Jim Lobe--Iran Could Reap Benefits of U.S.-Russian Tensions

August 28
Iran Could Reap Benefits of U.S.-Russian Tensions

Analysis by Jim Lobe*

Commentary by William O. Beeman:

The controversy over Russian actions in the former Soviet Republic of Georgia has placed Iran in a stronger position. Certainly Russia is not going to support the idea that an attack against Iran could be launched by the United States or Israel from anywhere in the Caucasus, and Russian cooperation for more sanctions against Iran are also unlikely unless the United States cuts a very serious bargain with Moscow. For example, sacrificing Georgian President Saakashvili for Russian cooperation on tough actions against Iran. In light of this, and their historical experience dealing with Russia for more than 200 years, Iranians area also distrustful of Moscow and its intensions. The long term benefit for Iran may be a relaxation of pressure on its nuclear program, but the short term benefit is that Iran now has an increased market for its natural gas, which it is ready to sell to Europeans. If Moscow gets testy, and the BTC Pipeline remains closed, Europeans will soften on Iranian sanctions. Dick Cheney is traveling to the Caucasus in the next week to make sure that U.S. and Israeli military operations to threaten Iran are still in place, but the world can see that U.S. foreign and military policy in this region is crumbling. Jim Lobe's excellent analysis fills in the details below.

WASHINGTON, Aug 27 (IPS) - Iran could emerge as a big winner, at least in the short term, from the rapidly escalating tensions between the United States and Russia over Moscow's intervention in Georgia, according to analysts here.

Whatever waning chances remained of a U.S. military attack on Iran before President George W. Bush leaves office next January have all but vanished, given the still-uncertain outcome of the Georgia crisis, according to most of these observers.

Similarly, the likelihood that Moscow will cooperate with U.S. and European efforts to impose additional sanctions on Tehran through the U.N. Security Council, where Russia holds a veto, for not complying with the Council's demands to halt its uranium enrichment programme has been sharply reduced.

Not only has Washington's confrontation with its old superpower rival displaced Tehran at the top of the administration's and U.S. media foreign policy agenda, but Tehran's geo-political leverage -- both as a potential partner for the West in containing Russia and as a potential ally of Moscow's in warding off western pressure -- has also risen sharply as an incidental result of the crisis.

"When the U.S. invaded Iraq, it didn't do so to improve Iran's power position in the region, but that was the result," noted Gary Sick, an Iran expert at Columbia University who served on the National Security Council staff of former Presidents Ford, Carter, and Reagan. "That wasn't the purpose of the Russian invasion of Georgia either, but it, too, may be the result."

So far, Tehran's response to the Georgia crisis has been measured. Despite calls by some right-wing voices to side with Moscow, according to Farideh Farhi, an Iran expert at the Woodrow Wilson International Centre for Scholars here, the government, including President Mahmoud Ahmadinejad, has expressed disapproval of the Russian action, particularly its recognition of the independence of Abkhazia and South Ossetia from Georgia.

"The reason is on grounds of principle -- if Iran is going to start supporting the secession of territories that are unhappy with the central government, then Iran itself has some similar issues with ethnic dissatisfaction," Farhi, who also teaches at the University of Hawaii, told IPS.

In addition, she said, most of Tehran's foreign policy establishment "don't view Russia as a reliable partner. They understand that Russia may support Iran on the nuclear file depending on its own security or policy interests, but Russia has also been quite clever in using Iran as a bargaining chip in terms of its relationship with the United States."

"The Iranians are being very clever here; they're not likely to rush to Russia's defence unless Russia comes to them and ask for their help, and then they can ask for something in return," Farhi added.

The latter may include anything from the accelerated completion of the long-delayed Bushehr nuclear plant, to providing advanced anti-aircraft systems (something that Tehran's ally Syria has already asked Moscow to provide in the wake of Damascus' public support for the Russian intervention), to full membership in the Sino-Russian-sponsored Shanghai Cooperation Organisation (SCO), a defence group that is coincidentally holding its annual summit in Dushanbe, Tajikistan, this week.

Teheran's leverage is not just confined to its status, along with Turkey's, as the most powerful nation in a strategically critical neighbourhood inhabited by relatively weak U.S.-backed buffer states like Georgia. During the Cold War and until the 1979 Revolution, after all, Iran served as Washington's most important bulwark against Soviet influence in the Gulf.

It also derives from its being a major oil and gas producer that could also play a much more important role as a transshipment point for Central Asian and Caspian energy resources bound for Europe, whose growing dependence on Russia for its energy supplies looks more risky than ever. This is particularly so in the wake of Moscow's demonstration that it can easily reach -- and disrupt, if it wishes -- the Baku-Tbilisi-Ceyhan (BTC) pipeline, the only pipeline that transports oil from the Caspian to the West without transiting either Russia or Iran.

"Oil and gas companies now must factor in a new level of uncertainty," according to Jay Stanley at Kent Moors, an expert on energy finance who writes for 'Caspian Investor'. "...Georgia is now unstable and that increases the risk of transporting hydrocarbons across it."

"If the BTC and Georgia won't be a reliable source of energy, then Iran will absolutely step up to the plate," according to Prof. William Beeman, an Iran expert at the University of Minnesota. "'You want gas? We'll sell you gas' will likely be their position," he added, noting that Switzerland signed a 25-year, 42-billion-dollar gas supply and pipeline deal with Tehran last March over strong U.S. objections. "I think the Swiss are a very good bellwether for the rest of Europe on this."

While Iran has alienated some major European energy companies -- most recently France's Total -- by demanding tough terms, it might "see the present crisis as an opportunity to go back to European colleagues and say, 'Let's take another look at this,"' said Sick. "It gives them some more leverage by going to the West and saying 'You're shooting yourselves in the foot here. When are you going to come to your senses?"'

That argument naturally becomes more compelling as tensions between Russia and the West continue to escalate and could affect internal Bush cabinet-level deliberations on whether to act on a State Department recommendation to seek Iranian approval for opening an interests section in Tehran. Such a move, at the present juncture, would likely be seen as a major move on geo-strategic chessboard. Despite reports earlier this month that Bush had approved the recommendation, the issue appears to be unresolved.

Still, some experts say Iran's advantage could be short-lived. With a Russian veto over new Iran sanctions all but assured, Washington could decide to drop the U.N. route and try to impose a "coalition-of-the-willing" sanctions regime with its allies, according to Trita Parsi, president of the National Iranian American Council (NIAC).

Michael Klare, author of "Rising Powers, Shrinking Planet: The New Geopolitics of Energy", told IPS he believes that Russia's unilateral resort to military action against Georgia may actually embolden Bush and Vice President Dick Cheney, the leader of the administration's hawks who travels next week to Georgia and Azerbaijan.

"The question is whether Bush and Cheney will feel empowered to behave in a more belligerent fashion or not," he said.

*Jim Lobe's blog on U.S. foreign policy, and particularly the neo-conservative influence in the Bush administration, can be read at http://www.ips.org/blog/jimlobe/.

(END/2008)

Petropolitics at heart of Russia-Georgia clash | csmonitor.com

Petropolitics at heart of Russia-Georgia clash | csmonitor.com


Commentary by William O. Beeman:
The clash between Russia and Georgia is not the simple black-and-white conflict over "democracy" and "sovereignty" portrayed by the Bush administration. The United States is just as complicit in this conflict as any of the other parties. The U.S. is trying to establish outposts in the Caucasus that will allow American (and Israeli) interests to be promulgated in the entire region. Seventy percent of the national budget of Georgia is spent on defense, despite widespread poverty in that nation. President Saakashvili is an American trained lawyer (Columbia and George Washington) who just happened to give up his law firm job in the U.S. to lead a Revolution in Georgia that allowed the U.S. and Israel free access to the state, and the U.S. and British Petroleum to run a pipeline through the country that would bypass both Iranian and Russian supply lines to the world.

Petropolitics at heart of Russia-Georgia clash
Oil-pipeline routes, market leverage make struggle a 'battle for energy.'
By David R. Francis
from the August 18, 2008 edition
In both geopolitical and economic terms, the United States appears a loser in the Russia-Georgia conflict.
If the pipeline crossing Georgia, bringing approximately a million barrels of Caspian oil a day to the West, remains shut down for much longer, it could result in higher oil prices.
"We could see $4 a gallon gasoline again," warns Edward Yardeni, an American consulting economist.
The 1,100-mile Baku-Tbilisi-Ceyhan (BTC) pipeline provides only about 1 percent of the global demand for oil. But, as Prof. Michael Klare of Amherst College notes: "There's not a lot of spare [crude oil] capacity" in the world.
In the long-running struggle for control of Caspian oil and gas and influence in the ex-Soviet states of that region, the clash has been a blow to US clout.
"The Russians come out of this as winning this round," says Professor Klare. "They are the power brokers in this part of the world…. But there will be more skirmishes to come."
Klare, author of "Rising Powers, Shrinking Planet: The New Geopolitics of Energy," sees the conflict as "not a battle for democracy," as portrayed by Washington. "It was a battle for energy," he says.
Oil reserves underneath the Caspian Sea are believed to be huge, perhaps as much as 200 billion barrels. That compares with the estimated 260 billion barrels in Saudi Arabia.
In his State of the Union Address in 1980, President Jimmy Carter proclaimed what has become known as the "Carter doctrine." It stated that the US would use military force if necessary to defend its national interest in the Persian Gulf region. Carter saw the Soviet invasion of Afghanistan at that time as "a grave threat to the free movement of Middle East oil."
President Clinton, as Klare sees it, expanded the Carter doctrine "more or less" to include Caspian oil. The BTC pipeline, taking crude from Azerbaijan through Georgia to the Turkish port of Ceyhan, where it is loaded on tankers for the international market, was "Clinton's brainchild," says Klare.
President Bush has heated up what Klare regards as a struggle over vital resources, rather than a throwback to the cold-war era or classic balance-of-power politics. In that struggle, the US helped Mikheil Saakashvili win the presidency in Georgia after its 2003 "Rose Revolution" and helped build up and train Georgia's armed forces. When the American-educated Saakashvili attempted to show his mettle and restore the breakaway regions of Abkhazia and South Ossetia to Georgia's control, the Russians took the opportunity to show who is boss.
Klare worries that an American military adviser might be hit inadvertently by a Russian bomb, raising US-Russia tensions further.
"Throughout the Caucasus, the US has been striving to establish pro-American governments for strategic reasons," says William Beeman, chair of the anthropology department at the University of Minnesota. One reason aside from Caspian oil, Professor Beeman suspects, is to provide a staging area for possible attacks on such perceived enemies as Iran and Syria.
The $4 billion BTC pipeline, managed by and 30 percent owned by British Petroleum, was routed through Georgia to avoid sending Caspian oil through Iran, Afghanistan and Pakistan, or Russia. A 10-mile pipeline could have connected Caspian oil to the well-developed Iranian pipeline system. Beeman charges that millions in government bribes changed hands to place the pipeline in its tortuous route.
Georgian authorities charged Russia with trying to bomb the pipeline last Tuesday, a pipeline that had been buried deep in a trench for the sake of security. BP stated it was unaware of such bombings. In any case, the BTC flow of oil – about $1 billion worth every 10 days – had already been stopped by an earlier fire at a facility in Turkey. Kurdish rebels, known as the PKK, claimed the fire was their responsibility.
There have been plans to take the same Georgia route for a Caspian natural-gas pipeline ending in Europe. Klare considers the Russian action as partially a warning that this is not a good idea. Such a pipeline would offer serious competition to Gazprom, the giant Russian oil-and-gas conglomerate. Russia supplies one-quarter of the oil and half the natural gas consumed in Europe, and the revenue is seen as key to Russian prosperity. The European Union has been keen on the Georgia plan as a way to gain bargaining power and reduce the risk of supply cutoffs.
But the Russia-Georgia war may have reduced the prospects for such a gas pipeline getting financing and European backing.
"I wouldn't hold my breath," says Klare. He advocates that the US, EU, Russia, and the Caspian states develop a comprehensive regional energy plan for Caspian oil and gas.
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