The Rise of the Russian Empire: Russo-Armenian Relations

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

A 'ballistic missile triad'



A slew of incendiary statements coming out of Moscow over the past few weeks have many Western observers concerned that a new Cold War between Russia and the United Sates is rapidly taking shape. Bolstered by an ambitious military modernization program, energy and arms revenues and a growing global distaste for perceived U.S. hegemony, Russian President Vladimir Putin has used his growing influence both at home and abroad to confront what he sees as Washington's growing "imperialist" actions.

Mr. Putin has clearly gone on the offensive. Speaking with a group of reporters recently, he said actions by the United States to place a missile-defense shield in Europe would cause Russia to "acquire new targets in Europe" which could "unleash a nuclear conflict." The successful test two weeks ago of two separate ballistic missiles, coupled with Russia's plan to spend upward of $200 billion by 2017 on bombers, air-defense systems and tanks, points to the formulation of a revised Russian military doctrine. In addition, Mr. Putin has also threatened to withdraw from a number of important arms treaties, such as the Conventional Forces in Europe (CFE) Treaty and the Intermediate Nuclear Forces (INF) Treaty.

But as alarming as Mr. Putin's statements and related actions have been, they are even more menacing when viewed in the context of ongoing international ballistic-missile development and deployment by two of Moscow's closest allies -- China and Iran. Russia, China and Iran, the new Axis of Evil, present a dire "ballistic missile triad" that has become difficult for the West to ignore. Working closely together, all three countries continue to improve their ballistic missile technology demonstrating an increased willingness to replace constructive dialogue with outright confrontation.

The recently released 2007 Defense Department annual report to Congress on China's military power catalogs in great detail the country's continued efforts to establish not only a defensive ballistic missile capability, but an offensive "first strike" capability as well. The expected deployment of additional mobile, land and sea-based ballistic nuclear missiles that can reach the U.S. mainland have raised serious questions in Washington about the county's regional and global intentions.

Beijing's communist leaders have reacted to U.S. criticism of its military build-up by strongly denouncing calls for greater transparency, stating Washington is now treating the country as a "Cold War-style" enemy. But China's recent moves to expand its ballistic missile force capabilities are undeniable, as its build-up of missiles across the Taiwan Strait confirms. Michael Green, a former Asia adviser to President Bush, has voiced his concerns regarding China's ballistic missile program. "The Chinese have maintained that they have no first use policy and that they have a minimal deterrent policy. But other sources suggest that they are possibly developing capabilities for a more flexible use of nuclear weapons that would call into question this declared policy," he noted recently.

Adding to U.S. concerns, China's continued development and deployment of asymmetrical cyber warfare and anti-satellite systems designed to cripple sophisticated communication, global positioning and defense networks makes a preemptive ballistic missile attack increasingly plausible. Over the past few years, Chinese Gens. Zhu Chenghu and Xiong Guangkai, both high-ranking military officials, have stated that China would attack U.S. cities if the country intervened in any Taiwan conflict.

Led by President Mahmoud Ahmadinejad, Iran continues to pose the greatest short-term threat to world peace and stability. Tehran continues to publicly state that its nuclear program is for peaceful purposes, but its actual intentions remain a troubling mystery, since International Atomic Energy Agency inspectors have been halted on numerous occasions from conducting thorough examinations. State Department spokesman Sean McCormack noted in March, "We do have outstanding concerns about Iran's missile program and we are very much concerned about the possible nexus between that program and their nuclear ambitions." With the direct assistance of Russia, China and North Korea, Iran is already in possession of the medium-range Shahab-3 ballistic missile which is capable of striking Israel. The country has also made improvements to the Shahab-4 ballistic missile which is believed to be capable of hitting Europe. Iran's Islamic regime is also pursuing a proprietary space program, allocating over $500 million for 2005 through 2010.

NATO spokesman James Appathurai's comments this month that Mr. Putin's continued antagonism is "unhelpful and unwelcome" is an encouraging sign that the United States will not have to stand alone in its fight against global nuclear brinksmanship and proliferation. In the meantime, the United States and its allies should consider increasing funding dedicated to the research, development and testing of a more agile anti-missile defense umbrella. By taking this important step, the combined offensive intercontinental ballistic missile capabilities of China, Russia and Iran, as well as rogue nations such as North Korea, will be made increasingly irrelevant.

The world is an uncertain place, filled with more questions than answers. Recognizing this, the United States must display the technological ingenuity, global leadership and perseverance necessary to confront the enormous geopolitical challenges that lie ahead. Only with such a firm response will the world be able to overcome the diverse and ever-increasing threats from nations that view the future from the tip of a ballistic missile.

Source: http://www.washtimes.com/op-ed/20070...526-7268r.htm#

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

Russia-China trade to reach $60 billion in near future - Zhukov



MOSCOW, June 12 (Itar-Tass) -- The annual trade between Russia and China will soon reach $60 billion, Russian Deputy Prime Minister Alexander Zhukov said at the Tuesday ceremony of laying the first stone of a Chinese business center in Moscow. “Our trade with China has topped $30 billion, and the goal of enlarging the bilateral trade to $60 billion may soon be achieved,” Zhukov said. The beginning construction of the Chinese business center “is a landmark event, as this center will become a floor for communication between Russian and Chinese businessmen,” he said. “The two governments have been supervising this project for several years.” The construction will be over in 2010, and the center “will become the headquarters of Chinese investors in Russia,” he said. The Chinese government has set the goal of $12 billion investments in Russia, Zhukov said.

Source: http://www.itar-tass.com/eng/level2....2140&PageNum=0

In related news:

Russia And China To Study Atmosphere Together

Russian and Chinese Academies of Science have opened joint laboratory to study physics of atmosphere. Opening ceremony was held last week in the Institute of Physics of Atmosphere and welcomed many eminent scientists from both countries. The laboratory will concentrate on studying extreme weather, biochemical atmospheric cycles over Eurasia, processes taking place in stratosphere, air pollution in large cities and developing new techniques for exploring atmosphere. Source: http://www.russia-ic.com/news/show/4143/

US military prepared for 'worst' with China: official



China's secretive transformation of its military power leaves the United States preparing for the worst eventualities, including over Taiwan, a Pentagon official said Wednesday. About 900 Chinese missiles are in place opposite Taiwan, while China is also rolling out far more sophisticated long-range nuclear missiles, combat planes, warships and submarines, the Department of Defense official said. Richard Lawless, the Pentagon's deputy undersecretary for Asia-Pacific affairs, said the US government urgently wanted to launch a strategic dialogue to discuss China's military intentions, especially over nuclear arms.

"I think if we had a true dialogue of depth... we might be able to constrain and put some of those issues of (Chinese) intent to bed," he told a hearing of the House of Representatives armed services committee. "Not being able to, we must plan and prepare for the worst," he said. "It is an area of intense concern and we're giving it due attention from the highest levels of the Department of Defense and the inter-agency discussion."

The United States and China have long been at loggerheads over Beijing's military build-up, although US Defense Secretary Robert Gates expressed optimism about future relations at a Singapore security conference this month. Gates called for a more detailed military dialogue with China to avoid future miscalculations, while a top Chinese general said Beijing was prepared to open a "hotline" with Washington. Lawless alleged "a deliberate effort on the part of China's leaders to mask the nature of Chinese military capabilities," which he said could only ring precautionary alarm bells for the US and other governments.

China's successful test of an anti-satellite weapon in January could "disrupt, delay and frustrate our ability to operate" in space, he also said. And its growing sophistication in "cyber-warfare" has given China the capacity "to attack and degrade our computer systems," he cautioned. Lawless was briefing US lawmakers on an annual Pentagon report issued last month that questioned China's lack of transparency in its defense budgeting and suggested that it could be "planning for pre-emptive military options in advance of regional crises."

Although Beijing announced an official defense budget figure of 45 billion dollars for 2007, the US Defense Intelligence Agency estimates China's total military-related spending for this year could be up to 125 billion dollars. The lack of transparency in China's military activities "will naturally and understandably prompt international responses that hedge against the unknown," the report said. The expensive upgrading of Chinese offensive systems "is tilting the military balance in the mainland's favor" against Taiwan, but also risks upsetting the regional balance of power in Asia and beyond, Lawless said.

Source: http://news.yahoo.com/s/afp/20070614...schinamilitary

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

VTB reveals investment plans in Armenia



VTB Bank is planning to invest $500m in the Armenian economy, the bank's President and CEO Andrei Kostin told Armenian journalists at the opening ceremony of the first 'brand name' branch of VTB Bank (Armenia). He pointed out that investment projects were in the works - in particular, in the area of natural gas supply systems, gas storage facilities, and modernization of the republic's electricity grid. According to him, VTB also plans to assist in the development of the mining industry and organization of supplies of Russian aircraft to Armenia by means of bank loans, the Armenian news agency ARMINFO reported. Kostin also said that the capital of VTB Group in Armenia would be boosted to $40m, which would help its local branch to take a leading position in the republic according to this indicator. As of the end of the first quarter of 2007, VTB Bank (Armenia)'s share capital stood at $20.7m, total capital amounted to $26.3m, assets added up to $120.4m, total credit investment was $55.3m, of which $4.2m went towards mortgage loans.

Source: http://www.rbcnews.com/free/20070614195141.shtml

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Re: The Rise of the Russian Empire: Russo-Armenian Relations

More clashes:

http://abcnews.go.com/International/wireStory?id=3281752

VIENNA (Reuters) - Russia warned it could be driven to suspend its part in a major arms control accord after talks with NATO states ended on Friday without headway in revising a pact seen as vital for stability in Europe.

Russian delegates accused the NATO states of not taking their grievances seriously during the four-day conference of parties to the 1990 Conventional Forces in Europe (CFE) treaty. NATO envoys said there was a constructive exchange of views.

"This treaty is for all intents and purposes no longer viable," Russian delegation chief Anatoly Antonov told reporters in the Austrian capital.

He said Russia wanted more talks but, reiterating earlier warnings by Moscow, added that imposing a moratorium on observing the pact "will become a very real option" if dialogue continues to be lead nowhere.

"Sadly not all parties wanted to be constructive, but chose just to trot out the same old positions. We want to see serious talks taking place, not a repetition of old slogans about the importance of the treaty," Antonov said.

Adopted in 1990 to help overcome old Cold War tensions, the CFE pact limits the number of battle tanks, heavy artillery, combat aircraft and attack helicopters deployed and stored between the Atlantic and Russia's Ural mountains.

The conference was initiated by Moscow, which is frustrated by the refusal of most NATO countries to ratify an eight-year-old updated version of the pact.

A major source of friction is NATO's insistence on preserving "flanking arrangements" which ban large concentrations of forces and materiel near some borders.

INSTABILITY

Russia objects to that provision because it limits Russian troop movements within Russian territory even though Moscow says its border areas have become more unstable since the Soviet Union broke up in 1991.

Among changes sought by Russia, Antonov said, was an end to "flanking" restrictions as well as cuts in NATO troop levels in outlying regions to reflect the accession of eastern European states bordering Russia to the alliance since 1990.

NATO states say treaty changes depend on Russia withdrawing troops from the former Soviet republics of Moldova and Georgia, but Russia rejects any link between the two issues.

The CFE dispute could become another arena for resurging confrontation between Russia and the West. Relations are already strained by disagreements over U.S. plans for a missile shield in eastern Europe and independence for Serbia's Kosovo province.

"Antonov was obviously disappointed that he didn't get a 180 degree turnaround on where the U.S. and other (NATO) countries are on the issues, but I think it was a constructive meeting," senior U.S. delegate Karin Look told reporters on Friday.

She urged Russia not to drop the treaty and said threats to do were unpleasantly reminiscent of the old East-West standoff.

"It's part of the sort of Cold War rhetoric..., drumbeat we've been hearing. We hope they don't suspend because it would yet another one of the things raising the temperature of dialogue and continue in the mentality of the Cold War.

Diplomatic sources said the delegations would return home for consultations but no follow-up meeting was planned for now.

In Brussels, NATO officials denied a published report that the alliance offered concessions to Russia on troop numbers along its frontiers. They said NATO was sticking to its position that amendments to the treaty that were agreed in 1999 be ratified before any talks on reworking "flanking" arrangements.

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

Russia to sell arms worth $6 bln in 2006 - Putin



Russia may receive some $6 billion on sales of weapons and military hardware in 2006, the president said Thursday. Russia's military hardware "enjoys high demand in the world. This year we will reach a level of $6 billion," Vladimir Putin told a meeting of the commission for military and technical cooperation. Russia's state arms export monopoly Rosoboronexport, the country's sole state intermediary in the sphere of military hardware exports and imports, said earlier one of its priorities was to expand the geography, range and volume of Russian armament and equipment supplies to regional markets.

The company is completing talks on the sale to China of about 50 Su-33 Naval Flanker ship-borne fighters, worth $2.5 billion. If successful, this will be Russia's second most expensive arms sale contract after a $3 billion agreement for the assembly of 140 Su-30MKI fighters in India by 2014 under a Russian license. According to the Pentagon, China buys about 95% of its new weapons from Russia. Its 2006 Annual Report on the military power of the People's Republic of China said Russia remains the leading supplier of weapons to China, and continues to cooperate with the country on a variety of technical and logistics issues, enabling China to maintain and modernize its large military potential.

China has bought Su-27 Flanker fighters and Su-30 Flanker interceptors, AA-12 Adder medium-range air-to-air missiles, SA-10 Grumble, SA-15 Gauntlet and SA-20 Triumf surface-to-air missiles, 3M-54E (SS-N-27B) anti-ship cruise missiles, Kilo-class diesel submarines, Sovremennyi-class destroyers, Il-76 Candid transport planes and Il-78 Midas in-flight refueling tankers, according to Pentagon analysts. The Pentagon said that in 2000-2005 China concluded a series of contracts on military hardware deliveries with Russia worth $13 billion, and has already received $11 billion worth of weaponry under the deals. Russian government officials have said Moscow is not afraid of strong competition on the Chinese arms market if the EU lifts a ban on arms sales to China, imposed in 1989, following the repression of student demonstrations in Tiananmen Square.

Recently, however, several EU members, including France and Germany, have proposed the embargo be lifted because China has improved its human rights record. South America is also a lucrative market for arms exporters. Russia will deliver the first two Su-30MK2 Flanker multi-role fighters to Venezuela by the end of 2006 under a $1-bln contract on supplies of 24 fighters and 30 helicopters signed in July prior to this year's visit to Russia by Venezuelan President Hugo Chavez. Russian-made fighters will substitute American F-16 and French Mirage fighters currently deployed by the Venezuelan air force. Moscow also intends to boost its military technical cooperation with African countries, including by establishing maintenance centers for Russian-made armaments and equipment.

The Soviet Union supplied arms to many African countries in the ideological standoff with the West, and Russia has been seeking to re-establish contacts under President Putin. Rosoboronexport announced it had signed deals worth $7.5 billion with Algeria in March. Rosoboronexport earlier highlighted its strengthening cooperation with traditional African importers of Russian weapons - Algeria, Libya, Angola, Ethiopia and Uganda - as well as progress in cooperation with Morocco, Botswana, Namibia, Mozambique and Burkina-Faso. The company has said it is proposing competitive projects on supplies of new armaments, as well as maintenance of old equipment.

In July this year, Washington imposed sanctions on Rosoboronexport and combat jet maker Sukhoi as part of U.S. efforts to stop the export of arms to Syria and Iran, a move the arms exporter said reflected unfair competition and resistance on behalf of some players on the world arms market. The two companies, as well as several counterparts from India and North Korea, were accused of violating the U.S. Nonproliferation Act of 2000 by selling weapons to Iran. Russia denied any wrongdoing, saying all its weapons deals are in line with international regulations. The sanctions were lifted in mid-November, with Washington's decision announced at a meeting of the U.S. and Russian leaders on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the Vietnamese capital, Hanoi.

Source: http://en.rian.ru/russia/20061207/56604693.html

Russia's Irkut to export 242 Su-30 fighters by 2014-1



Russia's Irkut aircraft maker said Tuesday it will export 242 multi-role Su-30 Flanker fighters, worth around $7 billion, by 2014. The Irkut Corporation [RTS:IRKT], which is part of Russia's United Aircraft Building Corporation created in 2006, manufactures variants of the famed Su-30MK for India, Algeria, and Malaysia.

"To date, contracts have been signed for 242 aircraft with a total value of about $7 billion," company president Oleg Demchenko said at Le Bourget international air show near Paris. Demchenko said most of Su-30 aircraft would be delivered to India under previous and future contracts.

"We have recently added another contract for 18 aircraft in addition to the one signed earlier," he said, adding that the company was in talks on delivery of 40 additional Su-30MKI fighters to India.

"We will sign this contract in a few weeks," Demchenko said. Contracts to deliver 18 Su-30MKM aircraft to Malaysia and 28 Su-30MKA fighters to Algeria are also being implemented successfully, the official said. The Su-30MKM and Su-MKA are multi-role Flanker variants based on the Su-30MKI model and feature a customized avionics suite to meet Malaysian and Algerian specifications respectively.

"We sent the first two Su-30MKMs to Malaysia on the first day of the Paris air show," Demchenko said. "The first six aircraft will be delivered to Algeria this year."

In addition, the head of Irkut said the company had signed contracts on the delivery of 150 Yak-130 trainers, with the Russian Air Force ordering 60 aircraft and Algeria purchasing 16 trainers.

"We have also received solid orders for another 82 aircraft," Demchenko said. The Yak-130 is a highly maneuverable single-seat combat trainer with an extended range of about 2,000 kilometers (1,250 miles) and a maximum speed of 1,060 km/h (600 mp/h) in level flight. It can carry a combat payload of up to 3,000 kg (6,600 pounds), consisting of a variety of Russian and Western developed weapons. The Russian Air Force is planning to commission over 200 Yak-130 combat trainers.

Source: http://en.rian.ru/russia/20070619/67464798.html

And in related news:

Israel blames Russian rocket launchers for its setbacks in Lebanon


Nice Israeli Denfence Forces propaganda images and... their antidote.

Hizbullah has, reportedly, already destroyed at least one armor division out of a total of seven that the IDF relies upon. These losses have jeopardized Israel’s blitzkrieg strategy and have lead the latter to limit its ground campaign to the pace of infantrymen. The Lebanese Resistance uses upscale Russian anti-tank rocket launchers that not only punch holes through Israeli Merkava, but also through US-made tanks. Viktor Litovkin analyses the growing argument between Tel-Aviv and Moscow. Israeli Public Security Minister Avi Dichter and Defense Minister Amir Peretz said Hezbollah was using modern anti-tank weapons of Russian make, specifically the RPG-29 Vampirs with a tandem warhead. Such statements have perplexed Russian arms experts, but they agreed to talk with me if I did not mention their names.

"As usually happens in war, either side can interpret our words in its favor, and we don’t want that. We are neutral, and do not want to be accused of bias," one of them said. The main point they made is this: the fact that Hezbollah militants are armed with RPG-29 handheld anti-tank grenade launchers does not mean that they received them from Syria, which acquired them in the course of military-technical cooperation with Moscow. A suspicion is not a fact. Facts must be proved by documented evidence, but there is none.

The fragments of projectiles and the tailpiece, which the Israelis have sent to us, do not provide any evidence of anything. They do indeed bear the letters of the Russian (Cyrillic) alphabet, but this is not enough for a complete examination. We have to look at the serial numbers of the weapons in order to determine where they were made, who sold them, and to whom. The experts explained that the RPG-29 Vampir with a tandem HEAT (high explosive anti-tank) PG-29V warhead was developed in the late 1980s when tanks acquired reactive armor. The Soviet army received them in 1989. After the disintegration of the Soviet Union and the Warsaw Pact, these grenade launchers and their projectiles could be found in almost all the newly independent ex-communist nations. They were even produced in some of them. Trying to establish whose grenades are hitting Israeli tanks will be pure guesswork.

If a contract on arms supplies is official, or "white", it always mentions the end user. But apart from white contracts there are semi-official, or "grey", exports, and even "black", which are unofficial and illegal. Anyone from any country could sell RPG-29s to the Middle East, the Palestinians, Hezbollah, Hamas, or any other armed group. Elaborate set-ups could be used to do so. The experts did not name countries or companies, acting according to the innocent-until-proven-guilty principle, but many have already been proven guilty. Trials of illegal arms merchants have long ceased being a sensation. If senior officials have suspicions, or even make public accusations, they should back their statements with documents. Without facts this is idle talk and even political scheming.


JPEG - 6.8 kb, The Russian-made RPG-29 anti-tank rocket launcher

The military experts observed that talk of "wrongful use of Russian weapons" starts whenever one of the sides has setbacks at the front lines. This is what the Americans did in Vietnam, and this is what they are doing in Iraq more than twenty years later, when they blame Russia for the fact that the militants are fighting with Russian arms. What other arms could they have if Iraqi leaders were getting them officially from the Soviet Union for almost 30 years? Now Israeli officials have followed suit. The experts said that in accusing Russia of indirect support for the other side, politicians fail to realize that they admit their helplessness and discredit their own weapons and combat hardware. The Merkava tank has always been considered invincible in Israel. The Israelis were proud of its design and its upgraded reactive armor. They claimed it was the best tank in the world. Tactically, the Israeli army has used it very skillfully in the Gaza Strip and the West Bank. Merkavas entered rural districts only when they were supported by helicopters, and had direct and stable communication with them.

But, apparently, there are not enough helicopters for tank support on Lebanese territory. The crew of any tank can see very little. They do not know what is happening on the sides or in the back. It is an easy target for any militant, who can hide in the bushes or behind a jamb. He does not need to attack a Merkava from the front, where it does indeed have excellent protection. He can hit it from the side, the rear, or the space between the running gear — any tank has many vulnerable spots. Perfect weapons simply do not exist. So why complain about a Russian grenade launcher? The experts thanked the Israeli ministers for the free promotion of Russian weapons, but repeated they had nothing to do with this. They observed that Israeli tanks were hit in Lebanon, not in Israel. Members of Hezbollah, no matter what emotions they may evoke, are mostly citizens of Lebanon, and have a lawful right to defend their land against the aggressor. At this point the experts said that they were reluctant to go into politics. They switched back to weapons, and added that Israel was not only using its own weapons.

The Merkava is an Israeli tank, but the M-113A1/A2 and M-577A2, on which Israeli soldiers drive into Lebanon, are of American make. The same applies to the following helicopters: the AH-1E/Bell-209, Chechnya-53D Stallion, UH-60 Blackhawk, S-70A, and assault AH-64 Apache. All their artillery — the AMRAAM, AIM-120B, AIM-95, and even the MLRS 227 multiple-launch rocket systems — were also made in the United States, not to mention assault aircraft, bombers, and fighters. The experts asked rhetorically: "Why blame anyone, if you are bombing a foreign country with foreign weapons?"

I did not argue with them. As a journalist, I merely try to familiarize readers with an opinion, which is different from what some Israeli leaders do regarding the "participation" of Russia and its weapons in the bloody conflict in the Middle East.

Source: http://www.voltairenet.org/article143068.html

[skhara]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

The experts thanked the Israeli ministers for the free promotion of Russian weapons,

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

They loved Gorbachev because he killed the Russian Bear.

They loved Yeltsin even more because he allowed scavengers to devour what had remained of the Russian Bear.

They now hate Putin because he has resurrected the Russian Bear.

Moscow is in the process of reclaiming lost national assets...

BP retreats from Russia with £400m



BP yesterday caved in to months of pressure from the Kremlin and agreed to sell its stake in the Kovykta gas field to Gazprom, Russia's state-owned gas company. Under the terms of the agreement hammered out yesterday, Gazprom will take control of the Siberian field from BP's Russian joint venture TNK-BP, paying $700m-$900m (£350m-£450m).

Yesterday BP announced that it had also signed a memorandum of understanding to create a strategic alliance with Gazprom to invest jointly in major long-term energy projects or swap assets. Both companies would look to identify "strategic opportunities for investment both overseas and in Russia", BP said. "We will initially be looking for projects of at least $3bn but the potential for further growth could be very significant," BP's chief executive, Tony Hayward, declared. Most analysts, however, were sceptical about the cooperation deal - describing it as a face-saving measure for BP and pointing to the complete lack of detail.

They also said that, in effect, BP had little choice but to sell its stake in Kovykta, against the backdrop of an aggressive Kremlin determined to regain control over Russia's natural resources. Dmitry Medvedev, Russia's first deputy prime minister, and Alexander Medvedev, Gazprom's deputy chairman, held talks in the Kremlin yesterday with Robert Dudley, TNK-BP's president and chief executive, and James Dupree, BP's group vice-president in Russia. Afterwards, TNK-BP confirmed it was selling Gazprom its 62.89% stake in Rusia Petroleum, the company that holds the licence for the Kovykta field. It will also sell its 50% interest in the East Siberian Gas Company (ESGCo), a firm constructing a regional gasification project. TNK-BP has been given an option to buy back a 25% plus one share stake in Kovykta at a later date, BP said.

"I think BP did the best they could, given the situation. They managed to win a partial victory instead of being completely overrun," said Artyom Konchin, an oil and gas analyst at the Aton Brokerage in Moscow. He added, however: "We don't know what this cooperation deal actually means. I suspect that Gazprom wants to become a global player and this is one of the options they can pursue."

Gazprom has been pursuing international expansion - and has hinted at a desire to acquire assets in Britain. Russian officials have persistently accused the TNK-BP-led group of breaching the terms of its licence by failing to produce enough gas. Vladimir Putin made it brutally clear this month that BP was about to lose control of the field. Yesterday, Mr Dudley described the deal as "an important development". He added: "We look forward to broadening our working relationships with Gazprom and BP and to further developing our Russian asset base as well as securing access to material additional opportunities."

Source: http://business.guardian.co.uk/story/0,,2109556,00.html

Russia: Gazprom, BP and the Short End of the Stick

Summary

Gazprom purchased BP's 63 percent share in the Kovykta natural gas field on June 22. The agreement is a major blow to BP; the company gets only a fraction of the cost of the field and has lost out on a major investment in a country where it has invested millions. The deal with Gazprom gave BP one consolation prize: It is allowed to stay in Russia through its TNK-BP venture -- at least for now.

Analysis

BP came to an agreement with Russian energy firm Gazprom on June 22 to sell TNK-BP's 63 percent stake in Rusia Petroleum, the company that holds the license for the Kovykta natural gas field. Gazprom will pay $700 million to $900 million, although the stake is worth between $2 billion and $3.6 billion. In exchange, TNK-BP has been given the option to purchase a 25 percent stake in the field. The deal is a major setback for BP -- but if it wants to stay in Russia, it will probably have to accept the minority role. Rusia Petroleum's stakeholders are TNK-BP (with a 63 percent share), Interros (with 26 percent) and the Irkutsk regional government (with 11 percent). Rusia Petroleum has run into trouble with the Kremlin for "underproduction" at the Kovykta natural gas field. However, the biggest obstacle to production at the field is Gazprom's refusal to allow construction of an export pipeline. Essentially, Gazprom has ensured that Rusia Petroleum is incapable of fulfilling its development requirements.

Gazprom has been eyeing the Kovykta field as the solution to all of its production woes, as it faces a shortage of natural gas and declining production. The Kremlin, meanwhile, has been threatening to take the field for some time now and proved willing to throw its regulatory weight around, threatening to revoke TNK-BP's license to make sure Gazprom gained control of Kovykta. Now that Gazprom has its hands on the field, it has offered to allow BP to purchase a stake in the field instead of having the firm's license revoked. BP has voiced its desire to remain in Russia in spite of the troubles it has faced. However, the company is well aware of the Kremlin's moves to consolidate Russia's energy industry and also knows it will be unable to operate in the country without the Kremlin's approval. BP likely viewed the Kovykta offer as the one way to stay in the country.

Despite the difficulties Gazprom is giving BP, the Russian firm (and the Russian government) actually needs BP to continue operations in the country. Gazprom would certainly like to develop the Kovykta natural gas field alone, but it lacks the technology required to fully exploit Kovykta or many of its other reserves -- a shortcoming that is leading Gazprom's natural gas supplies to decrease. Gazprom has never let its need for technological help stop its political ambitions; it has earned plenty of natural gas reserves, but not necessarily a means to exploit them. BP's interest in Kovykta, along with its technological know-how, will increase Gazprom's chances of actually exploiting the estimated 2 trillion cubic meters of natural gas reserves at the field.

However, in order to bring BP in, Gazprom will have to boot Interros from Rusia Petroleum. Interros' share in the company is almost the exact amount BP is allowed to purchase. Gazprom probably will not want to give up 25 percent of its stake -- particularly if it would mean ending up with a minority share. Interros still has its share in the company, but Interros is backed by Russian oligarch Vladimir Potanin, who has become increasingly chummy with Russian President Vladimir Putin and thus would likely sign off Interros' Rusia Petroleum stake at the Kremlin's behest.

BP's quarter-share will not give it much real control in Kovykta -- especially in Russia, where minority shareholders are barely background noise. However, it does indicate that BP will be allowed to stay in the country through its TNK-BP venture -- though it has still lost its giant natural gas xxxel. Regardless of the Kremlin's latest "consolation prize," BP knows the trend in Russia and the strong likelihood of eventually having further assets stripped. BP has demonstrated -- by the billions of dollars of investment in Russia -- that it wants to stay in the country. However, the Kremlin has made it extraordinarily difficult for further investment to be worthwhile for BP.

Source: http://www.stratfor.com/products/pre....php?id=290897

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

Putin’s War-whoop: The impending clash with Russia



By Mike Whitney

"What is a 'unipolar’ world?

It is world in which there is one master, one sovereign--- one center of authority, one center of force, one center of decision-making. And at the end of the day this is pernicious not only for all those within this system, but also for the sovereign itself because it destroys itself from within. It has nothing in common with democracy, which is the power of the majority in respect to the interests and opinions of the minority. In Russia, we are constantly being lectured about democracy. But for some reason those who teach us do not want to learn themselves." Russian President Vladimir Putin’s address to the Munich Conference on Security Policy 2-10-07

The deployment of the US Missile Defense System in Eastern Europe is a de-facto declaration of war on the Russian Federation. As Russian President Putin said in a recent press conference, "If this missile system is put in place, it will work automatically with the entire nuclear capability of the United States. It will be an integral part of the US nuclear capability." This will disrupt the current configuration of international security and force Russia to begin work on a new regime of tactical nuclear weapons. This is a very serious development. Russia will now have to rethink its current policy vis a vis the United States and develop a long-range strategy for fending off further hostile encroachments into former-Soviet states by NATO.

Welcome to the new Cold War.

Putin cannot ignore the gravity of the proposed system or the threat it poses to Russia’s national security. Bush’s Missile Defense is not defensive at all, but offensive. It thrusts US military bases--with nuclear infrastructure and radar--up to Russia’s doorstep giving the US a clear advantage in "first-strike" capability. That means that Washington will be able to intimidate Russia on issues that are of critical international importance. Putin cannot allow this. He must force Bush to remove this dagger held to Moscow’s throat.

Bush’s Pyrrhic Victory at the G-8

The central issues on the docket at the G-8 meetings were downplayed in the media. The press primarily focused its attention on the "anticipated" conflict between Bush and Putin. But, the brouhaha never materialized; both were respectful and gracious. President Bush, however, was adamant that his plan for missile defense in Czechoslovakia and Poland would go ahead according to schedule. Putin, for the most part remained politely silent. His objections were censored in the media. But less than 10 hours after the closing ceremonies of the G-8, Putin fired off the first salvo in what will certainly be remembered as "the war that brought down the Empire".

Putin addressed 200 corporate leaders at the International Economic Forum in St. Petersburg and his comments left little doubt that he had already settled on a plan for countering Bush’s missile shield in the Czech Republic. Putin’s speech articulated his vision of a "Moscow-centered" new world order which would create a ``new balance of power''--less dependent on Washington. He said, ``The new architecture of economic relations requires a completely new approach. Russia intends to become an alternative global financial center and to make the ruble a reserve currency for central banks."

"The world is changing before our eyes.'' Countries that yesterday seemed hopelessly behind are today the fastest growing economies of the world. Institutions such as the World Trade Organization and the IMF are ``archaic, undemocratic and inflexible''. They don’t `` reflect the new balance of power.''

Putin's speech is defiant rejection of the present system. We can be sure that it has not passed unnoticed by anxious mandarins in the US political establishment. Russia is announcing the beginning of an asymmetrical war; designed to cripple the United States economically, weaken the institutions which have traditionally enhanced its wealth, and precipitate a shift of global power away from Washington. Putin’s challenge to the US dollar is particularly worrisome. He emphasizes the inherent unfairness of the current system, which relies almost entirely on the dollar and which has an extremely negative effect on many smaller countries’ economies and financial reserves.

"There can be only one answer to this challenge," he said. "The creation of several world currencies and several financial centers."

Putin’s remarks are a direct attack on the dollar and its position as the de facto international currency. He imagines a world where goods and resources are traded in rubles or "baskets of currencies"--not just greenbacks. This would create greater parity between the countries and, hence, a more even distribution of power. Putin's vision is a clear threat to America’s ongoing economic dominance. Already, in the last few months, Norway, Iran, Syria, UAE, Kuwait, and Venezuela have announced that they are either cutting back on their USD reserves or converting from the greenback to the euro or a "basket of currencies". Dollar hegemony is at the very center of American power, and yet, the downturn is visible everywhere. If the dollar loses its place as the world’s "reserve currency"; the US will have to pay-down its monstrous current account deficit and live within its means. America will lose the ability to simply print fiat money and use it in exchange for valuable resources and manufactured goods. Putin is now openly challenging the monetary-system that provides the flow of oxygen to the American superpower.

Can he carry it off?

What kind of damage can Russia really inflict on the dollar or on the many lofty-sounding organizations (WTO, World Bank, IMF, NATO and Federal Reserve) which prop up the US Empire? Russia’s power is mushrooming. Its GDP is leaping ahead at 8% per annum and by 2020 Russia will be among the five biggest economies in the world. It now has the third largest Forex reserves in the world and it is gradually moving away from the anemic dollar to euros and rubles. Nearly 10% of its wealth is currently in gold. Russia has also overtaken Saudi Arabia as the world’s leading supplier of petroleum. It produces 13% of the world’s daily output and has the world’s largest reserves of natural gas. In fact, Putin has worked energetically to create the world’s first Natural Gas cartel—an alliance between Russia, Qatar, Iran and Algeria. The group could potentially control 40% of the world’s remaining natural gas and set prices as it sees fit. Putin’s ambitions are not limited to the energy sector either---although he has strengthened the country by turning away foreign investment and "re-nationalization" vital resources. As Pavel Korduban says in his recent article "Putin Harvests Political Dividends from Russian Economic Dynamism"; Putin intends to expand beyond energy and focus on technological modernization:

"The shift in official discourse to "innovations" reflects an attempt to reorient economic policy from the goal of consolidating the status of "energy superpower" to the emphasis on industrial modernization and catching up with the technological revolution. The key role in formulating this new policy is given to Sergei Ivanov, who promised that by the year 2020 Russia would gain leadership (measured as 10% of the world market) in such high-technology sectors as nuclear energy, shipbuilding, aircraft, satellites and delivery systems, and computer software."

Putin has also strengthened ties with his Central Asian neighbors and engaged in "cooperative" military maneuvers with China.

"Last month it signed deals with Turkmenistan, Uzbekistan and Kazakhstan to revive the Soviet-era united system of gas pipelines, which will help Russia strengthen its role of the monopoly supplier from the region". (Reuters) He has transformed the Commonwealth of Independent States (CIS) into a formidable economic-military alliance capable of resisting foreign intervention in Central Asia by the United States and NATO. The CIS is bound to play a major role in regional issues as the real motives behind the "war on terror" are exposed and America's geopolitical objectives in Central Asia become clearer. So far, Washington has established its military bases and outposts throughout the region with impunity. But the mood is darkening in Moscow and Beijing and there may be changes in the future. We should also remember that Putin is surrounded by ex-KGB agents and Soviet-era hardliners. They’ve never trusted America's motives and now they can point to the new US bases, the "colored-coded" revolutions, the broken treaties and the projected missile defense system--to prove that Uncle Sam is "up to no good".

Putin sees himself as leading a global insurgency against the US Empire. He represents the emerging-market economies of China, India and Brazil. These 4 nations will progressively overtake the "old order". Last year 60% of the world's output was produced outside the G-7 countries. According to Goldman Sachs, by 2050 Brazil, Russia, India and China will be the world's leading economies. The transition from "superpower rule" is already underway. The centers of geopolitical power are shifting like giant tectonic plates. The trend is irreversible. The deployment of Bush’s missile defense system will only hasten the decline of the "unipolar-model" by triggering an asymmetrical war, where Forex reserves, vital resources and political maneuvering will be used as the weapons-of-choice.

War with Russia is pointless and preventable. There are better choices than confrontation.

Source: http://uruknet.info/?p=m33894&s1=h1

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

ALROSA to establish joint venture in Armenia



A joint Armenian-Russian venture for faceting Russian diamonds will be established in Armenia. As a source in xxxelry industry told a REGNUM correspondent, it is expected that the venture will be founded by DCA (Armenia) and ALROSA (Russia). Diamonds delivered by the Russian company will be processed at the joint venture and sold in the Russian market. The first shipment of the diamonds will be received as early as this autumn. It is planned that the Russian diamonds will be further handed over to other standing Armenian companies for faceting under DCA patronage and control. An agreement on establishing the joint venture is expected to be signed during ALROSA President Sergey Vybornov to Yerevan this July.

Te source also informed that a final agreement to establish the company was reached recently in Moscow. Issues of establishing the venture and of the xxxelry industry in general were discussed by MP, Chair of the International Association of Armenian xxxelers Gagik Abramyan, Armenian Ambassador to Russia Armen Smbatyan and ALROSA delegation.

In an interview to REGNUM earlier, Gagik Abramyan said that in 2006, the Armenian government started talks with Russia on processing Russian diamonds in Armenia in order to overcome the crisis in the Armenian xxxelry industry. The president of the association noted that establishing cooperation will give an opportunity to Armenian companies to process small diamonds, processing of which in Russia is unprofitable. The matter concerns diamonds weighing less than 1 carat that now Russia sells to China and India and buys finished products after that. The cost of processing diamonds in China and India is increasing and its is getting closer to Armenian prices, and it is profitable for Russia to have the diamonds processed in Armenia, as it has many highly qualified specialists.

ALROSA extracts 97% of all Russian diamonds. Its annual profit taking into account affiliate companies and sale of Angolan diamonds totals over $3 bln.

Source: http://www.regnum.ru/english/846802.html

[Armenian]

Re: The Rise of the Russian Empire: Russo-Armenian Relations

Chavez to head to Russia, Belarus, Iran, in latest bid to heckle US



Venezuelan leader Hugo Chavez travels this week to Iran, Russia and Belarus -- all countries which have found themselves at loggerheads recently with the United States, his longtime nemesis.

Chavez departs Tuesday for his week-long tour, from June 26 to July 3, defiantly insisting that he will purchase Russian submarines and possibly an air defense system from Belarus, despite vocal objections from Washington. Chavez, who views himself as Bush's arch-enemy, will be cultivating relations with each of the regimes, in an apparent bid to drive an even deeper wedge with between the United States and its adversaries. Each of the countries on Chavez's itinerary has locked horns with Washington in recent weeks over conflicts that have yet to be resolved. Chavez has said he hopes to put the "finishing touches" on an agreement to purchase from Belarus an integrated air defense system with a 200-300-kilometer range (125-200 miles). Earlier this month, US President George W. Bush renewed sanctions against hard-line Belarus President Alexander Lukashenko and nine others deemed obstacles to democracy in Belarus. Bush accused the regime of human rights abuses, undermining democracy, illegally detaining and secretly holding dissidents and engaging in public corruption. Relations between Russia and the United States, meanwhile, are at a post-Cold War low due to political and security differences.

Specifically, Moscow and Washington have traded barbs about a US plan to place interceptor missiles in Poland and elements of a linked radar system in the Czech Republic. Bush will welcome Russian President Vladimir Putin to his family's compound in Kennebunkport, Maine on July 1 and 2 -- on the heels of Chavez' visit to Moscow -- in an effort to smooth over differences. Flush with petrodollars, Chavez said last week he might purchase some Russian submarines when he meets with Putin -- a deal observers said could chill the planned Putin-Bush summit. Media reports in Moscow this month said Chavez wanted to buy as many as nine submarines to protect shipping lanes for key oil exports. In 2006 Venezuela signed more than three billion dollars in contracts with Russia to buy 53 Mi-24 armored helicopter gunships, Sukhoi 30 fighter planes and 100,000 Kalashnikov rifles. Meanwhile Washington's already frosty relations with Tehran also hit a new low, as the international community campaigned to pressure Iran to dismantle its controversial nuclear program.

The United States, which broke diplomatic ties with Iran in 1979, also is demanding the safe return of four Iranian-American citizens whom Tehran has charged with spying. It is not yet known what Chavez plans to do in Iran, which is a charter member of Bush's "axis of evil" troika of alleged global trouble-makers that included North Korea and Iraq under the late Saddam Hussein. Tehran in recent weeks has implemented a crackdown on its nationals deemed too close to the West. The country's National Security Council has sent a three-page warning to all the country's newspaper editors detailing banned topics, including the rise in gasoline prices and other economic woes. At least three nongovernment organizations in Iran that have pressed for broader legal rights or civil society have been shut down, while hundreds more have been forced underground, according to news reports. Iranian academics also have been warned against attending overseas conferences or having any contact with foreign governments, lest they be recruited as spies. In an address to some 15,000 young members of his new party now being set up, the United Socialist Party of Venezuela, Chavez last week said some had the idea his trip to Russia would complicate US-Russian relations. "In the United States, they say my trip to Moscow is a concern and that they don't look favorably on my meeting with the president, my friend Vladimir Putin," Chavez said Saturday, accusing Washington of meddling where it doesn't belong.

"These relations are highly strategic, and are tied up with our security, defense, and overall development," he said. Chavez's visit to Iran, Belarus and Russia has preempted his attendance at the June 28-30 summit in Asuncion of the Mercosur trade bloc -- a group that includes Argentina, Brazil, Paraguay, Uruguay and Venezuela. Chavez "had a standing commitment in Moscow by invitation of president Putin when he received the Mercosur invitation," the Foreign Ministry spokesman said, speaking on condition of anonymity.

Source: http://www.africasia.com/services/ne...8.zv2acds3.php

In related news:

President Chavez Adds Russia to His Anti-U.S. Arsenal

Yesterday, President Hugo Chavez started his trip to Russia in the southern city of Volgograd. Vladimir Putin, with whom the Venezuelan leader will meet tomorrow, appears unfazed by the fact that by receiving Hugo Chavez, he is ranking himself amongst Alexander Lukashenko [authoritarian President of Belerus] and Mahmoud Ahmadinejad [President of Iran]. Moscow is anticipating the signing of lucrative arms export contracts during the visit, while Caracas is eager to create an anti-American petroleum bloc.

'DISARMING' HOSPITALITY



A delegation of dignitaries, including Volgograd Governor Nikolay Maksyuta and a Cossack ensemble called "Azure Flower," met the Venezuelan president at the Volgograd airport. As the president stepped onto the ladder, Governor Maksyuta rushed to hug and kiss him. Chavez greeted Maksyuta like an old friend and Azure Flower struck up a Cossack song. They gave Hugo Chavez a glass of vodka on a saber, and Chavez drank it down in a single gulp. The party then traveled to Volgograd City Hall where Chavez held talks with Governor Maksyuta, Nikolay Pumpyansky, the head of a pipe production company called TMK, President of LUKOIL, Vagit Alekperov, and some local businessmen. Chavez preferred not to hold a press conference, but gave a speech on the porch of City Hall. He began his impromptu speech with the words, "Long Live Lenin!" waiving to the gaping onlookers gathered around a monument to Lenin, and then wished the same to, "Volgograd, Putin and the entire Russian Government."

The Venezuelan leader said that during his visit to Moscow, he was going to discuss the construction of a plant to produce pipes in Venezuela, in order to build an immense 8,000 kilometer [5,000 mile] pipeline that would run across the entire length of Latin America, and which is estimated to cost some $20 billion. Hugo Chavez reported that he was planning "another project with the participation of Russian Aluminum [RUSAL]" but he gave no other details. "We are trying to break the American blockade," Chavez said. "They want to disarm us and reign over the entire world."

Chavez never made it to Volgograd's military enterprises, although the visits were on the agenda. He said he had already been to the Barrikady plant of the Russian Research Institute of Space Instrument-Making, and he decided not go to the Volgograd Tractor plant, where armored vehicles had been prepare for him, because he was running late. Today [July 27], Venezuela's leader will visit the Izhevsk Mechanical Plant. Later, he will set out for Moscow to meet Vladimir Putin.

RIFLES



Hugo Chavez has been arranging his visit to Russia for quite some time. The Venezuelan President greatly wanted to come much earlier - even as early as May or June. The Russian side, however, on the eve of the G-8 Summit, preferred to put off the visit and lower its status to an ordinary working meeting, with informal talks with Vladimir Putin. Hugo Chavez agreed to this, since the Russia trip is of enormous value to him. The visit is important in two senses: technical and ideological. Hugo Chavez expects to derive two major benefits: to obtain a major weapons purchase from Russia, and to teach another lesson to the United States. Hugo Chavez has spent years honing his role as leader of global anti-Americanism. For Hugo Chavez, Latin America is the first front for his plans, as he works diligently to surround Venezuela with an axis of state-adherents to his revolutionary Bolivarian ideas. These activities have met with mixed success so far. A friendly regime has been established in Bolivia, but Chavez' allies are suffering defeat in Ecuador, Peru and Mexico.

In spite of a luke-warm reception on the continent for his Bolivarian ideas, the President of Venezuela has not given up his fight. And one of the main levers he has to apply pressure with appears to be Russian weapons. Two months ago, the Venezuelan leader declared a total halt to purchases of weapons to the United States, just a few weeks after the U.S. introduced an embargo on arms sales to Caracas. The two actions were provoked by the growing level of military and technical cooperation between Venezuela and Russia. Moreover, Chavez obviously expects to become a key distributor of Russian weapons in Latin America. Chavez motives for buying increasing amounts of Russian arms, which is repeated by him almost every day: "the threat of an American military invasion." According to him, Washington has mapped out a plan for attacking Venezuela, and Caracas is familiar with the details. Chavez frequently instructs his people on how they should prepare to hold the line against the United States - blow up oil deposits, go to the mountains and "defend every street, every hill and every corner" with Kalashnikovs from Russia.



The United States, however, is convinced that Hugo Chavez is arming himself not for the sake of protection, but in order to accelerate the spread of his ideas in Latin America. Moreover, Washington claims that some of the weapons purchased by Chavez will be passed on to the Columbian rebels, who have been fighting a civil war against the government for over 30 years. In any case, his visit to Russia is certain to bolster Hugo Chavez and his supporters and increase Washington's concerns. Back in 2005, Caracas and Moscow signed a scandalous contract for the sale of 100,000 Kalashnikov assault rifles. The contract was executed, and the first shipment has already been pressed into service by the Venezuelan army. Chavez, however, has never hid the fact that he thinks 100,000 Kalashnikovs is insufficient. Venezuela is ready to buy 920,000 additional rifles and is now in talks with Rosoboronexport, Russia's military export agency, to set up the licensed production of AK-103 assault rifles in Venezuela. In addition, a contract has been signed to supply Venezuela with 33 Russian Mi-35 helicopters and 24 Su-30MK2 jets, to replace the American F-16 currently used by the Venezuelan Air Force. The contracts are estimated at $3 billion.

THE OIL WEAPON



But an even more important weapon for Chavez - this is oil. Venezuela is one of the most important oil exporters in the world, and a vital supplier of energy to the United States. For this reason, Chavez has positioned himself as a world champion of high oil prices. The Venezuelan leader is a major agitator for reducing oil production quotas at OPEC, something that would trigger hikes in fuel prices. Hugo Chavez' battle for influence against the U.S. is not only in Latin America. Its second front - is the entire rest of the world. Long ago, He began persistently drawing to himself leaders whose interests are to a certain degree - at odds with U.S. policy. This has never been as clear as during his present tour: The trip looks like a ritual "global tour" of the "Axis of Evil." At the beginning of the trip, he met Fidel Castro in Buenos Aires. With Fidel's blessing he went to see Alexander Lukashenko, "the last dictator of Europe [Belarus]. The two leaders met for the first time in Minsk and had a good time propagating anti-American rhetoric. Giving advice to Alexander Lukashenko, Chavez said, "the jaws of imperialism and hegemony hang over Belarus. Our countries must keep our hands on the hilts of our swords."



From Russia, the President of Venezuela will travel to Iran. The encounter of the two most outspoken critics of America - Hugo Chavez and Mahmoud Ahmadinejad – promises to be the climax of his tour. Initially, Chavez planned to visit North Korea and meet Kim Jong-il, but the Venezuelan leader gave up the idea without explanation, and decided to go to Vietnam, Qatar and Mali instead. Significantly, the Venezuelan leader virtually placed Russia among the rogue states. Vladimir Putin, who agreed to meet Chavez in the course of his visit, has put himself in the company of Ahmadinejad and Lukashenko. After hosting the G8 Summit, Moscow is again demonstrating when it suits its interests, it can respond to Western criticism by turning to its enemies. Energy resources are central to Chavez and this "axis" he has assembled. Venezuela, Iran, Russia and Qatar - the countries that Hugo Chavez is to visit - are all major oil and gas suppliers. Therefore, the Venezuelan leader's tour is undoubtedly to create an anti-Western oil bloc. It is obvious that this is the same purpose as the leaders who receive him. Hugo Chavez has gone on anti-American oil tours nearly every year since he assumed office. Only his first such trip in 2000 bypassed Russia. That year he went to Kuwait, Saudi Arabia, the United Arab Emirates, Iran, Indonesia, Libya, Nigeria, Algeria and even Iraq, where he met Saddam Hussein. Since 2001, leaders of oil powers have become increasingly reluctant to meet Chavez, and furthermore, he never visited Saddam Hussein again. Yet, the Venezuelan never fails to come to Moscow.

Source: http://www.watchingamerica.com/kommersant000011.shtml