Russia's energy drive leaves US reeling

[ensho]

http://www.atimes.com/atimes/Central_Asia/JG19Ag01.html


-snip-

If Medvedev's core mission in Hokkaido was to underscore Russia's growing role in the world arena as a power with which the West has to contend, Bush acted as if he couldn't care. The US was also plainly dismissive of Medvedev's proposal at the G-8 for a pan-European security system that would include Russia. Medvedev expressed his "dismay" on hearing about the Prague deal. As if to rub in the snub, Rice proceeded from Prague to Bulgaria, where the US has for the first time established a military base, and then on to Georgia to discuss its plans of joining the North Atlantic Treaty Organization (NATO).

-snip-

What emerges is that if anything, Medvedev is pursuing Russia's energy diplomacy more robustly than Putin. Soon after taking over in the Kremlin in May, Medvedev ordered the expeditious completion of the first stage of the Eastern Siberia Pacific Oil Pipeline (ESPO) by end-2009. The ESPO has a vital role in Moscow's efforts to balance its oil export strategy between Europe and Asia-Pacific. Moscow hopes to target Asia-Pacific as the export destination for one-third of its oil exports by 2020, as compared to 3% currently.

In early July, Medvedev undertook a diplomatic tour of the Caspian region, covering Azerbaijan, Turkmenistan and Kazakhstan. In Azerbaijan's capital Baku, he made a stunning offer that Russia was prepared to buy Azerbaijan's entire gas output at market prices. In Ashgabat, he shored up Turkmenistan's commitment to the modernization of the Central Asia-Center Pipeline and the construction of a new littoral Caspian pipeline.

-snip-

Washington hit back by ensuring that Russian companies are left out in the cold from the 30 contracts for lucrative oil deals that Baghdad is awarding. It is a big blow for Russia. In February, Moscow had written off US$12 billion or 93% of Iraq's debt to Russia in a move that was widely seen as aimed to help Russian oil company LUKoil regain the Saddam Hussein-era rights to develop Iraq's giant West Qurna-2 oil field. But under US pressure, the Iraqi government is now awarding West Qurna-2 to the US's Chevron.

The Kremlin didn't show any anger, but coincidence or not, Gazprom chief executive Alexei Miller suddenly arrived in Tehran on Monday and discussed with Iranian President Mahmud Ahmadinejad the setting up of an organization of gas-producing countries. No doubt, with the Russian foothold in Libya (which has estimated natural gas reserves of 1.47 trillion cubic meters), in coordination with Algeria (which currently supplies over 10% of Europe's gas supplies), Qatar (with proven natural gas reserves of 25.8 trillion cubic meters) and Iran (which has the world's second-largest reserves after Russia), the time for a "Gas OPEC" is approaching.

-snip-

The strong possibility is that the Bush administration will press the pedal on multiple fronts on the Eurasian geopolitical landscape and create a fait accompli of US-Russian mutual antagonism for Senator Barack Obama, should he become president. The haste behind the Prague deal on missile defense smacks of such thinking. Almost certainly, Rice will press for a decision on the plan of action in respect of Georgia's and Ukraine's membership of NATO at the meeting of the alliance's foreign ministers in December. The question, "Who is the boss in Russia?" doesn't really seem to matter anymore.
-------------------------


and McC's next trip is right into the center of the struggle

[HCE SuiGeneris]

1. Well, we all know that the MIC needs to be placated and provided a teat to suckle.