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Gazprom and gamesmanship in the post-Cold War era
Sorry Brazil, in this analysis the 'big four' are the contender states, Eurasian military-economic powers Russia, India and China plus the rival-cum-ally, the US.
Interesting that coinciding with a Condi trip to Beijing comes a possible US military deal with New Delhi that might undermine Russia's virtual monopoly over its defence equipment. Russia continues to supply China, of course, no big.
If India were to become dependent on the US both for nuclear power, Gulf-related energy security and military hardware, that truly would seal it into Washington's orbit as anti-American social forces in Pakistan begin to spin away and thus towards China instead.
Also interesting to note that China's defence budget took another leap last year, as revealed in the annual Pentagon estimate. Part of the 18% hike is probably down to rising oil and food prices, but there can be no doubt that China is building up its capability while hardly making a major contribution to UN peacekeeping (as does India).
All things being considered, it looks like simple geopolitics to me.
Asia Times Online :: South Asia news, business and economy from India and Pakistan
Gates' talking points in Delhi related primarily to defense trade. India's procurement of 126 multi-role combat aircraft in a deal estimated at $10 billion - and possibly, as high as $ 16 billion - was number one priority for him and for the American defense contractors accompanying him. The principal bidders include Lockheed Martin's F-16 and Boeing's F/A-18 Super Hornet.
The importance of the deal is not only commercial, but that the new generation aircraft will be in use with the Indian Air Force for the next 40-year period and, therefore, clinching the deal becomes absolutely vital for the US if it is to aim at "inter-operability" with India. Gates knows it is the sort of deal that will ensure US-India military-to-military cooperation becomes irreversible and pin India down as the US's strategic ally in the region...
Gates expressed satisfaction over the entry that the US has made in the Indian market, which is traditionally dominated by Russia. He said, "We have tried for some years now to get a seat at the table, and we're finally there." Washington is determined to throw Russia out of the Indian defense market in the coming years. The assertiveness of the US sales pitch is evident from the remark by a US official in Gates's entourage, "When you go into joint production [and] cooperative development [with the US], you're getting not only the best product in the world, but you have the best support system, the best maintenance package over the life of the product. You also have companies that operate with integrity, which is different than what India has seen with other partners in the world. We're very transparent."
Here's the thing, right? There are two clear underlying causes to all the major problems on earth. The first is overpopulation. Overpopulation means that there are too many people chasing after too many resources - energy, water, land etc. which inevitably leads to conflict. Enough has been written about that to sink a battleship.
Second, there's subjectivity. What's that? It's a lack of objectivity in our approaches to these problems. It's a natural trait of humanity to form into groups, but every group defines itself by a subjective outlook on the world around it. It's thus these groups that enter into conflicts.
Some examples. No objective discussion of the Middle East is possible due to Israel's emotional outlook: thanks to the Holocaust, any criticism or compromise is decried as 'anti-Semitic'. Likewise, Arab nations and Islamic terrorist groups cannot see past the Palestinian question.
The same is true wherever you look. Such is China's emotional attachment to Taiwan and Tibet that any questioning of the situation is condemned as "interference in our internal affairs". Same goes for Serbia, Russia and Kosovo. The dysfunctional tendencies of the UN and EU are all down to questions of national interest. Even the US defines itself these days with reference to 9/11 and any attempt to rationally tackle the greater issues are met with the same response.
So states and other actors are not rational - they are indeed irrational. International relations theory has it exactly wrong.
The only answer is to find a unifying threat or goal, a way to bring all the conflicting groups together into one. And, ironically, overpopulation provides us with that. We are faced with a significant common problem, that of climate change, for which overpopulation is a major cause. Too many people needing too many products, burning too much fuel and cutting down too many trees... you get the picture.
So work together to solve the population crisis and you have an answer to the irrationality that causes conflict and environmental degradation. It's so simple.
 It's looking increasingly like we have just one week to go before the big events of 2008 really begin. Many of the papers are giving 17 February as the date for Kosovo to declare independence, and it already appears that there's a behind-the-scenes plan.
Under the current Cold War climate, that's really not a good idea. Deliberately orchestrating recognition of Kosovo before the UNSC can meet - and Russia veto - is going to be seen as a big provocation in Moscow. That's not good. We've already got guys getting poisoned with polonium, energy cut-offs and Tupolevs making incursions into sovereign airspace... all getting a bit Tom Clancy for my liking.
What's worse, possibly Beijing will object too. Kosovo's recognition by the US and EU nations may set a precedent for Taiwan, which is set to hold its own referendum on a UN bid in March. If Kosovo can secede and be recognised, Taipei will say, then why can't we? Thus the schism in the UNSC will widen further, undoing much of the good work that's been done in recent years.
Though the prospects of Serbian and Russian tanks rolling in are remote, what may occur could be a re-run of Israel's declaration of independence back in 1948. Just as the Palestinians took up arms and ended up a displaced people, so too could the 200,000-odd Kosovar Serbians. Just as the Arab countries failed to recognise Israel, so too may a number of black sheep within the 'international system'.
An insidious problem that could last for decades may be in the offing. And who's going to manage it? The EU - which can't even come up with a unanimous position on Kosovan independence, let alone deploy a peacekeeping force that can cope when things go bad. Yes, they've been handling Bosnia, but this may heat up.
The biggest contradiction in the UN charter is its respect for both self-determination and sovereignty. If things kick off this month, then there's going to be some grave implications. Better that the situation was managed differently - it's still not too late for compromise.
Serbs warn of Kosovo clash | World news | The Observer
Critics of the plan to declare independence, which follows the failure of Serbia and the Kosovo-Albania leaders to negotiate terms for separation, have already warned of the risk that Kosovo's Serbian population, concentrated in northern Mitrovica, would respond by declaring their own independence, setting the stage for violent confrontation.
The renewed Serbian warning comes as Kosovo's leaders struggled to calm rising 'independence fever', fearful that wild celebrations from the ethnic Albanian majority could spark violent clashes with scared and furious Serbs.
Kosovo is expected to proclaim itself the world's newest state next Sunday or Monday, allowing European Union foreign ministers meeting on Monday to give the green light to a 2,000-strong mission to oversee the running of the ethnically divided region.
While Washington and most EU members will quickly welcome independent Kosovo into the world, Tadic's grim predictions of spiralling instability in the Balkans, still scarred by a bloody decade that ended with Nato bombing Serb troops out of Kosovo in 1999, will gain credence if the region's long-awaited independence celebrations give way to ethnic violence.
Kosovo's parliament is expected to meet next weekend and Hashim Thaci, the former separatist rebel who is now Kosovo's Prime Minister, or President Fatmir Sejdiu is likely to announce independence on Sunday or Monday morning, preventing Russia from immediately responding through the Security Council, six hours behind in New York.
By the time Russia can muster an emergency meeting of the council, the US and major EU nations will have drawn its diplomatic sting by recognising the sovereignty of Kosovo's two million citizens. 'We have the confirmation from some 100 states which say they are ready to recognise Kosovo's independence immediately after we declare it,' Thaci insisted last week after Serbia said that it expected a declaration on 17 February.
 Next Thursday, 7 February, sees the beginning of the Chinese Year of the Rat, the first in the Chinese Zodiac cycle. No, this isn't some cod astrological analysis: but it does put a little bit of mystical context in. Just look at all the international factors that are just about to converge and you'll see what I mean.
Basically, the next weeks and months could see some rather serious developments in the global political picture.
Kosovo might soon be declaring independence, and despite dissent it looks like most of the international community is going to recognise it. What few realise is that, for Serbia, the secession of Kosovo would be a disaster of monumental proportions. And they're holding an election this weekend in which a hard-right president could be selected.
Already locking horns with the UK, Russia is probably going to stand by Serbia - which means increasing antagonism with the rest of Europe. I can certainly foresee the gas spigot getting turned off for a couple of days, which given the present frigid economic (let alone meteorological) climate could have a severe impact.
Speaking of elections, it's Super Tuesday this week, another moment that's going to define the course of things to come. Hillary Clinton, Barack Obama, Mitt Romney or John McCain: the field of four will probably narrow down to two candidates for the top job in the world.
Not long after that, Monday 18 February is finally going to see elections in Pakistan. Whether rigged or not, there will inevitably be implications for regional stability.
Furthermore, set that against the context of Afghanistan. President Karzai has just shot his nation in the foot by turning away one of Britain's most competent statesmen, Lord Ashdown, as a potential UN envoy.
Moreover, NATO is lumbering towards a crisis with Germany refusing to pull its weight and Canada getting very cold feet in the face of what looks like sheer petulance from its allies. Thus, the NATO conference set for next week could well define the future of the mission, and general stability in Afghanistan. Condi is already jetting in do do her firewoman act.
We don't want to see either Pakistan or Afghanistan go down; both of them falling apart at the same time would be disastrous.
And finally, look at China.
Anyone who's queued for rail tickets at Spring Festival - even in a good year - will tell you what a nightmare it is. This year has seen the worst weather in half a century and chances are that the world's largest internal migration is not going to go ahead as planned. That means some unhappy chappies down Chinatown.
Add to that the very real danger of a food crisis - a failed crop could tip China over the edge - compounded by the general economic malaise and you have a recipe for civil unrest in Olympic year.
And finally, add to that a touch of spice in the form of an upcoming referendum in Taiwan (set for 22 March) and you have a fiery plate of noodles indeed.
In summary, there are various crises impending in Eastern Europe, South Asia and East Asia. The year 2008 could well be going for a bag of rats.
Well, it's that time again - as the year 2007 draws to a close, we look to the future. And one thing is for sure: the primary foci of this weblog, Pakistan and China, were hardly out of the news this year and won't be in 2008 either.
 For China especially, 2008 is the crunch year. The Olympics have acquired a kind of existential significance, and their success or failure have become intertwined with China's contemporary sense of its national identity.
Unfortunately, I can't see the games being the resounding success that the CCP hopes for. Chinese athletes will probably haul in the most medals, but with the enormous pressures upon them there will inevitably be doping scandals. Other athletes will scorn the terrible pollution; tourists will be messed about, pushed, shoved and spat around (most Beijingers will behave admirably, but it'll still be the negatives that get remembered); and journalists will lament the restrictions on free reporting. Few Chinese yet realise how things will be perceived, and it will come as a shock.
Most of all, this most political of sporting events will inevitably be deeply politicised. There will be incidents: medal-winners standing up for Tibet, Taiwanese declarations, perhaps even Uyghur violence. Expect 888 to be a very interesting moment in the definition of the new China.
Turning to Russia, there Putin will remain in control, despite the appointment of a new president in Medvedev - little more than a deputy, really, But I have confidence in Putin: he is not stupid, and will not wish relations with the EU and NATO to deteriorate further. Things were getting silly, what with all this missile defence rubbish, not to mention Litvinenko and Lugovoi, and in 2008 Russia will attempt to repair some of the damage - though not with Britain, who will be the main losers.
Meanwhile, it will be a period of reflection for the EU itself, as the member states attempt to digest the implications of the Lisbon Treaty. Expect at least one ratification to fail.
 There is at least reason to positive about the Middle East. Iraq has calmed in 2007, though of course it's not the end by any stretch of the imagination. We are also thankfully unlikely to see action against Iran either. Bush desperately needs a positive legacy to speak of, so with elections in full swing at home he and his cronies may attempt at least to broker a compromise solution. Does he have what it takes? We shall see.
But there are clearly going to be fireworks in Pakistan. Far too early to tell how things will pan out, but it probably won't be good. This writer is already predicting a Balkanisation of the country: that may be going too far, but with the conflicts in NWFP and Balochistan likely to gain pace as society fractures after the elections then the prospects for stability are low. Great map too - worth examining to see what it suggests about Iran and Iraq and all
It is almost certainly the end of the road for Musharraf, and with Bhutto gone there will be a power vacuum. Power vacuums mean conflict, as we have seen in Iraq. But the West and India have meddled enough in Pakistan - it is up to them.
 When I started this blog two years ago, crude was priced at $60 per barrel. Now it's $96. The dollar was $1.21 to the Euro then: now it's $1.44.
So go the figures. Something is up. There is a big picture to this, and - shock and awe - after spending the best part of the last two years studying International Relations, I have a theory.
The basic idea is this: there are too many people chasing too few resources. Breaking down this simple statement brings us to two key players - the US and China. And the hidden factor is the instability of a multipolar world that is evolving into a bipolar structure: the 'West', led by Washington, and the 'Rest', very loosely led by China, competing for dominance over those resources, particularly energy.
 The thing is that, unlike the Cold War where two political ideologies were in competition, current US hegemony is still based on military and political power projection, whereas China's ace of spades is economic soft power.
The misuse of firepower is adding to rather than reducing the global instability that came to our notice on 9/11 (but had existed well before then). The World Trade Center attacks were as much a protest against US foreign policy than a statement about political Islam, and since then Islamist terrorism has increased exponentially.
The instability caused by terrorism is adding to the energy crisis by contributing to high prices if not yet directly threatening supply. Meanwhile, China's economic leverage means that the only way that US industry can compete is with a weak dollar. However, both things mean that oil producers such as Russia and manufacturers such as China are building enormous reserves of dollars, shifting the centre of the world economy away from the West. Thanks to events such as the subprime crisis, an economic meltdown is probably imminent.
China and Russia themselves are involved in abetting instability. While they do not directly support terrorism, they sponsor states such as Iran, the key outside player in Iraq and probably Afghanistan. Pakistan is also a pivotal state in all this, since if Pakistan goes down Afghanistan goes with it.
If Iran is bombed too, as looks increasingly likely, there will be a black hole of chaos slap bang in the middle of Eurasia - from Iraq through to Pakistan - creating a massive geographical chokepoint that most of the world's energy needs to get past.
The more terrorists that are bred in the black hole, the more the West has to spend on security, thus diminishing economies and general confidence. The US is already spewing vast quantities of blood and treasure on Iraq, a situation that can only be helping China's peaceful rise and Iran and Russia's leverage over the energy market.
Add to this the threat of WMD. After the Cold War ended in 1989, only the US had the capability to launch a decisive military blow. Now anyone, terrorist groups included, with a bomb (probably with uranium sourced from Russia and technology from Pakistan, itself donated by China) and a suitcase can hold any other entity to ransom - just as energy suppliers like OPEC and Russia can cut off dependent economies overnight.
Iran and Pakistan are both the key proxy players and the key potential battlegrounds. China and the US are vying for control of both, since whoever calls the shots in Tehran and Islamabad calls the shots over Gulf oil and the terrorist training grounds in Iraq, Afghanistan and the lawless badlands of Pakistan.
 Russia sits in the middle, ostensibly neutral but leaning towards China and away from the US. It got burnt in Afghanistan in the '80s, but isn't shy of lending a helping hand to Iran. Conversely, India is also on the fence, but looks to Washington rather than Beijing. It needs stability in Pakistan above all else, since the threat of a nuclear standoff could suddenly become very real.
Thus it's all connected. That's what this blog is about - making the connections. It's not a dissimilar situation to the Cold War with its proxy conflicts in Vietnam and Afghanistan, but it is a more complex one. Instead of two or three, there are now four horsemen of the apocalypse - the West, meaning America and its rather powerless allies (notably Europe and probably India), versus the Rest's nexus of counter-hegemony - China and its partners-in-crime Russia and Iran.
The prospects for war? Unlikely at the time being, since Beijing and Washington are still playing different games. Should they ever go head-to-head, however, over Taiwan for example, then all hell will break loose.
Every now and again, Asia Times Online turns up an absolute tour de force of an analysis: this is one of them. It pulls together every thread in the Afghanistan war, from the significance of events on Pakistan to the options available to the local powers China, India and Russia.
The one major beef I have with it is, as before, whether it is truly possible to negotiate with the Taliban. Sure, you can talk to the heads of major Taliban groups, but what are the guarantees that one agreement is going to quell the whole bunch of them? Isn't it likely that large splinter groups that oppose any settlement will break off and carry on doing their own thing? Still, the author seems to think that talks are on the cards.
Below, I attempt a rough summary of all the points, in an actor-by-actor format.
- The Taliban: As NATO and the US tire, the chances of a settlement grow, especially in the light of potential instability in Pakistan too.
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The UN: Growing acceptance of the idea of talking with the Taliban. -
The US: Should seek intra-Afghan and intra-Pakistan dialogue with the aid of China, Russia and India. -
Iran: The US quagmire in Afghanistan is succour to their ambitions for regional dominance. -
Russia: Fears of 'Talibanization' will draw the Central Asian states closer into seurity frameworks such as the SCO. -
China: Stay out of it, and leave the Taliban to the US. -
India: Stick with the US, and hope that Pakistan doesn't regain influence in Afghanistan.
And here's the key:
Clearly, the continued disintegration of the Pakistani state widens al-Qaeda's support base among the Taliban. If US-Iran tensions escalate, the war in Iraq and the war in Afghanistan become intertwined. That means the Afghan war may take a new form rather than lead to peace.
The whole article is reprinted below: check out also Ahmed Rashid's sobering analysis in The Telegraph in which he describes his own land as "a failing state hovering over the abyss".
Continue reading "'Stan - The Big Picture" »
This one's going straight on my blogroll. PostGlobal is a collaboration between The Washington Post and Newsweek that analyses global trends - the fall of America, the rise of China, energy, Islam etc..
In short, it's basically just like my blog, but with flash graphics, real cash backing, plus gurus like Fareed Zakaria on board. The only thing they lack is a decent subeditor, which does let it down a little.
What really caught my eye today was this introduction to 'midrange' trends over the next 36 months. Summary below:
A dramatic global realignment appears to be in progress (and quickening) as the result of several factors:
- The loss of US influence as a result of the Iraq war
- A view across the globe resulting from Abu Ghraib and range of missteps that the US has lost the moral high ground it had enjoyed for decades
- A feeling among global leaders that the US is without a coherent foreign policy strategy...a belief that has started feeding on itself and has emboldened US adversaries
- China's rise, its smooth diplomatic technique, its re-alignment with Russia and its aggressive, clever drive to form new alliances with nations extending from Asia and Africa to South America
- Russia's recent rise combined with Russian President Putin's domestic popularity and his reputation for effectively standing up to the West
- The rise of non-aligned nations emboldened by the inability of the US to effectively use the extraordinary power it possesses
- A view among key global leaders that the US will be bogged down in Iraq for many years (a view heightened by significantly by President Bush's September 13 Iraq speech), thus distracted and unable to respond effectively to key political moves by the range of international players
- A recognition by the international community that the Bush Administration not only hasn't been able to deal effectively with non-state actors (e.g. terror groups like Al Qaeda) but they are holding their own or starting to win
More excellent points culled from the article below.
Continue reading "PostGlobal" »
Missed this: Interesting development.
Asia Sentinel - China’s Pipeline Diplomacy
In securing approval to build a natural gas pipeline from northern Turkmenistan to China, PetroChina, the country’s largest oil company, has pulled off a move with striking geopolitical implications, providing an extra bloodline for the world’s fastest growing economy.
For its part, Turkmenistan regards the China deal, signed in July, as an opportunity to free itself from Russia’s stranglehold over its gas export markets. The country’s entire gas pipeline infrastructure to date was built during the Soviet era by Gazprom, the world’s largest gas exporter.
A lengthy but useful summary of everything that's important in the world right now pertaining to the linkages between geopolitics and energy. Must look out for this Dilip Hiro guy's book.
We can now probably add to this list of Bush's errors America's disruption of the world financial system via subprime loans, not to mention high oil prices and a feeble dollar but hey.
Asia Times Online :: Middle East News - US in their sights: The rising powers
...with not even a decade of this century behind us, we are already witnessing the rise of a multipolar world in which new powers are challenging different aspects of US supremacy - Russia and China in the forefront, with regional powers Venezuela and Iran forming the second rank. These emergent powers are primed to erode US hegemony, not confront it, singly or jointly.
How and why has the world evolved in this way so soon? The George W Bush administration's debacle in Iraq is certainly a major factor in this transformation, a classic example of an imperialist power, brimming with hubris, overextending itself...
Yet there are other explanations - unrelated to Washington's glaring misadventures - for the current transformation in international affairs. These include, above all, the tightening market in oil and natural gas, which has enhanced the power of hydrocarbon-rich nations as never before; the rapid economic expansion of the mega-nations China and India; the transformation of China into the globe's leading manufacturing base; and the end of the Anglo-American duopoly in international television news.
In July 2007, the Shanghai Cooperation Organisation agreed on the foundation of an 'energy club'. In August it will hold its annual summit, and this author considers whether that means another step towards an Asian NATO.
PINR - S.C.O. Summit Demonstrates its Growing Cohesion
...the last couple of years the S.C.O. has taken steps in intensified cooperation in a wide scope of security dimensions. This has occurred to such an extent that development toward a genuine security organization can no longer be excluded, although this still might take a considerable number of years. Although the West at present does not have anything to fear from the S.C.O., current developments might encourage the West to closely observe further activities of the grouping. In any case, the time has gone that Western security experts could depict the S.C.O. as simply one of many insignificant organizations in the Asia-Pacific region.
A report speculating that the possible delivery of Pakistan's long-owed F-16s is part of a geopolitical strategy on the US's part to undermine the SCO's (and therefore China and Russia's) influence. America also worries about a popular uprising against Musharraf's government - a government that it is increasingly losing the power to manipulate.
Asia Times Online :: South Asia news - Pakistan heading for a crackdown
From the proceedings of the meeting of the SCO's Council of Foreign Ministers (CFM) held in Bishkek on Monday in preparation of the summit on August 16, trends are available that must definitely be annoying Washington. There is no mistaking that the SCO is slouching toward Afghanistan and Pakistan with an irresistible offer of mutual engagement in terms of shared interests of regional security and stability...
For the first time, the SCO is likely to pose a challenge to the United States' monopoly of conflict resolution in Afghanistan. The CFM has taken the view that the existing pattern of involvement by the international community is restricted to specific sectoral problems in Afghanistan. It concluded that such a narrow issue-based approach on the part of the international community will not serve the purpose of stabilizing the country.
The article continues:
Plainly speaking, the SCO is unambiguously proclaiming its intention to work closely with Kabul and Islamabad - a turf that has hitherto been tacitly accepted by the regional powers as more or less the exclusive playpen of the US and the North Atlantic Treaty Organization (NATO). This runs counter to the consistent US approach based on keeping Russia out of Afghanistan, and disrupting any Russian-Chinese coordinated policies in Afghanistan.
Rising China, Shining India; the quagmire in the Persian Gulf and America’s Global War on Terror. These are some of the focal points of international politics in 2007, and none of them exist in isolation.
For the giant populations of Asia to continue their slow grind out of poverty requires economic growth; industrialisation and development must be fuelled. Both China and India are increasingly dependent on oil and gas imports, and in order to safeguard their futures energy security is vital. So each needs to command new sources and new ways of bringing in fossil fuels.
There are some vital strategic areas that can serve as transit routes in both China and India’s energy security policies. Thus geopolitics return to the historical heartland of Kipling’s Kim – the territory now known as Pakistan. It is as if the original Great Game has gone back to square one, only with some fresh rules and new players.
This thesis aims to examine the geopolitical implications of developing Pakistan as an ‘energy hub’, and to analyse the impediments to its fruition and the interested parties’ strategies for seeing it through. And, whereas other studies tend to focus on individual factors at work, it aims instead to critically observe them in the context of the situation as a whole.
Bound copies are available at lulu.com for around $10 plus P&P; downloadable PDF files are free of charge. Click here to access the virtual storefront.
This work is made available on the understanding that it will not be copied, plagiarised or otherwise reproduced without the explicit consent of the author.
Not much need to comment on this, as Putin consolidates his control over the pipeline infrastructure.
BBC NEWS | Business | Russian pipeline firms to merge
Transneft, which carries 93% of Russian oil and supplies much of Europe, is to combine with Transnefteprodukt (TNP) in five months, government officials said.
Analysts say the combined business, to be 75% owned by Moscow, could have more clout internationally.
Not quite as catchy as the 'Silk Road'
Asia Times Online :: China News, China Business News, Taiwan and Hong Kong News and Business.
China's ever expanding pipeline network has the potential to bring about a significant strategic realignment of Xinjiang and the adjacent region. Central Asia, with its huge reserves of oil, gas and minerals, has already seen some sharp rivalry among the United States, Europe and Japan. All of the major powers, in conjunction with multinational corporations, are seeking to secure alliances, concessions and possible pipeline routes in the area.
Oil and gas pipelines to China from Turkmenistan and Kazakhstan could easily be extended to link into the pipeline networks of both Russia and Iran. This model has been dubbed the "Pan Asian Global Energy Bridge" - a Eurasian network of pipelines linking energy resources in the Middle East, Central Asia and Russia through to China's Pacific coast. A major part of the old Silk Route is inexorably turning into the "Black Gold Route" of the new millennium.
Someone had to do it. But poor old Shell, stuck between a rock and a hard place with neither the US nor Russia playing ball. They'll be OK.
Shell defies US pressure and signs GBP5bn Iranian gas deal | | Guardian Unlimited Business
Shell has signed an important deal to help Iran develop a major gas field, ignoring growing pressure from George Bush to isolate the country for being part of what he alleges is an "axis of evil".
The Anglo-Dutch group, which is struggling to bring more momentum to its business after being forced to hand over vital Russian reserves at Sakhalin island to the Kremlin, confirmed it had finally reached agreement on various aspects of its "Persian LNG" - liquefied natural gas - project centred on the South Pars gas field...
The move is a bold one by Shell because its arch-rival BP has declared itself unwilling to invest in Iran at a time when the international political climate surrounding the country is so forbidding.
International Relations is an immensely complex subject, and in order to stay focus everyone has pare away a few factors now and again. The southern hemisphere is completely off my radar, and I am also frequently guilty of ignoring the 'R' in 'BRIC' too - Russia.
But Russia is definately part of the equation even in these post-Cold War days. Historically a partner of India, while China and the US uneasily applied themselves to Pakistan for geostrategic reasons, Russia is now edging back into India's sphere due to its energy wealth.
The article predicts that by 2020 or so, India's energy needs will treble. So it is competing with traditional rival China for Russian hydrocarbons. The US would also like to court India in order to ensure a regional balance, and is doing so in the shape of nuclear technology. Britain's Gordon Brown also just made a visit, though it was overshadowed by the facile Big Brother controversy.
Ironically, therefore, India is now in a great bargaining position, with suitors on all sides. Bizarre as it may sound, India is the new Pakistan.
BBC NEWS | South Asia | Russia and India's complex friendship
Before leaving Moscow President Putin was keen to point out "the very specific feature of our interaction has to do with the fact that we have moved from the simple paradigm of seller-buyer relationship to jointly work on products".
Russia is trying to tie in India's lucrative arms and energy contracts.
Moscow has reason to act. India has just begun building a new strategic partnership with the United States.
The spur for this was President Bush's landmark deal offering co-operation in civilian nuclear energy programmes. Washington wants to make common cause with India as the world's biggest democracy and a counterweight to rising China. It wants to sell its own nuclear reactors to India and weapons too.
So India's rise means it is being courted on both sides.
Delhi's ultimate aim is probably to secure what it calls "strategic balance" to avoid becoming too closely tied to either Moscow or Washington.
That will mean some hard-nosed bargaining. But it is India that is buying, whether it is energy or arms, and so it finds itself in an unaccustomed but increasingly powerful role as a major economic player, with both Moscow and Washington vying for its business.
A likely successor to President Niyazov of Turkmenistan has emerged in the shape of a former dentist and health minister, the deliciously unpronouncable Gurbanguly Berdymukhammedov. By the sounds of it, he is going to be very much a puppet of the security services: we shall see.
However, what is more certain is that the parlous state of Turkmenistan is still a likely spark for tension and instability. Agriculture and the energy industry are in meltdown, and various vultures - not just Russia, but China and India too, are hovering. 'Elections' will be held on 11 February, but whether or not Turkmenistan can be turned around without disintegration and intervention is open to debate.
Turkmenistan's new father | Economist.com
One possible scenario would be for the new president to take Turkmenistan some way along the path followed by Kazakhstan, and make the country more welcoming to foreign investment. Turkmenistan has what are believed to be among the largest reserves of natural gas in the world. BP’s conservative official estimate is 2.9trn cubic metres, but the Turkmen authorities claim gas the true figure is up to 20bn cu metres. Even if reserves are only half this level, Turkmenistan would rank above major gas producers such as Algeria, Qatar, Saudi Arabia, the United Arab Emirates and Nigeria.
In recent years, Turkmenistan’s gas output has been around 63bn cu metres per year, the majority of which is exported to Russia and Ukraine. The sanctity of long-term deals was always open to question, as Mr Niyazov tended to renege on agreements once a more lucrative offer was on the table. If the gas sector is to be opened up, Russian capital could face serious competition from Western and Chinese companies, as well as Indian. This in turn would open the question of export routes—whether to the West via the Caspian Sea (from where Turkmen gas could conceivably utilise existing pipelines) or to the East to China (perhaps via Kazakhstan, which is due to complete a pipeline to China around 2009). Any redirection of Turkmenistan’s gas exports could have potentially severe repercussions; for it would deprive Russian monopoly Gazprom of sizeable volumes of gas that it is counting on to meet its domestic supply and export commitments.
 The problem with dictators is that, whatver their faults, they do tend to hold their countries together. It's hard to say what will happen in the next days after the sudden death of Saparmurat Niyazov, but the medium-term prospects for his country and the region as a whole in 2007 are bleak. Who, or what will replace him? There's no obvious party that could step into his shoes, and with the whole country quite literally revolving around his megalomaniacal projects (for example, the statue of Turkmenbashi that turns to face the sun).
The Economist and I predict imminent collapse. There is no experience or tradition of democracy; the country is in ruins, despite great gas wealth; it boders Iran, Uzbekistan and Afghanistan. Instability in Turkmenistan will shake the other three, already increasingly wobbly. Another piece of the jigsaw is about to fall in place.
Turkmenistan | An iron ruler dies | Economist.com
But without a mechanism for an orderly transfer of power, coupled with the lack of any democratic tradition in a conservative, tribal society, there is a fear of instability in the country. It is not clear who will take over now. Nor what will happen in the longer term. Pessimistic Turkmen fear that a lost generation, largely uneducated, may fall prey to Islamic radicalism—and create a nasty failed state that could destabilise an already volatile region. As with dictatorships everywhere, the worst consequences of misrule by one man may in fact be felt only after he departs the scene.
In fact, Christmas time has been less and less merry of late. The Asian Tsunami in 2004; the Kashmir earthquake in 2005. This time around we've got near civil war in Palestine and Iraq, and war between Somalia and Ethiopia. Happy new year.
The last few weeks - which have seen China tighten its grip over Africa and Asia, and the Republicans lose their grip in the Capitol and rethink their whole strategy - has generated a slew of articles over at Asia Times Online.
One author speaks of a new East-West Cold War style conflict developing, though I'm not so sure how stable or even feasible a China-Russia-India alliance would be:
It isn't yet fashionable to speak openly of a world subdividing itself again into two camps - those aligned with the US and those aligned with the Russia-China axis at the core of a new rising, multifarious yet coherent pole of the East - with the dividing line between the two camps consisting of the contest for control over global strategic resources.
Despite all the relevant signs pointing precisely in that direction:
# The deepening accord in all key spheres between Russia, China, India, the other rising powers of the East and the key resource-rich regimes of the world.
# Steadily rising East-West tensions, the ever-more divergent interests between East and West.
# The increasingly incompatible approaches to global issues and problems resulting in an ever-widening chasm between East and West.
Far too long to analyse in full, but worth looking at at a later date.
Another writer re-examines the China-India relationship:
Professor Ma Jiali, a veteran South Asia expert at the China Institute of Contemporary International Relations (CICIR), says India's recent economic performance combined with its growing importance in international affairs has led to a rethink in Beijing of India as zhong he guoli, a Mandarin term that translates roughly as a "comprehensive national power".
For Beijing, relations with India are now considered the highest priority, according to Professor Ma, given that India is what he calls a "four-in-one" country. "India falls into each of the four major categories of countries that China wants to focus its diplomatic energies on," he explained. The four categories are: Developing countries, neighboring countries, rising powers, and influential actors on the international stage.
Another still looks at China and Russia, and finally we have the four horsemen of America, Pakistan, Iran and North Korea.
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