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  • US Seeks To Offset Russian Energy Dominance

    US SEEKS TO OFFSET RUSSIAN ENERGY DOMINANCE
    by Kerry Sheridan

    Agence France Presse
    August 29, 2008 Friday 1:58 AM GMT

    Washington will seek to boost alliances and offset Russian energy
    dominance when Vice President Dick Cheney visits Georgia, Azerbaijan
    and Ukraine next week, a White House official said Thursday.

    In light of rising tensions with Russia over its conflict with
    Georgia, Cheney's trip is part diplomatic mission, part effort to
    boost alternate pipeline routes that would reduce Europe's dependence
    on Russian oil and gas.

    Cheney's tour, which includes a security conference in Italy and
    talks with Turkish leaders, also comes as Washington mulls scrapping
    a US-Russia civilian nuclear cooperation pact, while France has warned
    of possible EU sanctions over Moscow's actions in Georgia.

    The vice president aims to send "a clear and simple message that the
    United States has a deep and abiding interest in the well being and
    security of this part of the world," said his assistant for national
    security affairs, John Hannah.

    The visit, parts of which were planned before the outbreak of
    hostilities between Georgia and Russia on August 8, marks the first
    time Cheney will set foot in either Tbilisi or Baku, Hannah said.

    However, the trip has "clearly taken on increasing importance," he
    added, after Russia's nod this week to the independence of breakaway
    regions South Ossetia and Abkhazia, a move which drew international
    scorn.

    "Russia's actions in recent weeks have clearly cast grave doubts on
    its intentions, its purposes," Hannah said. "They merit and demand
    a unified response from the free world."

    President George W. Bush's decision to dispatch Cheney for talks
    to include discussions on advancing NATO membership for Ukraine and
    Georgia, is the clearest sign yet of US concern that its strategic
    interests in the region -- especially in oil -- could be at serious
    risk.

    The strategic Black Sea region is the common thread in these former
    Soviet republics, and where major powers have played out power
    struggles ever since oil was found around the Caspian Sea in the
    early 20th century.

    An administration official said Russia's military action in Georgia
    has given fresh urgency to the planned Nabucco pipeline, which would
    bring natural gas from Turkey to Austria.

    "The level of confidence and trust that people have in Russia's overall
    reliability has been put in serious question by what's happened,"
    the official said on condition of anonymity.

    "The United States has had a priority for quite some time in trying
    to lead an effort to encourage this diversification of energy
    infrastructure and pipelines and supplies, particularly to Europe,
    of gas," he said.

    "These recent events ... reinforce the sense that that basic strategy
    is important and critical, and one that has to be pursued, if anything,
    with greater energy by us and by our European partners."

    The official also pointed to comments by British Foreign Secretary
    David Miliband, who in Ukraine on Wednesday highlighted the need to
    "re-balance the energy relationship between Russia and Europe."

    "We need diverse, secure and resilient gas supplies. Europe needs to
    act as one when dealing with third parties like Russia," Miliband said.

    Another key oil pipeline is the BTC (Baku-Tbilisi-Ceyhan) which passes
    from Turkey through Georgia, Armenia and Azerbaijan. An attack in
    Turkey in early August claimed by the Kurdish rebel PKK underscored
    the vulnerability of the BTC line.

    "The transit route through Georgia previously thought to be relatively
    secure and reliable is now seen as vulnerable and threatened by
    regional hostilities," said Edward Chow, of the Center for Strategic
    and International Studies (CSIS).

    US oil giants ExxonMobil, Chevron and ConocoPhillips also have major
    stakes in Caspian sea oilfields, Chow noted.

    With its broad opening on the Black Sea, Ukraine is a key strategic
    US ally in the region, and Russia's main concern, according to Stephen
    Larrabee of the Rand Corporation.

    "Georgia's entry into NATO wouldn't have major strategic consequences
    for Russia. Ukraine, on the other hand, is a very different matter,"
    Larrabee added.

    If Ukraine joins NATO, Russia would not only be forced to remove its
    ships based in Crimea; it also would see dashed its hopes of founding
    a Slavic union with Ukraine and Belarus, he said.

    What's more, Russian and Ukrainian defense industries are closely
    linked. Crimea, a peninsula attached to Ukraine in 1954 under Nikita
    Kruschev, is two-thirds Russian speaking.
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