By Stephen Blank (3/25/2009 issue of the CACI Analyst)

The EU’s priority pipeline, Nabucco has been an ill-starred project since its inception several years ago. The EU’s March 20 decisions indicate that Nabucco may be alive, but in serious trouble. Germany’s move from skepticism to outright hostility to the project is remarkable, as is Turkey’s counterproductive machinations to extract additional benefits from it.

By Robert M. Cutler (3/25/2009 issue of the CACI Analyst)

In mid-February, Russia and China signed an agreement providing for Chinese agencies to lend US$25 billion to the Russian energy trusts Transneft and Rosneft in return for the construction of a branch from the East Siberia-Pacific Ocean (ESPO) oil pipeline from Skorovodino to the Chinese border and the guaranteed supply of significant amounts of oil over the long term.  In the wake of the breakdown of American efforts to build its tactical cooperation with the Central Asian states over Afghanistan and the “global war on terror” into a broader strategic vision, the ESPO accord agreement signifies a reestablishment of the ability of China and Russia to cooperate together on geo-economic questions even within the context of their competition for influence in Central Asia.

BACKGROUND: Russian plans for an East Siberian oil pipeline were long on hold due to indecision between building it to China and building it to a Far East port that could supply other consumers as well such as Japan.

By Hushnudbek Yulchiev (3/25/2009 issue of the CACI Analyst)

In these times of global financial crunch, analysts are striving to analyze which sectors of the economy will be prone to the adverse effects of the financial crisis. In this regard, economists in Uzbekistan are also estimating to what extent the sectors of the Uzbek economy will be negatively impacted by falling commodity prices, decreasing inflows of remittances, increasing unemployment etc., in order to ensure financial stability in the country.