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#43 - JRL 2007-112 - JRL Home
RIA Novosti
May 16, 2007
Gas Union of Three

MOSCOW. (Dmitry Orlov for RIA Novosti) - Russian President Vladimir Putin visited Kazakhstan and Turkmenistan for two reasons. First, he wanted to set up a partnership of the three countries to build a gas pipeline north of the Caspian Sea. And second, he needed to prevent an anti-Russian alliance of European countries in the energy sector.

In my opinion, he achieved both these goals.

Kazakhstan, a major player and a major influence on the solution of many problems on the agenda of the Warsaw energy summit, did not attend it. And the agreement on the bypass Caspian gas pipeline, which sceptics describe as a memorandum of intent because it has not been formalized yet, will play a positive role.

It is difficult, and unnecessary now, to calculate the exact gains of the Russian budget and gas monopoly Gazprom, which will coordinate the project together with its regional and subsidiary companies.

The most important thing is that the countries across which energy is or can be transported, especially the former Soviet republics and East European countries, are fighting tooth and nail for their status as transit countries.

In fact, they are fighting for their national interests, as transit means not only additional budget revenues, but also control over the pipeline and therefore an opportunity to exert political influence on the exporting and recipient countries.

Energy-rich Russia, which is a transit country and a major player on the energy market, will benefit tremendously if it gains access to that mechanism. It is therefore not coincidental that the House of Representatives of U.S. Congress has passed a bill limiting cooperation in the commodities sphere, which is apparently spearheaded against Russia, Kazakhstan and Turkmenistan.

The Untied States is aware of the dangers coming from such alliances and their projects.

When speaking about the allegedly unfriendly moves in the energy sphere, Russia and its allies can argue that their agreements on forming a union of oil and gas producers and exporters are not negative per se.

Some experts say the union will not infringe on the interests of third countries, because this is not its inherent purpose. But the interests of producers and exporters, on the one hand, and consumers, on the other, will always differ.

It makes sense that consumers have been alarmed by the exporters' decision to form a union in order to coordinate their policy, and by their proposal of a route alternative to the trans-Caspian pipeline supported by the European Union. But then, such decisions always affect somebody's interests.

There is a political side to the three presidents' meeting and their energy agreements. First, Kazakhstan and Turkmenistan reaffirmed their allied relations with Russia. And second, Kazakhstan's President Nursultan Nazarbayev opted for a harsh move: he could have gone to Warsaw, but decided instead to confer with Vladimir Putin and Gurbanguly Berdymukhammedov.

The EU and the U.S. were most likely shocked by his decision.

But the Turkmen president took a much calmer stand at the Warsaw summit, where he spoke about possible cooperation with the EU and other power centers, therefore keeping windows of opportunity open for his country. At the same time, Berdymukhammedov also supported the idea of allied relations with Russia.

In short, the union of Russia, Kazakhstan and Turkmenistan forged to implement the Caspian bypass project is a political coalition, as evidenced by the agreements they have signed.

Dmitry Orlov is director general of the Russian Agency of Political and Economic Communications and member of the RIA Novosti Expert Council.