The Lugar Letter
February 2008
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During January, Senator Lugar travelled to Central Asia to promote increased cooperation on energy security and the Nunn-Lugar Cooperative Threat Reduction program.  U.S. interests in the southern Caucasus and Central Asia were made clear with the war in Afghanistan, and their strategic position remains vital, including in relation to NATO.  Likewise, the region is an intersection of U.S. trade and public diplomacy.  Yet there are many pressing challenges relating to economic growth, civil society and democratic development, and inter- and intra- state conflict in which the U.S. can play a productive role. 

In particular, further opening of the East-West energy corridor from Central Asia through the Caucasus and on to Western markets needs to have full-backing of U.S. diplomacy.  While little oil and natural gas will reach American consumers directly, the supplies are critical to the energy security of European allies and to international markets.

Below is a journal accounting of his trip and activities.

January 9: Senator Lugar Secures Deadly Plague Samples for Cooperative Research

A team of American scientists working under the Nunn-Lugar program quietly entered the Republic of Kazakhstan in sub-zero temperatures during Senator Lugar's visit to the country from January 9-11. Their mission was to begin the careful packaging of bubonic and pneumonic plague samples in accordance with international safety standards for the transport of dangerous biological materials. 

An American scientist packs plague samples for transport to the United States.
An American scientist packs plague samples for transport to the United States.

Senator Lugar announced that the samples have been safely transported on a U.S. Air Force C-17 cargo plane to the US Centers for Disease Control and Prevention in Fort Collins, Colorado. It marked the successful completion of a five-year negotiation involving Senator Lugar and Nunn-Lugar program officials to secure, transport and develop a research program for the pathogens.

“Cooperative research by American and Kazakhstani scientists will develop prevention and cure possibilities for this deadly plague. It provides new hope for places where the disease is naturally occurring and helps deter the plague’s use as a bio-terror weapon,” Senator Lugar said. “I appreciate the cooperation of Kazakh officials with the Nunn-Lugar program in negotiating the agreement and helping secure and transport these deadly pathogens.”

Plague, a highly lethal disease spread from rodents to humans by fleas, caused the Black Death which swept across Europe in the 14th century. It is estimated that 20-30 million Europeans died – perhaps as much as half of the continent’s population at the time. An estimated 75 million people worldwide died from the Black Plague.

The bacterium which causes plague was weaponized by the Soviet Union and could be maliciously introduced into a population by terrorists.

A team of Kazakhstani and American plague experts will conduct joint research on the samples at federal labs in Fort Collins, Colorado. They will develop advanced diagnostics and treatments for plague. This cooperative public health research funded through the U.S. Department Health and Human Services Biotechnology Engagement Program will yield valuable scientific insights into a potentially devastating disease, which is endemic throughout Central Asia. The aim of such cooperation is to improve the protection of Kazakhstani and global populations against a naturally occurring disease that could also be exploited by terrorists.

In December 2007 U.S. Secretary of Defense Robert Gates signed an agreement with the Government of Kazakhstan to extend the Nunn-Lugar program with Kazakhstan for seven years.   

More information on the Nunn-Lugar program may be found at http://lugar.senate.gov/nunnlugar/.

January 10, 11 and 12:  Senator Lugar discusses energy security with Kazakh and Turkmenistani leaders

Senator Lugar met with senior government officials in Astana, Kazakhstan, and Ashgabat, Turkmenistan, to discuss opportunities for expanding cooperation with the United States, including energy security and the Nunn-Lugar cooperative threat reduction program.

“U.S. strategic and economic interests intersect in Central Asia. With Russia to the north and Iran and Afghanistan to the south, energy-rich Central Asia is at the frontline of American national security priorities,” Senator Lugar said.  “We have tremendous opportunities in the region, but it will take time and consistent high-level effort to build constructive relationships. This region needs to have a much higher priority on America's foreign policy agenda.

“In Kazakhstan, we have a record of 15 years of collaboration on weapons destruction through the Nunn-Lugar program. This is a solid foundation on which to continue building our relationship,” Senator Lugar said.

“Turkmenistan has undergone extraordinary changes in the year since President Berdimuhammedov came into office. I had a friendly candid discussion with the President, and he indicated a strong desire to build a growing constructive relationship with the United States.”

Senator Lugar encouraged the governments of Kazakhstan and Turkmenistan to pursue trans-Caspian transportation options for oil and gas. He also discussed the benefits of private investment in the energy sector.

“Kazakhstan and Turkmenistan rely almost exclusively upon Russia to transport their oil and gas to world markets. In turn, Russia has occasionally demonstrated willingness to use its control over these supplies for political gain at the expense of our European allies. Opening trans-Caspian export routes will dilute Russia's control over energy supplies. Likewise, having multiple export options will reinforce the political independence of Kazakhstan and Turkmenistan,” Lugar said. “Kazakh and Turkmenistani officials indicated a willingness to work with the United States and their neighbors on these issues.”

Included in Senator Lugar's discussions with Kazakh officials was the status of the Kashagan oil and gas field. Located in the Caspian Sea, Kashagan is one of the largest oil fields in the world. A dispute amongst members of the consortium developing the field and the Kazakh government has strained the investment environment in Kazakhstan. CEOs of major oil companies were in Astana for negotiations on January 13 and 14.  Senator Lugar met with the government and other parties to the negotiations and said he was pleased that “negotiations achieved a prompt and constructive resolution.”

On January 4, Senator Lugar spoke at the Indiana Renewable Energy Forum at the IUPUI Lugar Center for Renewable Energy.  Senator Lugar gave the speech two days after oil passed the $100 per barrel mark for the first time. Senator Lugar's speech to the Indiana Renewable Energy Forum.

January 13 and 14:  Senator Lugar continues his energy security mission in Azerbaijan

In Baku, Azerbaijan, Senator Lugar reaffirmed his call for President Bush to appoint a special representative for energy in the greater Caspian region.

“Appointment of a special representative for energy would be a clear statement of high-level U.S. priority for this strategically critical region. Failure to demonstrate U.S. commitment will jeopardize progress on trans-Caspian energy cooperation, with potentially devastating impacts on long-term U.S. security and economic interests in the region,” Senator Lugar said.

In a letter to Secretary of State Condoleezza Rice on October 4, 2007, Senator Lugar joined with Senate Foreign Relations Committee Chairman Joe Biden in calling for such a position, stating:
“further opening of the East-West energy corridor from Central Asia through the Caucasus and on to Western markets should have the full backing of U.S. diplomacy…The Baku-Tbilisi-Ceyhan pipeline effort was a bold strategic initiative that today reaps tremendous benefits…We must not lose sight of our long-term interest in preventing Russian domination of energy in the Southern Caucasus and Central Asia.”

Senator Lugar at the Azerbaijani Parliament.
Senator Lugar at the Azerbaijani Parliament.
In Baku, Senator Lugar met with President Aliyev and the first lady, opposition leaders, the Executive Director of the State Oil Fund, President of the State Oil Company of Azerbaijan, and other officials.

“It is a tribute to Azerbaijan that they are using their energy resources to the benefit of global security. Building pipelines and opening energy production to foreign markets requires difficult foreign policy decision-making,” Senator Lugar said. “This is a tough neighborhood, and countries here are under tremendous pressure to keep their distance from the United States. I thanked President Aliyev for taking concrete steps to affirm his country's strategic partnership with the United States.”

Connecting Azerbaijan's energy infrastructure with Kazakhstan and Turkmenistan was a key issue for discussion between Senator Lugar and Azerbaijani officials. Senator Lugar encouraged continued progress on rapprochement between governments in Baku and Ashgabat. “I heard encouraging statements toward improved relations and cooperation on energy in both Ashgabat and Baku. There is willingness for progress.”

Operated by British Petroleum, the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and parallel South Caucasus Pipeline (SCP) for natural gas cross Azerbaijan, Georgia and Turkey to deliver oil and natural gas to global markets. Integrating some oil and gas production in Kazakhstan and Turkmenistan would diversify export routes for those countries and import sources for European nations. Successful integration of such trans-Caspian transport routes was described by Senator Lugar as a “vital contribution” to international peace and security.

Senator Lugar also encouraged continued progress on transparency for oil and gas revenue management. “In some countries oil and gas revenues are a curse, leading to corruption and conflict. Two years ago President Aliyev pledged to me that Azerbaijan would follow the Norway model in managing its oil and gas revenues. It is now on a path of transparency and is investing for development today and for future generations. I am hopeful that progress in Azerbaijan will continue and other emerging countries learn from Azerbaijan's example.”

Senator Lugar successfully included an authorization for U.S. support for the Extractive Industries Transparency Initiative in the Energy Bill signed by President Bush in December 2007. Azerbaijan manages extractive industries revenues through the State Oil Fund of the Republic of Azerbaijan and is a member of the Extractive Industries Transparency Initiative.

Additional information is available at http://lugar.senate.gov/energy/.

January 15 and 16:  Senator Lugar visits Ukraine to encourage development of domestic energy sources and efficiency increases

Senator Lugar and Ukranian President Viktor Yushchenko.
Senator Lugar and Ukranian President Viktor Yushchenko.
REUTERS/Pool/Mykola Lazarenko

In Kiev, Senator Lugar met with President Yushchenko, Prime Minister Tymoshenko and members of the opposition. The meetings continued the theme of energy cooperation and follow Senator Lugar’s continued support of democracy in Ukraine. 
 
Development of domestic energy sources and a willingness to integrate energy with Central Asia were a central focus of Senator Lugar’s discussions with the Ukrainian officials.  In January 2006, a dispute between Ukraine and Russia led to a natural gas supply disruption, leaving Ukraine and other European nations short of supply.  Senator Lugar has encouraged Ukraine, European, and NATO allies to reduce their dependency on exports from Russia.  Senator Lugar also met with U.S. private sector representatives to discuss opportunities for improved energy efficiency and diversification of energy sources in Ukraine, including off the Black Sea coast.
 
Senator Lugar also encouraged Ukrainian leaders on their continued progress toward Ukraine joining NATO. 

In November 2004, Senator Lugar went to Ukraine at the request of President George W. Bush to monitor the presidential run-off election.  His main focus was to stress free and fair election procedures that would strengthen worldwide respect for the legitimacy of the winning candidate. 

 

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