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Russia Spreads Caspian Infuence

Analysts believe lastest move is an attempt to hamper Baku-Tbilisi-Ceyhan pipeline oil devlivery...

Russia Spreads Caspian Infuence

Russia has started an offensive in Central Asia and the Caucasus in the hope of consolidating its role as an export route for the region's rising oil production.

Analysts believe Russia is trying to persuade Kazakhstan not to provide any crude for the planned Baku-Tbilisi-Ceyhan pipeline, offering Kazakh exporters the chance to shift more of their crude via Russia.

"The Russians are taking this moment of opportunity. They've finally realized that the White House is distracted [by Iraq ]," a senior oil industry source in Kazakhstan said.

Russia's push to tighten its grip on the Caspian was reflected in a recent trip to Kazakhstan by President Vladimir Putin who was accompanied by a strong delegation including Lukoil President Vagit Alekperov.

During his visit, Russian and Kazakh industry sources say that Putin won a commitment from Kazakh President Nursultan Nazarbaev not to commit oil to the Baku-Tbilisi-Ceyhan oil pipeline, which is due to come on stream in 2005.


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