GEORGIA/RUSSIA: Russian president Vladimir Putin calls on Georgia not to provoke Russia; Georgian officials say Russian sanctions will have minimal impact

President Vladimir Putin warned Georgia on Wednesday (October 4, 2006) not to provoke or blackmail Russia as Moscow ignored international appeals to drop economic sanctions against its southern neighbour. Discussing a dispute with Georgia over the arrests of four Russian officers, who were later released, Putin told lawmakers: "I would not allow anyone to talk to Russia in the language of provocation and blackmail." But in Georgia, the head of the central bank said his country would block Russia's bid to join the World Trade Organisation (WTO) as long as economic sanctions were in force. Russia was hoping to end talks on WTO entry this month. As a WTO member, Georgia technically has the power to block new entrants to the organisation. Russia is the only major world economy still outside the 149-member body. Georgian National Bank President Roman Gotsiridze also said his country's currency and inflation levels would be unaffected by Russia's decision to cut transport and postal links with Georgia over a spying row. When asked whether the Russian sanctions would affect Georgian inflation or the national currency, he said: "These sanctions are the behavior of an uncivilized country. It is hardly imaginable that the country which blockades its neighbor is a member of the Group Eight and has the intention of joining the WTO. Of course sanctions will have a negative impact but we will do our best to minimise the damage." Gotsiridze said plans by Russian deputies to ban money transfers to some former Soviet states -- a clear jab at Georgia -- were "simply unrealistic". But he said if the ban was imposed it would seriously damage the image of Russia's banking system and banking authorities, and illegal money transfer networks would grow immediately. "Technically it's impossible in legal terms - it is an odious decision because Russia is in fact breaching the rules of international banking payments. The system of electronic money transfers is international, not Russian. How can Russia prevent Visa, Master Card or Western Union from transferring money to Georgia. And if such an attempt will be made, both Russia's reputation, image and economy will be damaged," said Gotsiridze. The Russian officers' arrests on spying charges last week provided a trigger for a wave of Russian retaliatory measures, which included severing all transport and postal links with Georgia and halting visas for Georgians wishing to visit Russia. Moscow has long been unhappy with Georgian President Mikhail Saakashvili's pro-Western foreign policies and public attacks on its old Soviet master. Broadening the actions targeting Georgia, Moscow police raided Georgian businesses in the capital on Tuesday. Authorities shut down a Georgian-owned casino, occupied a Georgian guest house and seized half a million bottles of Georgian wine in separate operations. Russian organisers cancelled a visit by Georgia's national ballet, and migration agency officials said they had detected cases of Georgians forging invitations to gain a Russian visa. The Russian actions, coupled with a strong anti-Georgia campaign in Kremlin-controlled media, have alarmed one million Georgians living in Russia and their relatives back home. The estimated 300 million U.S. Dollars (USD) a year Georgians send home from Russia are vital to the economy of Georgia, a poor country of five million people which depends on its former Soviet master for trade and energy. In Tbilisi, the mood remained defiant although ordinary Georgians were increasingly worried about the human and economic impact of the Russian sanctions. Supporters of Georgia's opposition groups staged a protest outside the Russian embassy building in Tbilisi on Wednesday, lending support to the government's stance in crisis with Russia. "The main idea of this protest, of this meeting is very simple - we wanted to demonstrate our unity, the unity of all the political parties in Georgia, regardless of our positions, regardless of our attitude to our government and its internal policies; that Georgian state, the Georgian nation is fighting together for the independence of this country, is fighting together for our aspirations to join NATO and the European Union," said Tinatin Khidasheli, one of the leaders of Georgia's opposition Republican Party. Some 100 people took part in the protest, joining hands and walking around the Russian embassy building. Moscow still holds a number of cards to play against Georgia if it wishes to escalate action still further. Gas supplies to Tbilisi by Russian state monopoly Gazprom are still flowing. Russian ministers insist Moscow will honour its commitments to pull its remaining 2,000-3,000 troops out of Georgia by 2008 and might even speed up the withdrawal.

ITN Source | October 4, 2006

Tags:. .behavior. .withdrawal. .vital. .impossible. .dispute