Georgia's Saakashvili resigns; Turkmenistan vs. Gazprom

What dictators don't do: Can you imagine Vladimir Putin resigning? Or allowing Russian elections to go forward absent his heavy hand? How about Kazakhstan's Nazarbayev or Azerbaijan's Aliyev? Uzbekistan's Karimov? The notion is preposterous. These leaders would no more risk such a rash throw of the dice than they would live off their official salary.

Yet that's precisely what Georgia's Mikheil Saakashvili has done. Yesterday, he resigned as president in order to take part in the January 8th snap elections he's called to challenge his opponents to electoral battle. Whatever his critics say, Saakashvili's act distinguishes him from the run-of-the-mill former Soviet autocrats.

Making Russia pay: Even if the West loses the pipeline battle for influence in Europe, it might find solace in helping to get Turkmenistan a working wage for its chief export. Russia has been buying Turkmenistan's natural gas for $100-$130 a thousand cubic meters, much less than the world price exceeding $260 a thousand cubic meters. And it's a pittance compared with the $350 a thousand cubic meters that Russia's Gazprom intends to charge its European customers starting next year.

Now, Turkmenistan is demanding more. It's asked Gazprom for a 30% increase, to around $170 a thousand cubic meters, according to a report by the Financial Times' Catherine Belton.

The report quotes Gazprom CEO Alexei Miller as blaming Turkmenistan's sudden request on the U.S. and Europe, which have been urging the republic to defy Russia and export a large portion of its natural gas directly to Europe. The West is championing the construction of the so-called trans-Caspian natural gas pipeline as a rival to a trio of Russian-planned pipelines to Europe. It's through that trans-Caspian line that the European supply would pass.

This courtship of rivals puts Turkmenistan at the center of the East-West battle for market -- and by extension political -- influence in Europe.

Whatever Turkmenistan decides, at the very least it will receive more of the pie.

Photo: Matsuyuki
Rights: Creative Commons