Robert M. Cutler on Energy and Eurasia

A new report by the International Crisis Group (ICG) helps answer the question about what the appropriate responses are to Islamic militancy in Central Asia. The ICG is a highly respected, well connected, expert, private, multinational organization that describes itself as "committed to strengthening the capacity of the international community to anticipate, understand, and act to prevent and contain conflict." In its new report titled "Central Asia: Islamist Mobilisation and Regional Stability," ICG makes recommendations to Central Asian governments, external powers, and international organizations.

The current, contradictory phase of events around the Caspian is captured by the difficult realism of Viktor Kalyuzhnyi, Russia's deputy foreign minister, who also serves as President Vladimir Putin's special envoy on Caspian affairs. As developments continue to accelerate, Russia is seeking to trace a course between the Scylla of hardball Realpolitik, which could alienate neighboring states, and the Charybdis of exclusively economic gain to the possible detriment of state interests. This contradiction is clearest in Russian policy towards Iran, which includes the question of influence over the choice of export pipelines for Kazakhstan's now undeniably significant energy resources.

The selection several weeks ago of Italy's ENI as operator of the Offshore Kazakhstan International Operating Company (OKIOC), which is exploring the vast Kashagan deposit offshore from Kazakhstan, came as a surprise to most observers. Eni was a dark horse in OKIOC and not one of the front-runners to become operator.