By Kakha Jibladze (1/24/2007 issue of the CACI Analyst)

During the worst diplomatic scandal to hit the two bickering neighbors since the end of the Soviet Union, Russian President Vladimir Putin recalled the ambassador to Georgia – all but closing the Russian embassy in Tbilisi and severing diplomatic ties. And on January 18, just as suddenly, he announced Ambassador Vyacheslav Kovalenko was heading back to Tbilisi.

The move comes less than a month after several companies operating in Georgia were forced to sign various contracts – some for a year, others for as short as three months – with Kremlin-owned gas giant Gazprom.

By Marat Yermukanov (1/24/2007 issue of the CACI Analyst)

The talks between Nursultan Nazarbayev and Chinese leader Hu Jintao and the joint statement of cooperation strategy for the twenty-first century showed all signs of a model partnership between Kazakhstan and China. Hu Jintao and Nazarbayev signed 10 agreements relating to scientific and cultural ties, transport communications, bilateral trade, energy resources, border control and customs regulations, trans-border rivers and labor migration. Before leaving Beijing, Nursultan Nazarbayev announced in a visibly optimistic mood to the press that China and Kazakhstan finally eliminated all their border problems and laid a solid foundation for mutual trust and friendship.

By Kakha Jibladze (1/10/2007 issue of the CACI Analyst)

However, Tbilisi’s search for more acceptable partners has not been completely fruitless: according to the government, at least 1/8 of the country’s gas needs will be covered by gas from Azerbaijan.

The gas issue is highly political after a year of increasingly tense relations with Russia. Last year started off with a tense standoff between the two neighbors after mysterious explosions cut off gas supplies from Russia to both Georgia and Armenia, a staunch Russian ally in the region.