Soviet collapse a "catastrophe," Putin says

MOSCOW — President Vladimir Putin lamented the demise of the Soviet Union in some of his strongest language to date, saying in a nationally televised speech before parliament yesterday that it was "the greatest geopolitical catastrophe of the century."

In his annual state of the nation address to lawmakers, top government officials and political leaders, Putin sought to counter criticism that his administration has strayed from democratic values and tried to reassure skittish investors about Russia's investment climate — just two days before a widely anticipated ruling in the tax-evasion trial of an oil tycoon.

His statements on the collapse of the Soviet Union also come as the country is awash in nostalgia just two weeks before the 60th anniversary of the end of World War II in Europe — a conflict Russians call the "Great Patriotic War."

Putin, who served as a colonel in the KGB and during his presidency has resurrected communist symbols such as the old Soviet anthem and the Soviet-style red banner for the military, used some of his strongest language ever to describe the consequences of the Soviet Union's demise.

"Tens of millions of our citizens and fellow countrymen found themselves outside the Russian Federation" as former Soviet republics became independent countries, Putin said.

"Citizens' savings lost their value. The old ideals were destroyed. Many institutions were disbanded or simply hastily reformed," he said.

In a reference to the conflict in Chechnya, he said, "The country's integrity was disturbed by a terrorist intervention."

Putin's portrayal of post-Soviet Russia seemed intended to fend off recent criticism of his government's actions.

In Moscow last week, U.S. Secretary of State Condoleezza Rice said the Russian president's growing grip on power and the Kremlin's control of the major media were "clearly very worrying."

She also warned that Putin shouldn't try to rewrite the Russian Constitution to allow himself a third term in office come 2008.

The Russian leader vowed to make a strong commitment to the principles of individual freedom and the rule of law. "The main political and ideological task is the development of Russia as a free and democratic state," Putin said, downplaying the idea that Russia has no tradition of freedom and that "our citizens allegedly require constant parental control."

"I would like to bring those who see it this way back to reality," the president said.

The president, widely criticized last year for canceling elections of regional governors in favor of Kremlin-appointed officials, proposed boosting the development of independent parties by appointing governors from the party that prevailed in regional elections.

The moves come not only amid widening criticism from the West, but in the face of recent popular revolts that have toppled the Kremlin's authoritarian counterparts in neighboring Georgia, Ukraine and Kyrgyzstan.

Some analysts said Putin's bow toward democracy was an attempt to head off similar revolutionary impulses in his own land.

Putin's comments on tax cases were also timely. Tomorrow, prosecutors are expected to conclude the 10-month trial of Mikhail Khodorkovsky, the founder of Yukos, once Russia's largest oil producer but now nearly bankrupt and stripped of its key assets after facing $27.5 billion in tax claims.

Khodorkovsky, 41, is facing up to 10 years in prison on charges of fraud, embezzlement and tax evasion in a case many believe is a political vendetta for Khodorkovsky's financing of Putin's political foes. A number of major firms have recently been hit with large bills for back taxes. Just two weeks ago, for example, the government filed a $1 billion claim against the joint-venture oil giant TNK-BP. That bill is for a single year, 2001.

Capital flight tripled to nearly $8 billion last year, and Putin seemed eager yesterday to reassure investors.

Putin said his government needed to define which sectors of the Russian economy were headed for "permanent control by ... state capital." He mentioned defense manufacturers and "strategic" natural resources, presumably oil, natural gas and certain minerals.

Putin also suggested a possible amnesty on the fortunes of people who have sent billions of dollars abroad — regardless of their dubious origin — if the owners paid a 13 percent flat tax on them and deposited them in Russian banks.

"This money must work for the good of our economy, of our country, and not lie in offshore accounts," he said.

Liberal politician Irina Khakamada dismissed Putin's address as "an export product" marked by "liberal rhetoric and ritual statements addressed to the West."

Meanwhile, workers are frantically painting and scrubbing the city to prepare for the 60th anniversary Victory Day celebrations, to be held May 9 in Moscow. Dozens of heads of state are expected to attend, including President Bush, French President Jacques Chirac and British Prime Minister Tony Blair.

Red, star-studded posters hailing war veterans are plastered around the capital and vintage Soviet war films are being shown almost nightly on television.

Compiled from The Associated Press, Knight Ridder Newspapers, the Los Angeles Times and The Washington Post.