Politics and Press

Snow White, one dwarf, a giant and an oil rush

Up north above the top of Europe, a moment of history is slouching towards some kind of climax. Europe’s last untapped oil and gas fields are being readied for exploitation, and have become a source of irritation between two of Europe’s most unlikely neighbours. Norway and Russia share the most remote of all European borders, east and south of Nordkap, where Europe stops reaching north, and the cold Norwegian settlement of Kirkenes stands on guard at the point where western and eastern European cultures meet most dramatically. The Norwegian Foreign Minister Jonas Gahr Støre began 2007 with a visit to his most remote outpost as a singal for the importance of Kirkanes in Norway’s future ecoomic developments. For the last couple of decades, Norway has used its oil reserves in the North Sea to guarantee one of the world’s richest societies, and its pension fund is now big enough to buy the island of Manhattan. But the last Norwegian oil field is about to be tapped and soon Norway’s pension fund will have to run on its own. Norway’s main problem, however, is the ecological catastrophe threatening the Barent Sea by the decaying Russian nuclear submarine fleet west of Murmansk, and the general Russian disinterest in the ecology of the Arctic.
Snow White, the first natural gas field in the Barents Sea, is about to be developed by the Norwegians, and after that there are only the potential fields in the disputed waters north of the Russian-Norwegian border and the Shtokman gas field in Russian waters. The Russians so far have refused to co-operate with the Norwegians, who have the most experience in drilling in difficult Arctic waters. They also refused Norwegian aid in saving the crew of their sunken submarine the Karsk.
The Norwegians fear more ecological disasters will spill over into their waters. Norway has made it clear it would like help from the European Union, to which it does not belong, but whose members would certainly prefer to buy their energy from Norway than from Russia. Finally there is Svalbard, the island group that represnts the northernmost inhabited territory in Europe on the main island Spitzbergen. In 1920 Norway was granted territorial rights to the islands, but mineral rights were ceded to all the signers of the treaty, now numbering 40, as the probability of oil and gas reserves has arisen. The treaty was originally aimed at coal deposits, and both Russians and Norwegians have mined there, but it is now unclear whether offshore oil and gas are also covered.
As the ice in Arctic waters begins to melt and both Northwest and Northeast Passages open up, conflicts about Arctic waters are destined to keep growing. Norway and Russia, who have never been particularly friendly, are perhaps predictable, if uneven, rivals in this area, but the main event may play out between traditional friends Canada and the US, as the US government refuses to recognize Canada’s claims to the waters between its Arctic islands.

Russia, Germany, energy

If you live east of Estonia, Poland, Rumania and Bulgaria, a new kind of iron curtain went up on your borders on January 1, 2007. Bulgaria and Rumania joined the European Union, despite many doubts in western Europe about the real state of their economies and of their willingness to fight corruption. Suddenly citizens of Ukraine, Belarus and Russia were the frontuer states on the wrong side of the borderless united Europe. There are many questions about just how united this Europe is, but one thing is sure. If you have a passport from the new states carved out of the Soviet Union (with the exception of the three small Baltic states), you have been excluded from the promised land, and will face daunting bureaucratic hurdles to even enter it temporarily.
But there is something that comes out of Russia, passes through Belarus or Ukraine, and becomes essential when it reaches the European Union - natural gas delivered from Russian wells through Russian-controlled pipelines . It may have seemed easy to naively dismiss Russia as a chaotic paper dragon not so long ago, albeit with nuclear weapons, but Europe is busy learning that it better think twice before putting that in the context of the energy that keeps houses warm in the winter. Last year, Germany was like Siberia for months, and this year Russia has reminded everyone that it controls the switches that determine the price the customer has to pay to keep cozy. Both Belarus and Ukraine thought they had privileged discount positions because of the Slavic brotherhood, but this year they have both learned what the price is for the special deal. And Germany and its smaller neighbours wonder when it might be their turn to discover just what it means to be competely dependant on Russian pricing, good will, and reliability.

Putin’s Russia and Terrorism

Anne Applebaum has published an excellent piece on the deterioration of Russian democracy – and more serious issues – in today’s Slate. Beginning with the recent nuclear murder of Alexander Litvinenko, Applebaum looks backward through other murders of critics of Russian President Putin, considers the enormous corruption of state resources taken by old KGB friends of Putin, and remembers the suspicious bombing of Russian apartment buildings which led to Putin claiming to join the so-called war on terrorism, which gave him carte blanche to wage war on Chechnya. And then there is the matter of the first known act of nuclear terrorism that just might have been committed by our Russian friends.

Rather than repeat here Applebaum’s impressive list of what is wrong with Russia in 2006, I refer you to her piece.