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China seeks Central Asian energy

NEW YORK, March 14 (UPI) -- China is making concerted efforts to increase its access to Central Asian energy through the Shanghai Cooperation Organization, a policy paper says.

"China hopes to use the Shanghai Cooperation Organization to help widen its access to Central Asian energy," writes Stephen Blank, a professor at the U.S. Army War College, in the Eurasianet.org Web site. "Russia, meanwhile, is working to keep Beijing's energy import ambitions in check."

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Both countries are members of the bloc, which also includes Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

China wants the SCO to establish an energy working group later this year to study the construction of pipelines among member states. Beijing is conducting parallel negotiations with Russia on the issue.

China has been quick to seize opportunities and provide diplomatic support to leaders such as Uzbek President Islam Karimov, who is energy-rich but has been criticized for his human rights practices. Beijing gave Tashkent $600 million in loans to explore energy deposits in Uzbekistan, the paper said.

In December, China and Kazakhstan opened the 600-mile Atasu-Alashankou pipeline, which is not expected to start delivering up to 200,000 barrels of oil per day until 2007. It has also approached Turkmenistan about a possible pipeline venture, the article said.

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Russia, meanwhile, views its energy resources as a strategic tool, the paper says.

"Russian energy producers have accordingly rebuffed China's efforts to increase supplies," Blank writes. "Russian officials have blocked the sale of Slavneft to China, as well as broken up Yukos, an energy giant that favored Russian-Chinese energy engagement.

"Yukos also was a leading proponent of the construction of the proposed Angara-Daqing pipeline."

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