Cablegate Chronicles: The Secret History of the Chechen War

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A State Department official summarizes what really happened in Chechnya. 

FROM: MOSCOW, RUSSIA
TO: STATE DEPARTMENT
DATE: MAY 30, 2006
CLASSIFICATION: CONFIDENTIAL
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The Secret History of the Chechen War -------------------------------------

¶8. (C) The lack of central control over the military, as well as officers' cupidity, may have been a prime cause of the first Chechnya War. Immediately after the collapse of the Soviet Union, energy prices in the "ruble zone" were 3 percent of world market prices. Government officials and their partners bought oil at ruble prices, diverted it abroad, and sold it on the world market. The military joined in this arbitrage. Pavel Grachev, then Defense Minister, reportedly diverted oil to Western Group of Forces commander Burlakov, who sold it in Germany.

¶9. (C) Chechnya was a major entrepot for laundering oil for this arbitrage. It appears to have been used both by the military (including Grachev) and the Khasbulatov-Rutskoy axis in the Duma. Dudayev had declared independence, but remained part of the Russian elite. Chechnya's independence, oilfields, refineries and pipelines made Chechnya perfect for laundering oil. Planes, trains, buses and roads and pipelines to Chechnya were functioning, allowing anyone and anything to transit -- except auditors. In the early 1990's millions of tons of "Russian" oil entered Chechnya and were magically transformed into "Chechen" oil to be sold on the world market at world prices. Some of the proceeds went to buy the Chechens weaponry, most of it from the Russian military, and another lucrative trade developed. Dudayev took much of his cut of the proceeds in weapons. The Groznyy Bazaar was notorious in the early 1990s for the quantity and variety of arms for sale, including heavy weaponry.

¶10. (C) Chechnya was the home of Ruslan Khasbulatov and served various purposes for his faction of the Russian elite. He took advantage of the army's independence from Yeltsin's control. An informed source believes that it was Khasbulatov, not the "official" Russian government, who facilitated the transfer of Shamil Basayev and his heavily-armed fighters from Chechnya into Abkhazia in 1992, and who ordered the Russian air force to bomb Sukhumi when Shevardnadze went there to take personal command of the Georgians' last stand in July 1993. The Yeltsin government always denied that it bombed Sukhumi, despite Western eyewitness accounts confirming the bombing and the insignia on the planes. Given the confusion of those years, it could well be that the order originated in the Duma, not the Kremlin.

¶11. (C) After Khasbulatov and Rutskoy were written out of the Russian equation in October 1993, so was Dudayev. Clandestine Russian support for the Chechen political and military opposition to Dudayev began in the spring of 1994, according to participants. When that proved ineffective, Russian bombing was deployed. (One Dudayev opponent recounted that in 1994 a Russian pilot was given a mission to fire a missile into one of the top-floor corners of Groznyy's Presidency building at a time when Dudayev was scheduled to hold a cabinet meeting there. Not knowing Groznyy, the pilot asked which building to bomb, and was told "the tallest one." He bombed a residential apartment building.) When air power, too, proved ineffective, Russian troops were secretly sent in to reinforce the armed opposition. Dudayev's forces captured about a dozen and put them on television -- and the Russian invasion began shortly thereafter.

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