I. Summary

Organized crime groups and drug traffickers use Albania as a transit country for heroin from Central Asia destined for Western Europe. Seizures of heroin by Albanian authorities increased significantly during 2006, due primarily to increased police targeting of the heroin trade. Cannabis also continues to be produced in Albania for markets in Europe. The Government of Albania (GoA), largely in response to international pressure and with international assistance, is confronting criminal elements more aggressively but is hampered by a lack of resources and endemic corruption. The government of Prime Minister Sali Berisha, which came to power in September 2005 on a platform to fight corruption, organized crime, and trafficking of persons, has made progress on these fronts. Despite this progress, however, Albania has a long road to travel. Albania is a party to the 1988 UN Drug Convention.

II. Status of Country

Although Albania is not a major transit country for drugs coming into the United States, it remains a country of concern to the U.S., as Albania's ports on the Adriatic and porous land borders, together with poorly financed and under-equipped border and customs controls, make Albania an attractive stop on the smuggling route for traffickers moving shipments into Western Europe. In addition, marijuana is produced domestically for markets in Europe, the largest being Italy and Greece.

III. Country Actions Against Drugs in 2006

Policy Initiatives. The government took several steps against corruption: it passed the Law on the Prevention of Conflicts of Interest and issued a schedule for the law's implementation. Civil society monitoring has also increased expectations that corruption will decrease throughout society. The Berisha government decided to outlaw the circulation of speedboats and several other varieties of water vessels on all of Albania's territorial waters for a period of three years. The moratorium on the motorboats is aimed at stopping the trafficking of humans and drugs. Albania works with its neighbors bilaterally and in regional initiatives to combat organized crime and trafficking, and it is a participant in the Stability Pact and the Southeastern Europe Cooperative Initiative (SECI). Albania signed the Stabilization and Association Agreement with the European Union in June 2006, which was ratified by the EU on 6 September 2006. The EU noted in their ratification that Albania "...is still facing serious challenges in tackling corruption and organized crime, achieving full implementation of adopted legislation, improving public administration and fighting trafficking in human beings and drugs."

Law Enforcement Efforts and Accomplishments. Albanian police continued to make progress in their counternarcotics operations through the increased use of technology and improved police techniques. Albanian authorities also targeted organized crime leaders that were involved in drug trafficking. Albanian authorities organized major police operations and drug seizure operations throughout the country, but primarily in Fier, Tirana, and the ports of Vlora and Durres. International cooperation also increased, including joint operations with Italian, Macedonian, Greek and Turkish authorities. Albanian authorities report that through 15 October 2006, police arrested 329 persons for drug trafficking, and an additional 24 are wanted. The police seized 104 kg of heroin, 5,517 kg marijuana, and 1.6 kg of cocaine. The police also destroyed 74,000 cannabis plants and 580 poppy plants, and confiscated one liter of hashish oil. The over two-fold increase in the amount of heroin seized compared to last year was attributed to the use of specific police techniques to target the heroin trade due to its high profitability and organized crime connections. The decrease in the amount of destroyed plants from last year was attributed to the fact that eradication programs co-sponsored by the police and local governments in recent years had substantially reduced cultivation. In addition to drugs seized and destroyed, Albanian authorities seized five boats, 66 cars, four trucks, and a wide variety of weapons. Police also confiscated almost 250,000 Lek, 25,000 Euro and $30,000 during counter narcotic operations.

Corruption. Corruption remains a deeply entrenched problem in Albania. Low salaries, social acceptance of graft, and Albania's tightly knit social networks make it difficult to combat corruption among police, magistrates, and customs officials. The GoA does not, as a matter of policy, encourage or facilitate the illicit production or distribution of drugs or illegal substances, or the laundering of proceeds from illegal drug transactions. As part of the Berisha government's anticorruption pledge, in May 2006 Albania ratified the UN Convention Against Corruption. The Office of Internal Control brought about the arrests of several corrupt officers, and the police and judiciary are becoming more active in investigating government officials and law enforcement personnel for corruption. Investigations and arrests, however, sometimes depend on political affiliation. The office of the Prosecutor General reported that the number of criminal proceedings increased by 13% for the first six months of 2006 compared to the same time frame in 2005; a majority of the 13 percent increase in all cases dealt with corruption, illegal government activity and trafficking. Charges were brought up against 111 members of criminal organizations inside and outside Albania. Additionally, some 280 people were investigated for trafficking. The increased number of cases suggests that enforcement is overcoming a tendency to "look the other way" to curry favor with criminals. Although these numbers are a significant improvement over 2005, the government continues to lack the judicial independence for truly unbiased proceedings and many cases are never resolved. As an example, according to one report, of the 412 proceedings dealing with corruption and illegal activities of government and high-ranking officials, only one case was completed during this period.

Agreements and Treaties. Albania is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances. An extradition treaty is in force between the United States and Albania. Albania is a party to the UN Convention Against Transnational Organized Crime and its protocols against migrant smuggling and trafficking in persons.

Cultivation and Production. With the exception of cannabis, Albania is not known as a significant producer of illicit drugs. According to authorities of the Ministry of Interior's Anti-Narcotics Unit, cannabis is currently the only drug grown and produced in Albania and is typically sold regionally. Metric-ton quantities of Albanian marijuana have been seized in Greece and Italy. Although eradication programs co-sponsored by the police and local governments have been credited with substantially reducing cultivation of cannabis, cultivation persists despite these efforts. No labs for the production of synthetic drugs were discovered in 2006. Albania is not a producer of significant quantities of precursor chemicals. The Law on the Control of Chemicals Used for the Illegal Manufacturing of Narcotic and Psychotropic Substances was passed in 2002 and regulates precursor chemicals. Police and customs officials are not trained to recognize likely diversion of dual-use precursor chemicals.

Drug Flow and Transit. Organized crime groups use Albania as a transit point for drug and other types of smuggling, due to the country's strategic location, weak law enforcement and unreformed judicial systems, and porous borders. Albania is a transit point for heroin from Central Asia, which is smuggled via the "Balkan Route" of Turkey-Bulgaria-Macedonia-Albania to Italy, Greece, and the rest of Western Europe. A limited, but growing, amount of cocaine is smuggled from South America to Albania, via the United States, Italy, Spain, or the Netherlands, for internal and external distribution. Albania is still a transit country for heroin, but drug traffickers are experimenting with other routes.

Domestic Programs (Demand Reduction). The Ministry of Health believes that drug use is on the rise, though no reliable data exists on this subject. Some indications point to an addict population as large as 30,000 users, though the reliability of the data is uncertain. Local and national authorities collect little data and do not believe the problem is particularly widespread (owing both to the traditional cultural norms and low levels of discretionary income). Nevertheless, the GoA has taken steps to address the problem with its National Drug Demand Reduction Strategy. However, the woefully inadequate public health infrastructure is ill equipped to treat drug abuse, and public awareness of the problems associated with drug abuse remains low. The Toxicology Center of the Military Hospital, the only facility in Albania equipped to handle overdose cases, reported that it has treated more than 9,000 patients since 1995. Around 69 percent of those treated were intravenous drug users.

IV. U.S. Policy Initiatives and Programs

Bilateral and Multilateral Cooperation. The GoA continues to welcome assistance from the United States and Western Europe. The U.S. is intensifying its activities in the areas of law enforcement and legal reform through technical assistance, equipment donations, and training. One of the problems seen in training, however, is that deep politization of all levels of government has resulted in the absence of a strong civil service class and thus many trainees are subject to removal during times of political transition. This was seen again as the Berisha Government took power, and many of those training in law enforcement and counter narcotics were removed from their positions.

The DEA and the FBI conduct drug training and covert investigations training. The U.S. Department of Justice ICITAP and OPDAT programs continued their support to the Office of Internal Control at the Ministry of the Interior, the Serious Crimes Court and Serious Crimes Prosecution Office, all with the goal of professionalizing the administration of justice, combating corruption, and strengthening the GoA's ability to prosecute cases involving organized crime and illicit trafficking. OPDAT conducted six regional training programs to provide instruction to all prosecutors on new criminal laws and procedures enacted in 2004 and plans to extend similar training to judges in the upcoming years. OPDAT and the Department of the Treasury are working with the Albanian Ministries of Finance, Justice, and Interior to form an Economic Crime and Corruption Joint Investigative Unit to improve the investigation and prosecution of economic crime and corruption. To help combat the financial criminality attendant to drug trafficking, ICITAP, OPDAT and Treasury, along with several other law enforcement entities, presented a five-day seminar on Financial Crime, Terror Financing and Money Laundering to members of the Ministry of Finance and the National Intelligence Service. The Witness Protection Sector (witness protection division within the Office of Organized Crime) continues to work with the U.S. and other members of the international community to strengthen the existing witness protection legislation. The Witness Protection Sector has helped to secure a number of witnesses, and witness families, in trafficking and drug related homicide cases. Two high-ranking members of the Albanian Witness Protection Program traveled to Washington DC in July to attend the 1st International Symposium on Witness Protection. USG continues to provide assistance for integrated border management, a key part of improving the security of Albania's borders, providing specialized equipment, and the installation of the Total Information Management System (TIMS) at border crossing points. Other U.S., EU, and international programs include support for customs reform, judicial training and reform, improving cooperation between police and prosecutors, and anticorruption programs.

Albanian law enforcement authorities have provided the Italian police with intelligence that has led to the arrest of drug dealers and organized crime members, as well as the confiscation of heroin in Italy. Cooperation also continues with Italian law enforcement officials to carry out narcotics raids inside Albania.

The Road Ahead. The Berisha government has made a commitment to make the fight against organized crime and trafficking one of its highest priorities. Additionally, the police are taking an increasingly active role in counter narcotics operations. Albania's desire to enter into both the European Union and NATO continues to push the GoA to implement and enforce reforms, but the fractional nature of Albanian politics and the slow but continuing development of Albanian civil society has hampered progress. The U.S., together with the EU and other international partners, will continue to push the GoA to make progress on fighting illegal drug trafficking, to use law enforcement assistance effectively, and to support legal reform.

Armenia

I. Summary

Armenia is not a major drug-producing country and domestic abuse of drugs is relatively small. While there has been a significant percentage increase in the number of drug related cases and interdictions since last year, the original base of cases was so small that the overall number of such incidents remains small. The Government of Armenia (GOAM) recognizes Armenia's potential as a transit route for international drug trafficking. In an attempt to improve its interdiction ability, the GOAM, together with Georgia and Azerbaijan, is engaged in an ongoing European Union-funded and UN-implemented Southern Caucasus Anti-Drug (SCAD) Program, launched in 2001. This program provides legislative assistance to promote use of European standards for drug prosecutions, collection of drug-related statistics, and rehabilitation services to addicts as well as drug-awareness education. Armenia is a party to the 1988 UN Drug Convention.

II. Status of Country

Sitting at the crossroads between Europe and Asia, Armenia has the potential to become a transit point for international drug trafficking. Its role in drug trafficking could be exacerbated by lenient criminal penalties, at least compared to other countries in the region. At present, limited transport traffic between Armenia and its neighboring states makes the country a secondary traffic route for drugs. (Armenia currently has closed borders with Turkey and Azerbaijan.) Armenian Police Service's Department to Combat Illegal Drug Trafficking has accumulated a significant database on drug trafficking sources, including routes and the people engaged in trafficking. Scarce financial and human resources, however, limit the Police Service's effectiveness. Drug abuse does not constitute a serious problem in Armenia, and the local market for narcotics, according to the police, is not large. The most widely abused drugs are opium and cannabis. Heroin and cocaine first appeared in the Armenian drug market in 1996. Since then, there has been a small upward trend in heroin sales, demonstrated by an increase in heroin seizures from 0.53 grams in the first six months of 2005 to 738.77 grams in the first six months of 2006, while cocaine seizures have remained flat. Despite some increase, the seizure amounts remain small and the overall market demand for heroin and cocaine remains fairly small. The Armenian Chief of Police heads an Interdepartmental Committee on Combating Drug Use and Drug Trafficking.

III. Country Actions Against Drugs in 2006

Policy Initiatives. There have been no new policy initiatives since the passage on May 10, 2003, of the Law of the Republic of Armenia on Narcotic Drugs and Psychotropic Substances and a 2004 amendment to the criminal code, which criminalized the illicit trafficking of drug manufacturing precursors (e.g. substances involved in the creation of heroin) and drug manufacturing equipment. According to police sources, Armenian law enforcement agencies have requested legislative changes to expand probable cause in search and seizures and lengthen criminal penalties for engaging in the drug trade.

Accomplishments. Preventive measures to identify and eradicate both wild and illicitly cultivated cannabis and poppy continued in 2006. Eradication efforts took place in October and November of 2006 in order to coincide with the hemp and poppy growing season. Armenian Police participate in "Channel," a joint operation that in 2006 involved Russia, Ukraine, Kazakhstan, Belarus, Kyrgyzstan, Tajikistan, Uzbekistan, Finland, China, Azerbaijan, Georgia, and Armenia. During this exercise, the Armenian authorities give special scrutiny to all vehicles crossing the border and all containers arriving at the airport for a one-month period. All Armenian law enforcement agencies (Police, National Security Service, Customs, Border Guards, Internal Forces, Ministry of Defense, and Prosecutor's Office) participate in this activity. The GOAM hopes to carry out "Channel" operations two times in 2006.

Law Enforcement Efforts. In the first six months of 2006, the Armenian Police identified 477 violations of the criminal code dealing with illegal drug abuse and/or drug trafficking, compared to 208 such cases during a similar period in 2005, an increase of 129 percent. The GOAM claims that 254 individuals were involved in the 477 abuse and/or trafficking of illegal drugs violations, compared to only 147 individuals involved in the 208 cases in 2005, an increase of 72 percent. During the first six months of 2006, 7.31 kg of illegal drugs were seized, compared to 1.62 kg for the first six months of 2005, an increase of 351 percent. (Opium comprised about 45 percent of these seizures, cannabis accounted for 33 percent, and heroin 10 percent.) Police sources attribute these percentage increases to improved interdiction efforts, backed by recent legislative changes. (For example, in 2004 the National Assembly amended the criminal code to make trafficking in small amounts of illicit narcotics a crime. Previously, only larger seizures could result in prosecution.) But the possibility that the local demand for illicit drugs is growing cannot be completely discounted. Armenia has experienced double-digit economic growth for several years. Increased discretionary income among the population, particularly in Yerevan, could be raising the demand for illicit drugs. However, the overall numbers indicate the local market is still relatively small. The Armenian Interagency Unit of Drug Profiling (IUDP), which collects information on passengers at Zvartnots International Airport, has been operational since February 2005. Funded solely by SCAD, the IUDP also shares data with law enforcement agencies and attempts to identify drug traffickers.

Corruption. Corruption remains a problem in Armenia. Although the GOAM has taken steps to develop an anticorruption program, the political will and the available resources have not been adequate. Since April 2004, there has been an Anti-Corruption unit, overseen by the Prosecutor General and consisting of eight prosecutors, in the Office of the Armenian Prosecutor General. The government does not encourage or facilitate the illicit production or distribution of narcotic drugs and psychotropic substances. Nor does it encourage or facilitate the laundering of proceeds from the sale of illegal drugs. No government officials have been reported to have engaged in these activities. Armenia has signed, but has not yet ratified, the UN Convention against Corruption.

Agreements and Treaties. Armenia is party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances. Armenia is also a party to the UN Convention against Transnational Organized Crime and its protocols on migrant smuggling and trafficking in women and children.

Cultivation and Production. Hemp and opium poppy grow wild in Armenia. Hemp grows mostly in the Ararat Valley, the south-western part of Armenia; poppy grows in the northern part of Armenia, particularly in the Lake Sevan basin and some mountainous areas.

Drug Flow/Transit. The principal transit countries through which drugs pass before they arrive in Armenia include Iran (opiates, heroin), and Georgia (opiates, cannabis, hashish). Armenia's borders with Turkey and Azerbaijan remain closed due to the Nagorno-Karabakh conflict, but small amounts of opiates and heroin are smuggled to Armenia from Turkey via Georgia. When all of Armenia's borders open once again, the police predict drug transit will increase significantly.

Demand Reduction. The majority of Armenian addicts are believed to be using hashish, followed by heroin. Armenia has adopted a policy of focusing on prevention of drug abuse through awareness campaigns and treatment of drug abusers. These awareness campaigns are being implemented and manuals are being published under the framework of the South Caucasus Anti-Drug (SCAD) Program. The Drug Detoxification Center, funded by the Armenian Ministry of Health and SCAD, provides drug treatment and counseling.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. The USG continues to work with the Government of Armenia to increase the capacity of Armenian law enforcement. Joint activities include the development of an independent forensic laboratory, the improvement of the law enforcement training infrastructure and the establishment of a computer network that will enable Armenian law enforcement offices to access common databases. In 2006, the Department of State, though its Export Control and Related Border Security Assistance (EXBS) program, continued to assist the Armenian government. EXBS training and assistance efforts, while aimed at the nonproliferation of weapons of mass destruction and their delivery systems, directly enhance Armenia's ability to control its borders and to interdict all contraband, including narcotics.

The Road Ahead. The USG will continue aiding Armenia in its counternarcotics efforts through capacity building of Armenian law enforcement and will continue to engage the government on operational drug trafficking issues.

Austria

I. Summary

Austria is a transit country for drug trafficking into Western Europe due to its position along the Balkan and other major trans-European routes. Foreign criminal groups from Turkey, the Western Balkans, Eastern Europe, West Africa (Nigeria), and Latin America dominate organized narcotics trafficking in Austria. Trafficking by Austrian citizens remains insignificant. Austria is not a drug-producing country. However Austrian authorities reported a slight increase in indoor cannabis cultivation for personal use; the amounts are low by international comparison.

Drug use in Austria increased slightly, but remains below the European Union average. Austrian health experts and government authorities do not consider it to be a severe problem. Studies indicate that the average age of Austrian drug users is decreasing. According to health and law enforcement officials, abuse of drug substitution medication (e.g. morphine, methadone, and buprenorphine) is increasing. Authorities estimate that there are between 15,000 to 20,000 drug users, or fewer than two addicts per 1,000 inhabitants. The lifetime prevalence of drug abuse by Austrian citizens, primarily of cannabis, also remained stable in 2006 at 20 to 25 percent.

International cooperation, particularly with U.S. law enforcement authorities, continued to be excellent during 2006 and resulted in several significant domestic and multinational seizures. From January through July 2006, Austria held the Presidency of the European Union and made the fight against organized crime a central theme. The Austrian Presidency hosted President Bush, U.S. Attorney General Alberto Gonzales, and other senior U.S. law enforcement officials for talks on fighting international organized crime and corruption. In May 2006, Austria convened a workshop of international experts to discuss policing along the Balkan drug route. In July, Austria, as President of the European Union, hosted biannual U.S.-EU discussions on drugs. Austria also continued efforts to intensify international police cooperation within the "Salzburg Forum," a meeting of regional interior ministers, and within the European Union's Central Asian Border Security Initiative (CABS). Austria is a party to the 1988 UN Drug Convention.

II. Status of Country

The drug situation in Austria did not change significantly during 2006. As of October 2006, the number of drug-related deaths-which typically fluctuates between 100 and 150 deaths per year-totaled 191.

The number of drug deaths from mixed intoxication continues to rise. The most recent statistics show a 2.68 percent increase in the number of charges Austrian law enforcement authorities have filed for violation of the Austrian Narcotics Act, with a total of 25,892 offenses. This figure includes 25,041 criminal offenses involving narcotic drugs and 848 for psychotropic drugs, and three other offenses. The number of individuals charged under the Austrian Narcotics Act also rose 1.38 percent to 21,335 persons. The Austrian Ministry of Interior investigated 164 cases involving precursor chemicals in 2005, an increase of 36 cases compared to the same period in 2004.

Experts estimate that the number of conventional illicit drug users remained stable in 2006 at 15,000 to 20,000, or roughly 0.25 percent of the population. The number of users of MDMA (Ecstasy) remained largely stable in 2006. Usage of amphetamines rose during the same period as these substances became increasingly available in non-urban areas. According to a recent study, commissioned by the Health Ministry, approximately one fifth of respondents admitted to consumption of an illegal substance. The respondents most often cited use of cannabis, with Ecstasy and amphetamines in second and third place. Among young adults (ages 19-29), about 25 percent admitted "some experience" with cannabis at least once in their lifetime. According to the study, 2-4 percent of this age group had already used cocaine, amphetamines, and Ecstasy, while three percent had experience with synthetic drugs. Austria, as a member of the European Monitoring Center for Drugs and Drug Addition, undertook a study in 2006, which confirmed that problem drug use is increasing among 15 to 24 year-olds.

III. Country Actions Against Drugs in 2006

Domestic Policy Initiatives. Austria continues its "no tolerance" policy against drug traffickers, who face a minimum sentence of ten years to a maximum sentence of life in prison when convicted. It also continues its policy of "therapy before punishment" for non-dealing drug offenders. In mid-2006, Austria began drafting a series of amendments to introduce a more rigid system of fines for drug-related offenses in line with an EU framework decision to harmonize counter narcotics policies across the European Union. Following an EU Council decision on synthetic drugs in 2006, Austria also passed legislation to bring its laws into conformity with UN agreements on psychotropic substances.

A 2005 amendment expanded police powers to mount surveillance cameras in high-crime public areas. The amended law provides for the establishment of a "protection zone" around schools, pre-schools, and retirement communities, and entitles police to ban persons suspected of drug dealing within a protection zone from that area for up to 30 days. Austrian authorities say the new law has been effective in these areas. Critics argue that the law only shifted the drug scene to non-surveilled areas. In 2005, following intense public debate, the government improved quality controls and took a more restrictive approach in substitution treatment with retarding morphine therapy. A November 2006 decree by the Austrian Health Ministry is designed to further tighten controls on dispensing substitution medications and to improve training for general practitioners and pharmacists, who prescribe and dispense this treatment.

Regional and International Cooperation. During the first half of 2006, Austria held the Presidency of the European Union and hosted several high-profile events. In May, Austria hosted over 60 heads of state for the EU-Latin America Summit and led discussions on finding joint strategies to fight drug trafficking. Fighting organized crime in the Balkans and increasing regional police cooperation were also major themes of the EU Presidency. In May, over 50 nations and international organizations, including the U.S., met in Vienna to sign the "Vienna Declaration on Security Partnership," which included a convention on police cooperation. In June, Austria convened a three-day workshop of experts from Europe, the Western Balkans, Russia, the United Nations Office of Drugs and Crime (UNODC), and the U.S., including DEA's Regional Director for Europe and Africa. The participants discussed strategies for fighting drug trafficking from Afghanistan and for policing along the Balkan route. In October 2006, Austria hosted a long-running meeting of drug trafficking experts from the EU, Central and Eastern Europe, and the U.S. to discuss measures to increase law enforcement cooperation.

Law Enforcement Efforts. Comprehensive seizure statistics for 2006 are not yet available. Statistics for 2005 show a marked increase in the quantity of cocaine and heroin seized and a slight decrease in confiscations of Ecstasy pills and LSD dose units, or "hits." Police made nearly the same number of confiscations of amphetamines and methamphetamines in 2005, but the cumulative quantities of both drugs seized was less than the previous year. According to government figures, Austrian authorities seized 820 kg of cannabis products (-26.39 percent decrease over 2004), 282 kg of heroin (+20.79 percent), 13 kg of raw opium, 245 kg of cocaine (+224.50 percent), 114,103 Ecstasy tablets (-6.98 percent), and 2,108 LDS dose units (-5.36 percent). Police seized 9 kg of amphetamines (-65.3 percent) and 0.7 kg of methamphetamines (-62.9 percent) and 27,104 pieces (+28.3 percent) of pharmaceutical, psychotropic substances.

As part of an international investigation in January 2005, police in Austria made a record seizure of 143 kg of cocaine, which originated in Peru and traveled via the U.S., France, and Germany before transiting Austria. The seizure resulted in five arrests and disrupted a European drug trafficking ring. The authorities recorded two other large seizures of cocaine, one of 30 kg and another of 24 kg. Austrian police made three major heroin busts at customs checkpoints and weigh stations in the country in 2005: 70 kg in February, 97 kg in July, and 68 kg in August. Austrian authorities seized 30,571 Ecstasy pills in January, 15,000 in March, and 10,050 in December, which the police determined all originated from the Netherlands. In 2005, the Austrian Ministry of Interior investigated 164 criminal cases involving precursor chemicals, an increase of 36 cases over 2004, and seized 100 grams of Category I precursors.

In 2006, average retail or "street prices" of illicit drugs remained basically unchanged from 2005, and were as follows: cannabis resin/hashish for approximately $9.50 per gram; herbal cannabis/marijuana for $4.50 per gram; cocaine for $82-114 per gram; brown heroin for $57-89 per gram; white heroin for $101-115 per gram; amphetamines for $9.50 per gram or $19-32 per tablet; Ecstasy (MDMA) for $13-19 per tablet, and LSD for $38-44 per dose unit or "hit."

Corruption. Austria has several laws in place, which contain provisions on corruption. In 1999, Austria became a party to the OECD antibribery convention and also abolished the tax deductibility of bribes and gray market payments. A 2006 report on corruption by the OECD confirms this and recommends that Austria further clarify its definition of foreign bribery offenses to ease investigations by tax authorities. There are no corruption cases pending that involve bribery of foreign public officials. The government has not yet prosecuted any cases, which would test the degree of the current law's enforcement. The U.S. government is not aware of the involvement of any high-level Austrian government officials in drug-related corruption. Austria is a party to the UN Corruption Convention.

Agreements and Treaties. An extradition treaty and a mutual legal assistance treaty are in force between Austria and the U.S. Austria is a party to the 1988 UN Drug Convention, the 1961 Single Convention on narcotic drugs and its 1972 protocol, and the 1971 UN Convention on Psychotropic Substances. Vienna is the seat of the UNODC. Austria is also a "major donor" to the UNODC, with an annual pledge of approximately $440,000. Austria is a party to the UN Convention Against Transnational Organized Crime and its protocol on trafficking in persons.

Cultivation. Production of illicit drugs in Austria was marginal in 2005 and 2006. Experts noted a minor rise in the private, indoor growth of cannabis, but the amounts are low by international comparison.

Drug Flow/Transit. Austria is not a source country for illicit drugs and illicit trafficking by Austrian nationals is negligible. Foreign criminal groups primarily from Turkey, the Western Balkans, Eastern Europe, West Africa (Nigeria), and Latin America (Colombia) carry out organized drug trafficking in Austria. Based on 2005 seizures, counternarcotics officials note that traffickers continued to rely on conventional means of transportation, such as trucking, for drug smuggling. Drug traffickers are increasingly using Central and East European airports, including those in Austria.

Domestic Programs/Demand Reduction. Austrian authorities and the public view drug addiction as a disease rather than a crime. This is reflected in liberal drug abuse legislation and in court decisions. Austrian society remains committed to measures to prevent the social marginalization of drug addicts. Federal guidelines ensure minimum quality standards for drug treatment facilities. The use of heroin for therapeutic purposes is generally not allowed. Demand reduction puts emphasis on primary prevention, drug treatment, counseling, and so-called "harm reduction" measures, such as needle exchange programs. According to health officials, ongoing challenges in demand reduction are the need for psychological care for drug victims and greater attention to older victims and to immigrants.

Primary prevention starts at the pre-school level and continues through secondary school, apprenticeship institutions, and out-of-school youth programs. The government and local authorities routinely sponsor educational campaigns both within and outside of educational fora. Overall, youths in danger of addiction are primary targets of new treatment and care policies. Austria has syringe exchange programs in place for HIV prevention. HIV prevalence rates among drug-related deaths decreased to 6 percent in 2005, compared to 8 percent in 2004, while hepatitis prevalence rates increased. Policies to work toward greater diversification in substitution treatment for drug addiction (using, for example, methadone, prolonged-action morphine, and buprenorphine) continued. Although no official data is available, both drug policy and treatment experts in Austria note an increase in the abuse of substitution medications and an increase in the availability of these medications on the local black market. Public debate continues in Austria on methods to further tighten controls on this medication and to provide training to general practitioners and pharmacists, who prescribe or dispense this medication. Austrian health officials are also looking for new measures to increase secondary prevention awareness, especially concerning re-integration of recovering addicts into the labor market.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. Cooperation between Austrian and U.S. authorities continued to be excellent in 2006. Although Austria has no specific bilateral narcotics agreement in place with the U.S., several bilateral efforts exemplified this cooperation. These include continuing joint DEA and BKA (Criminal Intelligence Service) training at the International Law Enforcement Academy; the drafting of a criminal asset sharing agreement between the U.S. and Austria; and continuing DEA support of BKA investigative efforts across Europe and in the Western Balkans to combat the flow of Afghan heroin. Austrian Interior Ministry officials continued to consult the FBI, DEA, and Department of Homeland Security to gain know-how on updating criminal investigation structures and techniques and to share investigative information. In June 2006, an FBI Special Agent supervisor shared his experiences on fighting drug trafficking along the Balkan route with Austrian and EU law enforcement officials during a workshop in Vienna. The U.S. Embassy also sponsors speaking tours of U.S. counternarcotics and drug treatment experts in Austria.

The Road Ahead. The U.S. will continue to support Austrian efforts, both bilaterally and within the UN and the OSCE, to create more effective tools for law enforcement. This includes working closely with Austrian authorities against drug trafficking rings in Austria and collaborating with Austria to improve border controls and security efforts in the Western Balkans and Central Asia. The U.S. will continue to facilitate workshops or other meetings between U.S. and Austrian police, drug policy and treatment experts, and senior government officials. The U.S. will work closely with Austria to implement U.S.-EU initiatives and to deepen the level of law enforcement cooperation gained during the Austria EU Presidency in the fight against drug trafficking and other organized crime. Promoting a better understanding of U.S. drug policy among Austrian officials and the public remains a top priority.

Azerbaijan

I. Summary

Azerbaijan is located along a drug transit route running from Afghanistan and Central Asia to Western Europe, and from Iran to Russia and Western Europe. Domestic consumption and cultivation of narcotics are low, but levels of use are increasing. The United States has funded counternarcotics assistance to Azerbaijan through the FREEDOM Support Act since 2002. Azerbaijan receives border control assistance through the Department of State's export control and related border security assistance (EXBS) program. Azerbaijan is a party to the 1988 UN Drug Convention.

II. Status of Country

Azerbaijan's main narcotics problem is the transit of drugs through its territory. Azerbaijan emerged as a narcotics transit route in the 1990s because of the disruption of the "Balkan Route" due to the wars among the countries of the former Yugoslavia. According to the Government of Azerbaijan (GOAJ), the majority of narcotics transiting Azerbaijan originates in Afghanistan and follows one of four primary routes: Afghanistan-Iran-Azerbaijan-Georgia-western Europe; Afghanistan-Iran-Azerbaijan-Armenia-Georgia-Western Europe; Afghanistan-Iran-Azerbaijan-Russia; or Afghanistan-Central Asia-the Caspian Sea-Azerbaijan-Georgia-western Europe. Azerbaijan shares a 380 mile (611 km) frontier with Iran, and its border control forces are insufficiently trained and equipped to patrol it effectively. Iranian and other traffickers are exploiting this situation. The most widely abused drugs in Azerbaijan are opiates, especially heroin, licit medicines, hemp, and hashish. Domestic consumption continues to grow with the official GOAJ estimate of drug addicts reaching 18,000 persons. Unofficial figures are estimated at approximately 180,000 to 200,000, the majority of which are heroin addicts Students are thought to be a large share of total drug abusers at 30-35 percent. The majority of heroin users are concentrated in major cities and in the Ankara District (64.6 percent), which borders Iran. Drug use among young women has been rising.

III. Country Actions Against Drugs in 2006

Policy Initiatives. The GOAJ refined its strategy to combat drug transit and usage in Azerbaijan. The GOAJ bolstered its ability to collect and analyze drug-related intelligence, resulting in more productive investigations against narcotics traffickers. The GOAJ also continues to work within the framework of GUAM (an international cooperation group consisting of: Georgia-Ukraine-Azerbaijan-Moldova) to share counternarcotics information and expertise. GUAM countries use the Virtual Law Enforcement Center (VLEC) in Baku, which was established with USG assistance, to coordinate their activities. The center provides an encrypted information system that allows member states' law-enforcement agencies to share information and coordinate their efforts against terrorism, narcotics trafficking, small arms, and trafficking in persons. The extent to which information is shared among GUAM member states through the VLEC appears limited.

Law Enforcement Efforts. According to Ministry of Internal Affairs (MIA) information as of September 2006, the MIA conducted 1,670 drug investigations, of which 565 involved the sale of narcotics. During this period, the MIA seized 16 kg of hashish; 59 kg of opium; and 20 kg of heroin. The MIA reports there are approximately 18,000 registered narcotic users in Azerbaijan. According to Ministry of National Security information (MNS) as of September 2006, the MNS seized 206 kg of narcotics, including 7 kg of heroin; 19 kg of opium; 20 kg of marijuana and 160 kg of hashish.

Corruption. Corruption remains a significant problem. Several Azerbaijani prosecutors have attended U.S. DOJ-sponsored training courses on investigating trans-border crimes, implementing the Azerbaijani criminal code, and developing courtroom skills such as preparing courtroom evidence and cross examining witnesses. These broad-based skills may aid in the prosecution of drug-related cases and limit the scope of corruption. As a matter of government policy, however, Azerbaijan does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. Similarly, no senior government official is alleged to have participated in such activities.

Agreements and Treaties. Azerbaijan is a party to the 1988 UN Drug Convention, to the 1971 UN Convention Against Psychotropic Substances, and to the 1961 UN Single Convention as amended by its 1972 Protocol. Azerbaijan also is a party to the UN Convention against Corruption, and to the UN Convention Against Transnational Organized Crime and its protocols against trafficking in persons, migrant smuggling and illegal manufacturing and trafficking in firearms.

Cultivation and Production. Azerbaijan's problem with narcotics largely stems from being a transit state, rather than a significant drug cultivation site. Cannabis and poppy are cultivated illegally, mostly in southern Azerbaijan, but not in large quantities.

Drug Flow/Transit. Opium and poppy straw originating in Afghanistan transit to Azerbaijan from Iran, or from Central Asia across the Caspian Sea. Drugs are also smuggled through Azerbaijan to Georgia and Russia, then on to Central and Western Europe. Azerbaijan cooperates with Black Sea and Caspian Sea littoral states in tracking and interdicting narcotics shipments, especially morphine base and heroin. Caspian Sea cooperation includes efforts to interdict narcotics transported across the Caspian Sea by ferry. Law enforcement officials report that they have received good cooperation from Russia.

Domestic Programs. In the summer of 2006, the GOAJ produced a series of public service announcements about the dangers of drug usage. The advertisements were aimed at a younger audience and were displayed in downtown Baku.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. In 2006, the Department of State, though its Export Control and Related Border Security Assistance (EXBS) program, continued to assist the Azerbaijan State Border Service (SBS) and the State Customs Committee (SCC). EXBS training and assistance efforts, while aimed at the nonproliferation of weapons of mass destruction and their delivery systems, directly enhance Azerbaijan's ability to control its borders and to interdict all contraband, including narcotics. During 2006, EXBS sponsored numerous border control courses for the Border Guard and SCC officers. These courses provided participants with real-time, hands-on inspections and border control tactics at sea and in the field. Other courses improved the Border Guard's control of Azerbaijan's southern border, as well as the ability of SCC officers to detect contraband.

The U.S. donation of tool trucks equipped with generators, search tools, and related equipment improved the Customs Contraband Teams' detection capabilities. The U.S. Border Patrol did an in-depth assessment of Border Guard operations in a problematic section of the Iranian border. Study recommendations will be used to prioritize the future direction of U.S. assistance. The U.S.'s contribution of fencing and construction materials to rebuild watchtowers significantly enhanced the Border Guard's ability to hamper illegal penetrations of Azerbaijan's southern border. EUCOM supported a study of the Border Guard Air Wing's ability to detect border penetrations at night. As a result of the study, EUCOM will upgrade one aircraft's avionics. During 2006, the Department of Defense and EXBS helped equip a maritime base near Azerbaijan's southern border in Astara. The base will host two patrol boats and two fast response boats to be delivered in early 2007. The facility will also be used for extended patrols by larger vessels from Baku. In May, EXBS replaced the shore-based short-range radar in Astara with a more reliable and capable model. The efforts in Astara have dramatically improved the Azerbaijani Coast Guard's ability to monitor and patrol the southern waters and maritime boundary of Azerbaijan.

In June 2006, the Department of Justice International Criminal Investigative Training Assistance Program (DOJ/ICITAP) provided a two-week training course for site surveillance, entry and arrest techniques. The program developed Azerbaijani police officers' skills in high-risk entries and tactical team concepts to aid in arresting narcotics offenders. The Department of State's Bureau of International Narcotics and Law Enforcement Affairs (INL) and Drug Enforcement Administration (DEA) are planning training courses for the Ministry of Health, MIA, and Ministry of Justice (MOJ) in using gas chromatography/mass spectrometry to analyze narcotic substances. The three ministries will receive a gas chromatography/mass spectrometry unit as an analysis tool after the training.

The Road Ahead. The U.S. and Azerbaijan will continue to cooperate in law enforcement assistance programs in Azerbaijan. Such programs will include: helping the GOAJ modernize its criminal records system; training and exchanges for Azerbaijan's law enforcement officials and police officers; and forensic lab development, in addition to counternarcotics/drug enforcement programs. Cooperation between DEA and the GOAJ continues, and the DEA plans to help Azerbaijan increase its counternarcotics capabilities.

Belarus

I. Summary

Belarus continues to grow in importance as a drug-transit country. Local drug use and drug-related crime rates continue to increase. Belarus does not mass-produce drugs for export, though it may be a source of precursor chemicals. With the help of other nations and organizations, Belarus is improving its efforts to combat drug abuse and trafficking, but corruption, and lack of organization, funding and equipment continue to hinder progress. Belarus receives counternarcotics assistance from the joint UNDP-European Union program BUMAD (Belarus, Ukraine, Moldova Anti-Drug Program), which seeks to reduce trafficking of drugs into the European Union. The program, which just concluded phase two of its three-part project, seeks to develop systems of prevention and monitoring, improve the legal framework, and provide training and equipment. BUMAD is the most significant counternarcotics program in Belarus at this time. Belarus is a party to the 1988 UN Drug Convention.

II. Status of Country

Drugs increasingly transit Belarus on their way to points east, west and north due to Belarus' porous borders and good railway and road system. This traffic is facilitated by Belarus' customs union with Russia and the resultant lack of border controls between Belarus and Russia. The formation of the Eurasian Economic Community (Belarus, Russia, Kazakhstan, Kyrgyzstan Republic, Tajikistan, and Uzbekistan) has the potential to create a broader border-free area, which would further facilitate all types of trafficking. There is no evidence of large-scale drug production in Belarus. The potential exists for Belarus to have a problem with illicit synthetic drug production because of its ample pharmaceutical facilities and the current lack of oversight controls. The completely government-owned chemical industry is allowed to police itself. According to law enforcement officials in neighboring countries, Belarus is a source of precursor chemicals.

III. Country Actions Against Drugs in 2006

Policy Initiatives. Belarus' counternarcotics strategy initiative (the State Program of Complex Measures Against Drug and Psychotropic Substances Abuse and Their Illicit Trafficking for 2001-2005) expired last year. Administered by the Ministry of the Interior, the program included ambitious plans for prevention and rehabilitation strategies but was never fully implemented and will not be renewed. This year, the Belarusian government incorporated drug abuse prevention and rehabilitation into its overall national 2006-2010 Anti-Crime Program, under which the Committee for State Security (BKGB), the State Customs Committee, and the Ministries of the Interior, Health, and Foreign Affairs will conduct their own programs. While inter-agency rivalry inhibits cooperation, Belarus has made some strides over the past year in restructuring government agencies to enhance information gathering on narcotics transit and distribution. For example, in February, the Ministry of Health established a BUMAD-supported National Observatory on Drugs in order to link 19 government agencies to assist in the collection and analysis of statistics on illicit drug abuse in an effort to combat drug trafficking on a regional level. The Collective Security Treaty Organization (CSTO) launched its international anticrime operation "Channel 2005," a cooperative effort coordinated by an office of the Commonwealth of Independent State (CIS) that resulted in the seizure of more than 80 kg of narcotics in Belarus in October 2005. In April, the CIS Council of Border Troops Commanders established a common database for coordinating border security. In June 2006, during the CSTO Heads of State summit in Minsk, Belarus and the other CSTO members signed commitments for future joint antidrug activities.

Accomplishments. While Belarus does not face large-scale illicit drug production or cultivation problems, drug use and transit issues must be addressed before Belarus will be in full compliance with the 1988 UN Drug Convention. In 2004, BUMAD presented the Belarusian government with a series of recommendations to bring the country's laws into full compliance with drug-related UN conventions. However, a 2006 BUMAD-commissioned study concluded that the Belarusian government had yet to implement most of those recommendations.

Law Enforcement Efforts. From January 1 to October 1, 2006, 2,118 people committed 3,720 drug-related crimes. Meanwhile, authorities seized 569 kg of drugs, a decrease from 720 kg during the same time period in 2005. However, experts, including government officials, agree that this official figure fails to reflect the real quantity of drugs transiting or used in Belarus and note that the low street prices of amphetamines and heroin, which fell from $100 to $40 per gram over the past year, attests to the overall increase in supply. Moreover, in a report presented to the BUMAD in September, the State Border Troops' Committee conceded that official seizure figures do not reflect the reality of the problem and that most drugs transit Belarus undetected from western Russia, which has a virtual open border with Belarus as part of the countries' customs union. Government officials publicly admit that enforcement efforts suffer from lack of communication and coordination and from inter-agency rivalries. According to BUMAD, this unprecedented and candid self-examination by Belarusian law enforcement translated into more interest in international cooperation in 2006. For example, the Belarusian police academy instituted a new BUMAD-supported curriculum with two new courses focusing on drug enforcement. Moreover, state Security Services reversed policy by allowing law enforcement agencies to use a BUMAD-sponsored software program to enhance information sharing between its law-enforcement agencies and with other BUMAD recipients who had previously adopted the program. Finally, Belarus hosted BUMAD's annual regional seminar on improving cooperation between Belarusian and foreign law enforcement agencies.

Despite these recent efforts, total drug seizures have declined significantly since last year. Drugs seized from January 1 to October 1 (in kg) are as follows: Poppy Straw and Marijuana (720); Raw Opium (74.8); Heroin (0.2); Amphetamine/Methamphetamine (4.3); Acetylated Opium (liquid heroin) (5.8); Hashish (9.1); Cocaine (0.5); LSD and other hallucinogens (1.2); Methadone (0.4). Belarus continues to have problems with abuse of the extract from poppy straw, which is very popular in Ukraine, Russia, and Belarus. Poppy straw was again the drug seized in greatest quantity in 2006. However, there is no evidence of large-scale production of poppies for export. Heroin seizures have dropped sharply from 26.7 kg last year to 0.2 kg in 2006. Credible sources report that use of synthetic drugs has increased by 136 times since 2000 and is gradually replacing demand for poppy straw and marijuana. Belarusian authorities believe that most synthetic drugs enter Belarus from Western Europe via the country's borders with Poland, Lithuania, and Latvia. In 2006, authorities seized 0.4 kg of methadone, down from 1.1 kg confiscated during the previous year.

Corruption. On July 20, President Lukashenko signed an anticorruption law to comply with the Council of Europe's 1999 Criminal Law Convention on Corruption, which Belarus ratified in 2004. Belarus also ratified the Council of Europe's 1999 Civil Law Convention on Corruption in December 2005 and is considering a series of corresponding amendments on corruption. Nevertheless, corruption remains a serious problem among border and customs officials and makes interdiction of narcotics difficult. In October, a retiring Customs Division head in the western Brest region publicly confessed that Belarusian law is still too weak to deter widespread bribery at Belarusian border checkpoints. As a matter of government policy, however, Belarus does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions.

Agreements and Treaties. Belarus is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances. Belarus is a party to the UN Convention Against Corruption, and the UN Convention against Transnational Organized Crime and its protocols against migrant smuggling, trafficking in persons and manufacturing and trafficking in illegal firearms. The international donor community has had repeated difficulties in getting assistance programs registered by the government. In September 2005, a presidential edict greatly restricted all foreign technical assistance, making it extremely difficult to introduce and utilize international aid in Belarus. There have also been attempts by the Belarusian government to tax foreign aid, despite international agreements. These problems have slowed the implementation of international assistance programs. For example, authorities delayed registration of the second part of BUMAD and consequently postponed the launch of BUMAD-sponsored programs for legal assistance, border control, drug intelligence, community policing, drug observatories, and NGO networking. During BUMAD's 2006 regional seminar in Minsk, Belarusian Foreign Minister Sergey Martynov acknowledged the need for more outside aid and advocated the removal of Belarus' legal obstacles to international counternarcotics cooperation. By September 2006, BUMAD reported that its second phase was nearly complete and that the authorities seemed much more responsive to foreign law-enforcement assistance programs.

Cultivation/Production. There is no confirmed widespread illicit drug cultivation or production in Belarus. Conviction for growing narcotic plants for the purpose of selling can result in a prison sentence of as much as 15 years. However, some cultivation and production have been detected. In June, authorities seized nearly 110 kg of hemp plants. In July, during a six-day joint over flight and seizure operation, border troops, BKB officers, and local police discovered 34 hectares of poppy and cannabis fields and destroyed more than 9.5 tons of narcotic plants. Earlier in the year, credible sources reported that authorities raided a small laboratory that illegally produced amphetamines and cultivated new types of Dutch marijuana.

Drug Flow/Transit. Most serious illicit drugs, especially heroin, enter Belarus from Russia. Drugs also enter Belarus from Ukraine (semi-refined opium); the Baltic states, the Netherlands, Poland (amphetamines); Afghanistan, Caucasian republics, Pakistan, Russia, Tajikistan, Turkmenistan, Ukraine (heroin); Caucasian republics, Ukraine (marijuana); Russia (methadone); Ukraine (poppy straw). Amphetamines and precursors transit Belarus to Poland and Russia. Marijuana, poppy straw, Rohypnol, and heroin transit to Russia and Western Europe.

In 2005, more than 22 million persons and 7 million vehicles crossed Belarusian borders. During that time, customs authorities seized 70 kg of illicit narcotics. In April 2006, customs officials reported that the total number of goods transiting through Belarus between January and April 2006 had risen more than 18 percent from the same period of the previous year. According to official sources, customs officers currently inspect only five percent of all inbound freight. Furthermore, Belarusian border guards often lack the training, and in many cases the equipment, to conduct effective searches. In an effort to address these problems, the BUMAD program continues several programs to improve Belarus' border checkpoints and training of law enforcement personnel.

Domestic Programs (Demand Reduction). Belarusian authorities are beginning to recognize the growing demand problem in Belarus, particularly among young people who have ready access to narcotics at dance clubs, university dormitories and educational facilities. In October, Belarus' Drug Control and Trafficking Department Chief Oleg Pekarskiy estimated the true number of drug addicts in the country to be nearly ten times the official number of 9,500, or about 127 registered drug users per 100,000 persons. According to official statistics, the number of drug-related offenses have doubled since 2000 and 70 percent of known drug addicts are between the ages of 14 and 25. In April, the Regional Juvenile Delinquency Prevention Commission based in the western city of Brest reported that the number of recorded juvenile drug-related offenses during the first three months of 2006 rose six percent over the same period in 2005.

Drug use is criminalized and highly stigmatized by government and in society. Drug addicts, especially those who are unregistered, are dissuaded from seeking treatment by fear of consequences at work, school, and in society if their addiction becomes known. Meanwhile, Belarus' counternarcotics education remains inchoate, though such programs occur at the local level with varying degrees of success. Police officers who work with juvenile crime run drug prevention programs in schools, but lack sufficient training, resources, and nationwide coordination of curriculum. In February 2005, BUMAD and the GOB launched a Minsk-based counternarcotics youth information campaign, "You and Me against Drugs," which included pamphlet distribution, lectures at organized sporting events and the production of an informational counternarcotics video with famous Belarusian athletes. However, the program ended in June 2005 and a similar follow up program is not scheduled to begin until summer 2007. Last year, BUMAD had also sponsored a Belarusian chapter of NGO Mothers Against Drugs (MAD), which won the 2005 UN Civil Society Award for its work in developing and implementing drug prevention programs among Belarusian youth, including counseling services, HIV awareness programs, and self-help groups for addicts and their family members. However, the government subsequently withdrew its registration, and all MAD offices closed in 2006.

The government generally treats drug addicts in psychiatric hospitals, either as a result of court remand or self-enrollment, or in prisons. Moreover, the emphasis of most treatment programs is detoxification and stabilization. For example, in February, the Ministry of Health began methadone substitution program for HIV positive drug users in the southeastern Gomel region. Several NGOs run rehabilitation centers, which attempt to provide long-term care, including psychological assistance and job training. However, financial limitations constrain the breadth of these programs. Several BUMAD-supported drug counseling centers were forced to close when the government withdrew its support.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. The USG has not provided narcotics/justice sector assistance to the GOB since February 1997.

The Road Ahead. The USG will continue to encourage Belarusian authorities to enforce their counternarcotics laws.

Belgium

I. Summary

Belgium remains an important transit point for a variety of illegal drugs, most significantly Ecstasy, cocaine, and heroin. Belgium is the second significant supplier of Ecstasy to the United States (much of which is shipped via Canada), and plays a significant role in the transshipment of cocaine from South America to Europe. Usage and trafficking of cocaine in Belgium appear to be on the rise, while Ecstasy and amphetamine seizures have decreased, indicating a decline in the overall usage and trafficking of these drugs. Belgium is also a transit point for a variety of chemical precursors used to make illegal drugs. Within the past year, Belgium has become an important transshipment point for illegal ephedrine, used as a chemical precursor to methamphetamine, destined for the United States via Mexico.

Traffickers use Belgium's busy seaports, train stations, and the two international airports to move drugs to their primary markets in the United Kingdom, the Netherlands, and elsewhere in Western Europe as well as to the United States. Belgian authorities take a proactive approach in interdicting drug shipments and cooperate with the U.S. and other foreign countries to help uncover distribution rings at home and abroad. Belgian authorities also continue to fight the production of illicit drugs within their borders, using methods like canine and aerial surveillance to uncover traffickers and drug laboratories. Belgium is a party to the 1988 UN Drug Convention.

II. Status of Country

Belgium produces synthetic drugs, as well as cannabis, and remains a key transit point for illicit drugs bound for the United Kingdom, the Netherlands, and other points in Western Europe, as well as the United States and Canada. By most accounts, its position as an important transit point for cocaine is largely due to a shared border with the Netherlands. In virtually all cases of significant cocaine shipping, the end destination for the cocaine is the Netherlands, where Colombian groups continue to dominate drug trafficking. This border shared by Belgium and the Netherlands has also contributed to the surge in both size and number of clandestine amphetamine and Ecstasy laboratories in Belgium since 2000. Airline passenger couriers and containerized cargo remain the principal means of transporting small quantities of Ecstasy to the United States. Stricter controls have limited the sending of pills via both express and regular mail from Belgium. In the past, Israeli groups controlled most of the Ecstasy production and shipping to the United States. More recently however in Belgium, Israeli organized crime groups have been disrupted by enforcement measures and their influence has diminished. Belgian officials believe that sea freight is likely used for transporting larger amounts of Ecstasy from Belgium via third countries to the United States and Canada. However, Belgian authorities continue to make a concerted effort to stem the tide of Ecstasy headed for the United States. Turkish groups continue to control most of the heroin trafficked in Belgium. This heroin is principally shipped through Belgium and the Netherlands to the United Kingdom. Increased seizures of cocaine may be an indication of a growing demand in Belgium. Hashish and cannabis remain the most widely distributed and used illicit drugs in Belgium. Although the bulk of the cannabis consumed in Belgium is produced in Morocco, cultivation in Belgium continues to increase.

In 2006, Belgium has experienced a dramatic rise of illegal ephedrine shipping. The ephedrine market is mainly controlled by Mexicans who purchase both legal (i.e., cold medicine, dietary supplements) and illegal ephedrine, and ship it to Mexico, where it is used to produce methamphetamine for distribution in the United States. Since most forms of ephedrine are strictly regulated in the United States, Belgium and other Western European countries have become major providers of these methamphetamine precursors. Furthermore, Belgium is also an important transshipment point for other chemical precursors, mainly coming from China to Europe. Precursor chemicals that transit Belgium include: acetic anhydride (AA), used in the production of heroin; piperonymethylketon (PMK) and benzylmethylketon (BMK), chemical precursors used in the production of Ecstasy; and potassium permanganate used in cocaine production.

III. Country Actions Against Drugs in 2006

Policy Initiatives. Belgium's National Security Plan for 2004-2007 cites synthetic drugs and heroin as the top large-scale drug trafficking problems. Of particular concern to Belgium is the importation and transshipment of cocaine and the exportation of synthetic drugs. The National Security Plan calls for attention to be concentrated on shutting down clandestine laboratories for synthetic drugs, on breaking up criminal organizations active in the distribution of synthetic drugs and heroin, and on halting the rise of drug tourism in Belgium, which has become an increasingly common phenomenon in the nation's larger cities. The Federal Prosecutor's Office, established in 2002, works to centralize and facilitate mutual legal assistance requests on drug trafficking investigations and prosecutions. Federal authorities have also noted an extreme rise in the establishment of cannabis plantations in the past year. With the number of cannabis seizures increasing each year, new efforts will be set forth to shut down plantations.

Law Enforcement Efforts. Belgian law enforcement authorities actively investigate individuals and organizations involved in illegal narcotics trafficking. In keeping with Belgium's drug control strategy, efforts are focused on combating synthetic drugs, heroin and cocaine, and more recently, cannabis. Belgian authorities continued to cooperate closely and effectively with DEA officials stationed in Brussels. At Brussels' Zaventem International Airport, non-uniformed personnel trained by the Belgian Federal Police to help detect drug couriers have become increasingly proficient. Belgian authorities have continued a proactive approach to searches and inspections of U.S.-bound flights at the airport with limited results. Belgian police attribute this to the additional DHS-mandated security controls on these flights. Additionally, the National Security Plan for 2004-2007 has outlined plans to use canine and aerial apprehension strategies on the local and federal levels to help fight illicit drug production and shipment in Belgium. The Canine Support Service (DSCH) has trained four dog teams to search for drugs, used mostly in airports and train stations, while the Aerial Support Service (DSAS) has made a concerted effort to increase the number of hours in the sky in an attempt to detect drug laboratories across the nation. In both proactive and reactive drug searches, the DSCH has exhibited positive results in the past year: 963 residences, 1,482 vehicles, and 2,335 persons that were searched tested positive for some illicit drug.

In the past year, Belgian authorities have discovered two clandestine laboratories, one producing Ecstasy and one producing both Ecstasy and amphetamines. As in past years, both production sites were located along the northern border with the Netherlands. These seizures bring the number of synthetic drug laboratories seized since 1999 to 56. In 2006 Belgian authorities seized approximately 2,928.92 kg of cocaine, 277.55 kg of heroin, 431,056 methylenedioxymethamphetamine (MDMA/Ecstasy) pills, 118.81 kg of amphetamines, 4,530.63 kg of cannabis/marijuana, 8,000.52 kg of hashish, and 1,923.99 kg of khat (cathinone/cathine).

Corruption. The Belgian government does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. Money laundering has been illegal in Belgium since 1993. The country's Financial Intelligence Unit (FIU) (CTIF-CFI) is active in efforts to investigate money laundering. No senior official of the Belgian government engages in, encourages or facilitates the illicit production or distribution of such drugs or substances, or the laundering of proceeds from illegal drug transactions. Corruption is not judged a problem within the narcotics units of the law enforcement agencies. Legal measures exist to combat and punish corruption.

Agreements and Treaties. Belgium is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances. Belgium also is a party to the UN Convention against Corruption, the UN Convention against Transnational Organized Crime and its protocols against migrant smuggling, trafficking in persons, and illegal manufacturing and trafficking in firearms. The United States and Belgium have an extradition treaty and an MLAT. During FY-2005, eight MLAT requests for narcotics case information sharing were submitted between Belgium and the United States. As part of a joint U.S.-EU venture, in 2004 the U.S. and Belgium signed bilateral instruments implementing the 2003 U.S.-EU Extradition Agreement. Under a bilateral agreement with the United States as part of the U.S. Container Security Initiative (CSI), U.S. Customs officials are stationed at the Port of Antwerp to serve as observers and advisors to Belgian Customs inspectors on U.S.-bound sea freight shipments.

Cultivation/Production. Belgium's role as a transit point for major drug shipments, particularly Ecstasy and cocaine, is more significant than its own production of illegal drugs. Nevertheless, Belgian authorities believe domestic Ecstasy and cannabis production is on the rise. Only the Netherlands exports more Ecstasy for use in the United States than does Belgium. Cultivation of marijuana is increasingly done using elaborate, large-scale operations in Belgium. Within the past year, 188 cannabis plantations, all in Flanders, were shut down, leading to the arrest of over 20 people and the seizure of 101,464 cannabis plants. The police action plan for 2004-2007 includes the fight against illegal commerce of cannabis due to the large-scale plantations discovered in the country. The production of amphetamines does not appear to have abated. Dutch traffickers are involved in Belgium's production of Amphetamine-Type Stimulants (ATS). As Dutch law enforcement pressure mounts on producers of Ecstasy and other ATS in the Netherlands, some Dutch producers either look to Belgian producers to meet their supply needs or to establish their own facilities in Belgium.

Drug Flow/Transit. Belgium remains an important transit point for drug traffickers because of its port facilities (Antwerp is Europe's second-busiest port), two international airports, highway and rail links to cities throughout Europe, and proximity to the Netherlands, where drug trafficking is a major problem. It has been estimated that about 25 percent of drugs from South America moving through Europe eventually transit Belgium, especially cocaine. These drugs are ultimately shipped to the United Kingdom, the Netherlands, and to other points in Western Europe, to Canada and to the United States. Israeli drug traffickers continue to control most of the export of Ecstasy from Belgium and the Netherlands, as evidenced by the arrest in 2006 of 16 Israelis possessing a total of 350,000 tablets of Ecstasy. The Ecstasy is sent in bulk from Belgium to Chinese or Vietnamese gangs in Canada. Most Ecstasy production continues to be controlled by Dutch chemists on either side of the border between Belgium and the Netherlands. A growing trend involves Chinese traffickers shipping Ecstasy precursor chemicals from China to Belgium and the Netherlands. These groups are believed to have largely displaced traditional Ecstasy sources. The port of Antwerp continues to be the preferred destination for cocaine imported to Europe; although the oft-quoted estimate is 16 tons entering the port each year, this figure is probably too low; the actual number is believed to be considerably higher. The flow of cocaine to Belgium is controlled by Colombian organizations with representatives residing in the region. Antwerp port employees are also documented as being involved in the receipt and off-load facilitation of cocaine upon arrival at the port. In addition, over 100 seizures of cocaine were documented at Brussels' Zaventem Airport from January to August 2006. Most of the cocaine had originated in South America and transited through either West Africa or South America. The majority of the carriers were of Albanian, Moroccan, or Dutch descent. The other predominant cocaine trafficking groups in Belgium are Colombian, Surinamese, Chilean, Ecuadorian, and Israeli. The Port of Antwerp is also an important transit point for cannabis and hashish. Authorities have noted that the principal shipping method of marijuana has been through DHL parcels destined for the United Kingdom via Belgium. The Netherlands remains a major supplier of both marijuana and hashish to Belgian traffickers. Belgium remains a transit country for heroin destined for the British market. Seizures of the past three years and intelligence indicate that Belgium has also become a secondary distribution and packing center for heroin coming along the Balkan Route. Turkish groups continue to dominate the trafficking of heroin in Belgium and are also known to have become increasingly involved in the distribution of Ecstasy and cocaine. The Belgian Federal Police have identified trucks from Turkey as the single largest transportation mechanism for westbound heroin entering Belgium. These trucks are usually destined for Portugal. Turkish criminal organizations involved in heroin trafficking seem to have diversified their activities by starting to export Ecstasy from Belgium. Trucks with Ecstasy are sent to Turkey and return to Belgium with heroin.

Domestic Programs. Belgium has an active drug education program administered by the regional governments (Flanders, Wallonia, and Brussels) that targets the country's youth. These programs include education campaigns, drug hotlines, HIV and hepatitis prevention programs, detoxification programs, and a pilot program for "drug-free" prison sections. The Belgian system contrasts with the U.S.'s approach in that Belgium directs its programs at individuals who influence young people versus young people themselves. In general, Belgian society views teachers, coaches, clergy, and other adults as better suited to deliver the counternarcotics message to the target audience because they already are known and respected by young people.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. The United States and Belgium regularly share drug-related information. Counternarcotics officials in the Belgian Federal Police, Federal Prosecutor's Office, and Ministry of Justice are fully engaged with their U.S. counterparts. With the rise in the trafficking of ephedrine in Belgium, the U.S. plans to focus on identifying and prosecuting both suppliers and shippers of illegal ephedrine before the drug reaches the U.S.

The Road Ahead. The United States looks forward to continued close cooperation with Belgium in combating illicit drug trafficking and drug-related crime, with a growing emphasis on systematic consultation and collaboration on operational efforts. The U.S. also welcomes Belgium's active participation in multilateral counternarcotics fora such as UNODC in order to help decrease drug trafficking and production both in Belgium and throughout Europe.

Bosnia and Herzegovina

I. Summary

Narcotics control capabilities in Bosnia and Herzegovina remain in a formative period and have not kept pace with developments in other areas of law enforcement. Bosnia is still considered primarily a transit country for drug trafficking due to its strategic location along the historic Balkan smuggling routes, weak state institutions, lack of personnel in counternarcotics units, and poor cooperation among the responsible authorities. Although the political will to improve narcotics control performance exists among the Bosnian government, faced with ongoing post-war reconstruction issues, it has to date focused limited law enforcement resources on war crimes, terrorism and trafficking in persons and has not developed comprehensive antinarcotics intelligence and enforcement capabilities. Despite increasing law enforcement cooperation, gradual improvements in the oversight of the financial sector, and substantial legal reform, local authorities are politically divided and enforcement efforts are poorly coordinated. Narcotics trade remains an integral part of the activities of foreign and domestic organized crime figures that operate with the tacit acceptance (and sometimes active collusion) of some corrupt public officials. Border controls have improved, but flaws in the regulatory structure and justice system, lack of coordination among police agencies, and a lack of attention by Bosnia's political leadership mean that measures against narcotics trafficking and related crimes are often substandard.

In 2006, Bosnia did not create a state-level body to coordinate the fight against drugs or develop the national counternarcotics strategy mandated by legislation passed in late 2005. In 2006, the Bosnia government, in cooperation with the European Union Police Mission, conducted a public information campaign to raise awareness about the dangers and effects of drugs. Bosnia is attempting to forge ties with regional and international law enforcement agencies. Bosnia is party to the 1988 UN Drug Convention.

II. Status of Country

Bosnia is not a significant narcotics producer, consumer, or producer of precursor chemicals. Bosnia does occupy a strategic position along the historic Balkan smuggling route between drug production and processing centers in Southwest Asia and markets in Western Europe. Bosnian authorities at the state, entity, cantonal, and municipal levels have been unable to stem the transit of illegal migrants, black market commodities, and narcotics since the conclusion of the 1995 Dayton Peace Accords. Traffickers have capitalized in particular on an ineffective justice system, public sector corruption, and the lack of specialized equipment and training. Bosnia is increasingly becoming a storehouse for drugs, mainly marijuana and heroin. Traffickers "warehouse" drugs in Bosnia, until they can be shipped out to destinations further along the Balkan Route. One of the main routes for drug trafficking starts in Albania, continues through Montenegro, passes through Bosnia to Croatia and Slovenia and then on to Central Europe. Cocaine for domestic consumption arrives mainly from the Netherlands through the postal system. Information on domestic consumption is not systematically gathered, but authorities estimate Bosnia has 100,000 drug addicts. Anecdotal evidence and law enforcement officials indicate that demand is steadily increasing. No national drug information system focal point exists, and the collection, processing, and dissemination of drug-related data is neither regulated nor vetted by a state-level regulatory body.

III. Country Actions Against Drugs in 2006

Policy Initiatives. On November 8, 2005, the Bosnia House of Representatives passed legislation designed to address the problem of narcotics trafficking and abuse. However, the state-level counternarcotics coordination body and national counternarcotics strategy mandated by the legislation were not in place as of October 2006 due to staffing and resource constraints. It is hoped that the work of the counternarcotics coordination body will get under way upon the formation of a new government in the wake of October 2006 national elections. Bosnia is a state with limited financial resources, but, with USG and EU assistance, it is attempting to build state-level law enforcement institutions to combat narcotics trafficking and organized crime and to achieve compliance with relevant UN conventions. The full deployment of the State Border Service (SBS) and the establishment of the State Investigative and Protection Agency (SIPA) have improved counternarcotics efforts. Telephone hotlines, local press coverage, and public relations efforts have focused public attention on smuggling and black-marketeering.

Law Enforcement Efforts. Counternarcotics efforts have improved but remain inadequate given suspected trafficking levels. Cooperation among law enforcement agencies and prosecutors is primarily informal and ad hoc, and serious legal and bureaucratic obstacles to the effective prosecution of criminals remain. Through June 2006 (latest available statistics), law enforcement agencies in Bosnia-Herzegovina (including the State Investigation and Protection Agency, the State Border Service, Federation Ministry of Interior, Republika Srpska (RS) Ministry of Interior and Brcko District Police) have filed 750 criminal reports against 916 persons for drug related offenses. The aforementioned law enforcement agencies also report having seized almost four kg (kg) of heroin, 650 grams of cocaine, 1.9 kg of amphetamines, 11.6 kg of marijuana, 4,327 cannabis plants, 1,825 cannabis seeds, 4,761 Ecstasy tablets, 242 grams of "speed", 117 grams of hashish, and 70 LSD stamps. These official statistics only reflect illegal drugs seized between January-June 2006 and do not reflect several significant September drug interdictions that reportedly recovered over 90kg of marijuana. The State Border Service, founded in 2000, is now fully operational with 2,199 officers and is responsible for controlling the country's four international airports, as well as Bosnia's 55 international border crossings covering 1,551 kilometers. The SBS is considered one of the better border services in Southeast Europe and is one of the few truly multi-ethnic institutions in Bosnia. However, there are still a large number of illegal crossing points, including dirt paths and river fords, that the SBS is unable to control. Moreover, many official checkpoints and many crossings remain understaffed. The SIPA, once fully operational, will be a conduit for information and evidence between local and international law enforcement agencies, and will have a leading role in counternarcotics efforts. As of November 2006, SIPA had hired 911 of its proposed 1,700 staff.

Cultivation/Production. Bosnia is not a major narcotics cultivator. Officials believe that domestic cultivation is limited to small-scale marijuana crops grown in southern and western Bosnia. Bosnia is also not a major synthetics narcotics producer and refinement and production are negligible.

Corruption. Bosnia does not have laws that specifically target narcotics-related public sector corruption and has not pursued charges against public officials on narcotics-related offenses. Organized crime, working with a few corrupt government officials, uses the narcotics trade to generate personal revenue. There is no evidence linking senior government officials to the illicit narcotics trade. As a matter of government policy, Bosnia does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. Bosnia is a party to the UN Convention Against Corruption.

Agreements and Treaties. Bosnia is a party to the 1988 UN Drug Convention and is developing bilateral law enforcement ties with neighboring states to combat narcotics trafficking. A 1902 extradition treaty between the U.S. and The Kingdom of Serbia applies to Bosnia as a successor state. Bosnia is a party to the UN Convention against Transnational Crime and its protocols against migrant smuggling and trafficking in persons

Drug Flow/Transit. While most drugs entering Bosnia are being trafficked to destinations in third countries, indigenous organized crime groups are involved in local distribution to the estimated 100,000 drug users in the country. Major heroin and marijuana shipments are believed to transit Bosnia by several well-established overland routes, often in commercial vehicles. Local officials believe that Western Europe is the primary destination for this traffic. Officials believe that the market for designer drugs, especially Ecstasy, in urban areas is rising rapidly. Law enforcement authorities posit that elements from each ethnic group and all major crime "families" are involved in the narcotics trade, often collaborating across ethnic lines. Sale of narcotics is also considered a significant source of revenue used by organized crime groups to finance both legitimate and illegitimate activities. There is mounting evidence of links and conflict among, Bosnian criminal elements and organized crime operations in Russia, Albania, Serbia and Montenegro, Croatia, Austria, Germany, and Italy.

Domestic Programs. In Bosnia there are only two methadone therapy centers with a combined capacity to handle about 160 patients. The limited capacity of the country's psychiatric clinics, also charged with treating drug addicts, is problematic, as the number of addicts and drug-related deaths in the country is rising steadily. It is estimated that between 70 to 80 per cent of drug addicts who undergo basic medical treatment are recidivists. The Bosnian government currently pays for the basic medical treatment of drug addicts, but there are no known government programs for reintegrating former addicts into society. During 2006, the police of Bosnia and Herzegovina in conjunction with the European Union Police Mission implemented an antidrug campaign "Choose Life, not Drugs". This public awareness Campaign, targeting drug prevention messages to youth, provided promotional materials to students and delivered antidrug abuse messages from former drug addicts to help youth choose a drug-free lifestyle. In September, the campaign kicked off a "School without Drugs" program to be carried out in 65 elementary and 37 secondary schools in the Sarajevo region. The "Viktorija" Association raised funds and helped 25 drug addicts complete a rehabilitation and reintegration program. The PROI Association helped 10 former drug addicts reintegrate into society. An antidrug public awareness campaign in Mostar utilized the wall of a centrally located prison for antidrug messages painted by youth volunteers.

IV. U.S. Policy Initiatives and Programs

Policy Initiatives. USG policy objectives in Bosnia include reforming the criminal justice system, strengthening state-level law enforcement and judicial institutions, improving the rule of law, de-politicizing the police, improving local governance, and introducing free-market economic initiatives. The USG will continue to work closely with Bosnian authorities and the international community to combat narcotics trafficking and money laundering.

Bilateral Cooperation. The USG's bilateral law enforcement assistance program continues to emphasize task force training and other measures against organized crime, including narcotics trafficking. The Department of Justice's International Criminal Investigative Training Assistance Program (ICITAP) and U.S. Customs programs provided specific counternarcotics training to entity Interior Ministries and the SBS. The Overseas Prosecutorial Development Assistance Training (OPDAT) provides training to judges and prosecutors on organized crime-related matters. The Drug Enforcement Agency (DEA) Regional Office in Rome maintains liaison with its counterparts in Bosnian state and entity level law enforcement organizations. The DEA has also sponsored specific narcotics interdiction training in Bosnia.

The Road Ahead. Strengthening the rule of law, combating organized crime and terrorism, and reforming the judiciary and police in Bosnia remain top USG priorities. The USG will continue to focus its bilateral programs on related subjects such as public sector corruption and border controls. The USG will assist Bosnia with the full implementation of the planned national counternarcotics strategy and continue to support police reform. The international community is also working to increase local capacity and to encourage interagency cooperation by mentoring and advising the local law enforcement community.

Bulgaria

I. Summary

Bulgaria is a major transit country, as well as a producer of illicit narcotics. Strategically situated on Balkan transit routes, Bulgaria is vulnerable to illegal flows of drugs, people, contraband, and money. Heroin moves through Bulgaria from Southwest Asia, while chemicals used for making heroin move through Bulgaria from the former Yugoslavia to Turkey and beyond. It is thought that much of the heroin distributed in Europe is transported through Bulgaria. Marijuana and cocaine are also transported through Bulgaria. The Government of Bulgaria (GOB) has continued to make progress in improving its law enforcement capabilities and customs services; it maintained the rate of seizures and closed down one illegal drug-producing laboratory. While major legal and structural reforms have been enacted, effective implementation remains a challenge. The Bulgarian government has proven cooperative, working with many U.S. agencies, and has reached out to neighboring states to cooperate in interdicting the illegal flow of drugs and persons. Nevertheless, Bulgarian law enforcement agencies, investigators, prosecutors and judges require further assistance to develop the capacity to investigate, prosecute and adjudicate illicit narcotics trafficking and other serious crimes effectively. Bulgaria is a party to the 1988 UN Drug Convention.

II. Status of Country

In the past year, Bulgaria has continued to move from primarily a drug transit country to an important producer of narcotics. According to NGOs and government sources, Bulgaria is increasingly a center of synthetic drug production, and synthetic drugs have overtaken heroin as the most widely used drugs in Bulgaria. Amphetamines are produced in Bulgaria for the domestic market as well as for export to Turkey and the Middle East. The Government of Bulgaria has emphasized its commitment to combat serious crime including drug trafficking. Despite some progress towards this goal, there were no convictions of major figures involved in drug trafficking, or other serious related crimes, including organized criminal activity, corruption or money laundering during 2006. Among the problems hampering counternarcotics efforts are poor inter-agency cooperation, lack of financing, inadequate equipment to facilitate narcotics searches, widespread corruption, and an often ineffective judicial system.

III. Country Actions Against Drugs in 2006

Policy Initiatives. The Bulgarian government has continued to implement the National Strategy for Drug Control adopted by the Council of Ministers in 2003. In 2004, amendments to the Criminal Code abolished a provision that had decriminalized possession of one-time doses of illegal drugs for personal use. The effect of this policy has been to extend harsh penalties for drug possession to users as well as producers and distributors. NGOs, government bodies, and European institutions have disputed the effectiveness of this legislation, with some studies claiming that drug use has actually increased since its adoption. Additional measures started in 2002 and continuing through 2006 included engaging NGOs in counternarcotics partnerships and the establishment of 16 provincial prevention and education centers throughout the country. Unfortunately, national programs for drug treatment and prevention, including the National Center for Addictions, have been consistently under-funded.

Accomplishments. The National Drugs Intelligence Unit, founded in October 2004, has improved coordination between law enforcement agencies by gathering and analyzing information relating to illegal drugs production and distribution. To date, the center has compiled data on over 900 suspected drug traffickers.

Law Enforcement Efforts. From January to November 2006, Bulgarian law enforcement agencies closed one illegal drug-producing laboratory and seized 8450 kg of drugs, including 460 kg of heroin, 7,460 kg of marijuana, 80 kg of cocaine, 348 kg of synthetic drugs and 50 vials and 93,576 tablets of other psychotropic substances. Also seized were 9.5 kg of dry and 0.5 liters of fluid precursor chemicals. Bulgarian services report that the 74 percent drop in seizures of synthetic drugs is due to the relocation of illegal laboratories to Eastern Turkey.

Corruption. Despite some progress, corruption in various forms in the government remains a serious problem. The European Commission's monitoring report commended the government's efforts but noted the need to do more to erase high-level corruption, in particular more indictments, trials, and convictions of the guilty. Despite this, there was no evidence that senior government officials engaged in, encouraged or facilitated the production, processing, shipment or distribution of illegal narcotics, or laundered the proceeds of illegal drug transactions. Bulgaria is a party to the UN Convention against Corruption.

Agreements and Treaties. Bulgaria is a party to the 1988 UN Drug Convention, the 1961 Single Convention as amended by its 1972 Protocol, the 1971 Convention on Psychotropic Substances and the 1990 Convention on Laundering, Search, Seizure and Confiscation of Proceeds from Crime. Bulgaria is a party to the UN Convention against Transnational Organized Crime and its protocols against trafficking in persons, migrant smuggling and illegal manufacturing and trafficking in firearms. The 1924 U.S.-Bulgarian Extradition Treaty and a 1934 supplementary treaty are in force.

Cultivation and Production. The only illicit drug crop known to be cultivated in Bulgaria is cannabis. While the extent of cultivation is not known, there has been a drastic increase in the seizures of marijuana. Experts ascribe this to ready availability of uncultivated land and Bulgaria's receptive climate. Cannabis is not trafficked significantly beyond Bulgaria's own borders. There has been a steady increase in the indigenous manufacture of synthetic stimulant products such as captagon (fenethylline).

Drug Flow/Transit. Synthetic drugs, heroin, and cocaine are the main drugs transported through Bulgaria. Heroin from the Golden Crescent and Southwest Asia has traditionally been trafficked to Western Europe on the Balkan route from Turkey through Bulgaria to consumers in Western Europe. However, Bulgarian authorities say the trend of heroin traffic moving by the more circuitous routes through the Caucasus and Russia to the north and through the Mediterranean to the south is strengthening. Other trafficking routes crossing Bulgaria pass through Serbia and Montenegro and the Republic of Macedonia. In addition to heroin and synthetic drugs, smaller amounts of marijuana and increasing amounts of cocaine also transit through Bulgaria. Precursor chemicals for the production of heroin pass from the Western Balkans through Bulgaria to Turkey and the Middle East. Synthetic drugs produced in Bulgaria are also trafficked through Turkey to markets in Southwest Asia. Principal methods of transport for heroin and synthetics include buses, vans, and cars, with smaller amounts sent by air. Cocaine is primarily trafficked into Bulgaria by air in small quantities and by maritime vessel in larger quantities.

Domestic Programs/Demand Reduction. Demand reduction has received government attention for several years. The Ministry of Education requires that schools nationwide teach health promotion modules on substance abuse. The Bulgarian National Center for Addictions (NCA) provides training seminars on drug abuse for schoolteachers nationwide. The NCA operates prevention and education centers in each of Bulgaria's 28 administrative districts. Three universities provide professional training in drug prevention. For drug treatment, there are 35 outpatient units, including 5 specialized methadone clinics, which provide treatment to 1000 patients. Twelve inpatient facilities nationwide offer 209 beds for more intensive addiction-related treatment. Specialized professional training in drug treatment and demand reduction has been provided through programs sponsored by UNODC, EU/PHARE and the Council of Europe's Pompidou Group.

IV. U.S. Policy Initiatives and Strategies

Bilateral Cooperation. DEA operations for Bulgaria are managed from the U.S. Consulate General in Istanbul. The United States also supports various programs through the State Department, USAID, the Department of Justice (DOJ) and the Treasury Department to support the counternarcotics efforts of the Bulgarian legal system. These initiatives address a lack of adequate equipment (e.g., in the Customs Service), the need for improved administration of justice at all levels and insufficient cooperation among Bulgarian agencies. A DOJ resident legal advisor works with the Bulgarian government on law enforcement issues, including trafficking in drugs and persons. An American Bar Association/Central and East European Law Initiative criminal law liaison attorney advises Bulgarian prosecutors and investigators on cyber-crime and other issues. A Treasury Department representative supports Bulgarian efforts to investigate and prosecute financial crimes, including money laundering. USAID provides assistance to strengthen Bulgaria's constitutional legal framework, enhance the capacity of magistrates and promote anticorruption efforts.

The Road Ahead. The U.S. and Bulgaria will continue to cooperate effectively to improve Bulgaria's capacity to enforce narcotics laws. The U.S. encourages the Bulgarian government over the next year to maintain sufficient rates of narcotics seizures, while implementing steps to reduce domestic drug production. It also encourages the Bulgarian government to increase interagency cooperation and take steps to prosecute cases of high-level corruption.

Croatia

I. Summary

Croatia is not a producer of narcotics. However, narcotics smuggling, particularly heroin, through the Balkans route to Western Europe remains a serious concern to Croatian authorities. Croatian law enforcement bodies cooperate actively with their U.S. and regional counterparts to combat narcotics smuggling. Croatia is a party to the 1988 UN Drug Convention.

II. Status of Country

Croatia shares borders with Slovenia, Serbia, Montenegro, Hungary, and Bosnia and Herzegovina, and has a 1,000 km long coastline (4,000 km adding in its 1,001 islands), which presents an attractive target to contraband smugglers seeking to move narcotics into the large European market. The steady increase of narcotics smuggling from the east continued in 2006. Croatian police estimate that 70 to 80 percent of heroin destined for European markets is smuggled through the notorious "Balkan Route."

III. Country Actions Against Drugs in 2006

Policy Initiatives. In December 2005, Croatia adopted a National Strategy for Narcotics Abuse Prevention for 2006-2012,developed with assistance from the European Monitoring Center for Drugs and Drug Addiction (EMCDDA). The Strategy aims to bring demand and supply reduction efforts in line with EU policies and creates a National Information Unit for Drugs to standardize monitoring and the assessment of drug abuse data in order to facilitate data sharing with the EU's EMCDDA programs. In February 2006, the Government of Croatia (GOC) adopted the Action Plan on Drug Abuse Control for 2006-2009. Its goal is to achieve equal availability of programs throughout the country targeting primarily children, youth and families. By the end of 2005, the GOC completed establishment of the network of addiction prevention centers, which are now available in all of Croatia's 22 counties. In June 2006, Parliament adopted changes to the Criminal Code, which increased sentences for possession and dealing of illicit drugs. Croatia also instituted changes to the criminal code, increasing penalties for several other narcotics-related offenses. The minimum penalty for narcotics production and dealing was increased from one to three years. The minimum penalty for selling narcotics by organized groups was increased from three to five years. The minimum penalty for incitement or facilitating the use of illegal narcotics was increased to one year. In addition, punishment for possession of related equipment or precursor chemicals was increased from three months to a mandatory sentence of no less than one year. Other changes to the criminal code permit the police to use such tactics as controlled deliveries, a method that was used frequently this year with international cooperation. Another amendment to the criminal code eases measures to confiscate assets of organized crime groups by placing the burden of providing evidence about the origins of assets on the defendant rather than the prosecutor, and allowing confiscation of assets acquired during the period of incriminating activity. Croatia continues to cooperate well with other European states to improve the control and management of its porous borders. Authorities describe cooperation on narcotics enforcement issues with neighboring states as excellent.

Law Enforcement Efforts. The Interior Ministry, Justice Ministry and Customs Directorate have primary responsibility for law enforcement issues, while the Ministry of Health has primary responsibility for the strategy to reduce and treat drug abuse. The Interior Ministry's Anti-Narcotics Division is responsible for coordinating the work of counternarcotics units in police departments throughout the country. The Interior Ministry maintains cooperative relationships with Interpol and neighboring states, and cooperates through the South-Eastern Cooperation Initiative (SECI). Croatian police and Customs authorities continued to coordinate counternarcotics efforts on targeted border-crossing points, although with 189 legal border crossing points, there is insufficient staffing and coordination. Heroin (25 kg in 2005 vs. 80 kg in the first nine months of 2006) and hashish (6 kg in 2005 vs. 12 kg in the first nine months of 2006) seizures increased this year. Border police attributed the rise in heroin seizures to a single large seizure. Marijuana (428 kg in 2005 vs. 144 kg in the first nine months of 2006) and cocaine seizures (17.6 kg in 2005 vs. 5 kg in 2006) declined, as have amphetamine and Ecstasy seizures. Police reported 4.7 percent more arrests this year in connection with narcotics charges than in 2005. Authorities have increased efforts to detect drug money laundering.

Corruption. As a matter of government policy, Croatia does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. Similarly, no senior government official is alleged to have participated in such activities. In 2006, police increased efforts to fight corruption internally, resulting in the removal of 630 law enforcement officers. Croatia is a party to the UN Corruption Convention.

Agreements and Treaties. Croatia is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1972 UN Convention Against Psychotropic Substances. Croatia is also a party to the UN Convention against Transnational Organized Crime and its protocols against trafficking in persons, migrant smuggling, and illegal manufacturing and trafficking in firearms. Extradition between Croatia and the United States is governed by the 1902 Extradition Treaty between the U.S. and the Kingdom of Serbia, which applies to Croatia as a successor state. Croatia has signed bilateral agreements with 29 countries permitting cooperation on combating terrorism, organized crime, smuggling and narcotics abuse.

Cultivation/Production. Small-scale cannabis production for domestic use is the only narcotics production within Croatia. In 2006, authorities, giving some sense of the minor scale of this cultivation, seized 2,960 cannabis plants. Poppy seeds are cultivated on a small scale for culinary use. Because of Croatia's small drug market and its relatively porous border, Croatian police report that nearly all illegal drugs are imported into Croatia. However, authorities believe that given the existence of Ecstasy labs in Bosnia and Herzegovina, it is inevitable that small-scale labs will be discovered in Croatia.

Drug Flow/Transit. Croatia lies along part of the "Balkan heroin smuggling Route." Authorities believe that much of the heroin from Asian sources transverses this route to reach European markets. Although Croatia is not considered a primary gateway, police seizure data indicate smugglers continue to attempt to use Croatia as a transit point for non-opiate drugs, including cocaine and cannabis-based drugs. A general increase in narcotics abuse and smuggling has been attributed to liberalization of border traffic and increased tourism and maritime activities. Police noted that cocaine seizures primarily occurred at Croatia's seaports. Cannabis-based drugs have increasingly been identified at road border crossings. Ecstasy and other synthetics are smuggled into Croatia from the Netherlands and Belgium.

Domestic Programs/Demand Reduction. The Office for Combating Drug Abuse, develops the National Strategy for Narcotics Abuse Prevention, and is the focal point for agency coordination activities to reduce demand for narcotics. According to the Office, Istria County continued to have the highest rate of treated addicts, followed by the Zadar and Varazdin County. The high rates in Istria did not necessarily reflect high drug abuse rates, but rather an efficient system of their inclusion in treatment due to good cooperation between drug abuse prevention centers and general practitioners. In 2005, 6,688 persons underwent drug addiction treatment--a 15.6 percent increase from the previous year. The majority of those treated were opiate addicts. The number of the first-time seekers of addiction treatment, which had been sliding since 2001, rose by 9.3 percent in 2005 and the number of new opiate addicts increased 7.2 percent compared to 2004. Government sources ascribe the increase to a wider and more efficient network of addiction prevention/treatment centers opening up treatment options for those abusing drugs. Approximately 72 percent of all addicts were addicted to heroin.

The GOC stated that the number of addicts infected with hepatitis C and HIV, stood at 47 percent and 0.5 percent respectively, and has not changed significantly in 2005. The number of deaths caused by overdose was slightly lower in 2005 (104 drug-related deaths in 2005 compared to 108 in 2004).

The Ministry of Education requires drug education in primary and secondary schools. Other ministries and government organizations also run outreach programs to reach specific populations, including pregnant women. The state-run medical system offers treatment for addicts, but slots are insufficient to accommodate all needing treatment. Methadone is used in the treatment of 67 percent of patients. The Ministry of Health operates in-patient detoxification programs, as well as 14 regional outpatient methadone clinics. In January 2006, Croatian authorities adopted guidelines to change the official health protocol on disbursement of heptanon and other heroin addiction replacement therapy drugs. This initiative was taken to counter the growing abuse of heptanon in Croatia: seizures of illegal heptanon doubled in 2005 compared to 2004 and 20 persons died from overdose. Under the guidelines only licensed psychiatrists are allowed to prescribe substitute treatment, which must occur under the supervision of a medical doctor. The Ministry of Heath is currently forming guidelines for buprenophine usage. The GOC spent 49.8 million kuna ($8.6 million) on all drug abuse related programs in 2005, which is eight percent less than in the previous year. It has created a network of county-level expert advisory groups that work with local governments to counter narcotics abuse and serve as incubators for policy initiatives. In Varazdin, the advisory group continued a random drug testing program for high school students.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. The primary objectives of U.S. initiatives in Croatia have been focused on improving the ability of Croatian law enforcement agencies to work bilaterally and regionally to combat organized crime and narcotics trafficking. Having achieved these two basic objectives, U.S. assistance for police reform efforts under the ICITAP (DoJ) program was refocused on combating organized crime and corruption in 2006. In October 2006, Croatian police formed the first joint police-prosecutor task force to target a criminal organization allegedly involved in drug trafficking and other illegal activities. In addition, Croatian police have been regular participants in training programs at the U.S.-funded International Law Enforcement Academy in Budapest as well as follow-on training in Roswell, New Mexico. Under the Export Control and Border Security (EXBS) program, police and customs officers have been trained this year on border security, tracking training, and commodity identification, all of which will assist in preventing drug trafficking through Croatia.

Road Ahead. For 2007, U.S. expert training teams will join in-country U.S. trainers to help Croatian police develop skills in surveillance, management development, port security and port vulnerability assessments. Resident advisors will continue to assist the Ministry of Interior in improving police