"Creeping" civil war in the North Caucasus. OSW Commentary No. 50, 2011-03-15

Over the last year, the situation in Russia’s North Caucasus has become further destabilised. Attacks and armed clashes happen daily, and destabilisation is spreading to an increasingly large area. The extent of violence in the region is so great that it can already be stated that a de facto civil war is taking place, the warring parties being the Islamic armed underground movement which operates under the banner of the so-called Emirate of the North Caucasus, and the secular governments of the individual republics, who are supported by local and federal branches of the Russian Federation’s Interior Ministry and Federal Security Service. Moscow has no idea how to successfully tackle the Caucasus rebellion. Force has proved to be costly and unproductive, while the attempts made since early 2010 to integrate the region with the rest of Russia by implementing development programmes have not brought the desired results, because of widespread corruption and faint interest from businessmen who are afraid to invest in such an unsafe region. A growing problem for Moscow, particularly for the prestige of the state, is attacks by militants on areas near Sochi, where the 2014 Winter Olympics is to take place. It must be assumed that over the next 3 years before the Olympics, Moscow’s priority in the region will be to ensure the safety of Olympic preparations, and then the games themselves. It cannot be ruled out that the North Caucasus Federal District with its ‘troubled republics’ will be surrounded by a kind of cordon sanitaire (Sochi is situated in the neighbouring Southern Federal District). This could in turn strengthen these republics’ isolation, maintain the state of permanent instability, and postpone the prospects of solving the region’s acute economic and social problems.

Bulgarian-Russian games in the energy sector: an outcome is getting closer. OSW Commentary No. 61, 2011-10-5

Bulgaria and Russia are entering the final phase of setting the conditions of their co-operation in the energy sector. A new gas contract is being negotiated because the currently applicable agreements will have expired by the end of 2012. The fate of two major energy projects – whose implementation depends on good co-operation between Sofia and Moscow: the Burgas– –Alexandroupolis oil pipeline and the construction of a Bulgarian nuclear power plant in Belene with Russian participation – is currently being decided. Another issue ever-present on the agenda is the future of the South Stream gas pipeline promoted by Russia, which is to run through Bulgarian territory. The outcome of all the aforementioned discussions and negotiations will determine for years the model of Bulgarian-Russian relations and may strongly affect the shape of the oil, gas and electricity markets in South-Eastern Europe.