HELSINGIN SANOMAT international

Mauno Koivisto sees no end to Chechen crisis


Former Finnish President Mauno Koivisto said on Monday that he sees no end to the crisis in Chechnya. President Koivisto was speaking at the opening of a public lecture series, called "Along the Road to St. Petersburg", at the University of Helsinki.
   Koivisto, who served two terms as President from 1982 to 1994, sees a number of reasons for the war in Chechnya. Among other things, it is a war for oil. It is also a punitive war, aimed at showing other Islamic peoples of the Northern Caucasus that trying to secede from Russia is not a good idea.
   “A Russian general who lived in the 19th century said that they cannot be conquered: they must be destroyed. At the same time he said that a political solution must be reached with the Chechens. I am waiting with anticipation what kind of a solution will come”, said Koivisto with a hint of irony.
   The former president disagreed sharply with former IMF leader Michel Camdessus who said that the terms of loans to Russia should be changed “if Russia does not behave well in Chechnya”. According to Koivisto, the IMF should be an apolitical organization, and the terms of its loans should not be changed for political reasons.
   Chechnya came up after the main lecture, when the capacity audience was allowed to ask questions. The topic of Koivisto's address was "Finland, the EU and Russia". Koivisto limited his pondering to Russia's development in the 1990s, its economy, and its indebtedness.
   The president had asked the unit of transitional economies of the Bank of Finland for an assessment of the size of Russia's debt, which proved to be surprisingly small.
   According to the figures received by Koivisto, Russia's net foreign debt was about USD 153 billion. By deducting outstanding loans of the Soviet Union, which are not likely ever to be repaid, the debt goes down to USD 20 billion.
   “If all of the currency that has fled the country, and the dollars in the hands of the citizens were calculated according to the highest estimates, and were brought into the economy, the debt would turn into an asset of 180 million dollars”, the president estimated.
   Koivisto thoroughly pondered the historical reasons for Russia's current development, comparing the current situation with the “smuta” of the early 17th century - a period of 15 years during which Russia had no ruler at all. Koivisto said that Russia has undergone a period of disunity almost as long, with certain similarities to smuta, although the two cannot be compared directly.
   Koivisto was quite amused by Russia's first steps in the early 1990s when the Soviet Union had broken up and the country wanted to shake off the "superfluous" Soviet republics. According to Mauno Koivisto, the leaders in Moscow had the idea that the distant areas were feeding off the central government.
   “Russia even started asking Finland to recognize their independence. How could this country, which was much older than Finland, ask something like this? Then they changed their minds and declared themselves the heirs to the Soviet Union”, Koivisto said.
   He criticized Russia's leaders of the early '90s for squandering the country's natural resources. Russia's government took short term loans, giving the crown jewels - Russia's natural resources - as collateral. “Naturally, the debts could not be serviced, and the oligarchs got their hands on many riches for a low price.”
   According to Koivisto, the United States was not interested in what happened to Russia's riches. The main concern was that the country's means of production and wealth be distributed one way or another, so that a strong centralized leadership could not be established again.
   Although a large part of Russian property is now in the hands of the oligarchs, Koivisto feels that they have a bleak future ahead of them. Quoting former Prime Minister Yegor Gaidar, he said "It is unlikely that they (the oligarchs) will play an important role in (Acting President Vladimir) Putin's government. Ownership has always been tenuous in Russia."


Helsingin Sanomat / First published in print 14.3.2000

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