Medvedev Leads Russia’s Scramble For Africa: Obama Dithers

It has been a couple decade ssince the then USSR used Cuba as its African proxy to spread violent discord across the continent most notably then in Angola. That pretty much failed and certainly ended when the USSR collapsed. .

Now the race for Africa’s resources is heating up again as RFussia’s President Dmitry Medvedev goes on a four-day trip this week to key countries aimed at reestablishing Russia’s influence on the continent.

After signing a strategic cooperation pact with Egypt, Dmitry Medvedev travelled to Namibia, before penning nuclear and gas deals with energy-rich Nigeria on Wednesday.

According to a featute story in MOSCOW NEWS datelined June 25, 2009 exact details of the Nambian deal were not released, Gazprom, Russia state owned energy giant, was reportedly interested in signing a $2.5 billion deal to create a joint oil and gas exploration venture with the Nigerian National Petroleum Corp, signaling its intent to strengthen its grip on Europe’s energy supply.

Although exact details were not released, Gazprom, Russia state owned energy giant, was reportedly interested in signing a $2.5 billion deal to create a joint oil and gas exploration venture with the Nigerian National Petroleum Corp, signaling its intent to strengthen its grip on Europe’s energy supply.

Although exact details were not released, Gazprom, Russia state owned energy giant, was reportedly interested in signing a $2.5 billion deal to create a joint oil and gas exploration venture with the Nigerian National Petroleum Corp, signaling its intent to strengthen its grip on Europe’s energy supply.

“I think Gazprom still wants to buy all gas produced around Europe and resell it on its own terms,” said Mikhail Korchemkin, head of the East European Gas Analysis, a US-based consultancy.

Gazprom has lagged behind competitors like Royal Dutch/Shell and ExxonMobil in the battle for Afircan oil and gas.

To start competing Gazprom wants to gain involvement in the Trans-Saharan pipeline, which would transport Nigerian gas to Europe, though some have seen geo-political motivations in this move as re-exporting gas eats into the monopolist’s profit.

“As a business model, it [re-exporting African gas] does not make sense,” said Korchemkin.

Although Russia is not dependent on Sub-Saharan raw materials, there are substantial gains to be made as their extensive resources remain undeveloped.

“The sizeable infrastructural gap in Nigeria and Angola could also create substantial attractive opportunities for Russian companies in the power, energy and construction sectors,” Renaissance Capital wrote in a note.

It is speculated that LUKoil is looking to increase its presence in West Africa, as it has investments in Ghana and Cote D’Ivoire, while RusAl already holds a majority stake in Nigerian aluminium smelter Alscon.

Medvedev was scheduled to meet with Angola’s president, Jose Eduardo dos Santos, who studied in the Soviet Union and was married to a Russian.

Angola is a major oil producer and currently holds the OPEC presidency.

“While the trip to Angola might be driven by the desire to secure contracts in the oil industry, one should not discount the ‘political relation’ aspect of this visit,” Renaissance Capital said in a note.

Despite not having the economic clout of Nigeria and Angola, Africa’s second- and third-largest economies, respectively, Namibia was on Medvedev’s agenda as a major producer of uranium oxide and has extensive undeveloped natural resources, including diamonds, in which Russia’s Alrosa has investments.

Nuclear power was on the agenda in Egypt, which is building its first nuclear plant in 20 years and Rosatom is hoping the presidential visit will boost their claim for the $1.8 billion tender.

Since the USSR’s collapse “Russia’s” influence in Africa has withered while China’s has investments have boomed - to $11 billion in Nigeria alone.

Playing the Africa card appears a logical next step in the Putin planned renaissance of Russia. Its resurrection in the Middle East and now Africa has largely resulted from the [received weakness in Obama foreign policy that is seen as fragmented, and a peculiar mix of Ramsey Clark and Rodney King. Plus Obama is obcessed with pushing an increainsgly radical domestic agenda and even more desperate to renew the START nuclear arms reduction treaty which Medvedev will do while exacting a painful lonmg term price for the US.