Central Asia

Russia bends to get Turkmen gas
By Sergei Blagov

MOSCOW - Following weeks of hesitation, Russia has publicly agreed with claims by Turkmen President Saparmurat Niyazov that alleged assassination and coup attempts against him last November were part of international terrorism. In doing so, Moscow has distanced itself from a point of view that Niyazov staged the attempts as a pretext to crack down on opponents, reminiscent of Stalin-era purges in the Soviet Union.

In response to this cooperation with Ashgabat, Russia now seeks increased gas purchases from Turkmenistan. Moscow thereby also aims to reduce the threat from a planned trans-Afghan pipeline by getting more Turkmen gas into its sphere of influence.

Notably, on January 2-3, the head of Russia's Security Council, Vladimir Rushailo, traveled to Ashgabat to discuss claims by Niyazov that an alleged attempt on his life was organized and financed in Russia. Rushailo had talks and signed a security agreement with Redzheban Arazov, the Turkmen vice premier and defense minister. Rushailo also had a five-hour meeting with Niyazov, also known as Turkmenbashi, or head of the Turkmens.

In the wake of the alleged coup attempt, Turkmenbashi has repeatedly hinted that Russia was implicated in the attempt to topple him. Niyazov's motorcade reportedly came under machine gun fire in downtown Ashgabat on November 25. No one among Turkmenbashi's entourage was hurt in the attack and there has been no independent confirmation of the official version of the event.

Following his visit, Rushailo told Russian RTR television that assassination and coup attempts against Niyazov were part of international terrorism. Moreover, he promised to help Turkmen authorities to investigate the incident and apprehend suspected terrorists. Niyazov said that he had asked Russian President Vladimir Putin's help in locating and extraditing two of the alleged conspirators - ex-central bank chief Khudaiberdi Orazov and former ambassador to Turkey, Nurmukhammed Khanamov - who are still at large.

However, in reality it appears that the Russian mission to Ashgabat was probably more interested in discussing hydrocarbon resources than war on terror. Turkmenistan's gas is important to Moscow because Russian natural gas monopoly Gazprom needs gas to make up for the shortages created by its export commitments to Europe and lack of domestic investment. Gazprom's annual shortfall in supplying the Russian domestic market is has been estimated at 30-40 billion cubic meters (bcm).

Turkmenistan has the world's third-largest natural gas reserves, but current exports are almost exclusively directed at former Soviet states supplied via pipelines owned by Russia. In 1991, Turkmenistan produced nearly 85 bcm, but the output plunged to only 13.2 bcm in 1998 and 23 bcm in 1999. On January 5, 2003 Niyazov announced that in 2002 Turkmenistan pumped 53 bcm of gas, thus achieving 3 percent growth over 2001. Turkmenbashi also said that exports reached 41 bcm, while the rest was consumed domestically. Now the bulk of Turkmen gas is being exported to Ukraine and Russia via Russian pipelines, while some gas exports go to Iran.

In 1997, Turkmenistan suspended deliveries to Russia in a price dispute, insisting that $32 per thousand cubic meters (tcm) was too low. In December 1999, Russia's Gazprom offered 70 percent of the payment in barter and 30 percent in cash. Turkmenistan insisted on $40-42 per tcm with 50 percent payment in cash, and a compromise was reached at $36 per tcm with 40 percent in cash.

According to this agreement, Turkmenistan was supposed to export 20 billion cubic meters (bcm) in 2000 and increase this figure by 10 bcm per year for three to four years until import levels reach 50-60 bcm per year. So far, this deal has failed to be fully implemented. Turkmenistan and Iran have had price disagreements and Turkmenistan's gas supplies to Iran of around 2 bcm per year are yet to reach the agreed 5 bcm.

However, in the wake of the recent trans-Afghanistan pipeline deal, Turkmenistan's dependence on Russian pipelines is due to fall away. On December 27, Afghan President Hamid Karzai, President Niyazov and Pakistani Prime Minister Zafarullah Khan Jamali met in Ashgabat and signed an agreement to build the 1,400-kilometer trans-Afghanistan pipeline that will carry natural gas from Turkmenistan to Pakistan. The $2.5 billion pipeline, which will transport gas from the Dauletabad field near the Iranian border, could also be extended to India.

No big wonder that Russian officials rushed to clinch a gas deal with Turkmenbashi. Russia's deputy energy minister Guennady Ustyuzhanin, who was a member of Rushailo's mission, submitted a Russian draft of a bilateral energy deal to Turkmen officials. Basically, Moscow suggested that Turkmenistan export 10 bcm of gas to Russia by 2005 and 20 billion by 2008. In response, Russian offered to export Turkmen crude oil via the Makhachkala-Novorossisk pipeline. On January 4, Ustyuzhanin was quoted by RIA as saying that this deal could be signed by the Russian gas monopoly Gazprom and Turkmenneftegazprom as early as February. He also pledged to pay for Turkmen gas in cash without any barter dealings.

Against this backdrop, the saga of the coup attempt against Turkmenbashi became a matter of little importance for Moscow, and it was happy to toe the Turkmen line.

(©2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Jan 9, 2003



 

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