Sunday, March 04, 2007

Another Putin Shocka

"Finally, Russia is a high-cost oil producer, the largest oil producer in the world, the largest oil exporter outside of OPEC, and the largest gas producer. As such, it is interested in maintaining a high energy price environment, which is usually generated by tensions and conflicts in the Middle East. Russia is perfectly willing to sell weapons to both sides of the growing Sunni-Shia divide. This was evidenced when the same nuclear reactors – peaceful, of course, and the same anti-aircraft systems, were offered both to Iran and to the Arab Gulf states, which are increasingly nervous about the growing Iranian military power and nuclear ambitions. As one Russian observer put it, weapons sales create allies. Russia is using weapons and nuclear reactor sales the way imperial Germany used railroads – to bolster influence and to undermine the dominant power in the Middle East."