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    Central Asia
     May 17, 2007
Page 2 of 3
Russia draws Europe into its orbit
By M K Bhadrakumar

the EU-US calculations of developing a pipeline tapping Caspian and Central Asian gas and bypassing Russian territory at the same time.

In other words, Europe's growing dependence on Russian gas supplies will remain a fact of life for years to come. European countries will continue to negotiate bilaterally with Moscow for their gas supplies. This has far-reaching significance for any common EU energy policy for which Washington has been



desperately striving.

This will also impact EU-Russia relations on the whole, apart from having the potential to cast a shadow on Washington's trans-Atlantic leadership within the North Atlantic Treaty Organization (NATO). Ariel Cohen of the neo-conservative think-tank Heritage Foundation recently commented:
Washington policymakers are scrambling to develop tactics that can counter Russia's aggressive action aimed at cementing Kremlin control over Caspian basin energy and export routes. In reacting to the Russian moves, US officials are conducting consultations with the EU representatives, seeking to improve the coordination of energy policy ...

However, Brussels is split over what to do about Russia's ominous behavior. Germany is already deferential to Russia's energy interests, and Berlin appears to want to do nothing that would disturb the status quo ... France and Italy are also not enthusiastic about confronting Moscow as their national companies too are involved in lucrative joint ventures in Russia.
Equally, US energy diplomacy in the Caspian finds itself in a cul-de-sac. Washington focused on Kazakhstan all through last year. The US vice president as well as the energy secretary visited the capital, Astana. President George W Bush hosted Kazakh President Nurusultan Nazarbayev in Washington.

Washington's objective was threefold: cajole Nazarbayev into committing Kazakh oil in a big way to the US-financed Baku-Tbilisi-Ceyhan oil pipeline so that the venture becomes economically viable; two, encourage Kazakhstan to work in tandem with Azerbaijan and Turkmenistan so that a trans-Caspian gas pipeline bypassing Russia becomes a reality; third, promote Kazakh oil exports to Central Europe via Georgia and Ukraine so that the pro-US countries of "new Europe" , such as Poland and the Baltic states (and potentially Ukraine), could jettison their dependence on Russian energy supplies, which is an imperative for the geopolitics of Eurasia in any new cold-war setting.

So it came as a body blow to Washington that Nazarbayev said in Astana after talks with Putin last Thursday, "Kazakhstan is absolutely committed to shipping most of its oil, if not all of it, through Russian territory. We have always said this." Nazarbayev punctured a big hole into the myth propagated by the US in recent months that Kazakhstan was disengaging from its strategic partnership with Russia and aligning with the US, the EU and NATO.

Furthermore, Nazarbayev affirmed on Thursday that Kazakhstan is interested in joining a Russian project to build an oil pipeline to link the Black Sea port of Novorossiysk with the Bulgarian port of Burgas and further with the Greek port of Alexandroupolis on the Mediterranean - a project that Washington has opposed tooth and nail.

What does it imply? Question marks resurface over the long-term economic viability of the much-acclaimed Baku-Tbilisi-Ceyhan oil pipeline built with US support, which had counted on Kazakh oil supplies in substantial quantities. Second, Kazakh participation makes the Burgas-Alexandroupolis oil pipeline a 100% certainty, which also means that Russia emerges as a significant energy supplier in southeastern Europe as a whole. In strategic terms, US attempts in recent years to roll back Russia's traditional influence in the Black Sea region and the Balkans have suffered a setback.

Besides, Russia is separately working on a project called Blue Stream 2, which promises to make Hungary the "hub" of Russian gas supplies to Central Europe. Washington has been hitherto pressuring Budapest to give up the idea of cooperating with Russia, and instead sign up for the trans-Caspian pipeline system bypassing Russia. Hungary's socialist government now gains the leeway to withstand US pressure on this score.

The burial of the idea of the trans-Caspian pipeline (which would have passed through Turkey) also means that Turkey will now have greater impetus to work with Russia in energy cooperation. That opens up a whole lot of possibilities for routing Russian oil and gas exports to the Mediterranean region via Turkey.

There is an added geopolitical dimension. An entente cordiale has been developing between Turkey and Russia in the Black Sea region. The two historical rivals share the common interest that outside powers such as the US do not erode their traditional influence in the Black Sea region. Washington has been monitoring this with unease at a time when Turkish-US relations are passing through a difficult phase on account of the war in Iraq.
Finally, Nazarbayev also made a telling point by staying away from the energy summit hosted in Warsaw by the Polish government last Friday, and attended by the presidents of Azerbaijan, Georgia, Lithuania and Ukraine. The main agenda was to discuss a new oil-export route that would avoid Russia. Without Astana's active participation, the entire Polish venture to create an energy corridor from the Caspian - a venture with pronounced anti-Russia bias - is doomed to become a non-starter, despite the strong US backing for it.

The sum total of all these developments is, to quote a senior analyst at London's Center for Global Energy Studies, "It will be very difficult to see either gas or oil moving from Central Asia by pipeline toward Europe bypassing Russia." The two-day EU-Russia summit in the Russian city of Samara that was due to start on Wednesday cannot remain unaffected.

What bears close watch in the months ahead will be whether Turkmenistan's growing foreign-policy tilt toward Moscow translates as a willingness to be integrated with the Commonwealth of Independent States (CIS), the Eurasian Economic Community and the CSTO, in particular.

In comparison, Moscow has every reason to be satisfied with its exceptionally close strategic partnership with Kazakhstan. As the official Russian news agency put it, "Kazakhstan is the alter-ego of Russia in the CIS space." Evidently, there is a high degree of coordination between the two countries (at the level of the two leaderships) in their foreign and security policies in the Caspian and Central Asian region.

This became obvious on May 2 when the Kazakh Parliament endorsed Russia's condemnation of the removal of a World War II memorial in the Estonian capital Tallinn. Again, Nazarbayev's visit to Bishkek on April 25-26 was a barely disguised intervention aimed at countering the covert US plan to destabilize the leadership of Kyrgyz President Kurmanbek Bakiyev.

Nazarbayev offered US$100 million as emergency assistance for Kyrgyzstan, apart from food and fuel supplies. Nazarbayev used his immense personal prestige as a regional figure to do some

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