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Updated Jan 5, 1999 


"We [Soviet Russia] need oil of Baku and Georgian manganese" -- Lenin, 1921.

..."By Georgian-Russian agreement from 14 Nov. 1920 Russia have get right to use oil pipe and facilities"...
..."Control of oil routes was the aim of occupation of Georgia [by Soviet Russia]"... -- Radek, representative of Soviet Russia on Conference of Third International, Berlin, 1921 .
..."Georgia was to turn into Russia because we needed oil"... -- Radek, Hague Congress, 1922. 
From: '60-Eme Anniversaire de L'occupation de la Georgie 1921-1981', Editions 'Tavisouplebiss Tribuna', 1981, Paris.

 


Zviad Gamsakhurdia: "Shortly after my election, a total political and economic blockade on Georgia was enforced, while every conceivable destructive measure was taken against the legally elected Georgian Government. Despite our Declaration of Independence, Gorbachev invited me to Novo-Ogarevo to sign the Union Treaty. It was following my explicit refusal to do so, that the Kremlin elaborated a concrete plan to overthrow Georgia's constitutional Government. President Bush contributed personally to this persecution of Georgia when he visited the Soviet Union in the summer of 1991 and persuaded Ukraine to stay within the USSR - denouncing me as a 'man who has been swimming against the tide'. Subsequently, his Secretary of State, James Baker, announced the existence of an authoritarian regime in Georgia that would never receive any assistance from the US Administration".


Scent of Oil - Wes Eill Help US


Getting landlocked Caspian Sea oil to Western markets has become a source of major controversy between oil companies working in the region and the Clinton administration... ...Turkey, a NATO member, can help to guarantee the safety of the Baku-Supsa segment as well as the segment continuing on to Ceyhan... 'Pipeline to Ceyhan' By Paige B. Sullivan. "Washington Post", Tuesday, January 5, 1999; Page A11



United States Interests in the Caucasus Region, Testimony of Robert E. Ebel before the House Committee on International Relations, July 30, 1996. "Within the last several years, the Caspian Sea basin of the former Soviet Union has become the focus of attention for the world oil industry... The pipeline proposed to carry oil from the Tengiz deposit in Kazakstan to the Black Sea port of Novorossiisk is the only routing which passes through politically QUIESCENT territory ... No Game Without Russia... The political and economic gains to the Caucasus as a corridor for oil and gas are clearly recognized, but all parties appear to understand that final routings may be based first on political considerations... Following prolonged negotiations and importantly, I believe, an intervention by President Clinton, a two-pipeline approach was accepted. Politics--not economics--drove that decision... One pipeline--the northern route--would link Baku with the Black Sea port of Novorossiisk... Security of the northern route has to be questioned, however, because it passes through the heart of Chechnya... The western route is also faced with a security problem, in that it passes within a handful of kilometers of the disputed enclave Nagorno-Karabakh... Pipelines routed through your territory become steel highways of influence, your influence, and points of leverage, your leverage... Russia has become much more aware of the geopolitical role that energy can play. It intends to use its oil and gas strength as a means of supporting foreign policy aims"... 


Caucasian Oil Pipes - Map


Caspian Crossroads Magazine

 


OIL AND MONEY TO FLOW TO RUSSIA THROUGH "IRAQI PIPE". Kirill DYBSKY. "...Sergei Shoigu's recent visit to Baghdad, held as part of the Russian Emergency Situations Ministry's humanitarian operations in Iraq, signalled a major change in Russia's Middle East policy and in the line-up of forces in the world's oil market..." "...for Russia Iraq is an acceptable partner despite the controversial character of its leader. Firstly, Baghdad has remained quite loyal to Russia despite the latter's "betrayal in Kuwait": Iraq is practically the only Islamic ountry to react indifferently to the events in Chechnya. The official Iraqi press made either neutral or pro-Russian comments. It is also clear that if the blockade of Iraq is lifted, Russia can count on preferential treatment in supplying its oil-refining and power-engineering equipment to Iraq (these sectors of the Iraqi economy traditionally use Russian technology). In addition, Iraq now confronts a very serious problem of comprehensive modernisation of its armed forces, which were technically decimated during the war with Iran and the blockade. Here too Russia has a good chance for success: for decades the Iraqi army had been armed by the Soviet Union..." (Segodnya, December 11).

AZERBAIJAN SIGNS ANOTHER OIL CONTRACT. Representatives of Azerbaijan's state oil company SOCAR signed on 14 December a $2 billion 25-year contract with a consortium of U.S., Japanese, and Saudi Arabian companies to develop the Dan Ulduzu and Ashrafi Caspian shelf deposits, Russian and Western agencies reported. The deposits are estimated to contain 150 million metric tons of oil and up to 50 billion cubic meters of gas. SOCAR will have a 20% stake in the project, Amoco 30%, Unocal 25.5%, Itochu 20%, and Saudi Arabia's Delta 4.5%. -- Liz Fuller 


Berezovskiy Mission:

  • ICHKERIA LEADERS APPROVE BEREZOVSKY'S APPOINTMENT. By Maria EISMONT. ...Deputy premier of the new Chechen government, Ruslan Kutayev reported the opinion of the Chechen leaders in an interview to ITAR-TASS: he said that the Ichkeria leadership "welcomed" the Russian President's opinion and hoped that Mr.Berezovsky "would be able to settle the most acute problems of Chechnya, i.e. finances for the economy and social sphere and investments." (Segodnya, November 1)

  • BEREZOVSKY VISITS CHECHNYA. Irina KALININA. On November 4, Russia's premier Viktor Chernomyrdin reiterated his readiness to meet with Chechnya's separatist leaders soon. "[The] meeting will be held. Whether in Chechnya or in Moscow is not that important. It will be held where it needs to be held. But first, we have to build a platform," he told a session of the Security Council. This past weekend, the "platform" was being constructed by Boris. ...One proof was supplied by Ruslan Martagov, press secretary of Doku Zavgayev, the former official "head of Chechnya," who told Interfax that they "did not receive any proposals for a meeting with Mr. Berezovsky." (Segodnya, November 5)

  • BEREZOVSKII IN TBILISI. 8 November. ...Berezovskii dubbed Shevardnadze "the patriarch of the Caucasus" and termed his experience "unique," and called for the creation of a new infrastructure that would permit an integrated approach to structuring relations between the various Caucasian states taking into account their disparate interests, according to ORT. -- Liz Fuller

  • RYBKIN MEETS ZHVANIYA TO AIR THE SITUATION IN CHECHNYA. MOSCOW, NOVEMBER 14, RIA NOVOSTI - ...Ivan Rybkin met today Georgian Speaker Zurab Zhvaniya to tell him about complex measures being applied to overcome the aftermath of the armed conflict in Chechnya. ...The unity of the legal and economic spaces are indispensable, said Rybkin. The sides agreed that the rewarding fact is that the process involves representatives of the OSCE and other international organisations, in particular, as observers at the forthcoming elections in Chechnya.

  • BEREZOVSKII VISITS:


  • TBILISI . . . Russian Deputy Security Council Secretary Boris Berezovskii, on his second visit to Georgia in less than a week, met for two hours behind closed doors with Georgian President Eduard Shevardnadze on 14 November to discuss the situation in Abkhazia, Chechnya, and the North Caucasusin general, Russian media reported. -- Liz Fuller
    . . . AND BAKU. Berezovskii then flew to Baku where he discussed Russian-Azerbaijani relations, the Nagorno-Karabakh conflict, and the situation in Chechnya with Azerbaijani President Heidar Aliev, noting that the "urgent" problems of the region are linked and should be tackled jointly. Berezovskii also tried to persuade Aliev of the advantages of exporting Azerbaijan's Caspian Sea oil via the "northern" pipeline that runs through Dagestan and Chechnya, according to Turan. Aliev told TRT on 14 November, however, that he would prefer that Azerbaijan's "strategic" (as opposed to "early") oil be exported through the proposed Baku-Ceyhan pipeline, but that unnamed members of the consortium engaged in exploiting the deposits in question oppose that option. -- Liz Fuller

  • CONTROVERSY OVER BEREZOVSKII CITIZENSHIP CONTINUES. Izvestiya on 15. November charged that Security Council Deputy Secretary Boris Berezovskii has not been entirely accurate in answering questions about his dual citizenship with Israel. ...Meanwhile, the 14 November issue of Segodnya quoted Berezovskii as objecting to what he called anti-Semitic insinuations made about his citizenship by Communist Party leader Gennadii Zyuganov, Duma Speaker Gennadii Seleznev, and Izvestiya. -- Laura Belin

  • BEREZOVSKII SAID TO HAVE A GREEN CARD. Kuranty on 26 November published a photo of a document it claimed was a valid U.S. green card in the name of Security Council Deputy Secretary Boris Berezovskii. Berezovskii had an Israeli passport until recently, renouncing his citizenship after he was appointed to the Security Council... -- Penny Morvant

  • NOVEMBER 28. (RIA Novosti, Alvi Karimov). A delegation of the Georgian Parliament arrived in Grozny...


Oil Arrives In Port Via Test Route, 15 October 1996 (RFE/RL) ..."The Chevron Overseas Petroleum company says a train carrying 2,200 tons of oil from Baku arrived at Georgia's Black Sea port of Batumi late yesterday... Georgia would receive duties of about $8.5 per ton... Work is scheduled to begin early next year on a 960-kilometer pipeline that would link Baku to Georgia's Black Sea terminal of Suspa"...

RUSSIA LOSES CASPIAN OIL TO THE WEST. The Chechen war has wrecked Moscow's territorial monopoly on oil and gas transportation from Kazakhstan and Azerbaijan. By R. Narzikulov ..."The Chechen separatists have unexpectedly (first of all, for themselves) realized that they are badly needed by the West or, to be more precise, by Western oil companies. Regardless of their own drive for sovereignty, they can and have already partially destroyed Russia's territorial monopoly over the export of Azerbaijan's and Kazakhstan's oil. Such are the main economic results of the Chechen conflict and of the war in Chechnya"... "The armed hostilities and the war have shifted the accents in the transportation of oil from the Tengiz field in Kazakhstan and Caspian offshore fields in Azerbaijan towards the alternative variants because the Russian variant is no longer seen as reliable today. Edward Smith, the general director of the Caspian Pipeline Consortium or CPC which was founded four years ago for the construction and operation of an oil pipeline from Tengiz to Novorossiisk. "It has been wise on Chevron's part to consider alternative projects", he said"... (Nezavisimaya Gazeta, October 22.1996) 


A SMALLDECLINE OF PRODUCTION IS EXPECTED IN RUSSIA'S FUEL AND ENERGY COMPLEX IN 1996, OCTOBER 10. RIA NOVOSTI, ..."it will make up a mere about 1.3 per cent... The largest fall is expected in the production of electricity at the hydraulic power stations (by 18 per cent)...The drop in output will range from one to three per cent in all the other cases, including the whole set of oil products"...

AIOC CHAIRMAN NAMES DATE FOR EXPORT OF FIRST "EARLY OIL.": ..."through Russia to Novorossiisk on 28 August 1997"... "in October 1994, it was anticipated that the first "early oil" would begin to flow in 1996". (OMRI, 9 October, Liz Fuller) 


Marshall I. Goldman, Petroleum, Pipelines and Paranoia in the Caucasus

Oil Corridor Dreams: US Ambassador to Georgia Mr. William H. Courtney, Speeches...

OCL is now concentrating its efforts on major oil-developing and marketing opportunities in the former Soviet Republics of Central Asia and the Caucasus and Turkey. Planning for construction of a 42-inch diameter crude oil pipeline, covering over 1,000 miles from Baku in Azerbaijan to Ceyhan, is under way. This pipeline follows the most direct and economically sound route from the Caspian Sea to a deepwater Mediterranean port. It can have a throughput of up to 1.25 million barrels per day. A 56-inch diameter natural gas pipeline will follow the same route as the crude oil line, diverging only slightly at its terminus in Turkey. This common-carrier natural gas pipeline will have a capacity throughput of 3 billion cubic feet per day.

FCO Background Brief - Independence Issues in Chechnya Russian Federation: Independence Issues in Chechnya. "On 11 December 1994 Russian troops intervened militarily in the Republic of Chechnya, situated in the"... [http://tlingit.elmail.co.uk:2000/reference/briefs/chechnya.html]

Oil Consortium Agreement with Azerbaijan. Case Number: 156. Case Mnemonic: AZERIOIL.Case Name: Azerbaijan Oil Consortium... "On 20 November 1994 a consortium of oil companies signed a contract with the nation of Azerbaijan. The consortium, led by British Petroleum, is to invest $8 billion for oil production over a period of 30 years...Oil production will be phased in in increasing increments starting in 1996. By the end of 1997, it is hoped that the peak sustained output of 700,000 barrels per day will have been reached. In all, there is believed to be a reserve of 4 billion barrels of oil. These fields are thought to hold enough oil to be "a bonanza that rivals Kuwait."... Finally, on October 9 1995, in a show of compromise, the twelve member consortium agreed to have 2 pipelines. The first will be the Russian route. The 1400 kilometer route will traverse Chechnya ..."

Pipelines and Pipedreams: The Geo-Politics of the Transcaucasus. Pipelines and Pipedreams: The Geo-Politics of the Transcaucasus By Paul Goble. Paul Goble is a senior associate at the Carnegie Endowment for... [http://www.caspcross.com/1.html]

GROZNY, KABUL... BEIJING? Colonel Yevgeni Morozov, military commentator, Mikhail Frunze Armoured Troops Academy ..."Many experts in the Russian General Staff are sure that the interests of the US-Turkey alliance were one of the main causes for the Chechen war... Furthermore, the Krasnovodsk-Baku-Novorossiisk communication line, one of the most important in Europe, passes through Chechnya, while all the projected routes of Caspian and Kazakhstan oil and Turkmen natural gas, which are to be the alternative to the Russian route, are pinned on Turkey. The defeat in Chechnya has moved Russia away from southern resources and communication lines... Caucasus on Fire... The Russian military analysts who have access to intelligence information predict the development of a political crisis in Daghestan... Northern Ossetia... South Ossetian... Kabardins... Spontaneous clashes have already begun along the entire northern border of Georgia"...

...GEOLOGISTS SAY THERE ARE AT LEAST 200-BILLION DOLLARS WORTH OF OIL HIDDEN UNDER THE CASPIAN SEA CLOSE TO AZERBAIJAN'S SHORES, AND FURTHER EXPLORATION COULD EASILY MULTIPLY THIS AMOUNT. AND WHEN NEW WELLS START PUMPING THE PETROLEUM OUT, DAILY PRODUCTION, ECONOMISTS PREDICT, COULD QUICKLY REACH 600-THOUSAND BARRELS, OR 10 PERCENT OF THE DAILY OUTPUT OF THE OIL INDUSTRY IN THE UNITED STATES...

Center for Security Policy [****]:
..."Specifically, Moscow's semi-official representative in the AIOC consortium, LUKoil, appears to have adopted a nominally "market-oriented" strategy to defeat the non-Russian pipeline to Georgia. Since early oil from Azerbaijan is only projected to involve about 80,000 barrels per day (b/d) -- as a strictly logistical matter -- the full output could initially be accommodated by an upgraded Russian pipeline across Chechnya to the Black Sea port of Novorossisk. It will only be as production begins to peak at some 700,000 b/d in mid-1997 that the additional capacity inherent in the western strand, planned to run through Georgia to the Turkish Mediterranean port of Ceyhan, will be required"... "who will control the world's second-largest oil supplies for the industrialized democracies in the 21st century?"..
http://www.security-policy.org/papers/96-D76.html
http://www.security-policy.org/papers/95-D71.html
http://www.security-policy.org/papers/95-D87.html
http://www.security-policy.org/papers/96-P27.html
http://www.security-policy.org/papers/96-D12.html

Bloody Gamble in Chechnya. Can Moscow translate its "victory" over Chechnya into pipeline revenue?..."Russia's interests in controlling Chechnya and the rest of the region lie in maintaining thesmooth, uninterrupted flow of oil through the Caucasus pipeline system... Robert Ebel concludes that these routes, and not Chechen oil itself, were the motivating factor behind action to suppress Chechen nationalism... Chechnya's value is not oil, but territory... If Chechnya remains unsettled, a pipeline routing through Turkey becomes more attractive to western investors"...

Harvard Report Warns of Threats to Caspian Sea Oil Routes. Investigation Highlights Regional Destabilization of Chechen War.

CRIME WITHOUT PUNISHMENT - RUSSIA IN THE CAUCASUS by Eric Margolis

Russia and Azerbaijan Sign Pipeline Agreement Jan. 18 (RFE/RL) ..."The Russian pipeline is to transport oil from Azerbaijan through the separatist republic of Chechnya and on to the Russian Black Sea port of Novorossiysk. However, it is unclear whether a recent escalation of fighting between Russian troops and Chechen separatist fighters might complicate these plans"...

Russian Troops May Be Deployed For Border Patrols in Azerbaijan Feb. 15 (FRE/RL) ..."Azerbaijan's President Haidar Aliyev said yesterday that an agreement may be signed with Moscow allowing Russian troops to jointly patrol Azerbaijan's borders with Iran and Turkey. The comment represents a major policy reversal for Aliyev. Russia has not had any troops in Azerbaijan since 1993. Until yesterday, Baku had repeatedly insisted that it would not allow Russian troops to be deployed there. The head of Russia's border guard, Gen. Andrei Nikolaiev, said after meeting the Azeri president yesterday that an agreement already has been drafted for signing by Aliyev and Russian President Boris Yeltsin"...

Turkmenistan: Iran's Oil Minister Interested In Pipeline Projects, 21 August 1996 (RFE/RL) -- ..."The head of the [Iran Oil] company exploration section, Mehmedi Hosseini, said the company has signed agreements with Russia and Turkmenistan for offshore exploration in the Caspian Sea"...

Azerbaijan: Transporting Oil Via Grozny Still A Possibility Baku, 15 August 1996 (RFE/RL) -- ..."Transporting oil via Grozny, the Chechen capital, to the Russian port of Novorossiisk on the Black Sea is the optimum oil transport solution...work is underway to rebuild about 200 kilometers of the Azerbaijani section of the pipeline. Plans call for it to be commissioned on December 15 [1996], as provided for in an inter-governmental oil transit agreement signed by Azerbaijan and Russia in January, 1996. Aliyev made the statement after his remarks this week that if the situation in Chechnya deteriorates, Azerbaijan would accelerate construction of a pipeline from Baku to the port of Supsa on Georgia's coast"...

Russia: Bidding For Oil Exploration Projects Delayed In Dagestan 27 August 1996 (RFE/RL) -- ..."Moscow has decided to postpone for at least six months the bidding for the right to develop several oil deposits in the Caspian Sea"...

Russia Exerts Influence In Caspian Oil Deal Feb. 15 (RFE/RL) - ..."With Russia's own oil production plummeting disastrously, Moscow is extending its influence over the oil riches of its Caspian Sea neighbors with the approval of an oil contract by the Azerbaijani parliament... The state-owned Russian oil giant LUKoil takes the biggest share in the $1.8 billion deal for development of the Karabakh oil field in Azeribaijan's territorial waters ...is believed to hold 85 million metric tonnes of recoverable crude oil. LUKoil... Both inside Azerbaijan and in the West, the Karabakh deal is seen as appeasement of Russia, which was angered over its small share in a separate $8 billion Caspian sea project announced in September, 1994 and dubbed "the deal of the century." This latest deal comes at a time when Russia has admitted that its oil production has fallen to six million barrels a day, from more than 11 million barrels a day in 1988. Sergei Panchekhin, first secretary at the Russian Embassy in Washington, told a New York conference last week that Russia's oil situation looks "grim yet not catastrophic." But the IMF and World Bank estimate that an initial investment of at least $60 billion would be required - in addition to massive annual investments - for Russian oil production to return to 1988 levels by the year 2000. Panchekhin made no secret of Russia's interests in the Black Sea and Caspian Sea region"... Indeed, Moscow and Washington are locked in a rivalry over the mineral wealth of the Caspian ..."Russia understands this well and has begun manoeuvring to secure its place in the future oil bonanza"...

Azerbaijan/Russia: Officials To Discuss Caspian Oil Exploration and Fishing 4 September 1996 (RFE/RL)

Turkmenistan: German Bank Plans Loan; Russia Comments On Caspian 11 September 1996 (RFE/RL) - Germany's Deutsche Bank plans to extend a $170-million credit to Ashgabat to pay for a new facility a German company will build at Turkmenistan's Turkmenbashi oil refinery...

Chechen Attacks Threaten Transneft Pipeline Plan March 13 (RFE/RL) -- Chechen separatists are targeting the gas and oil industry's infrastructure in their battle for independence from Moscow. Twice in the past month, explosions ripped holes in gas pipelines that run through Chechnya. On Sunday, as firefighters tried to control blazes that had been burning at a Grozny oil refinery since last week's battle for the city, another explosion ripped through a gas pipeline in the Derbent region of neighboring Dagestan. That pipeline linked Mozdok in North Ossetia with Azerbaijan... the chairman of Chechnya's pro-Russian Constitutional Court, Ikhvan Gerikhanov, says Russia C-A-N-N-O-T rule out any such attacks until Moscow negotiates a future status for Chechnya. The issue has serious implications for Moscow and a group of western companies looking to develop the rich oil fields of the Caspian Sea region.... But about 70 kilometers of the Transneft pipeline runs across northern Chechnya. It passes directly through Gudermes, as well as Kizlar in Dagestan. Both towns have seen heavy fighting between Chechen separatists and Russian forces in the past three months"..."Roger W. Robinson Jr., president of the Washington-based consulting firm RWR Inc., predicts that the Caspian region could be a major oil source for industrialized democracies in the 21st century"..."Chevron, a western oil company, estimates that its joint venture to develop the Tenghiz fields could already be producing 700,000 barrels of crude oil per day and bring in an eventual 20,000 million dollars in investment. But without a method to transport the oil to the international market, Chevron has cut daily production to about 60,000 barrels a day -- less than 10 percent of the projected output"...

Analysis From Washington - New Players in Caucasus By Paul Goble Washington, April 5 (RFE/RL) - "Moscow's four-year effort to exclude outside actors from becoming involved in the Trans-Caucasus is now failing. As a result, the stakes in all of that region's conflicts are likely to rise not only for the countries of the region but also for the outside actors as well. Since the disintegration of the Soviet Union in 1991, the Russian government has pursued a policy of "frozen instability" in the Caucasus"...

Analysis From Washington - Moscow's New Pipeline Politics By Paul Goble Washington, May 14 (RFE/RL) --..."Russia's longstanding interest in using oil and gas as political weapons to promote the reintegration of the former Soviet space under Russian leadership"..."Since the Soviet Union collapsed, the Russian government has deployed the oil weapon to promote its own geopolitical interests"...

Analysis From Washington - Profits Financial and Political By Paul Goble Washington, April 30 (RFE/RL) - "A new pipeline deal allowing oil from Kazkhstan's Tengiz field to flow to the West will bring Moscow both financial rewards and important political benefits"...

Conference On Kazakhstan To Be Crowded By Oil Interests By Stuart Parrott London, June 5 (RFE/RL) - Kazakhstan's Prime Minsiter Akezhan Kazhegeldin will head a top-level Kazakh delegation taking part in a two-day London conference on investment opportunities in Kazkhstan. The conference - entitled: "Investment Window for Kazakhstan"...

Congress Complicating Caucasus Conflicts, Official Suggests By K.P. Foley Washington, July 31 (RFE/RL) --..."The State Department says Congressional measures that favor Armenia at the expense of Azerbaijan make diplomacy's work much more difficult. Armenian Americans are a wealthy, well-organized and powerful lobby in the U.S. Congress for Armenian interests. Armenian causes enjoy the support of many influential U.S. politicians, including former U.S. Senate Majority Leader Robert Dole, who is the likely Republican Party nominee for president in 1996"...

Russia: Analysis From Washington--Bottlenecks In Russian Economy (RFE/RL) ..."Russia's increasing dependence on oil and gas exports to earn hard currency continued to have an enormous impact on Russian domestic and foreign policies. In the first instance, it helps to explain Moscow's approach in Chechnya, its insistence that Chechnya remain part of and fully controlled by the Russian government. That is because an important oil pipeline passes through Chechnya, a pipeline Moscow needs to control in order to project its influence over Central Asia and the Transcaucasus"...

 

 

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