Tensions have been running high between Russia and the EU since Russia invaded Georgia last month.

The two powers have reached an agreement on a draft peace plan, but business ties are a long way from normal. With the EU dependent on Russia for almost half of all it’s energy needs, this dispute could cause serious problems come winter.

Sara Nunnally says the EU’s scramble for alternative energy sources opens up new investment opportunities in frontier markets around the Caspian Sea. Sara says Turkey is also well placed to become a new regional energy hub.

Soaring food prices are turning Russia’s former Soviet farming collectives into modern capitalist havens, says Irwin Greenstein, writing for Contrarian Profits.

One company called Black Earth Farming (STO:BEFSDB) is leading the charge into millions of acres of prime Russian farmland left fallow after the collapse of the Soviet Union.

Black Earth Farming is part of a movement by hedge funds, portfolio managers and Russian insiders to capitalize on the worldwide boom in food. This is a great long-term opportunity for foreign-equity investors.

Russia is the world’s biggest country. The CIA’s World Factbook says Russia is 1.8 times the size of the US but only has roughly half the number of citizens. This means plenty of available farm land.

The Daily Reckoning’s Bill Bonner says that, even if only a small portion of this land was managed properly, Russia could transform global food production. And with the current de-collectivization of Russian farm land underway, proper farm management is now possible.

Bill says this spells disaster for the US agriculture sector.

The exciting news this week was that the U.S. economy is not actually in crisis. ***Our insatiable thirst for oil and dependence on other countries to supply us with black gold has presented us with outstanding investment opportunities during this energy crisis. ***At times like these, we wonder what the US government would do for a budget like the Chinese. *** The mob lined up to hurl a few more stones at Fannie Mae (FNM) and Freddie Mac (FRE) this week.

Dave Gonigam writes again about the potential impact of sour U.S.-Russia relations on crude oil prices. Moscow’s envoy to NATO, Dmitri Rogozin, is toughening up his rhetoric to the West, and his hardline views appear to be gaining traction in the Kremlin. Dave says Rogozin will be a key figure in determining how political tensions could affect the energy markets…

Russia’s actions in Georgia have provoked stern criticism in the West. But Moscow may also find itself lacking support among it’s ‘allies’ in the Shanghai Cooperation Organization (SCO), which meets this weekend. Dave Gonigam says this provides an opportunity for the U.S. to improve its dialogue with the Kremlin. But the stance in Washington is decidedly confrontational. This will help keep crude oil prices high…

Smart Commodities UK editor Garry White says talk of a new cold war with Russia is madness. A provoked Russia may be saber rattling, but escalating beyond that would not be in its own financial interests. Russia needs the West’s custom as much as the West needs its hydrocarbons. Garry says Russia is a competitor, not an opponent, and its growth potential makes it a great investment play right now…

The conflict between Russia and Georgia became quite a controversial topic this week. Strong support has been voiced for both sides, and many have begun to question the United States’ involvement (or lack thereof).

“But this time it’s different!!!” Any time you hear that from a financial analyst, you should run. Or better still, take the other side of his trade! If you’re numerically oriented, you know that patterns tend to revert to the mean.

The U.S. has wasted the last decade trying to boost its influence Central Asia, when it should have been getting its own house in order. That’s the view of James Howard Kunstler, writing in The Daily Reckoning. He says the solution to the West’s energy crisis will not be found in the Caspian Sea. And the U.S. still has no real influence in Russia’s backyard. As a result, says James, while Russia oil-rich economy is alive and kicking, America’s banking system is effectively dead…