Friday, June 12, 2009

Shanghai Cooperation Organization

The SCO is evolving, as reviewed by Asia Times online. China and Russia are cooperating in the field of energy:

"Again, belying all Western expectations that Russian and Chinese priorities in energy security diverge, the two countries have finally begun taking big strides on the ground in energy cooperation. A variety of factors went into it - the fall in demand for energy in the recession-struck European markets; strains in Russia-European Union energy relations; Russia's own search for diversification of its Asian market; Russia's energy rivalries with the European Union and the United States in the Caspian and so on - but the fact remains that Moscow is increasingly overcoming its hesitancy that it might get hooked to the massive Chinese energy market as an "appendage", as a mere provider of raw materials for China's economy."

" Thus, it has become a moot point whether Moscow has or has not yet realized the then president Vladimir Putin's four-year-old idea of forming an "energy club" within the SCO framework. Effectively, a matrix is developing among the SCO countries (involving member countries as well as "observers") in the field of energy cooperation. It has several templates - China on the one hand and Kazakhstan, Uzbekistan and Turkmenistan on the other; Russia-China; China-Iran; Russia-Iran; Iran-Pakistan; and, of course Russia's traditional ties with the Central Asian states. (If the current Iranian plan for an oil pipeline linking the Caspian Sea and the Gulf of Oman materializes soon, yet another template may be formed involving Iran, Russia, Kazakhstan and Turkmenistan.)"

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