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Washington’s Shadowy Energy Partnership With Azerbaijan Exposed

Tyler Durden's picture




 

Submitted by Nick Cunningham via OilPrice.com,

Ten Members of the U.S. Congress – along with 32 of their staff members – received secret payments from Azerbaijan’s state-owned oil company to travel to Baku in 2013.

A report from the Washington Post offers an in-depth look into a shadowy relationship between the State Oil Company of the Azerbaijan Republic (SOCAR) and powerful members of the United States government.

About $750,000 was funneled from SOCAR through US-based non-profits to cover the cost of travel, including souvenirs of “silk scarves, crystal tea sets and Azerbaijani rugs,” the Post reported. The members of Congress attended a conference in Baku on the future of US-Azerbaijan relations.

Although the Office of Congressional Ethics looked into the matter, which the Post called “the most extensive investigation undertaken by the ethics office,” it could not find evidence that the Representatives explicitly acted to benefit SOCAR. However, the report noted that SOCAR had been seeking an exemption from US sanctions on Iran over a natural gas pipeline in the Caspian Sea. Shortly after the conference attended by the members of Congress, President Obama signed into law sanctions on Iran, and the law included language exempting SOCAR.

But the cozy relationship between SOCAR and Washington DC should not come as a surprise. The US government has long considered Azerbaijan, a country led by one corrupt family since the collapse of the Soviet Union, a key piece of its foreign policy puzzle.

Back in the 1990s, the Clinton administration heavily backed the Baku-Tbilisi-Ceyhan (BTC) pipeline, which connected Caspian Sea oil to the international market. Constructed by a consortium headed up by BP, the pipeline had several strategic objectives.

Former US Ambassador Richard Morningstar, a key figure in bringing the BTC about, explained the logic in a 2003 speech at Harvard’s Belfer Center. The Clinton administration wanted to peel away the countries in the Caucuses from Russian influence, help develop Caspian oil (which Clinton thought was important for global supplies), and head off potential pipeline connections through Iran. The US government provided financing options and heavy political support to get the pipeline built. It began operation in 2006 and has since carried more than 2 billion barrels of oil to the Mediterranean coast in Turkey.

But that involved cozying up to a horribly corrupt government in Baku. Secret cables from American diplomats based in Baku, which were published in 2010, reveal an economy “similar to the feudalism found in Europe during the Middle Ages: a handful of well-connected families control certain geographic areas, as well as certain sectors of the economy.” The Organized Crime and Corruption Reporting Project, a corruption watchdog based in Sarajevo and Bucharest, awarded Azerbaijan’s President Ilham Aliyev with their annual Organized Crime and Corruption Person of the Year award in 2012.

But it wasn’t just the Clinton administration that embraced the corrupt Azerbaijani government. Former Vice President Dick Cheney visited Azerbaijan in 2008 after Russia’s invasion of Georgia, pledging support for the Caucuses. But many think the real reason for his trip was that the US wanted to push an agenda to build another pipeline from the Caspian – the now scrapped proposal for the Nabucco pipeline.

The pipeline never happened, but the effort lives on in the form of another pipeline; this one much closer to becoming a reality.

Although by no means a top priority for the Obama administration, Azerbaijan is still a security ally in the region. The Obama administration sent special State Department envoy Amos Hochstein to Greece in early May to convince the Greek government to back a proposed pipeline to connect Azerbaijani natural gas to Western Europe. The American supported pipeline is in a race against Russia’s Turkish Stream pipeline, which would connect Russian gas to Western Europe by running beneath the Black Sea and through Turkey and Greece.

In May 2014, President Obama sent a letter to Aliyev, in which he wrote “[o]n behalf of the U.S people and myself, I express you and the Azerbaijani people my best wishes on the occasion of Republic Day.” Obama then went on to say, “[w]e appreciate Azerbaijan's participation in the NATO mission in Afghanistan. The two countries have recently established close partnership in the energy sector. We appreciate the signing of the final investment decision as part of the Southern Gas Corridor in December 2013.” Azerbaijan had decided to move forward with the pipeline to Europe, after many years on the drawing board.

The western-backed pipeline is actually two pipelines – one section that runs from Azerbaijan through Turkey, and another that picks up in Greece and runs to Southern Italy. SOCAR is a major shareholder in both.

Even if the Washington Post report doesn’t reveal any wrongdoing on behalf of members of Congress, given the many years in which the US has looked the other way when it comes to corruption in Azerbaijan, owing to the fact that the US wants to develop Caspian energy, the Post report does not come as much of a surprise

 

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Mon, 05/18/2015 - 08:40 | 6105172 VinceFostersGhost
VinceFostersGhost's picture

 

 

Partnership With Azerbaijan

 

More like a pimp/whore relationship really.

Mon, 05/18/2015 - 08:44 | 6105181 clooney_art
clooney_art's picture

Members of Congress are excempt from accepting bribes and are allowed to conduct shady deals unless it becomes a political tool. In which case, you will be exposed as  a liability. Any wonder why the line between Republicans and Democrats is blurry these days and nothing ever gets done for the people.

Mon, 05/18/2015 - 08:48 | 6105190 Divine Wind
Divine Wind's picture

 

 

 

Azerbaijani cuisine is actually pretty good and well worth a try if you ever have the chance.

Plav, which is saffron-covered rice, is great.

Then there are a myriad of kebabs and shashliks.

And you should never pass up the small, dumpling-like dushbara.

MMMM, Mmmmm, mmmm.

Lip smakin' good.

 

Azerbaijani women?  Not so hot.

Mon, 05/18/2015 - 08:54 | 6105203 jaap
jaap's picture

Where is the money Lebowski:

https://www.youtube.com/watch?v=r9twTtXkQNA

Mon, 05/18/2015 - 09:08 | 6105244 Stackers
Stackers's picture

“similar to the feudalism found in Europe during the Middle Ages: a handful of well-connected families control certain geographic areas, as well as certain sectors of the economy.”

 

Fill in the blank for the ex-Soviet country this discribes. Ukraine, Azerbaijan, Turkmanistan, Belarus .....

Mon, 05/18/2015 - 09:10 | 6105252 negative rates
negative rates's picture

Clinton was an idiot, nothing but the consequences to be paid now sons o bitches.

Mon, 05/18/2015 - 09:43 | 6105322 Urban Redneck
Urban Redneck's picture

Bubba's a smart guy, unlike the dyke, who should thank her lucky stars she married someone so much higher up the intellectual food chain.  Make's you wonder who that BS about a "marriage/presidency of equals" was intended to fool- US or HER?

Mon, 05/18/2015 - 10:01 | 6105366 lincolnsteffens
lincolnsteffens's picture

Why such a limited list? British Crown has captured a significant portion of the world.

Mon, 05/18/2015 - 12:56 | 6105977 Sudden Debt
Sudden Debt's picture

They completly control it all. And this is just a case where they sold some of their assets, their slaves, American young kids to the middle east to fight for their pocket money.

Back in the days it was very common to trade your slaves so it kind of makes sense.

And it’s not like anybody will stand up against this sale because when these kids come back home in a coffin, they’ll get a star and stripes as a gift that’s made in China.

I’m just thankfull they can’t sell my kids yet.

Mon, 05/18/2015 - 16:00 | 6106834 Oracle 911
Oracle 911's picture

Is the US different?

I don't think so.

Mon, 05/18/2015 - 09:14 | 6105256 Muddy1
Muddy1's picture

" The US government provided financing options"  and a whole 2 million barrels was moved through the pipeline.  Yeah that really improved global supplies. 

Did this BTC group make a contribution to the Clinton foundation since Bill left office????

Mon, 05/18/2015 - 08:55 | 6105207 Latina Lover
Latina Lover's picture

Just follow the money, and a congress critter will inevitably reveal themselves.

Mon, 05/18/2015 - 09:00 | 6105221 Brazen Heist
Brazen Heist's picture

Plov and Manty (the dumplings you describe) are actually popular all over the former Soviet Union, esp central asia.

Don't know what women you've met, the Azeri women I've met were very hot. Uzbek women are good too.

Mon, 05/18/2015 - 09:05 | 6105239 Divine Wind
Divine Wind's picture

 

 

 

Ha!

Most look like Russian beet farmers.

Mon, 05/18/2015 - 08:48 | 6105193 Keyser
Keyser's picture

Yes sir, the best government that money can buy... I wonder how much it takes to sell-out your country? 

Mon, 05/18/2015 - 09:06 | 6105242 JungleCat
JungleCat's picture

For you, special offer. No money, just "silk scarves, crystal tea sets and Azerbajani rugs."

Mon, 05/18/2015 - 09:07 | 6105243 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

what a bunch of pussies. whatever happened to hookers and blow?

Mon, 05/18/2015 - 10:00 | 6105363 kill switch
kill switch's picture

 whatever happened to hookers and blow?

 

That's reserved for the GDP numbers....

Mon, 05/18/2015 - 09:08 | 6105247 Brazen Heist
Brazen Heist's picture

To a Globalist, there exists no sense of nationalism, morals or social wellbeing....just an affinity for the highest bidder.

Entire countries are swept up like hotels on a monopoly board by these parasites. They love corruption, for they can exploit it.

Mon, 05/18/2015 - 09:04 | 6105234 ebworthen
ebworthen's picture

Isengard on the Potomac, Mordor on the Hudson.

"Shadowy" and "Washington" go together like "Dark Eye" and "Wall Street".

Mon, 05/18/2015 - 11:48 | 6105681 Lordflin
Lordflin's picture

Welcome to New Rome. Emperor Obama and his bought and paid for Congress of influence pedlers...

Mon, 05/18/2015 - 09:12 | 6105255 doctor10
doctor10's picture

And now each is subject to blackmail.

This is relevant at the monet because of the TPP vote coming up next in CONgress. The corporations have congress right where they want them

Mon, 05/18/2015 - 08:38 | 6105167 q99x2
q99x2's picture

Contractors bitchez.

Mon, 05/18/2015 - 08:40 | 6105170 Brazen Heist
Brazen Heist's picture

Putting the CON in CONgress.

Mon, 05/18/2015 - 08:41 | 6105176 VinceFostersGhost
VinceFostersGhost's picture

 

 

What do you suppose Boehner is gonna sell us out for today?

Mon, 05/18/2015 - 08:47 | 6105189 Brazen Heist
Brazen Heist's picture

Today's special is high treason wrapped in a soft-shelled TPP taco, with singapore slings and meskal on the side. Oh look over there...its Kim's ass!

Mon, 05/18/2015 - 09:03 | 6105230 saints51
saints51's picture

you play trick on me

Mon, 05/18/2015 - 08:40 | 6105173 Buster Cherry
Buster Cherry's picture

Round up the participants, tie them to a pole and beat them with a cat o nine tails on national TeeVee.

Mon, 05/18/2015 - 09:02 | 6105228 dag
dag's picture

Why don't they just name the Congressmen who received the tea cups and silk scarves.  Name names!!

Mon, 05/18/2015 - 08:41 | 6105175 saints51
saints51's picture

Clinton/Bush/satan 2016

Slogan: Let us get this shit over with

Mon, 05/18/2015 - 08:42 | 6105179 VinceFostersGhost
VinceFostersGhost's picture

 

 

Keep it all in the family, good idea.

Mon, 05/18/2015 - 08:52 | 6105200 saints51
saints51's picture

Not my idea but the men behind the curtains. They like their American Monarchy. Just dont tell that to most Americans because they believe in santa claus and their vote matters.

Mon, 05/18/2015 - 09:09 | 6105249 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

heard once bill becomes the first man he is planning on getting a divorce and playing hide the cigar with one of GW's daughters

Mon, 05/18/2015 - 08:42 | 6105178 localizer
localizer's picture

Just compare Putin and Aliyev and see how consistent US foreign policy is... 

Mon, 05/18/2015 - 08:45 | 6105183 McCormick No. 9
McCormick No. 9's picture

Why is this news? Oh, wait, I have never heard of this before: Corrupt Congress-fucks taking bribes. THIS HAS NEVER HAPPENNED BEFORE! Another first- "extensive investigations" by the ethics committee do not discover any wrongdoing. Why would anyone think that  "Congressional ethics" is an oxymoron?

So Congress-wipes take bribes from foriegn oil interests. I am so shattered and disillusioned. Thank God they haven't taken any money from Israel yet.

Mon, 05/18/2015 - 09:16 | 6105187 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

This is the main reason for US involvement in Azerbaijan.

http://www.naturalgaseurope.com/legal-status-of-caspian-sea

Taking into account the above mentioned, the question Is the Caspian Sea a Lake or a Sea gains new importance and still there is no consensus.
...

At present there are 5 the Caspian littoral countries: Kazakhstan – 30.8%, Turkmenistan – 16.8%, Iran – 18.7%, Azerbaijan – 15.2 % and Russian Federation – 18.5%.

...

The issue can be more important for non-littoral states, since interest in the Caspian Sea resources is not limited by the region alone. So the right of the third states on access to the Caspian Sea shall be totally different if the Caspian Sea is a sea and not lake. In former case rules of international maritime law embodied in LOSC may apply and the various exclusive rights of littoral states may be restricted. Therefore allowing foreign interest in the Caspian Sea shall not be good will of littoral states but to some extent - the obligation. Besides, all legal issues such as delimitation, navigation, preservation of marine environment, exploitation and exploration of resources and dispute settlement may become subject of well established rules and procedures. On the other hand one should bear in mind that not all littoral states of the Caspian Sea are members of UNCLOS.

...

If defined as a sea, international maritime laws apply which means third party countries have to be allowed shipping rights including placement of naval warships and things like foreign military naval ports agreements with Azerbaijan. It is more than gas and oil rights i.e. how littoral zones are defined if a lake or sea it is also the ability to park warships on the doorsteps of Iran and Russia.

For arguments sake assume the Great Lakes were defined as a sea, by international law Canada could sign an agreement with Russia for a naval port on one of the lakes if that was the case. They can't when it is defined as inland waters.

So the question is does location or salt content define whether a body of water is a lake or sea. If salt content the Dead Sea would have to allow foreign naval boat traffic in it's waters.

Here is the official spin

https://en.wikipedia.org/wiki/Dead_Sea

The Dead Sea is 304 m (997 ft) deep, the deepest hypersaline lake in the world. With 34.2% salinity (in 2011), it is also one of the world's saltiest bodies of water, though Lake Vanda in Antarctica (35%), Lake Assal in Djibouti (34.8%), Lagoon Garabogazköl in the Caspian Sea (up to 35%)

They call in a hyper saline lake but don't when it comes to the Caspian even though both are inland body's of water with high salinities.

Mon, 05/18/2015 - 08:48 | 6105194 firstdivision
firstdivision's picture

What a third world, dark ages type of corrupt country is that?  They need to step up their game and let their peseants choose between two corrupt organized crime families.  Bush/Clinton 2016

Mon, 05/18/2015 - 08:51 | 6105199 Toolshed
Toolshed's picture

What are the names of these congressmen?

Mon, 05/18/2015 - 08:58 | 6105217 heisenberg991
heisenberg991's picture

Show Me Da Money Bitchez

Mon, 05/18/2015 - 09:17 | 6105261 22winmag
22winmag's picture

Better yet, show me the Drachma.

Mon, 05/18/2015 - 09:19 | 6105269 mastersnark
mastersnark's picture

That's really none of our business. Let our rulers sort it out, I'm sure they will do the right thing.

Mon, 05/18/2015 - 09:25 | 6105282 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://www.washingtonpost.com/graphics/investigations/azerbaijan-ethics-...

Jim Bridenstine (R-Okla.) is the only one who disclosed the gifts to the ethics committee prior to the investigation.

And on the flip side

Rep. Yvette D. Clarke (D-N.Y.) who is a member of the ethics committee didn't disclose the gifts to the ethic committee prior to the investigation.

Mon, 05/18/2015 - 11:48 | 6105679 cn13
cn13's picture

Mon, 05/18/2015 - 10:06 | 6105379 tsuki
tsuki's picture

The lawmakers who took the trip were Reps. Jim Bridenstine (R-Okla.), Yvette D. Clarke (D-N.Y.), Danny K. Davis (D-Ill.), Rubén Hinojosa (D-Tex.), Sheila Jackson Lee (D-Tex.), Leonard Lance (R-N.J.), Michelle Lujan Grisham (D-N.M.), Gregory W. Meeks (D-N.Y.) and Ted Poe (R-Tex.) and then-Rep. Steve Stockman (R-Tex.).

Clarke is a member of the Ethics Committee.

http://www.washingtonpost.com/investigations/10-members-of-congress-took...

Mon, 05/18/2015 - 08:55 | 6105209 22winmag
22winmag's picture

Isn't that illegal?

 

Let's ask Holder.

Mon, 05/18/2015 - 08:56 | 6105211 Fun Facts
Fun Facts's picture

Washington makes the mafia look like the good humor men.

Mon, 05/18/2015 - 09:01 | 6105224 two hoots
two hoots's picture

Power requires decisions and actions unplesant and best kept afar from the commoner.   Similiarly, Church and State do not mix for sundry reasons.

Mon, 05/18/2015 - 09:02 | 6105226 cn13
cn13's picture

Congress is filled with nothing but traitorous crooks turning the U.S. into the most corrupt country in the world.

Why should this story be surprising?

Mon, 05/18/2015 - 09:23 | 6105280 Mike Honcho
Mike Honcho's picture

Surprising because a 2nd world country, in an area known for corruption, had to invest in consultation from the top crooks in the world.

Mon, 05/18/2015 - 09:03 | 6105231 Panic Mode
Panic Mode's picture

How DARE you report us!!

Mon, 05/18/2015 - 09:19 | 6105268 Billy Sol Estes
Billy Sol Estes's picture

Ah Steve Stockman, what a colossal shit hole he was. And Sheila Jackscoon Lee, always looking for a nickel.

Mon, 05/18/2015 - 09:25 | 6105284 PaperBear
PaperBear's picture

These guys should be impeached but I will not hold my breath for bribery to be punished in Soddom on the Potomac.
How does Congress not have a ZERO percent approval rating ?

Mon, 05/18/2015 - 09:36 | 6105306 gcjohns1971
gcjohns1971's picture

HERE ARE THE CLIFF NOTES:

+ US Power is based on providing Europe with security, and on PetroDollar

+ Azerbaijan, Georgia, Syria, Libya and Ukraine are the routes from places with lots of energy to Europe.

+ Destination of energy coming through Azerbaijanl, Georgia, Syria, Libya and Ukraine is Europe.

+ Current source of energy coming through Azerbaijan, Georgia, and Ukraine is Russia.

+ This gives one single country, with one single government, too much power over everyone in Europe.   Someone wants a hedge against European decisions being forced by someone with so much power.  Who is it?  Is it the US?

+ Do the stores you visit own you?  Are you violating their rights when you want to also buy from another store?

+ When a US agent does things in Azerbaijan, Georgia, Syria, Libya and Ukraine to try and get energy from elsewhere to Europe...Is he really a US agent?  Or is he exercising agency for someone else while receiving a US Gov't paycheck?

 

Love Russia.

Love Europe.

Love the US.

But we have to have some ideas of right and wrong that exclude 'Might Makes Right'.

Mon, 05/18/2015 - 09:46 | 6105332 mvsjcl
mvsjcl's picture

Traitors.

Mon, 05/18/2015 - 10:02 | 6105368 Polymarkos
Polymarkos's picture

I say we take off and nuke DC from orbit. It's the only way to be sure.

Mon, 05/18/2015 - 10:03 | 6105371 rsnoble
rsnoble's picture

We absolutely have to get our house cleared of these fucking criminal jackasses. One way or another.

Mon, 05/18/2015 - 10:06 | 6105383 rejected
rejected's picture

The article itself says 10 members of Con-gress and 32 staff members.

Aong with everything else I don't think theres an ethical bone left in Americas body politic and very little in the country itself.

Just a take what you can, while you can, where you can and how often you can.Worse,,, Darpa will re-elect them...

What a sad thing we have become.

Mon, 05/18/2015 - 10:20 | 6105423 Joe A
Joe A's picture

In the meanwhile a new 'color' revolution is about to start in Macedonia (FYROM for you anal Greek commenters) where the current corrupt government is cosing up to Russia and wants Turkish stream. The equally corrupt opposition organized a protest rally yesterday with MEP holding speeches. Sounds familiar? Also, a few terrorist attacks occurred there the last couple of week.

Putin of course wants a Soviet "reunion" to take control over energy resources in that area. The fight of our times is about control over Eurasia with its resources and markets.

Mon, 05/18/2015 - 11:42 | 6105656 Bankster Kibble
Bankster Kibble's picture

Nuland was just there a week ago.  Don't know if she was handing out cookies, though.

Tue, 05/19/2015 - 03:22 | 6108733 Joe A
Joe A's picture

Really? Was she there? More F-ing the EU and driving the necon agenda?

Mon, 05/18/2015 - 11:00 | 6105549 Caleb Abell
Caleb Abell's picture

This article is nonsense.  

The US government would never support a corrupt dictatorship.  If anything, the opposite is true.  I'm certain that Washington is actively pursuing a multipronged agenda that will result in Azerbaijan becoming a strong and free Jeffersonian Democracy where there is freedom and justice for all. 

The oil and gas reserves in Azerbaijan mean nothing to the US.  The sole objective of US foreign policy is to secure the freedom and happiness of the people of Azerbaijan.

Mon, 05/18/2015 - 11:40 | 6105651 Bankster Kibble
Bankster Kibble's picture

+100 for your sense of humor.  Classic.

Mon, 05/18/2015 - 11:20 | 6105598 Duude
Duude's picture

I can care less about one family benefiting from the sale of Azerbaijan oil, and I don't see the cost of jet travel and souvenirs proof of corruption. What I do see as important is for more natural gas pipelines coming from more countries. A diverse source of distributors make it difficult for any one to hold too much power.  Those that would oppose are simply trying to protect the power of the current single source, Russia.  We all know how badly that's going. Russia puts politics into their monopoly. That doesn't work for me.

Mon, 05/18/2015 - 11:53 | 6105709 DutchBoy2015
DutchBoy2015's picture

An Israeli official, Moshe Yaalon, invokes the American decision to drop nuclear bombs on Japan in World War II in response to a question about “dealing with Iran.”

What do you make of Yaalon’s threat?

Join us on ?#‎presstvdebate? at 18:33 GMT

Mon, 05/18/2015 - 11:55 | 6105725 assistedliving
assistedliving's picture

let XOM take over BP.  problem solved

Mon, 05/18/2015 - 12:46 | 6105951 Counterpunch
Mon, 05/18/2015 - 12:53 | 6105971 roadhazard
roadhazard's picture

Names or it's a lie.

Mon, 05/18/2015 - 12:59 | 6105979 Counterpunch
Counterpunch's picture

A quick google search will demonstrate that Israel, too, is all over Azerbaijan

http://www.israelhayom.com/site/newsletter_article.php?id=3718

And of course, the Azeris dont understand what they are getting into.

Mon, 05/18/2015 - 15:17 | 6106546 earleflorida
earleflorida's picture

The Go-To Map for navigating TAP/ TANAP ::   http://www.tap-ag.com/the-pipeline/route-map

What matters geographically is the Armenian border conflict with Azerbaijan, and what 'Article 4' of the UN Charter.    

'Houston!?! We have a problem?!?'

http://www.nkrusa.org/nk_conflict/index.shtml

e.g., Karabakh's, mountainous region...       http://www.nkrusa.org/nk_conflict/armed_conflict.shtml

Great site:   jmo   

Mon, 05/18/2015 - 19:21 | 6107661 Cityzerosix
Cityzerosix's picture

Tony Blair has been bringing "knowledge and expertise" to the torturers to help the Trans-Adriatic Pipeline, what generosity of spirit.In 2009 he charged a mere $150000 for a speech about some nonsensical Methanol plant. Cant understand how he's become an expert on these technologies.

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