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Tbilisi: At crossroads, Georgia faces dueling interests

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  • Tbilisi: At crossroads, Georgia faces dueling interests

    At crossroads, Georgia faces dueling interests
    By M. Alkahzashvili

    The Messenger, Georgia
    Nov 26 2004

    Thanks to its geographic location, Georgia is actively involved in
    various transit-energy projects. But in addition to certain benefits,
    the projects bring complications as well. Neighbors, both near and
    far have their own interests in projects and their interests are
    often unpredictable.

    Most recently Azerbaijani media has expressed dissatisfaction over the
    increase of Turkmenistan's armed forces, an event also connected to
    Georgia. The issue stems from the fact that the status of the Caspian
    Sea remains vague, and Turkmenistan has put forward claims over oil
    deposits in the sea that Azerbaijan has already begun to exploit.

    A deputy to in Azerbaijan's legislative assemble, the Mili-Mejlis,
    was recently quoted by the Georgian newspaper Rezonansi as saying
    Turkmenistan is taking an aggressive posture over the Caspian.

    "The issues of the judicial regulation of the Caspian Sea are still
    not completed. I think that Ashkhabad makes this move so it can be
    more self-confident during negotiations and to defend its positions
    regarding the Caspian Sea," states deputy, and general, Vladimir
    Timoshenko.

    At the same time it is widely mentioned that Georgia contributes
    in the increase of Turkmenistan's armed forces. Between 1994-1995,
    Georgia's aviation factory Tbilaviamsheni began covering the costs of
    importing natural gas from Turkmenistan by renovating the country's
    military airplanes. So far, 43 military planes and 6 helicopters
    have been repaired. In addition to this Turkmenistan bought the SU-25
    Scorpion fighter modernized by Tbilaviamsheni.

    Azerbaijan is a key partner for Georgia, particular in its Caspian
    energy projects. Thus Georgia has no interest in upsetting one of
    its closest neighbors, friends and allies. Georgia hopes that the
    tension between Azerbaijan and Turkmenistan will be solved without
    any conflicts.

    It is of no interest to any country in the region rich with energy
    resources to further aggravate the situation. On the other hand Georgia
    has its commercial interests in particular when Georgia has enormous
    debts from natural gas to Turkmenistan.

    Meanwhile, Russia's RAO-UES has initiated a new transit project
    through Georgia. Chair of the board of the local Telasi distributor
    and member of the executive board of RAO-UES, Andrei Rappoport,
    announced this week that his company is considering expansion into
    the Iranian energy system.

    To successfully implement the project, RAO-UES needs to build an
    additional electric transmission line through Georgia. Negotiations
    with the Iranian side are underway and as Rappoport said the project
    will enable Georgia to better regulate its electricity supply system:
    in case of a surplus, to export to Iran, and in case of a deficit,
    to import from Iran.

    But the question arises, since Russia is taking so much care of
    Georgia, one can assume that this project as political background
    as well. Here too diverse interests are at stake: Russia wants to
    include its ally Armenia in the project and extend its reach further
    to middle eastern markets.
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