Author: Antonian Lara

Presidents hail reopening of Larsi checkpoint
By Anna Arzanova
The Messenger, Georgia
25 Oct. 2004
Shortly after meeting at the Georgian-Armenian border crossing of
Sadakhlo on Friday, the presidents of Armenia and Georgia, turned their
attention to the Larsi crossing to Russia, where Russian officials had
just resumed traffic after a halt of over 7 weeks.
“This is fortuitous and a pleasant coincidence. I think that the fact
that this road will be opened, already points to the fact that the
tension in North Ossetia is being alleviated,” Armenian President
Robert Kocharian said at the briefing Friday afternoon.
Earlier in the day, the Georgian Border Service announced that it had
received appropriate letters from Russian colleagues indicating the
border would be returned to full operation.
Since September 1, as a result of the Beslan hostage siege, Russian
official have blocked traffic at the Larsi crossing.
On four brief occasions, traffic was allowed to cross. Meanwhile, the
Roki crossing going into South Ossetia was kept open, although Georgian
officials refused to allow cargo to enter on this route.
According to Kocharian, the blocking of the Larsi checkpoint was very
harmful for both Armenia and Georgia, and even Russia itself. Without
saying how much of an affect the closure had on Armenia, Kocharian said
the move brought nothing favorable for their countries.
Saakashvili, for his part said that the “recent lesson” at Larsi would
be taken to heart.
“We have to understand that in case such problems are created, all of
Georgia’s business entities and exporters must be ready to look for
other alternative consumer markets in order to avoid the impact of such
acts on Armenia and Georgia,” the Georgian president said, adding, they
all should “try to remain in the Russian market as well.”
The Larsi crossing is the only land-route to Russia controlled by
Georgian authorities. A similar crossing between Russia and Azerbaijan
was also closed after the Beslan siege. According to reports, Russian
officials allowed both crossings to reopen on Friday.

TURKS OF USA ARE NOT DETERMINED. SOME OF THEM DEFEND KERRY
Azg/am
26 Oct 04
The Armenian community of America will not give its vote George W. Bush
as that will mean to boost him in his anti-Genocide acknowledgment
stance and to justify his broken promise. It doesnâ~@~Yt seem strange,
from this point of view, that the traditional Armenian parties, mainly
Liberal Democratic Party, defend John Kerry and call on voting for him.
It seemed that this fact and John Kerryâ~@~Ys years-old activity for
Armenian Genocide acknowledgment will make the Turkish community of
America decide for Bush. Though Kerry is not popular among Turk voters
for his determination as regards Genocide acknowledgment, Bushâ~@~Ys
administration is also seen as destructive for the ongoing Iraqi war
and problems within the US economy.
To put it simply, the Turks are not yet determined, contrary to the
suppositions. Some of them defend Kerry saying that all previous
candidates gave suchlike promises to Armenians but none of them kept
his promise because Turkey is Americaâ~@~Ys key ally. The other part
of Turkish community thinks that Bush has already learnt on his own
mistakes and is going to vote for him.
Having informed about all these, Turkish Sabah notes that the Turkish
community of America is not united as to whom to vote for.
By Hakob Chakrian
–Boundary_(ID_HHCjjUpM3KNLKnhEOFBCsw)–

The News International, Pakistan
Oct 22 2004
Caspian and Caucasian regions
Dr Maqsudul Hasan Nuri
The 12th International Conference on “Central Asia and the Caucasus:
Looking into the future of energy systems” was organised by The
Institute for Political and International Studies, Tehran, from
October 12-13, 2004. Inaugurated by the Foreign Minister of Iran Mr
Kamal Karrazi, the moot was attended by 23 countries, including
Afghanistan, Algeria, Armenia, Azerbaijan, Georgia, India, Iran,
Italy, Kazakhstan, Pakistan, Russia, Switzerland, Tajikistan, UK and
USA. A number of journalists from Germany, Sweden and other countries
were invited to cover the event.
Albeit no consensus emerged from the conference as divergent
viewpoints were aired by countries, problems related to Caspian Sea
resources, geopolitics, energy transportation, regional integration,
trade in electrical energy, and energy systems were some of the major
themes on which opinions were expressed.
Caspian Sea, as the “biggest lake” and an “inland sea,” is endowed
with vast hydrocarbon and marine resources. Oil was discovered as far
back as the 1870s. Under the Bolshevik regime in then Soviet Union
Baku, the capital of Azerbaijan was the main source of oil. In the
Cold war, other players such as US oil company Chevron came into the
Caspian basin to exploit its resources. Hence the so- called “closed
sea” has turned into an “open sea.”
Problems bedevilling the Caspian and Caucasian region range from
radicalised Islam, lack of sustained development, issues of pipeline
routing, Western attempts to divide the regional powers, menace if
political corruption, ethnic divisions, US monopolistic and
self-centred role as sole superpower, drug trafficking,
militarisation of the region, ownership and jurisdictional disputes
over the continental and sea bed resources, and not the least,
pollution and environmental problems.
The question was raised by some Central Asian scholars that if Iran
was already sufficient in energy resources – the third largest
supplier of gas – why it was so serious in seeking nuclear energy. To
this the Iranians responded that in view of energy shortages and
non-renewable nature of oil and gas, diversification had become
necessary. Since it does not have “base load” of enough hydropower
like other CARs, it was added, so acquiring nuclear energy had become
a pressing necessity for future economic development. Hence Iran had
started a programme of alternative energy diversification by
developing coal, thermal and solar energy systems.
US branding of Iran as an “axis of evil” that is “raring to go for
nuclear weaponry,” ignore Iran’s cooperation in dispute-resolution
attempts in Chechnya, Tajikistan. Also, present pragmatic streaks in
its foreign policy are often overlooked.
Regarding questions about fecklessness of ECO and its dismal
performance, it was observed that other organisations in the region
such as GUUAM, Black Sea Cooperation Council, CICA and SCO are
equally slow in producing results. Hence ECO, a 10-member
organisation needs to be bolstered, given its area, population and
size of resources.
Chinese interests in the region were highlighted because of its
“elephant economy” nature like that of India. Since 1997, Xinjiang-
Kazakhistan pipeline project had faced difficulties in finances,
workers, transportation problems and the project was on and off for
quite sometime. After Russo-Japanese agreed to cooperate China got
disillusioned with Russian cooperation. And hence in August 2004 made
major Chinese investment in Kros Neka project – one such instance of
close Chinese-Iranian cooperation.
Landlocked countries such as Armenia, Afghanistan Kazakhstan and
others highlighted their concerns of being left out and had visions
of “corridor states” for transhipment of oil through pipelines. But
for this it was conceded that internal order for safe passage of oil
both in the Caucasus and in Afghanistan must improve.
Azerbaijan is a major supply of oil to the West through the
Baku-Ceyhan pipeline – a portion of which has lately become
operational. It was reasoned that globalisation per se was not a
negative phenomenon but it is its form and nature that is
questionable. Under the US it was taking a form of “take-all” and
“me-only” approach. Suggestions were offered on promoting tendencies
for benign globalisation. There was a need to stop crime syndicates,
oil lobbies, and other non-or anti national groups to mitigate
negative syndromes of globalisation.
Some concerns were raised about militarisation of the region,
notably, military cooperation between US and Azerbaijan. Also, US
forces were getting entrenched in some of the CARs, especially
Uzbekistan, Kyrgystan and Tajikistan. This is being countered by
Russia in Tajikistan. It was asserted that the Caspian Sea belonged
to the littoral states and Iran is not too pleased with outsider’s
intrusions. The security of the region is the primary responsibility
of the littoral states that need to forge collective security.
Georgia emphasised the need for hydroelectric, thermal and other
alternative forms of energies. There were 20 foreign countries
working on different schemes on energy in the country. Georgia could
act as safe corridor for passage of oil between north and south.
Security situation could be helped with the help of Russia and Iran –
former maritime owners of the Caspian Sea before the demise of the
Soviet Union. Problems of landlocked states, lack of connectivity to
the outside, US as main interloper and contender also came under
review. But then it was reasoned that a superpower has to be
dependent on its partners and allies such as Turkey, Georgia,
Uzbekistan and Pakistan in the realisation of its global objectives.
While for pipeline systems, the western route is preferred by the US
and the West, the northern route by Russia, southern by Iran, and the
southern-eastern by Kazakhstan and China. The southeastern route is
the shortest and cheapest but is nagged by unstable Afghanistan.
However a redeeming aspect is that if it matures at some stage and
transits through Afghanistan (conditional on return of normalcy) it
could reach highly populated South Asia – both Pakistan and India. It
would be a “win-win” game for all actors- producers and consumers.
Many scholars in the moot held the opinion that the US wants to
design a “regional order” on the pretext of democracy and development
but instead to ensure its lead and hegemony in the region. As a
superpower, it needs compliant allies: Georgia, Azerbaijan, Pakistan
and others. After the 9/11 events, anti-proliferation, anti-terrorism
and search for alternative sources of oil other than the Persian Gulf
have come out in the open. It wants to induce competition amongst
regional actors and thwart attempts at regional collaboration. Under
the mask of democracy and development, Central Asia and Caucasus, it
is employing ruthless exploitation of their resources in what is
described as the “New Great Game.” Albeit Russia and others are major
stakeholders in the region, they are hampered by requisite managerial
skills, funds and technical expertise. Caspian basin is not expected
to attract the kind of investment as the Persian Gulf did because of
its intrinsic limitations.
Today, the global economy is being increasingly affected by prospects
of energy and menace of violence and terrorism. Countries are either
exporters or importers of oil, a commodity that is going to remain
crucial for the foreseeable future in the absence of any other
alternative energy resource. Iran and Russia are main exporters of
energy but the new CARs pipeline structures are not reliable. The
present rise in oil prices is damaging the economies of many
countries like Japan.
Does the search for energy lead to cooperation or conflict: it is egg
and chicken question dilemma. Generally, conflicts abound where oil
is present – be it in the Caspian, Gulf, West Africa or Sudan. Will
this induce cooperation or conflict in the year’s ahead remains to be
seen?
Will hegemonic policies of the US help or hinder integration amongst
the regional actors? A lot depends upon Europe for it can make a dent
in the uni polar nature of the international system. Heretofore, its
policies towards the Caucasus and Caspian basin are not coherent.
The main suggestions that emerged out of the seminar area were a need
for greater harmonisation of legal and technical systems within the
Caspian basin countries. The Europeans could contribute to gas
supplying and undertaking major investments; besides, power stations
and supply stations need to be built up soon. Also, it is timely to
explore alternative sources of energy to reduce dependence on oil.
Databases have to be updated. Even Caspian Sea data is sometimes
confusing and exaggerated.
Protection of environment must go in tandem with economic
development, keeping in view the experiences of other developing
countries. Also, mismanagement, wastage, and corruption are some
lessons as faced by some oil producing countries need to be avoided.
Joint navigation, security of pipelines, establishing proper
database, and military and technical cooperation are required. There
was a common stance on linking the region through a uniform energy
grid.
Demilitarisation of the region should be done; jurisdictional
conflicts in the Caspian Sea have to be sorted out; safety related
conventions on shipping and fishing need to be legislated and
implemented in unison.
Only then Central Asia and Caucasian regions could realise their true
potential. Contrarily, failure could invite further outside
manipulation and interference that could lead to future intra and
inter- state conflicts and wars.
The writer is Senior Research Fellow IPRI. He recently participated
in the 12th International Conference on Central Asia and the
Caucasus, Tehran, Iran

Crain’s Chicago Business
October 11, 2004, Monday
Dine a world away: Veer off Michigan; Head east of the avenue for
Armenian kebabs, Italian spinach salad
by Anne Moore
There are many reasons to be on North Michigan Avenue, and plenty of
reasons to detour off it, too: fewer pedestrians, tree-lined streets
and scads of restaurants that typically don’t have a line of tourists
spilling from their doors. We tried a few around Streeterville, just
east of Michigan Avenue.
Bice Ristorante
158 E. Ontario St., (312) 664-1474
We’d planned to eat at the very casual Bice Grill but walked next
door to the more formal side, wanting to be pampered. What a wise
choice: Our meal was unusual and excellent and our waiters very
attentive.
I’d brought a friend who lives part of every year in Italy; she
zeroed in on a spinach salad. Theirs, rustica con spinaci ($6.50), is
astonishingly good: delicate spinach leaves dressed with cream,
tossed with beets, potatoes, carrots, fried pancetta and lentils. We
split one serving: I could have stopped right there and been full and
happy.
My friend’s penne all’arrabiata ($11.75) was red-gold and flavorful,
neither too heavy nor too spicy. ”Like a dish you’d get in
Tuscany,” she said. ”Really authentic.” I wavered between lobster
and crabmeat soup ($7.25) and risottino ai frutti di mare ($17.95),
but went for the rice dish and its pleasing variety of seafood
(shrimp, tiny scallops, calamari, clams, mussels).
Ricotta cheesecake ($7.95) tasted more of egg than cheese; we liked
hazelnut and vanilla gelati ($6.95) far more. Finish with a cafe
macchiato ($2.25), espresso with a dollop of steamed-milk foam.
Sayat-Nova 157 E. Ohio St., (312) 644-9159
A friend of Armenian descent heads here when she’s in Chicago because
the food is authentic and consistently good. Take a half-circle
leather booths in the back for a seemingly private meal. The lighting
is dim and fractured; I always feel a world away.
Don’t miss the creamy hummus ($4) or tabbouleh salad ($4.50), and
keep the hummus on the table for slathering on just about anything.
We tried the jajik ($4), chunks of cucumber in yogurt, with garlic
and mint, and found it refreshing.
Lula kebab ($11.95) is more like a hamburger-ground beef and
lamb-tucked into a pita. Chicken kebabs ($12.95) are big, broiled
squares, flavorful and moist. Rice pilaf is fluffy and nicely
seasoned.
Cream-filled knafi ($3.50) was attractive, seemingly topped with spun
gold, but we preferred pistachio baklava ($3.50), a flaky pastry
shell cupping honey and crunchy nuts.
West Egg Cafe
620 N. Fairbanks Court, (312) 280-8366; 66 W. Washington St., (312)
236-3322
Freed from an overly long appointment on Michigan Avenue, I ran into
a friend I hadn’t seen in months. I needed lunch; she needed to pick
up her kids in an hour. We headed to West Egg, knowing we could get
breakfast or lunch without a wait.
Nothing on the vast menu-pancakes, French toast, salads, sandwiches,
roast chicken-is more than $10. Sensing we were overwhelmed, our
patient waitress steered us to ”healthful” offerings-egg-white
omelets, yogurt and granola-which we glanced at, then guffawed. We
wanted to eat.
My friend needed guidance: eggs Benedict ($7.50) or Bleu Bayou
($6.95), a scramble of eggs, blue cheese, spinach, bacon and
tomatoes. She went for the Bleu Bayou, and it was a hit, disappearing
nearly as quickly as it arrived. I needed some kick to my eggs, so I
chose the breakfast burrito with spicy green chilies and cooling sour
cream ($6.95). Fresh fruit and paprika-dusted potatoes made for tasty
sides; orange juice ($1.50) was freshly squeezed.
We both liked the airy room and whimsical paintings of gigantic
coffee cups. Plates clatter-it’s a diner, after all-but noise was
never a problem.
GRAPHIC: “Like a dish you’d get in Tuscany,” my friend said of Bice’s
penne all’arrabiata.

Special Broadcasting Service, Australia
Oct 20 2004
Pyunik Armenian champions
SBS
Pyunik Yerevan showed off their almost embarrassing domination of
Armenian football by clinching their fourth straight league title in
style.
Pyunik thrashed Shirak Gyumri 6-1 to clinch the championship they
have made their own with four rounds of normal competition still
remaining.
The second place team, Mika Ashtarak were held to a 1-1 draw by
Katayk Abovyan leaving them 16 points behind the runaway leaders and
pace-setters of Armenian football.
The league victory means Pyunik Yerevan have completed the domestic
double as they have already won the Armenian cup competition.
This represents their second double in the last three seasons.

CNW Telbec (Communiqués de presse), Canada
Oct 20 2004
Sterlite Gold announces an initial resource estimate for its wholly
owned Zod property in Armenia
Trading Symbol: SGD : TSX
TORONTO, Oct. 19 /CNW/ – Mr. Anil Agarwal, Chairman of Sterlite
Gold, is pleased to announce the results of an extensive exploration
program at its wholly owned Zod property located in Armenia. More than
39,000 metres of drilling (300 holes) has been completed at Zod as
follows:
———————————————————————
Drilling
—————————————– —————————-
Category Drilled (metres)
———————————————————————
Surface Reverse/Circulation) 10,708
——————————————- ————————–
Surface (Diamond Drilling – NQ) 8,937
——————————————————————–
Underground (Diamond Drilling – NQ3)) 19,571
——————————————- ————————–
Total 39,216
———————————————————————
Over 1,400 metres of underground development has also been carried
out on four separate vein systems to add further confidence to the
present exploration program.
The exploration program and resource estimate has been carried out
under the direction of Mr. Trevor Jones, a “qualified person” as
defined under National Instrument 43-101. The resource estimate has
been audited and approved by Micon International Co. Limited, an
independent third party.
This estimate calculates that the Zod property contains the
following JORC resources:
———————————————————————
Resources (JORC Code)(1)
—————————————– —————————-
Category Tonnes Grade Gold Gold
(gm/t) (tonnes) (ounces)
———————————————————————
Measured 1.6 Mt 4.7 7.5 0.24 M
———————————————————— ———
Indicated 15.4 Mt 3.8 58 1.86 M
———————————————————————
Total (0.6g/t cut-off) 17.0 Mt 3.7 65.5 2.10 M
———————————————————— ———
————————————— ——————————
Inferred 1.8 Mt 2.6 4.5 0.15 M
———————————————————————
Note: (1) Resource classifications conform to the Australasian
Code for Reporting of Mineral Resources and Ore Reserves prepared by
the Joint Ore Reserves Committee of the Australasian Institute of
Mining and Metallurgy, Australian Institute of Geoscientists and
Mineral Council of Australia (JORC Code). The Company intends to
prepare and file a technical report in accordance with National
Instrument 43-101 and as part of that technical report, intends to
prepare a reconciliation to CIM Standards on Mineral Resources and
Reserves as referred to in National Instrument 43-101. Mineral
resources that are not reserves do not have demonstrative economic
viability. Measured and indicated mineral resources are that part of a
mineral resource for which quantity and grade can be estimated with a
level of confidence sufficient to allow the application of technical
and economic parameters to support mine planning and evaluation of the
economic viability of the deposit. An inferred mineral resource is
that part of a mineral resource for which quantity and grade can be
estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified.
All assays have been conducted by the Company using fire assay and
gravimetric finishes. Blanks and known standards are part of the
normal assaying procedures and duplicates on ten percent of these
assays have been sent to Als Chemex, in Vancouver. Half of the core
has been retained for future reference.
The Company has initiated studies to complete detailed open pit
design, plant engineering, metallurgical test work, and permitting
with regard to expanding the present mining operations at Zod and
moving the existing processing plant (which is 269 kilometres away at
Ararat) to the Zod site.
These initiatives are expected to be completed in the first
quarter of 2005. Micon is managing the Zod mining expansion study in
association with Ararat Gold Recovery Company, the wholly owned
subsidiary of the Company, through which it conducts its Armenian
operations.
Forward-looking statements: Statements contained in this release
that are forward-looking statements are subject to various risks and
uncertainties going forward. When used in this press release, words
such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”,
“potential”, “should” and similar expressions are forward-looking
statements. Those risk factors that could cause actual results to
differ from these forward-looking statements include, but are not
restricted to fluctuations in the price of gold, delays in permitting,
or studies involved in the pre-feasibility, delays in construction and
or production, operational factors, environmental risks, financial
risks, political risks, currency risks and other statements that are
not historical facts as otherwise disclosed under the heading “Risk
Factors” and elsewhere in the Company’s periodic filings with Canadian
securities regulatory authorities.
For further information: please contact: Mr. Sanjay Dalmia, President,
Sterlite Gold, e-mail: [email protected], Tel no: 374-1-542270/544287

Agence France Presse — English
October 18, 2004 Monday
Jewish religious student apologies for spitting at Armenian
archbishop
JERUSALEM
A Jewish religious student who spat at an Armenian archbishop during
a religious procession in Jerusalem’s Old City last week has
apologised for his behaviour, a police spokesman said Monday.
Natan Zvi Rosental, a student at the prestigious Har Hamor yeshiva,
or Jewish seminary, formally apologised to Archbishop Nourhan
Manougian at a meeting in a police station, spokesman Shmulik Ben
Ruby told AFP.
Manougian had said he accepted the apology as his faith taught
forgiveness.
The incident took place during a religious procession when Rosental
spat at the archbishop’s feet, causing the priest to react
physically, according to Ben Ruby.
A brawl broke out, during which Rosental ripped the cross from around
the archbishop’s neck. The two were separated and police arrested the
student.
Despite the apology, police were still likely to charge Rosental with
“insulting” the archbishop and could even add further charges for
attacking him, Ben Ruby said.
In defence of his actions, Rosental said he had been brought up to
see Christianity as idol worship, which is forbidden by the Torah,
the Jewish holy book, Haaretz newspaper reported.
Haaretz has said the student spat at the cross being carried during
the procession as well as at the archbishop, who reacted by slapping
him.
“To approach in the middle of a religious procession and to spit on
the cross in front of all the priests of the sect is humiliation that
we are not prepared to accept,” Manougian said.
“The Israeli government … cries out in the face of any harm done to
Jews all over the world, but is simply not interested at all when we
(Christians) are humiliated on an almost daily basis,” he said,
quoted by Haaretz.
The 3,000-strong Armenian community live in the Armenian quarter of
the Old City and many Jews walk through it on their way from west
Jerusalem to the Wailing Wall.
Christian clergy at an emergency meeting of parliament’s interior and
environment committee called to discuss the abuse of Christians by
Orthodox Jews in the Old City said the practise was widespread but
rarely reported.
Vandalism of church property has also been reported in recent months,
with Jewish graffiti scrawled on the Georgian-built Monastery of the
Cross in west Jerusalem.
Three months ago, an 11th-century fresco in the same church was
defaced by unknown assailants.
From: Emil Lazarian | Ararat NewsPress

Xinhua News Agency – French
19 octobre 2004 mardi 11:01 AM EST
L’Arménie et la Chine vont promouvoir leurs relations
EREVAN
Le président arménien Robert Kocharyan a déclaré mardi au ministre
chinois des Affaires étrangère Li Zhaoxing, en visite en Arménie, que
son pays était prêt à renforcer davantage la coopération avec la
Chine.
Lors de sa rencontre avec M. Li à Erevan, capitale arménienne, M.
Kocharyan a qualifié de succès sa visite en Chine en septembre
dernier, visite au cours de laquelle les deux parties ont abouti à un
consensus sur le développement des relations bilatérales. L’Arménie
soutient la Chine dans son choix de voie de développement qui suit
les caractéristiques propres à son pays et est impressionnée par le
rôle actif joué par son partenaire dans les affaires internationales,
a-t-il ajouté.
Dans une rencontre séparée avec le ministre chinois mardi, le Premier
ministre arménien Andranik Margarian a fait écho aux remarques de M.
Kocharyan sur le renforcement des relations bilatérales. Il a dit que
son gouvernement oeuvrait pour l’application des accords conclus lors
de la visite de M. Kocharyan en Chine.
La coopération en matière de technologie et dans le domaine de
l’agriculture entre les deux pays est fructueuse et l’Arménie
souhaite voir élargir les liens entre les entreprises et recevoir
davantage d’investissements chinois, a assuré M. Margarian.
MM. Kocharyan et Margarian ont réaffirmé l’adhésion d’Erevan à la
politique d’une seule Chine. Ils se sont déclarés confiants sur le
fait qu’il existe, aujourd’hui mais aussi dans l’avenir, une seule
Chine dans le monde.
De son côté, M. Li a affirmé à ses hôtes que la Chine souhaitait
développer la coopération amicale avec l’Arménie et que sa visite
était l’illustration des actions concrètes de son pays pour appliquer
ce qui avait été conclu dans le consensus établi par les dirigeants
des deux pays. M. Li s’est dit optimiste sur les nouveaux
développements des relations bilatérales.
Il est arrivé à Erevan lundi pour une visite officielle et se rendra
également au Turkménistan et en Azerbaïdjan.

ARMENIAN HOSTAGE IN IRAQ SAVED
16.10.2004 13:28
/PanARMENIAN.Net/ 47-year-old Armenian citizen of Lebanon Aram Nalbandian,
who was taken hostage by Iraqi militants, has been set free. As reported
by RFE/RL, Nalbandian was taken hostage on his way to Fallujah on
September 27. The fighters asked $100,000 for the hostage. However, on the
day the mediator was to pass the ransom the US troops bombarded Fallujah.
As result of the operation the house, where the hostages were kept, was
ruined and the fighters were killed. Nalbandian and one more surviving
hostage stayed under the debris for two days until the rescuers found them.

Analysis: Energy Geopolitics In The Caspian

RFERL
18 Oct 04

By Houchang Hassan-Yari
Intense competition for unimpeded access to the world’s natural
resources is continuing and is likely to increase, according to the 21
April edition of “Jane’s Foreign Report.” The current unprecedented
surge in fuel prices illustrates the growing need for a greater supply
and consequently demonstrates the volatile nature of the energy
market.
The Caspian Sea could meet some of that demand, because it has
sizeable proven and possible oil and gas reserves (“proven reserves”
are defined as oil and natural-gas deposits that are considered 90
percent probable, and “possible reserves” are defined as deposits that
are considered 50 percent probable). The littoral states of the
Caspian Sea — Russia, Kazakhstan, Turkmenistan, Iran, and Azerbaijan
— collectively have an estimated 10 billion-32 billion barrels of
proven and another 233 billion barrels of possible oil reserves. In
comparison, Saudi Arabia has 261 trillion barrels of oil, while the
United States, China, and India’s proven oil reserves are respectively
22.677 trillion, 18.25 trillion, and 5.371 trillion barrels. The
proven natural-gas reserve of the five Caspian countries is an
estimated 170.4 trillion cubic feet (4.83 trillion cubic meters) while
their possible reserve is 293 trillion cubic feet (8.30 trillion cubic
meters).
Like the Persian Gulf, Nigeria, Venezuela, and other regions rich in
energy resources, the Caspian Sea is becoming a battleground for
states and business entities with competing interests. Eni, BP,
ChevronTexaco, Caltex, LUKoil, and Royal Dutch Shell are the main
companies actively developing Caspian Basin oil and gas as they
continue building pipelines to transport those hydrocarbons to
international markets. The United States, China, Russia, Iran, several
European countries, and to a lesser extent Japan are interested in
exploring and investing in Caspian resources as a supplement to
Persian Gulf supplies.The Persian Gulf countries normally maintain
almost all of the world’s excess oil production capacity.
The situation in the Persian Gulf has increased pressure on Caspian
countries and oil companies to contribute to global oil supplies. The
Persian Gulf contains 715 billion barrels of proven oil reserves,
representing over half (57 percent) of the world’s oil reserves, and
2,462 trillion cubic feet (69.72 trillion cubic meters) of natural gas
reserves (45 percent of the world total), according to the Energy
Information Administration’s “International Energy Outlook 2003.” At
the end of 2003, Persian Gulf countries maintained about 22.9 million
barrels per day of oil production capacity, or 32 percent of the world
total. Perhaps even more significantly, the Persian Gulf countries
normally maintain almost all of the world’s excess oil production
capacity. As of early September, excess world oil production capacity
was only about 0.5-1 million barrels per day, all of which was located
in Saudi Arabia.
Since the demise of the Soviet Union and emergence of independent
states in Central Asia and the Caucasus, a major issue in the Caspian
Basin has been the division of the energy resources that lie beneath
the sea. Other sources of regional tension include the complex
unsettled legal status of the sea; the existence of unresolved
conflicts in Russia, Azerbaijan, and Armenia; terrorism; and
increasing Islamic militancy. The landlocked position of Azerbaijan,
Kazakhstan, and Turkmenistan causes further tension, as all three
countries depend on their neighbors’ good will in order to export
their oil and natural gas to international markets.
In terms of reserves, production, and access to international markets,
Russia and Iran are in better positions than their neighbors. The CIA
“World Factbook 2004” put Russia’s proven oil reserves at 51.22
billion barrels, its proven natural-gas reserves at 47.86 trillion
cubic meters (1 January 2002), and its natural-gas exports at 205.4
billion cubic meters (2001 estimates). It puts Iran’s proven oil
reserves at 94.39 billion barrels (1 January 2002), its proven
natural-gas reserves at 24.8 trillion cubic meters (1 January 2002),
and its natural-gas exports at 110 million cubic meters (2001
estimate).
Regardless of how much oil is produced, there will still be enough
customers. For example, China’s rapid economic growth means the
country’s energy needs are increasing. China already uses a great deal
of foreign energy, and in a decade or so it is expected to be totally
dependent on the Persian Gulf and the Caspian Sea area for its energy
needs. Russia and Kazakhstan are both already eyeing the expanding
Chinese market. The United States, Europe, India, Japan, South Korea,
and many other countries will also be seeking alternative supplies of
oil. Guaranteed access to energy resources is becoming an important
component of foreign policy for these states and is gaining even more
prominence in light of the continuing insurgency in Iraq, as well as
the expanding U.S. presence in the Caspian region at the expense of
Iran, Russia, China, and India.
Caspian Sea Basin energy assets have the potential to significantly
reduce consumers’ reliance on Middle Eastern oil. Yet this raises the
prospect of crises and conflicts that directly involve China, Iran,
Russia, and the United States. The actual production of oil and gas is
not the only potential source of competition between international
actors; for the last decade there have been disputes over the best
routes for pipelines that would transport oil and gas to markets. Iran
promotes itself as the most economical route from Central Asia, while
the United States promotes the export of Caspian oil via Georgia and
Turkey.
(Houchang Hassan-Yari is the head of the Department of Political and
Economic Science at the Royal Military College of Canada.)
From: Emil Lazarian | Ararat NewsPress