Armenia

In speeches at the summit of the Organization for Security and Cooperation in Europe (OSCE) last week, both Azerbaijani President Geidar Aliev and Armenian President Robert Kocharian called for the creation of a security pact in the South Caucasus. The pact would include Armenia, Azerbaijan, Georgia, Turkey, Russia and the United States. And it would exclude any foreign military presence from the South Caucasus.

Armenia is a strategically significant crossroad in the shipment of oil and gas from the Caspian Sea, and it is the frontier between the former Soviet satellite states and Turkey. Until now, Armenia has been Russia's greatest ally in the region. But the agreement would require the withdrawal of Russian troops from Armenia, undermining a longtime alliance. Instead, Armenia would suddenly be in the camp of its traditional enemies.

At the summit in Istanbul, Kocharian departed dramatically from the long-running script of his country's foreign policy. In addition to calling for a departure of Russian troops from the South Caucasus, Kocharian expressed a desire to improve relations with Armenia's most hated historical enemy, Turkey. The president was quoted by the Armenian SNARK news agency as saying that while he cannot forgive Turkey's murder of 600,000 Armenians during World War I, he is willing to work around it. Relations, he said, should not be based on "selective historical memory and complete amnesia."

Taken together, the president's moves indicate a serious change of heart in Yerevan. The Oct. 27 assassination of the prime minister and parliamentary speaker [ http://www.stratfor.com/cis/commentary/c9910271947.htm ] - who were leaders of the majority Unity bloc parties - left the government unstable. Out of this instability, Armenia has now turned toward the West. This is a significant change, considering the barriers to such a move.

Armenia is turning its back on what has been its strongest ally in the region: Russia. Russia provides Armenia with defense assistance and has more than 4,100 troops stationed in Armenia, centered at Military Base 102. Suggesting that the Russian military leave is a slap in Moscow's face.

The Kocharian governmentis also trying to overcome deep-seated regional hostilities. In the security pact, Armenia would enter into a defense agreement with two neighbors that have been violent enemies. In addition to the memory of Turkey's Ottoman-era massacres, Armenia has feuded with Azerbaijan over the Nagorno- Karabakh region. Though located in Azerbaijan, the region is populated by ethnic Armenians. Armenia has supported their demands for self-rule. The resultant disputes with Azerbaijan have been bloody. The economic blockade imposed by the rest of the region has nearly strangled the Armenian economy.

That he would move to ally with historical enemies suggests Kocharian is seriously spooked. In justifying his shift, the president cited fears of terrorism destabilizing the region. That he did not turn to his Russian allies -- but rather moved to expel them -- suggests that Kocharian's scare may have come from Russia.

Russia was overly eager to send forces in the wake of the October assassinations. Moscow sent its elite Alpha Group anti-terrorist unit, run by the Federal Security Services [ http://www.stratfor.com/cis/commentary/c9910281907.htm ]. Prime Minister Vladimir Putin also seized the opportunity to argue for a stronger Russian military presence in the region. In the weeks since, Russia has aggressively suggested that Armenia's neighbors to the north, Azerbaijan and Georgia, are harboring Chechen rebels. And Russian military officials have expressed their intent to exert greater control over the border with the South Caucasus [ http://www.stratfor.com/SERVICES/GIU/102999.ASP].

At the same time,Armenia's political scene has been distinctly unsettled since the assassinations. Kocharian has struggled over control of the state security apparatus. The president replaced the murdered prime minister with his brother, Aram Sarkisian. A former cement executive with no obvious political background, Sarkisian clashed with the president over the naming of a new interior minister and a new national security minister. The dispute grew so unpleasant that Kocharian threatened to resign, according to the local newspaper, Aravot. He has since denied it. But Kocharian has drawn a loyalist, former National Security Minister Serge Sarkisian, even closer in a bid to keep control of the government.

The debut of Kocharian's new foreign policy at the OSCE summit suggests a deep concern over Russia's intentions towards his country, at a time in which Armenia is extremely vulnerable.