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Medvedev in central Asia for energy monopoly

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  • Medvedev in central Asia for energy monopoly

    AsiaNews.it, Italy
    07/05/2008 14:23

    RUSSIA - CENTRAL ASIA

    Medvedev in central Asia for energy monopoly

    The Russian president visits Azerbaijan, Turkmenistan, and Kazakhstan
    to convince them to send their gas through Russia, and reject the
    pipeline proposed by Europe. Baku's position is decisive, with
    pipelines already passing through into Turkey.


    Ashgabat ( AsiaNews/Agencies) - The trip of Russian president Dmitry
    Medvedev to central Asia continues, in an effort to maintain the
    country's monopoly over gas for Europe. Turkmenistan alone exports
    about 70 billion cubic metres of gas each year (equal to Italy's
    annual consumption), and the European Union and Western companies are
    proposing for Turkmenistan and Kazakhstan the creation of new
    pipelines that would bypass Russia, which currently transports their
    gas.

    The EU is proposing to Turkmen president Kurbanguly Berdymukhammedov
    the creation of a pipeline under the Caspian Sea to Baku (Azerbaijan).
    The gas would then be pumped through the Nabucco pipeline, under
    construction, which will extend to Vienna. The country also wants to
    send gas to China (as of 2009, it should sell 30 billion cubic metres
    to China each year) and across the Indian Ocean. In March of 2008,
    Russia offered Turkmenistan and Uzbekistan "European prices" for their
    gas, after underpaying for years and using the cheap gas domestically,
    while it sold its own to the European Union at much higher prices. But
    now Medvedev is trying to stay below the prices that the EU and China
    are thought to be willing to pay. He observes that the planned
    pipeline through the Caspian Sea could also create environmental
    risks. With Turkmenistan and Kazakhstan (the next stop on the trip),
    Russia will discuss rights to Caspian energy deposits, contested by
    the countries on its shore.

    On July 3, Medvedev was in Azerbaijan to meet with president Ilham
    Aliyev. Aleksei Miller, head of the Russian company Gazprom,
    accompanied Medvedev and explained that "Gazprom and its counterparts
    in Azerbaijan have decided to begin talks over the conditions for
    buying Azerbaijani gas". In June, Miller was frequently in Baku and
    Ashgabat to prepare for the trip. The country's position is crucial,
    because Baku is the starting point for the pipeline that arrives at
    the Turkish port of Ceyhan on the Mediterranean, and also for the
    pipeline that goes through Tbilisi to Erzurum, and gas could arrive
    there from other countries, passing under the Caspian Sea.

    The gas of the Shakh Deniz deposit should pass through the Nabucco
    pipeline. To prevent this, Moscow is willing to buy all of Baku's gas,
    more than 10 billion cubic metres per year. Moscow has said that it
    supports the country's claims over the Nagorno-Karabakh, currently
    controlled by Armenian separatists, which has won it words of
    gratitude from Aliyev. Various experts repeat, however, that it is in
    the country's interests not to bind itself to Russia, but to continue
    instead in the current state of uncertainty. (PB)
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