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Georgia: It’s All About Oil, Of Course

Aug 11th, 2008 | By Sara Nunnally | Category: Featured, Financial News

Conspiracy theorists, meet the Nostradamus of novels: Tom Clancy.

Taipan Publishing’s Sara Nunnally and her colleague Christian DeHaemer say the current conflict in South Ossetia between Russia and Georgia is scarily like the Tom Clancy video game Ghost Recon.

They also say the conflict is all about oil. Russia wants to control energy routes through the Caucasus. And it wants to destabilize Georgian plans to build a natural gas pipeline that would feed European demand. More from Sara…

Back in 2001, military science novelist Tom Clancy designed a video game called Ghost Recon. Here’s the story’s timeline…

The Russian Democratic Union, consisting of Russia, Ukraine, Belarus, and Kazakhstan, is formed in 2007, with the goal of reuniting the former Soviet Union states. Action comes to a head in April 2008, when ultra-nationalists seize total power in Russia and begin invading the Baltics and Georgia. U.S. Special Forces join with rebel factions in Tbilisi, Georgia, but can’t hold back the Russian tide…

Earlier today, in real life, Russian planes flew over the presidential palace in Tbilisi.

This coincidence gave me chills. You can check out the real timeline for the current conflict in this article from Reuters.

The Georgian president, Mikhail Saakashvili, says this conflict, in which Russia is supposedly supporting a separatist faction in Abkazia (an area in South Ossetia), is because Russia wants to control energy routes through the Caucasus.

Russia supplies much of the European Union’s natural gas, and has never hesitated to use these resources to bully needy nations. Georgia has been an ally of Western Europe, and an oil pipeline runs through the tiny country, and is not under Russian control. A natural gas pipeline has been proposed that will also thwart the Russian’s hold on energy resources flowing into Europe.

The International Herald Tribune outlines what’s at stake.

I think this quote says it all: “‘If Georgia collapses in turmoil,’ [Marshall Goldman, a leading Russia scholar] notes, ‘investors will not put up the money for a bypass pipeline.’ And so, he concludes, Putin has done his best to destabilize the Saakashvili regime.”

And that could have serious ramifications for the EU, and would certainly draw the U.S. further into the conflict.

Like I said, Tom Clancy may just be the Nostradamus of military science novels.

Watch for stronger language from both the EU and the U.S. if Russia does not cease fire.

Source: It’s All About Oil, Of Course


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By Sara Nunnally

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Sara NunnallyAs Editor of the investment advisory service Taipan Insider and Taipan's Emerging Market Blog, Sara Nunnally brings a fresh perspective and an exciting approach to the world of international investing. Traveling to such countries as Vietnam, Morocco and Spain, Sara investigates for you the secret world of emerging and frontier markets that are ready to explode in profits.

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Taipan Daily is your free resource for late-breaking investment opportunities to help you beat Wall Street to the profits. Filled with investment analysis and insight from every sector. Taipan Daily delivers just the right blend of safe opportunities with the fast-moving plays, so you have an insider's edge over Wall Street and other investors.

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