The Guardian February 23, 2000 War in the Caucasus: The Politics of Oil by Kenny Coyle In the early years of the 20th century, oil from the Russian Caucusus accounted for nearly half of all oil produced in the world. The oil district of Grozny was, next to Baku, the most important Russian oil area before the revolution and by 1915 accounted for about 18 per cent of Russian oil production. More than half the investment in [pre-Revolutionary] Russian oil came from abroad. Before World War I, total investment in the Russian oil industry was US$214 million, US$130 million of which represented foreign capital. Great Britain was particularly active in Russia, providing more than 60 per cent of the foreign capital. In the Soviet Union, Grozny oil was at one time quite important, accounting for one-third of national production in 1932. In the post-Soviet era the importance of Grozny oil for the Russian economy has diminished greatly but its importance as a regional producer has increased. Over the years, Grozny became a key oil pipeline crossroads, an oil refining centre and also a juncture for natural gas from fields in Russia and Central Asia. The vast oil fields of Central Asia, Kazakhstan, Azerbaijan and in the North Caucasus of Russia have always been a target for invasion. It was to secure unimpeded access to these riches, as much as for the symbolic associations with the city's name, that Hitler threw division after division at Stalingrad in World War II. The break-up of the Soviet Union has released these enormous resources that had been denied to Western transnational corporations for decades. This is an enormous boon for Western imperialism. Prising open the oil fields grouped beneath and around the Caspian Sea has been a key strategic target of the US in the past decade. BP Amoco, Texaco, Mobil, Chevron and other US and foreign companies have already spent over a billion dollars on developing the Caspian oil resources. They are drawing on a whole spectrum of Cold War foreign policy figures from the US and Britain to cash in on the region. Zbigniew Brzezinski, former National Security Adviser under President Carter and a key figure in securing initial US support for the Afghan mujahidin, is a consultant to Amoco. James Baker, a former US Secretary of State, runs a law practice in Houston doing business for the oil companies, where he is able to use his friendship with his former Soviet counterpart Edward Shevardnadze, now President of Georgia. Former US National Security Adviser, Brent Scowcroft, advises Pennzoil and the multinational Azerbaijan consortium. Dick Cheney, President Bush's Secretary of Defence, is now chief executive of Halliburton of Houston, the world's largest oilfield services company. Azerbaijan is also a favourite destination for the British oil companies such as Monument and Ramco. Timothy Eggar, who as British Energy Minister led a delegation to Baku in 1994, is now chief executive of Monument Oil, while former Foreign Minister Malcolm Rifkind sits on the board of Ramco. In October 1997, Le Monde Diplomatique wrote: "The negotiation of oil contracts enabled Washington to show a direct interest in the region. The US Government sees it as an extra source of energy, should Persian Gulf oil be threatened. "It also wants to detach the former Soviet republics from Russia both economically and politically, so as to make the formation of a Moscow-led union impossible. "In an article published in the spring, former [US] Defence Secretary Caspar Weinberger wrote that if Moscow succeeded in dominating the Caspian, it would achieve a greater victory than the expansion of NATO would be for the West." US policy therefore has both a tactical economic aspect and a longer-term strategy to further weaken Russia. The most crucial question for oil supply though is the route chosen for delivery. Unlike the Persian Gulf, none of the oil producing states of the Caucasus offer the possibility of shipment to the West by tanker, since the Caspian Sea is essentially a huge inland lake. The alternative is the construction of a super pipeline from Central Asia to either the Mediterranean or the Persian Gulf. The Russians put together a Caspian Pipeline Consortium to run a pipeline from the Tengiz fields of Kazakhstan across Russia to the port of Novorossisk on the Black Sea and to link this with a pipeline extending northwest from Baku. However, to do this the pipeline from Baku would have to run through either Chechnya, or neighbouring Dagestan, itself the target of several Chechen mujahidin incursions in August 1999. The US Government, however, insisted from the outset that the pipeline, expected to carry one million barrels per day, run from the Azerbaijani capital, Baku, to Turkey's Mediterranean port of Ceyhan. Washington's aim is to ensure that oil supplies are free from Russian and Iranian influence. The Istanbul Protocol [an agreement to build the Baku-Ceyhan pipeline], signed late last year during the OSCE conference in the Turkish city, is a significant victory for the plans of the US and Turkey. The New York Times of November 19, 1999, bluntly described it as "one of President Clinton's cherished foreign policy projects, a pipeline that would assure Western control over the potentially vast oil and natural gas reserves". US Secretary of Energy, Bill Richardson, enthused: "This is a major foreign policy victory. It is a strategic agreement that advances America's national interest." Inevitably, many Russians believe that destabilisation in the Caucasus represents a Western plot to monopolise energy resources in the region. While this has a certain simplistic aspect to it, ignoring as it does the other complex factors, it nonetheless expresses a certain truth. The expansion of Western imperialist influence eastward demands the further break-up of Russia and the wresting of her rich energy resources from her grasp, piece by piece. * * * Morning Star Back to index page __________________________________ KOMINFORM P.O. Box 66 00841 Helsinki - Finland +358-40-7177941, fax +358-9-7591081 e-mail [EMAIL PROTECTED] http://www.kominf.pp.fi ___________________________________ [EMAIL PROTECTED] Subscribe/unsubscribe messages mailto:[EMAIL PROTECTED] ___________________________________