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Disaster overshadows Russian war games
By Sergei Blagov

MOSCOW - Ongoing war-game exercises by Russia's Pacific Fleet, which include "emergency situation" training, have been overshadowed by a real-life disaster: a helicopter carrying the governor of the oil-rich Russian Far East region of Sakhalin and 16 other people disappeared over the Kamchatka Peninsula on Wednesday.

The actual emergency happened, in fact, right in the middle of faux emergency exercises, which were interrupted by orders for a major search-and-rescue operation. At this writing, the missing helicopter has not been found.

The Mi-8 helicopter carrying Sakhalin Governor Igor Farkhutdinov and other officials had been flying from Petropavlovsk-Kamchatsky, the capital of Kamchatka, to the city of Severokurilsk to inspect the northern Kuril Islands, which are part of the Sakhalin region. An hour after takeoff, the helicopter failed to make radio contact with air controllers at the appointed time, and a search was launched.

Russian Defense Minister Sergei Ivanov instructed the military in the region to facilitate search efforts. "I ask you all promptly to start search-and-rescue work with all the means available to our military," he ordered navy commander Admiral Vladimir Kuroyedov. Ivanov said rescuers should focus on the mountainous Kamchatka area along the projected path of the helicopter.

President Vladimir Putin was following the search, as he received updates over the telephone from Emergency Situations Minister Sergei Shoigu and Sakhalin deputy governor Ivan Malakhov. As 20 planes and helicopters explored a 200 kilometer swath, 40 naval vessels and civilian ships combed the waters of the Pacific Ocean off the peninsula. In all, some 2,000 people were employed to conduct the search.

Officials indicated that chances of finding survivors were becoming increasingly slim.

This was not the first high-profile crash in Russia. Former presidential hopeful and Krasnoyarsk governor Alexander Lebed died in a crash in April 2002 when his helicopter's blades got caught on power lines.

Sakhalin, a 960 kilometer-long island with some 600,000 residents in Russia's Far East north of Japan, has huge deposits of oil and natural gas off its east coast. Under Farkhutdinov's governorship, Sakhalin has been developing some of Asia's most ambitious petroleum projects. International consortiums led by ExxonMobil and Royal Dutch/Shell plan to spend tens of billions of dollars to extract and market oil and natural gas from Sakhalin's offshore deposits.

Farkhutdinov, who has served as the regional governor since 1996, believed that Sakhalin was a potential hydrocarbon bonanza, and he was keen to attract the billions needed to tap the island's offshore petroleum reserves. The 20,000 square kilometers of the island's offshore shelf contain an estimated 700 million tons of oil and condensate and 2.5 trillion cubic meters of natural gas.

Overseas investors have so far committed some US$30 billion to Sakhalin's hydrocarbon projects. The major projects are Sakhalin 1, led by US oil company ExxonMobil ($10 billion), and Sakhalin Energy's Sakhalin 2, the largest single FDI (foreign direct investment) project in Russia.

The ExxonMobil consortium, which is spending $1.2 billion in Sakhalin this year, hopes to start gas production for export to Japan in 2008. ExxonMobil has 30 percent of the consortium, which also includes a Japanese group of 13 companies; two Russian partners, RN-Astra and SMNG-Shelf; and ONGC Videsh Ltd of India. ExxonMobil plans to build a 2,330km, $900 million gas pipeline all the way to Tokyo.

In Sakhalin Energy, Shell's partners are Mitsui Corp with 25 percent and Mitsubishi Corp with 20 percent; Shell has the remaining 55 percent. The Sakhalin Energy consortium has recently reached its first major supply agreement, selling up to a million tons of liquefied natural gas (LNG) a year to Tokyo Gas for a period of 24 years, starting in 2007.

The project involves building a 600 kilometer pipeline between the northeastern oilfields and Yuzhno-Sakhalinsk in the south. If this goes ahead, natural gas produced in the Sakhalin region could be used to supply Japan. Some of the Sakhalin gas may go to South Korea or Taiwan as well as mainland China.

Farkhutdinov believed that ongoing oil projects would make Sakhalin more integrated with the Asia-Pacific region. In June, Farkhutdinov traveled to Tokyo to attend the XXII World Gas Congress and discuss prospective LNG sales with Japanese companies Tokyo Gas and Tokyo Electric. Also in June, Farkhutdinov discussed gas sales with China's Sinopec Corp executives. It remains to be seen whether a possible regime change in Sakhalin could affect currently favorable investment climate there.

Meanwhile, Russia's naval exercises in the Sea of Okhotsk, Bering Sea and Sea of Japan involve 75 naval ships and support vessels of the Pacific Fleet, 69 planes and helicopters, as well as 70,000 military servicemen and civilian specialists. The exercises test the military's response to 45 scenarios ranging from confrontations with terrorists to environmental disasters.

Konstantin Pulikovsky, Putin's special envoy to the Far East Federal District, has stated that the exercises aimed to boost protection of Russia's maritime borders, combat poachers, and improve procedures to deal with "emergency situations". Apart from the military, the exercises also involve border guards, the Interior Ministry, the Transportation Ministry, the Atomic Energy Ministry, and the Emergencies Ministry.

The exercises were not affected by the search operation, Russia's Pacific Fleet said in a statement on Thursday. Dismissing media speculation that the war games themselves might have been responsible for the loss of Fakhrutdinov's helicopter, Pulikovsky told journalists that "there were no test missile launches ... I rule out any connection between the beginning of the exercises and the helicopter's disappearance," he was quoted as saying by the Russian Information Agency (RIA).

However, the speculation was not entirely groundless, as in the past civilian aircraft have fallen victim to post-Soviet war games. Notably, in October 2001 a Russian airliner crashed into the Black Sea after it was shot down by a Ukrainian surface-to-air missile fired during military exercises. The Tu-154 with 77 people aboard was en route from Israel to Siberia, and the plane was downed by an SA-5 surface-to-air missile fired from a shore battery during the Ukrainian military exercises.

As for the current Russian Far East war games, they have been influenced by the recent controversy over North Korean nuclear program. The exercises involve training in "emergency situations caused by radioactive contamination".

"The Primorie region is ready to accommodate up to 100,000 refugees from Northeast Asia in the event of emergency," Oleg Melnikov, head of the regional Emergency Department, was quoted as saying by the RIA news agency. It is understood that only a military conflict on the Korean Peninsula could spark large-scale refugee inflows.

The exercises' preparatory stage, which began on Monday, was due to end on Friday, with the active phase of the exercises to start on Saturday and continue until next Wednesday. South Korean and Japanese ships and planes are also taking part in the exercises, which are being monitored by experts from the United States, Canada and China. North Korea was also invited to observe the exercises, but Pyongyang declined to send anyone; apparently it was unhappy about the scenario of 100,000 North Korean refugees being included in the exercises.

(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Aug 23, 2003



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