That appeared to be the strategy with Blackwater in Azerbaijan as well. In strategically important Baku, Blackwater renovated a Soviet-era maritime special operations training facility that Pentagon planners envisioned as a command center modeled on those used by the Department of Homeland Security.30 As part of Caspian Guard, the United States also contracted defense giant and Iraq War contractor Washington Group International to construct a radar surveillance facility in Astara, just north of the Iranian border, one of two such facilities built under the program.31 The other was positioned atop a mountain south of Russia’s North Caucasus region, not far from Chechnya.32 Washington also renovated the nearby Nakhchewan airport to accommodate military aircraft, including from NATO.33 In the meantime, encouraged by its cozy relationship with Washington, Azerbaijan dramatically increased its military spending by 70 percent in 2005 to $300 million.34 By the end of 2006, it had reached a whopping $700 million, with the country’s president pledging it would soon grow to $1 billion annually.35
In the event of a U.S. war against Iran, Azerbaijan would play a central role; to Tehran, the U.S.-orchestrated buildup along the Caspian was an ominous threat. Iran actually responded to word of Blackwater’s involvement in the region by announcing the creation of its own special naval police force that would patrol the Caspian.36 As an exclamation point to Iran’s concerns, Ariel Cohen of the right-wing Heritage Foundation wrote in the Washington Times in 2005 that Caspian Guard was “significant… for any future conflict with Iran.”37 As Jane’s Defence Weekly reported, the U.S. presence near the Caspian allowed Washington to “gain a foothold in a region that is rich in oil and natural gas, and which also borders Iran. ‘It’s good old US interests, it’s rather selfish,’ said US Army Colonel Mike Anderson, chief of the Europe Plans and Policies Division at US European Command (EUCOM). ‘Certainly we’ve chosen to help two littoral states, Azerbaijan and Kazakhstan, but always underlying that is our own self interest.’”38
By April 2005, Rumsfeld had visited Azerbaijan, a small country of 8.5 million people, at least three times.39 The visits were secretive, and U.S. and Azerbaijani officials would only speak in generalities about what exactly Rumsfeld was doing dropping into the country so often. After Rumsfeld’s third visit, the popular daily newspaper Echo ran the headline “Rumsfeld Is Interested in Oil!”40 Indeed, the flurry of U.S.-military-related activities in Azerbaijan, including the Blackwater deployment, was timed for the launch of one of the most diplomatically controversial Western operations on former Soviet soil since the fall of the Berlin Walclass="underline" the massive eleven-hundred-mile oil pipeline that for the first time would transfer oil out of the Caspian on a route that entirely circumvented Russia and Iran—a development both Moscow and Tehran viewed as a serious U.S. incursion into their spheres. The $3.6 billion pipeline project was heavily funded by the World Bank, the U.S. Export-Import Bank, and the Overseas Private Investment Corporation, 41 and spearheaded by a consortium led by oil giant BP along with U.S. companies Unocal, ConocoPhilips, and Hess. As originally planned, the pipeline would run from Baku, Azerbaijan, through Tbilisi, Georgia, to the Turkish port of Ceyhan, where the oil would then be shipped for Western consumption.
Known by its acronym, the BTC pipeline was labeled “a new round in the Great Game” by veteran Russia analysts, who viewed it as part of a wider plan to isolate Moscow. Analyst Vladimir Radyuhin said the “pipeline is a key element in the U.S. strategy to redraw the geopolitical map of the former Soviet Union and supersede Russia as a dominant force in the former Soviet Union. The U.S. has pushed through the project over more profitable pipelines via Russia and Iran to create an alternative export route for oil produced in Azerbaijan, Kazakhstan, Turkmenistan, and Uzbekistan, which have so far depended on Russian pipelines to export their oil to Europe.”42 Radyuhin said Washington’s Caspian Guard program “together with the U.S.-promoted GUUAM alliance of Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova, will enable Washington to exercise control over an absolute majority of post-Soviet states and create a cordon sanitaire around Russia.”43 The head of the International Committee of Russia’s upper house of parliament, Mikhail Margelov, said, “Russia will always oppose the presence of any foreign military contingents within the boundaries of the [Caspian region]…. First and foremost, it is a question of [Russia’s] national security.”44
Prior to the launch of the BTC pipeline, the United States had invested in the Russian-controlled Caspian Pipeline Consortium, a $2.6 billion project made up of a 935-mile crude oil pipeline that ran from the Tengiz oilfield in Kazakhstan to the Russian Black Sea port of Novorossiysk.45 The White House called it “the largest single United States investment in Russia.”46 In November 2001, when the first tanker loaded with oil from the Caspian under the project was launched, Commerce Secretary Don Evans remarked, “It tells the world that the United States, Russia, and Central Asian states are cooperating to build prosperity and stability in this part of the world.”47 But once the new BTC pipeline became active in 2005, Bush publicly encouraged “companies producing oil [in Kazakhstan] and elsewhere in the Caspian region [to] embrace BTC as a gateway to global markets.” 48 It seemed that was the plan from the start. Indeed, the Cheney energy task force had envisioned a scheme to allow multinational oil giants like Chevron and Exxon operating in Kazakhstan under the Russian pipeline to redirect oil through the BTC pipeline, effectively taking away from Russia’s profits. It was all laid out in May 2001 in the recommendations made by the White House National Energy Policy Development Group, headed by Cheney. The group recommended that President Bush “direct the Secretaries of Commerce, State, and Energy to continue working with relevant companies and countries to establish the commercial conditions that will allow oil companies operating in Kazakhstan the option of exporting their oil via the BTC pipeline” instead of through the Russian controlled pipeline. It called for the Administration to “deepen [its] commercial dialogue with Kazakhstan, Azerbaijan, and other Caspian states to provide a strong, transparent, and stable business climate for energy and related infrastructure projects.”49
The BTC pipeline was inaugurated in May 2005, and President Bush dispatched his new Energy Secretary Samuel Bodman to represent him at the ceremony. “BTC opens a new era in the Caspian Basin’s development. It ensures Caspian oil will reach European and other markets in a commercially viable and environmentally sound way,” Bush said in a letter read by Bodman at the ceremony.50 The letter was addressed to the dictator of Azerbaijan, whom Bush praised. “As Azerbaijan deepens its democratic and market economic reforms, this pipeline can help generate balanced economic growth, and provide a foundation for a prosperous and just society that advances the cause of freedom,” Bush wrote.51 But as David Sanger of the New York Times reported, a few days before Bush’s letter was read at the ceremony, “the Azerbaijani police beat pro-democracy demonstrators with truncheons when opposition parties, yelling ‘free elections,’ defied the government’s ban on protests against President Ilham Aliyev. Mr. Aliyev is one of President Bush’s allies in the war on terror, even though he won a highly suspect election to succeed his father, a former Soviet strongman.”52