THE SEEDS OF CONFLICT

"For years, the US and the EU have been looking for ways of circumventing Russia for energy, especially in the light of the controversial cuts in supply it made to Ukraine, Belarus and the Czech Republic. The opening of the South Caucasus Pipeline (SCP) from Azerbaijan to Turkey should successfully enable the flow of 16 billion cubic metres (bcm) of gas into Europe without Moscow's interference. However, with Georgia being the only viable country for the pipeline to go through - as Azerbaijan is technically at war with Armenia - the current crisis showed energy majors operating in the Caucasus how tenuous their grip on resources could become should the Kremlin intervene in the affairs of its neighbours again. The SCP was closed for a time during the latest violence. This is of particular concern to BP, which owns 25.5 per cent of the SCP, and is already in dispute with Moscow over the status of subsidiary TNK-BP." (Observer, 17 August) RD