Chechen rebels say morale high, but money tight

MOSCOW, April 18 (Reuters) - Lack of cash is hampering the Chechen rebels' ability to strike Russian forces and stopping them from accepting all the recruits they would like, a top rebel leader said on Tuesday.

But Doku Umarov said morale remained high and that the movement, of which he is deputy leader, would never ask for peace talks with Moscow.

"We can at any time conduct a large military operation, it all depends on the political advantage for us. Apart from this, such an operation demands large financial and human resources," he said in comments published on a separatist Web site (www.kavkazcenter.com).

"Many young people ask to join our ranks, but we cannot take all the applicants for physical and financial reasons. The mountain conditions are harsh, and not everyone can stand them."

The Chechen rebels have been battered by 11 years of war, and have been shattered into small groups that can only stage hit-and-run attacks and bombings.

Russian officials, including President Vladimir Putin, have repeatedly said the war is over but rebels and troops die daily.

Web site voinenet.ru, which monitors local media to form a composite picture of a war that grinds on largely outside the world's gaze, said at least 17 people had died and 19 were wounded in fighting over the last week.

AL QAEDA LINK?

Rebel figures have said Chechens at home and abroad contribute to their funding, while Russian officials say Islamist networks such as al Qaeda finance the war.

It is not clear where most of the money comes from, but officials say the illegal trade in Chechen oil -- once a major moneyspinner for criminals -- has been largely suppressed.

Putin blames the fighting on international terrorists linked to al Qaeda trying to destabilise the north Caucasus, but Umarov denied any substantial help from foreign fighters.

"They need to show us where these Arabs are -- and how many of them are in Chechnya at the moment. I can only think of five people from our forces," he said.

"It is the Russians and their allied unbelievers who invent them so as to sign up for the so-called 'anti-terrorist company'."

The Kremlin rejected several peace appeals by former rebel leader Aslan Maskhadov, who was killed by troops a year ago in what the separatists said was a cynical operation to lure him into peace talks. Umarov said the mistake would not be repeated.

"We have suggested (talks) many times. But it turned out that we are always pushing for talks and standing there with our hand outstretched, and this is already taken as a sign of our weakness. Therefore we won't do this again," he said.