Robert M. Cutler on Energy and Eurasia

[News article (Interview) first published (in Azeri translation from English) by Trend News Agency (Baku), 1 August 2008, under the by-line of N. Boqdanova.]

Corruption and politics in Ukraine threaten to choke off, at least in the near term, the expansion of oil exports from Azerbaijan and eventually Kazakhstan to Europe. This is the significance of Ukrainian Prime Minister Yuliya Tymoshenko's efforts in July to halt what she called the "shadowy privatization" of the Odessa-Brody oil pipeline.

The strong recovery in Turkey's stock markets that preceded and followed the rejection last week by the country's Constitutional Court of prosecution calls to ban the political party of Prime Minister Recep Tayyip Erdogan may be short-lived.

The armed conflict between Russian and Georgia has further exposed the fragile position of the energy links running through the smaller country from the Caspian Sea to developed market economies

With Georgian government websites shut down by cyber-attacks in the days immediately preceding hostilities, the Russian story of its army coming to the defense of South Ossetia in the face of Georgian assault gained currency. This script is still often invoked as a preface to any commentary or reportage on current developments. However, as facts begin to surface, it is increasingly revealed as a propaganda strategy planned in advance and contradicted by evidence on the ground, by the testimony of neutral observers, and by the increasingly transparent cynicism of its purveyors.

Moscow's equity markets, whose benchmark measure has declined with increasing rapidity since the start of the year, have turned worse with Russia's invasion of Georgia. The dollar-denominated RTS index is down 33% in three months and the ruble-denominated MICEX is nearly as much off at 28% in the same period.

The realities of Turkey's economy and politics would alone have killed off the summer revival in the country's stock markets. Russia's invasion of Georgia, on Turkey's back doorstep, made sure.

Türkiye’nin ekonomik ve siyasi gerçekleri tek başına, piyasalardaki yaz canlanmasının canına okurdu. Rusya’nın Türkiye’nin arka kapısı Gürcistan’ı işgali de bunu kesinleştirdi.

Թուրքիայի տնտեսական և քաղաքական իրողությունները միայն բավական կլինեին երկրի արժեթղթերի շուկայում ամռանը գրանցված աշխուժությունը սպանելու համար: Իսկ Ռուսաստանի ներխուժումը Թուրքիայի դրկից Վրաստան դրան թափ հաղորդեց: