Russian oil beats Bush to market

[Dover]

February 04, 2004

For a decade Washington has been backing the Turkish and Azerbaihan governments to steer the export of Caspian region crude oil away from Russia. Russia's newest riposte has been to ally the Russian and Iranian oil industries, and open up the shortest, cheapest, and most lucrative oil route of all, southwards out of the Caspian to Iran.

The economics of the southward route are the latest blow for the Bush Administration, as it tries to redraw the geography of the Caucasus on an anti-Russian map. But for oil exporters and shippers in the Caspian, President George Bush's jawboning looks to be as futile as King Canute telling the sea to roll backwards.

Early oil from Azerbaijan's newest offshore oilfields has been piped northwestwards through the Russian pipeline system to Novorossiysk port, on the Black Sea, along with crude from the Caspian shoreline of Kazakhstan. But there have been frequent arguments with the Azeris over volumes and transit fees, and these have led to frequent oil stoppages. Azeri oil for transit across Georgia to Supsa port is a costly trickle, by comparison....cont'd

http://www.russiajournal.com/news/cnews-article.shtml?nd=42376

________

Dividing up the Caspian Resources: Iran talks with Azerbaijan,Turkmenistan

As you might already know, Iran used to hold about a 50 % share of the Caspian, while the ex-Soviet states (the "stans") held the other half. Now all these players and outsider interests are attempting to redistribute these resources with the newly independent "stan" states (since the breakup of the USSR).


Iran holds Caspian talks with Azerbaijan, Turkmenistan

Almaty. (Interfax) - Iran is holding bilateral talks with Azerbaijan and Turkmenistan on the division of the Caspian Sea, Iranian Ambassador to Kazakhstan Murtazo Saffori said at a press conference in Almaty on Tuesday.

"We are holding talks with our neighbors to reach consensus and mutual understanding as soon as possible, just like Kazakhstan, Russia and Azerbaijan have achieved certain successes," he said.

The ambassador said that a final decision on the legal status of the Caspian Sea may be reached only taking into consideration the opinion of all five Caspian states, and he said that he hopes that talks involving all of the states will have "good results."

Speaking about the Iranian position on the division of the Caspian, Saffori said that "in accordance with existing geographical conditions, Iran is laying claim to about a 20% share of the sea."

The diplomat said that Iran has never insisted on the equal division of the sea between all five states, which would give each state a 20% share.

Regarding the construction of export pipelines from the Caspian region, and particularly the Baku-Tbilisi-Ceyhan pipeline, he said that "the transportation of fuel from one area to another should take the economics into consideration and should not be under the influence of political interests." ....cont'd

http://www.interfax.com/com?item=Azer&pg=0&id=5696692&req=

Azerbaijan’s Geopolitical Intentions Subject of Increasing Speculation

Azerbaijani President Ilham Aliyev’s recent visit to Moscow was marked by speculation surrounding Baku’s geopolitical intentions. For the time being, Ilham Aliyev appears intent on maintaining the so-called "balanced" foreign policy approach instituted by his father, Heidar. Many political analysts believe, however, that Azerbaijan will sooner or later be forced to choose between Russia and the West...cont'd

http://www.eurasianet.org/departments/insight/articles/eav021004a.shtml