BTC pipeline in Georgia shows need for greater ECA diligence (PDF)
(The Corner House, Dorset, 26 August 2008) The Corner House has written to the UK Export Credits Department, raising questions about their due diligence on the conflict risks of the BTC pipeline, which in recent weeks has been subject to bombing by the PKK in Turkey and an airstrike by the Russians in Georgia. The letter cites documents which show that concerns were raised by the UK government that the pipeline would not be economic without oil from Kazakhstan, which, in the wake of the recent conflicts, has said it might stop using the pipeline. Other documents cited suggest that the ECGD never adequately considered the risk that Russia might react to the BTC pipeline by seeking to re-exert control over Georgia and other ex-Soviet states in the Caucasus region. The Corner House has also written to the National Audit Office requesting an investigation to assess whether the premiums charged by ECGD adequately reflected the conflict risks. Some media coverage of the war in Georgia have highlighted how taxpayer money is wrapped up in the war.