If Georgia falls, Europe's hopes of energy independence from Russia fall too.

[tannybogus]

How Georgia fell into its enemies' trap
The fighting in the Caucasus should be a deafening wake-up call to the West

When is a victory not a victory? When it dents your country's image, scares your allies and gets you into an unwinnable war with a hugely stronger opponent.

That is the bleak outlook for Georgia this weekend, after what initially looked like a quick military win against the separatist regime in South Ossetia. Georgia's attack followed weeks of escalating provocations, including hours of heavy shelling by the Russian-backed breakaway province and signs of large-scale Russian reinforcement.

Thanks to American military aid, Georgia's 18,000-strong armed forces are the best-trained and equipped fighting force in the Caucasus. But it is one thing for them to defeat the raggle-taggle militia of a tinpot place like South Ossetia (population 70,000). It is another for a country of less than five million people to take on Russia (population 142 million). Now the Kremlin is reacting strongly. Russian warplanes are reportedly striking targets in Georgia. Reinforcements are pouring in. And the Kremlin's mighty propaganda machine is lumbering into action while a cyber-attack appears to have crippled Georgia's websites.

For it is the information war, not what happens on the ground, that will determine the victor of this conflict. Russia is portraying Georgia as the aggressor, an intransigent and unpredictable country determined to restore its supremacy over an unwilling province by means of military force and “ethnic cleansing”. Such a country, clearly, would be unfit to receive Western support.

http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article4488503.ece

Where will oil prices go now?