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Georgia: Rose revolution destabilises southern
Caucasus
Part 2
By Simon Wheelan
30 December 2003
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The following is the conclusion of a two-part series on
the US-backed coup in Georgia and its aftermath. The first
part was posted December 29.
With regards to Georgia, in June this year Steven Mann, an
American advisor on energy issues, had warned Shevardnadze, Georgia
should do nothing that undercuts the powerful promise of an East-West
energy corridor.
In July, ex-secretary of state, Texas oil man and Bush family
intimate James Baker landed in Tbilisi. Officially his mission
was to end an impasse between Shevardnadzes regime and the
opposition concerning the composition of the Central Electoral
Committee. Bakers law firm, Baker Botts, boasts on its web
page of how they continue to be the leading international
law firm involved in the re-emergence of the oil, gas and related
hydrocarbon transportation industries in the Caspian region and
has one of the most active practices in the US with respect to
other types of investment in the region.
Spurned by Washington, by August Shevardnadze was leaning on
the Kremlin for support. He curried favour with Moscow by signing
a strategic deal with Russias Gazprom. Another Moscow-based
company, Unified Energy Systems (UES), acquired a formerly US-owned
controlling stake in Georgian power plants and distribution networks.
The Bush regime responded to this infringement of their dominance
by announcing large cuts in aid to Georgia. Behind the scenes
they were already preparing to bring down Shevardnadze. Earlier
last summer the World Bank had expressed its displeasure at Tbilisi
and suspended social and energy industry programs to Georgia.
In early October Senator John McCain, General Shalikashvili
and Strobe Talbott were scheduled to land in Tbilisi. With their
visit imminent and the pressure from Washington intensifying,
Shevardnadze told reporters, I dont know what they
are planning to do with us, are they coming to help us or to bury
us? They were intent on burying him.
The National Democratic Institute for International Affairs,
a Washington body headed by former Clinton Foreign Secretary Madeleine
Albright, sponsored the visit by McCain et al. McCain told Georgians,
We would want Georgia to become as independent as possible
from Russia or any other country.
Richard Miles, by now ambassador to Tbilisi, had been actively
grooming the US-trained lawyer Mikhail Saakashvili to bring about
a succession. Shevardnadze walked straight into their trap by
crudely attempting to falsify the results of the November 2 election.
Miles was the chief of mission to Yugoslavia between 1996 and
1999. He was one of the main players in pushing the Kosovo crisis
into a war, in which NATO could then intervene and crush Serbia.
In 2000, Slobodan Milosevic was unseated in circumstances very
similar to those that would subsequently be employed against Shevardnadze.
Tactics included the extensive grooming of Saakashvili and
his entourage, US pollsters, strategists, consultants and non-governmental
organisations employed to defeat the ballot rigging through parallel
vote tabulations and instant exit polls. The propaganda
battle was won through extensive coverage on anti-Shevardnadze
television channels like Rustavi-2.
Russia doubles efforts to dominate Caucasus
The Kremlin considers Georgia and the south Caucasus much like
Washington considers Central Americaas its backyard. Putin
has urged the new regime in Tbilisi to come to its senses and
recognise the geopolitical reality facing Georgia.
The Kremlin does not consider lightly US interference in Central
Asia and the Caucasus; their investment in oil and gas pipelines
that deliberately avoid Russia territory, the establishment of
military bases across the region, and last but by no means least,
the creation of comprador regional governments working at the
behest of Washington.
Russian policymakers have taken on board the lessons of recent
US military interventions. Anatoly Chubai, Russias former
privatisation chief, presently heads Unified Energy Systems (UES).
In September, in a Russian daily, he wrote of the need for Russia
to promote liberal capitalism and to construct a liberal
empire. Adding that economically and culturally Russia is
a natural leader of the Commonwealth of Independent
States (CIS), he insisted that it must beef up, increase
and strengthen its leadership position in this part of the globe.
On national television he cited free market economic practices
and aggressive expansion as the foundation of a future Russian
foreign policy. Only through their adoption and an aggressive
programme to establish an empire could Russia occupy its
natural place alongside the United States, the European Union
and Japan, the place designated for it by history.
During the summer Chubais negotiated the Georgia-UES deal,
buying up contracts and infrastructure. The recent opening of
a military base in Kyrgyzstan reinforces Chubaiss ambitions.
This Russian project for a Eurasian Union, with its
echoes of the anti-Bolshevik Prince Nikolai S. Trubetskoys
Pan-Eurasian nationalism, brings Russia directly into conflict
with Americas designs on the region.
The south Caucasus is in the forefront of Russias strategy
to increase its leverage over those states it considers its near
abroad. Moscow acknowledges that it intends to employ similar
tactics in the rest of the Russian orbit, including the Ukraine
and Central Asia states formerly part of the Soviet Union.
The Russian electricity giants RAO and UES, which are majority
owned by the government, have been at the forefront of attempts
to establish regional supremacy. RAO has acquired large stakes
in energy ventures in neighbouring Armenia and Georgia and has
announced plans to export energy to Turkey and Azerbaijan.
In October Chubais travelled to Yerevan, the Armenian capital,
to finalise the deal with its leader Robert Kocharian. Chubais
holds no official post in the current Putin administration, but
he met with not only the premier but also his defence minister,
Serzh Sarkisian. Speaking after the deal was signed, Chubais revealed
that Armenia would be incorporated into a Russian-led energy supply
network consisting of 10 former Soviet republics including Georgia
and Azerbaijan. UES controls 80 percent of Armenias power
generating capacity and wants to lease and repair high voltage
transmission lines that span from Armenia to Azerbaijan and Turkey.
The World Bank has expressed serious concerns about this increasingly
aggressive domination of the regions energy supplies by
Russia.
UES does not seem overly worried by the fact that Baku and
Ankara have tense relations with Yerevan. Chubais wishes to utilise
the south Caucasus region as a bridgehead to the Turkish market.
He has referred to Turkish opportunities as fantastically
attractive in terms of wholesale prices for energy and development.
In addition the Russian government have their eyes on other big
projects like the Turkish aluminium sector and other heavy power
consuming industries.
Chubais is frank about the need to impose Russian power over
the surrounding region, stating boldly that Russia should
be strong. Period.
Conflict over gas and oil pipelines
Possibly the most effective lever Moscow has over Tbilisi is
its relationship with Georgias two autonomous republics
of Abkhazia and South Ossetia, and a third, Ajaria, with limited
autonomy from Tbilisi. While repeatedly stating their support
for Georgias integrity, Russia has invited leaders of all
three to Moscow. Prime Minister Mikhail Kasyanov has restated
that his government will continue to provide assistance to the
three regions.
The Russian government has warned America against any further
attempts to base troops in the Caspian region. Nikolai Ryabov,
Russian ambassador to Azerbaijan, explained how Caspian
security problems will be resolved by countries of the region
without meddling by the US, which is trying everything possible
to worry a region that is thousands of kilometres from its borders.
Because of the pipelines the geopolitical significance of Georgia
has grown way beyond its 5 million population. The pipelines are
due for completion in 2005 and will carry a million barrels of
crude oil per day from the oil-rich Azeri, Chirag and Gunashli
fields of the Caspian to Turkey. The Russians oppose the route
taken because it circumvents Russian soil, undermining its energy
interests and influence in the former Soviet region. In addition
the US-backed route competes with the Russians Baku-Novorossisk
line, which runs from the Azerbaijan capital through Chechnya
to the Black Sea port. Amongst the first phone calls made by acting
President Burdzhanadze on coming to power was to British Petroleum,
pledging that the interim administration would do all in its power
to support the new oil and gas pipelines.
Earlier this year Gazprom signed a framework agreement on supplying
gas to Georgia. It could make it easier for Russia to cut supplies
to Georgia during winter as they have done before, and might also
allow Gazprom to steal a march on the Baku-Tbilisi-Erzurum gas
pipeline by delivering its gas to the Turkish market first via
the existing networks.
The recent arrest of Mikhail Khodorkovsky, the ex-boss of Yukos,
is part of similar calculations by the Putin regime. Soon after
the arrest, Sergei Ivanov, the Russian defence minister, called
for more state control over Russias energy reserves. Ivanov
complained that the oil companies are not investing enough in
exploring for new reserves and that the oil produced currently
is down to the previous efforts of the Soviet Union. When Khodorkovsky
started at Yokos it was making huge losses. It is now so profitable
that Exxon-Mobil, the American oil giant, is interested in purchasing
it.
Russias efforts to dominate the energy supplies of the
south Caucasus have not passed Washington by. Participants at
a recent roundtable meeting on October 15, entitled Georgia
Energy Security: Potential or Peril, urged Georgia to take
back control of its energy sources. The event was sponsored by
a Georgian émigré business group called the Georgia
Forum. It supports Georgias political and economic development
and better relations between Tbilisi and Washington.
Brenda Schaffer of Harvard Universitys Caspian Studies
Program advises the Bush administration to work as partners with
Moscow. She recently wrote, Washington should adopt a policy
that recognises and incorporates the key role that Russia plays
and will continue to play in the area.... If Russia does not view
the peace arrangements as minimally contributing to its own security,
it will work to undermine them. But such a modus vivendi
is unlikely, given the voracious appetites of Moscow and Washington.
See Also:
Georgia: Rose revolution
destabilises southern CaucasusPart 1
[29 December 2003]
Russian elections: Putin consolidates
regime of managed democracy
[18 December 2003]
Georgias rose revolution:
a made-in-America coup
[5 December 2003]
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