Kazakhstan in limbo over energy security

BAKU, Azerbaijan, Nov. 17 (UPI) -- The war in Georgia shows the geopolitical significance of the regional energy sector as Kazakhstan moves hesitantly in pipeline quarters.

The European Commission, the United States and 15 other countries signed a declaration of principles calling for further cooperation in the Caspian region at an energy summit in the Azeri capital, Baku.

"We consider it is important to continue policies aimed at diversifying oil and gas supply routes from the Caspian basin to European and world markets," said the declaration, calling for additional efforts in support of the Nabucco pipeline and other major energy routes.

Kazakhstan sent a delegation to the Baku summit but did not sign on to the declaration over concerns of upsetting Russia. It did, however, agree on the sidelines to establish a consortium with Azerbaijan to transfer oil across the Caspian Sea for exports through the Baku-Tbilisi-Ceyhan pipeline to Europe.

Kazakh Energy Minister Sauat Mynbayev said his country "held great hopes" for the plan, which would transfer around 1.2 million barrels of oil per day to European markets, the Financial Times said Monday.

For his part, Georgian President Mikheil Saakashvili expressed concern Russia was moving too aggressively in the regional energy sector in the wake of the crisis over South Ossetia, but U.S. Energy Secretary Samuel Bodman said the move showed "the importance of energy resources diversification."