issues between Russia, the EU, and the U.S. If coupled with close collaboration on Caspian energy development, the creation of a GSPR would make U.S. and EU energy ties with Russia and its neighbors sources of substantial, long-term strength.
Topic:
Security and Energy Policy
Political Geography:
Russia, United States, Europe, Middle East, and Asia

114. Shusha's Pivotal Role in a Nagorno-Karabagh Settlement

Author:
Elchin Amirbayov
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Peace in Nagorno - Karabagh will demand painful compromises from both Armenia and Azerbaijan. A “winner's peace” — one that only reflects the military gains of one side — will not foster long - term resolution of the conflict. The Shusha region of Nagorno - Karabagh has special symbolic meaning for Azerbaijanis. A key element in obtaining Azerbaijani acceptance of a peace agreement is the return of the Shusha region to Azerbaijani control and the guaranteed right of internally displaced Azerbaijani persons to return to the Shusha region.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, Europe, Asia, Armenia, and Azerbaijan

115. A Russian Reporter in Chechnya: One Experience (Event Summary)

Author:
Anna Politkovskaya
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Anna Politkovskaya, special correspondent for Novaya Gazeta, covers the war in Chechnya, having spent two years on the ground there. In October 2001, she relocated to Vienna due to death threats she had received. Politkovskaya is presently being provided working space by the Institute of Human Sciences in Vienna.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, Europe, and Asia

116. Transcript of speech at Kennedy School: 'Searching for Security in a Changing World'

Author:
Eduard Shevardnadze
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As soon as I first learned that I would come to speak at Harvard, I began to prepare my remarks. Therefore, I had practically completed them when the unspeakable events happened. That unprecedented surge of evil may one day come to be regarded as an historical watershed, an infamous hallmark.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, Europe, Asia, and Georgia

117. Caspian Energy (event summary)

Author:
Nurlan Kapparov
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As a part of its Director's Lunch Series, the Belfer Center invited Nurlan Kapparov, former president of the National Oil Company of the Republic of Kazakhstan (KazakhOil) and former Kazak vice-minister of energy and mineral resources, to give a talk entitled "Caspian Energy." Mr. Kapparov previously represented state interests in TengizChevrOil (a Kazakh-American joint venture) and the Offshore Kazakhstan International Oil Consortium (OKIOC). He was the chairman of the board of directors of National Atomic Company KazAtomProm, as well as the head of Kazakhstan's delegation on delimitation of the Caspian Sea with the Russian Federation. Instead of dealing with the Caspian energy situation as a whole, Mr. Kapparov's talk focused primarily on the oil resources of Kazakhstan. Prior to starting his presentation, Kapparov took the time to stress that Kazakhstan was the first ex-Soviet state to promise practical support for the United States' war on terrorism, offering the country's "strategically vital aerodromes and bases for a potential strike on Afghanistan." Kapparov echoed the words of Kazakh president Nursultan Nazarbayev and said that "Kazakhstan is ready to support an action against terrorism with all the means it has at its disposal." Beginning with basic background information on Kazakhstan and the Caspian Sea, Kapparov provided projected extraction figures (both in barrels per day and billions of dollars per year) and potential transportation routes for Kazakh oil. Using the most recent data gathered for Kazakhstan's five major offshore fields (Kashagan, Aktote, Kairan, Kashagan SW, and Kalamkas A), Kapparov indicated that if these fields will be developed with primary depletion recoverable reserves would be approximately 24 billion barrels of oil. If Kazakhstan is able to successfully re-inject gas into the fields — a process that yields more oil — the country's potential recoverable reserves could climb as high as 42 billion barrels from the fields that are included in the OKIOC consortium alone. Kapparov noted that by the year 2020, this oil could bring up to $35 billion per year in income to OKIOC. The total potential oil income could increase Kazakhstan's budget to more than twenty times its current level. Kapparov also showed on the map that Kazakhstan has many other petroleum structures in its sector of the Caspian Sea. He emphasized that Kazakhstan has not yet started the licensing round on other blocks that might have the same reserves as OKIOC. Kapparov acknowledged that the shallow waters that predominate the Kazakh portion of the Caspian Sea place certain constraints on the oil extraction process. The first constraint involves environmental factors, as shallow-water extraction is more complicated than deep-water extraction. Kapparov stressed Kazakhstan's concern for the environment, describing the Caspian as "a unique ecosystem which is the habitat for hundreds of kinds of plants and animals." The second constraint has to do the weather — the Caspian freezes over for four months a year, preventing work during that time. Kapparov subsequently tried to place the importance of Caspian petroleum resources within the overall international context. He described Caspian oil as geopolitically significant, based on the assumption that more active oil production in the region would help to lessen the importance of Persian Gulf producers. This trend would enable countries such as the United States to diversify their sources of oil, providing security in an otherwise unstable field. Kapparov noted that the region's most persistent problem remains the legal status of the Caspian Sea itself. Since the countries surrounding the Caspian have not agreed on each country's jurisdiction over the seabed and its oil and gas reserves, there is still strong regional tension. Iran's recent actions against Azerbaijani-based BP ships working in the southern Caspian are only the most recent examples of this tension. Kapparov articulated the hope that the United States, which is already exerting a strong mediating influence in the region, would play a role in resolving this issue. Kapparov supports demarcation of the Caspian between Iran and former Soviet countries according to the old agreements that were signed between Iran and the USSR. Kapparov is also hoping that Kazakhstan, Russia, Azerbaijan, and Turkmenistan will work together to solve this problem among themselves as soon as possible. Kapparov then talked about the challenges involved in bringing Caspian oil to market. He described the transportation of hydrocarbons as "difficult, geopolitically sensitive, and expensive," which has led to some degree of intrigue regarding the current and proposed routes for transporting oil from the Caspian Sea. From Kazakhstan's perspective, the current pipeline capacity is sufficient, since it is only exporting 2 million barrels of oil a day. However, the country will eventually be exporting up to 7 million barrels a day. Consequently, a strategy of pursuing multiple transportation solutions makes not only sound commercial and strategic sense (since reliance on a single production route or a small group of options leaves a producer such as Kazakhstan open to too many potential constraints). It is, in fact, necessitated by the sheer quantity of the country's remaining reserves. As Kapparov candidly noted, "In Kazakhstan we say 'happiness is multiple pipelines.'" In his conclusion, Kapparov reemphasized the importance of the Caspian region to the world's energy market. Acknowledging that Kazakhstan's fate does depend on the actions of the United States and the other G7 countries, he underscored the fact that Kazakhstan is committed to "developing and implementing domestic policies to continue both our economic growth and the social welfare of our population." During the subsequent question and answer session, Michael Lelyveld of RFE/RL asked why the government of Kazakhstan insisted upon maintaining a monopoly system over the routing of oil. Kapparov replied that this system reduced paperwork, facilitated the transport of oil, and actually increased the overall amount of oil being shipped. Professor Francis Bator of the Kennedy School asked what percentage of the Kazakh national budget is derived solely from oil. Kapparov estimated the current figure to be 40 percent of the budget, but also noted that by 2020 — when oil production should be at full capacity — this number could be as high as 80 to 90 percent if other industries are not developed more extensively. However, Kapparov underscored that Kazakhstan does not want to depend solely on the oil industry. In response to a question about Kazakhstan's plan for dealing with the excess funds derived from its vast petroleum resources, Kapparov said that the country had established a separate oil fund according to the "Norway model" — whereby excess money would be placed in this fund so as not to interfere with the national economy.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, Europe, and Asia

118. Internal and External Dimensions of the Ethnic Conflict in the Caucasus (transcript)

Author:
Kazim Azimov
Publication Date:
06-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Melissa Carr: Many of you have met Kazim Azimov. He has been here since the end of April. He is in the United States on a program called the Junior Faculty Development Program, which brings faculty members from universities in countries of the former Soviet Union and Eastern Europe to the United States to train, study, develop curriculum materials, and teach. We at Harvard are fortunate that part way through Kazim's year at the University of Hawaii, we were able to arrange for him to come join us here, in part because the University of Hawaii went on strike.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, United States, Europe, and Asia

119. Judicial Reform and Human Rights in Russia

Author:
Danielle Lussier
Publication Date:
06-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Sergei Pashin discussed Russia's judicial system, past and current debates on judicial reform, and his thoughts on the likelihood of the Putin government implementing a significant judicial reform. Dr. Pashin began by telling about the history and results of the 1991 - 1995 judicial reform in Russia. As the main achievements of this period Pashin identified ratification of the European Convention on Human Rights and acknowledgement of the jurisdiction of the European Court located in Strasbourg, adoption of a number of bills expanding and strengthening citizen s' civil and criminal procedure rights and of the law on jury trials, abolition of capital punishment for non - violent crimes, adoption of a law on judges' status in which real guarantees of independence of judges were declared, establishment of the first Constitutional Court in Russian history, establishment of a system of arbitration courts, etc.
Topic:
Conflict Resolution, Security, Democratization, and Energy Policy
Political Geography:
Russia, Europe, and Asia

120. Putin's Plans for Russia: How Realistic Are They? (Event Summary)

Author:
Emil Pain
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Implications of Putin's policies remain vague. While analysts and politicians note alarming trends in politics, the economy and human rights, it is difficult to identify details and determine the feasibility of Putin's long-term strategy. Dr. Emil Pain, the Galina Starovoitova Fellow on Human Rights and Conflict Resolution at the Kennan Institute/Woodrow Wilson Center and a former advisor to President Yeltsin, was invited to present his views on policies of the Putin administration.
Topic:
Conflict Resolution, Security, Democratization, Energy Policy, and Human Rights
Political Geography:
Russia, Europe, and Asia