UDUGOV SAYS LATEST ROUND OF TALKS WITH MOSCOW WERE "77 PERCENT SUCCESSFUL."

Chechen first deputy premier Movladi Udugov met in Moscow on June 30 with Russian first deputy premier Anatoly Chubais to discuss economic issues, including banking and customs agreements and the transit of early Azerbaijani oil through Chechen territory. About a month ago, Chubais’s fellow first deputy prime minister, Boris Nemtsov, failed to reach agreement on the same questions. This time, however, both sides described the negotiations as successful. According to Russian Security Council secretary Ivan Rybkin, agreement has been reached on "virtually all points" of the customs agreement and it may soon be ready for signature. Udugov called his talks with Chubais "77 percent successful" and said "the main points of disagreement" have been removed. (RTR, June 30 & July 1)

Oil transit apparently remains a sticking point. Udugov called yet again for a trilateral agreement between Chechnya’s Southern Oil Company (YUNKO), the Azerbaijani state oil company (SOCAR), and the Russian side. Up till now, Russia has refused to recognize YUNKO as an equal partner. Udugov hinted that Chechnya had achieved a breakthrough on this point in the latest talks. However, no agreement has yet been signed, and making optimistic statements at the conclusion of unsuccessful negotiations is a characteristic feature of Russian- Chechen relations.

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