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Foreign Policy in Focus

April 30, 2002
www.fpif.org 

U.S. Eyes Caspian Oil in "War On Terror"

By Armen Georgian

(Armen Georgian <[EMAIL PROTECTED]> writes for Agence-France Presse in

London and writes regularly on international issues.)

The arrival of U.S. military advisors in Georgia on April 29 raised as
many 
glasses in Ankara and Baku as it did jitters in Moscow. Touted as a new
front 
in the "war on terror," the Bush administration is in reality scrambling
for 
Caspian oil in a bid to oust Russia from its traditional backyard.
Washington 
insists its "train and equip force'" of 10 combat helicopters and 150 
military instructors is solely intended to help Georgia combat Islamic 
radicals in the lawless Pankisi Gorge, allegedly a safe haven for al
Qaeda 
militants and their Chechen allies. But other motives became apparent, 
although largely unnoticed by the Western press when Georgian Defense 
Ministry official Mirian Kiknadze told Radio Free Europe on February 27:
"The 
U.S. military will train our rapid reaction force, which is guarding 
strategic sites in Georgia--particularly oil pipelines." He was
referring to 
the embryonic Baku-Tbilisi-Ceyhan (BTC) project, set to reduce Georgia's
and 
Azerbaijan's energy reliance on Russia and bring the southern Caucasus
into 
the U.S. fold.

Russia's military establishment and domestic opinion are clearly
furious, 
although President Putin has played soft on the issue, delighted to see
his 
Chechen campaign rebranded as a "war on terror" in return for supporting
the 
U.S. bombing of Afghanistan.

"It is hard to see why Russia should react so angrily to a U.S.
operation 
promising to neutralize not just al Qaeda fighters but also Putin's
longtime 
Chechen bogeys," said Hovann Simonian, author of the acclaimed Troubled 
Waters: The Geopolitics of Caspian Oil. "The U.S. training force is
unlikely 
to make much difference given the parlous state of the Georgian
military. 
Clearly this is not simply about fighting terror," Simonian added.

Washington has recently injected fresh momentum into its Caspian
designs, 
home to the world's third-largest oil and gas deposits. Deputy Secretary
of 
State Richard Armitage emphatically re-affirmed U.S. support for BTC on
March 
8 during the visit of Turkish premier Bulent Ecevit. Four days later
U.S. 
Caspian envoy Stephen Mann told Kazakh authorities he wanted to promote 
pipelines bypassing Iran.

The plot thickened on March 28 when U.S. Deputy Assistant Secretary of 
Defense Mira Ricardel announced that the U.S. would provide military 
assistance to Azerbaijan's navy as part of a $4.4 million aid package
this 
year. Western energy companies have been intensively exploring a sector
of 
the Caspian angrily disputed by Iran and Azerbaijan.

With Turkish airbases due in Azerbaijan later this year, the U.S. is
clearly 
promoting a NATO-friendly axis to safeguard the Baku-Ceyhan route and
counter 
the Russia-Armenia-Iran alliance. "Some energy analysts say the Turkish 
economy is in no position to support the $2.9-billion project, while
U.S. 
taxpayers might be skeptical after the Enron scandal, but BTC is being
pushed 
for political reasons," Simonian said.

The Bush administration has particularly compelling reasons to back BTC.
Vice 
President Dick Cheney was until 2000 chief executive of Halliburton Co.,
an 
oil services company named a finalist last year to bid on engineering
work in 
the Turkish sector of the route. National Security Adviser Condoleezza
Rice 
was a director of Chevron, a lynchpin of the BTC consortium with
extensive 
operations in Azerbaijan. Richard Armitage is a former co-chairman of
the 
U.S.-Azerbaijan Chamber of Commerce.

Bush family adviser James A. Baker III has especially thick oil ties to
the 
region. Baker, who spearheaded George W. Bush's victory in the Florida 
election dispute, heads U.S. law firm Baker Botts, which represents a 
consortium of companies drilling and exploring the Caspian, including 
Exxon-Mobil, Pennzoil, BP, and Unocal. Baker sits on the U.S.-Azerbaijan

Chamber of Commerce advisory council, as did Cheney.

While America has successfully used the "war on terror" to wrestle the
oil- 
and gas-rich central Asian region from Moscow, the south Caucasus could
prove 
a much tougher nut to crack. Pankisi is not the only unruly enclave
beyond 
Tbilisi's writ. The breakaway leaderships of Abkhazia and South Ossetia,

fearful the U.S. deployment could also be used against them, have
already 
appealed to Moscow for associate status within the Russian Federation.
Such a 
move, which would seriously undermine the pro-Western Georgian President

Eduard Shervardnaze, is widely supported by the Russian parliament and
public 
opinion. In addition, Moscow could foment separatism in Adzharia and 
Dzhavaketia, where ethnic Armenians might seek to disrupt the oil
earnings of 
arch-foes Turkey and Azerbaijan.

"There is a danger that Shervardnadze will lose control of Georgia.
Russia 
will fight more actively for influence in the region," said political
analyst 
Otar Kharabadze. In early March a top Russian general ominously
remarked: 
"Georgia had better be aware it cannot exist without Russia." If this
veiled 
threat is carried out, Washington's Great Game in the south Caucasus
could 
end up as little more than a pipe-dream.

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