Russia's Rise
August 20, 2008 by Ken Silverstein Energybiz Insider
The Free World triumphed during the Cold War. But the central antagonist in that conflict has risen once more as a global energy titan that is determined to regain respect...
Indeed, the 1,100 mile Baku-Tbilisi-Ceyhan pipeline circumvents both Russia and Iran and is used to supply about 1 percent of the world's daily oil needs. The line, long a contention between Russia and Georgia, has not been damaged during the battle. But Russian-led Georgian separatists have threatened to sabotage it...
With war and political turmoil plaguing the Middle East, Russia and some other nations of the former Soviet Union have become increasingly attractive as a source for oil and gas. And in those areas, reserves remain plentiful. Many Europeans say that Russia needs the revenues from selling its natural gas as much as they need those supplies. They maintain that the former Communist state is as reliable of a partner as the nations of the Middle East or Northern Africa.
And while the world community may sympathize with the nation of Georgia, the reality is that economic sanctions are off-limits. The West can huff and puff but in the end, the situation will only be resolved through diplomacy. Russia's economy is growing and is proving to be a lucrative market for western nations. German exports there, for example, have climbed by 50 percent in 2008 alone.
The United States, meantime, wants to increase its trade ties to Russia and buy lots of liquefied natural gas from it. This country would also like more access to Russia's bountiful oil fields -- something that would also provide it some ability to influence corporate affairs. For its part, Russia needs to attract foreign capital and technology. A civil relationship that welcomes new investment would serve to bring the nations closer..."
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