In this issue:

Russia, Like China, Shies Away from Sinking U.S. Dollar

Russian Ambassador Refutes Press Spin on Putin Remark About Iraq

Russia To Have Special Envoy for Islamic World

Foreign Ministry Official: Expect Top-Level Saudi Visit to Moscow

From Volume 2, Issue Number 5 of Electronic Intelligence Weekly, Published Feb. 3, 2003
Russia and Central Asia News Digest

Russia, Like China, Shies Away from Sinking U.S. Dollar

Russian and Chinese Central Bank statements about diversifying out of the dollar, are not statements of intent, or threats, but are announcements of ongoing operations to move out of the dollar, a leading City of London figure told EIR Jan. 27. "The dollar will continue to weaken," he said. "There are Central Bank sellers about. My reading is that what we heard the other day, from the Russian Central Bank, is not something for the future, but was a statement made, after they have done it, begun to move out of the dollar. That is probably one of the reasons for the dollar loss in respect to the euro. The Russians know the Iraq war is brewing, and, by doing this, they can exert some pressure, while making moves to ensure that their holdings are not hostage to an American action, in event of war. All this suggests that the Russians are taking a harder line respecting Iraq than some had thought. The same goes for the Chinese."

When Central Bank official Oleg Vyugin made his announcement on Jan. 24, he also stated that the Bank of Russia would hold at least 10% of national gold and currency reserves, in gold. In Moscow, it was reported that several currency exchange points ran out of rubles, as well as euros, as the population also moved to dump cash dollars.

Russian Ambassador Refutes Press Spin on Putin Remark About Iraq

Many news outlets reported Jan. 29 that Russian President Putin—arriving in Kiev for a meeting with other Community of Independent States leaders—had said that if Iraq didn't cooperate better with UN weapons inspectors, Russia might change its position and agree with the U.S. on asking for tougher measures against Iraq. Asked about this by a reporter at the UN, Russian Ambassador Sergei Lavrov responded forcefully: "No, no, no. Julie, Julie! He didn't say this. You reported this; he didn't say this. You reported that he was apparently ready to change his position, which is wrong. He said that we believe that inspections must continue, and that if Iraq stops cooperating with inspectors and starts blocking the inspectors, then, certainly, the Security Council would have to look into it. We have been saying this all along ... but as long as Iraq cooperates, they [the inspections] must continue. So, there is no change in Russian position."

Russia To Have Special Envoy for Islamic World

Abdelouahed Belkeziz, secretary-general of the Organization of the Islamic Conference, was in Moscow the week of Jan. 27. At a press conference following their talks, Russian Foreign Minister Igor Ivanov said that the Russian Foreign Ministry will soon name a special envoy to the Islamic world.

Foreign Ministry Official: Expect Top-Level Saudi Visit to Moscow

Izvestia of Jan. 27 published a summary of a round table of Arab ambassadors and Russian politicians and officials, held at the paper's editorial office the previous week. During the discussion, a top Foreign Ministry official indicated that further upgrading of Russian-Saudi cooperation is planned. Vladimir Trofimov, deputy head of the Russian Foreign Ministry's Mideast Department, responded in his concluding speech, to criticisms from Arab journalists and at least one of the ambassadors present that Russia had shown lack of initiative in the region, ever since President Putin declared Russia a strategic partner of the United States. (Union of Right Forces politician Irina Hakamada, deputy speaker of the Duma, piped up that this was true, but necessary because Russia needed U.S. help to deal with its structural economic problems!)

Trofimov rejoined, according to Izvestia, "There is a viewpoint that we are being pressured, pushed out of the Arab countries. However, this [decline of Russian influence] is mostly our own fault. But today, the political dialogue is being held on the highest level. I'll tell you one secret: In April, we expect the visit of Saudi Arabia's royal heir, Prince Abdullah.

"I can't agree that we have given up protection of justified interests of the Arab peoples. We've always said that the problem of Palestine is the crucial key for the settlement of the situation in the Middle East.... We also protect the legitimate interests of Iraq on all the political levels, including the level of the President. The Americans are trying to impose the idea that the Iraqi problem is a problem of terrorism. We say that Iraq has nothing to do with terrorism. There is a real problem of proliferation of weapons of mass destruction.... But the Americans have got focussed on disarming Iraq. They say that the road to Palestine lies through Baghdad. We don't share this view, and we insist that the peace process should be started from Palestine."

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