cryptogon.com

The 1,774-kilometre (1,109-mile) Baku-Tbilisi-Ceyhan (BTC) oil pipeline is the world’s second longest and takes oil from Azerbaijan to Western markets.

Prime Minister Lado Gurgenidze told Georgian television: “The area of the Baku-Ceyhan pipeline was bombed by Russian planes. Miraculously, the pipeline was not damaged.”

“We call on Russia to cease attacks on Georgia by aircraft and missiles, respect Georgia’s territorial integrity, and withdraw its ground combat forces from Georgian soil,” U.S. Secretary of State Condoleezza Rice said in a statement.

Rice issued her statement as Georgia, a former Soviet state that now wants to join NATO, said it would declare martial law and battled to get control of the rebel enclave, which was fortified by Russian forces.

Georgia said Russian fighter jets bombed container tankers and a shipbuilding plant in the port of Poti, prompting Washington’s sharpest rebuke of Russia since the crisis began.

“We deplore the Russian military action in Georgia, which is a violation of Georgian sovereignty and territorial integrity,” U.S. Ambassador Zalmay Khalilzad told reporters at a U.N. Security Council meeting in New York.

The State Department summoned the Charge d’Affaires at Russia’s Embassy in Washington, Aleksander Darchiyev, to see Rice’s deputy John Negroponte, who pressed Moscow to stop its military activities in Georgia.

“The deputy secretary said that we deplore today’s Russian attacks by strategic bombers and missiles, which are threatening civilian lives,” said State Department spokesman Robert Wood of Negroponte’s meeting with the Russian diplomat.

“These attacks mark a dangerous and disproportionate escalation of tension,” he added.

Both Rice and the White House urged an immediate cease-fire in South Ossetia, and U.S. officials said they would send an envoy to the region to help mediate.

As fighting raged in and around the South Ossetian capital of Tskhinvali, Georgian President Mikheil Saakashvili said Russia and Georgia were at war.

It might seem that you were paying the same amount — about $4 a gallon — but you wouldn’t be. You would be getting, say, a mere 120 ounces instead of 128, and you would be paying more for gas.

If gas stations labeled the change clearly, would there be riots in the street? Would weary consumers simply shrug and pay the same for less at the pump?

We don’t really know how people would react. But something very much like this is already occurring at the supermarket, what Tod Marks, a senior editor at Consumer Reports, calls “the incredibly shrinking package” strategy.

The repackaging trick isn’t new. Who hasn’t opened a box of cereal or a bag of chips and marveled at the abundance of air with the food? But Mr. Marks, who tracks the grocery industry, said, “It’s definitely happening a lot more than it used to.”

Georgia has no significant oil or gas reserves of its own but it is a key transit point for oil from the Caspian and central Asia destined for Europe and the US.

Crucially, it is the only practical route from this increasingly important producer region that avoids both Russia and Iran.

The 1,770km (1,100 miles) Baku-Tbilisi-Ceyhan pipeline, which entered service only last year, pumps up to 1 million barrels of oil per day from Baku in Azerbaijan to Yumurtalik, Turkey, where it is loaded on to supertankers for delivery to Europe and the US. Around 249km of the route passes through Georgia, with parts running only 55km from South Ossetia.

The security of the BTC pipeline, depicted in the James Bond film The World is Not Enough, has been a primary concern since before its construction.

The first major attack on the pipeline took place only last week – not in Georgia but in Turkey where part of it was destroyed by PKK separatist rebels.

Output from the pipeline, which is 30 per cent owned by BP and carries more than 1 per cent of the world’s supply, is likely to be on hold for several weeks while the fire is extinguished and the damage repaired.

But the threat of another attack by separatists in Georgia itself is very real.

Only a few days before the Turkish explosion, Georgian separatists threatened to sabotage the pipeline if hostilities continued.

The latest eruption of violence could easily spur fresh attacks. The BTC pipeline, which is buried throughout most of its length to make sabotage more difficult, was a politically highly charged project. It was firmly opposed by Russia, which views the Caucasus as its own sphere of influence and wants central Asian oil to be exported via its own territory.

Russia also backs the South Ossetian and Abkhazian separatists in Georgia and relations between Moscow and Tbilisi have curdled into outright hostility in recent months.

Government buildings, including the Parliament, were evacuated when the bombs fell.

Heavy casualties have reported on both sides since Russian forces moved Friday into South Ossetia, a pro-Russian autonomous region of Georgia.

Russian bombers were targeting Georgia’s economic infrastructure, National Security Council secretary Alexander Lomaia said, including the country’s largest Black Sea port, Poti, and the main road connecting the southern part of Georgia with the east and the airport.

Georgian television reported that the port had been destroyed.

Mark Dowd of IBM Internet Security Systems (ISS) and Alexander Sotirov, of VMware Inc. have discovered a technique that can be used to bypass all memory protection safeguards that Microsoft built into Windows Vista. These new methods have been used to get around Vista’s Address Space Layout Randomization (ASLR), Data Execution Prevention (DEP) and other protections by loading malicious content through an active web browser. The researchers were able to load whatever content they wanted into any location they wished on a user’s machine using a variety of scripting languages, such as Java, ActiveX and even .NET objects. This feat was achieved by taking advantage of the way that Internet Explorer (and other browsers) handle active scripting in the Operating System.

While this may seem like any standard security hole, other researchers say that the work is a major breakthrough and there is very little that Microsoft can do to fix the problems. These attacks work differently than other security exploits, as they aren’t based on any new Windows vulnerabilities, but instead take advantage of the way Microsoft chose to guard Vista’s fundamental architecture. According to Dino Dai Zovi, a popular security researcher, “the genius of this is that it’s completely reusable. They have attacks that let them load chosen content to a chosen location with chosen permissions. That’s completely game over.”

In the most serious regional crisis since the collapse of the Soviet Union in 1991, at least 50 tanks – and possibly many more – rumbled through the Roki tunnel, which cuts through the Caucasus mountains separating South Ossetia from the Russian province of North Ossetia.

“One hundred and fifty Russian tanks, armoured personnel carriers and other vehicles have entered South Ossetia,” President Saakashvili of Georgia told reporters in Tbilisi. “This is a clear intrusion on another country’s territory. We have Russian tanks on our territory, jets on our territory in broad daylight.”

Kuwait began finalizing its “emergency war plan” on being told the vessels were bound for the region.

The US Navy would neither confirm nor deny that carriers were en route. US Fifth Fleet Combined Maritime Command located in Bahrain said it could not comment due to what a spokesman termed “force-protection policy.”

While the Kuwaiti daily did not name the ships it believed were heading for the Middle East, The Media Line’s defense analyst said they could be the USS Theodore Roosevelt and the USS Ronald Reagan.

Within the last month, the Roosevelt completed an exercise along the US east coast focusing on communication among navies of different countries. It has since been declared ready for operational duties. The Reagan, currently with the Seventh Fleet, had just set sail from Japan.

The Seventh Fleet area of operation stretches from the East Coast of Africa to the International Date Line.

Meanwhile, the Arabic news agency Moheet reported at the end of July that an unnamed American destroyer, accompanied by two Israeli naval vessels traveled through the Suez Canal from the Mediterranean. A week earlier, a US nuclear submarine accompanied by a destroyer and a supply ship moved into the Mediterranean, according to Moheet.

Currently there are two US naval battle groups operating in the Gulf: one is an aircraft carrier group, led by the USS Abraham Lincoln, which carries some 65 fighter aircraft. The other group is headed by the USS Peleliu which maintains a variety of planes and strike helicopters.

The ship movements coincide with the latest downturn in relations between Washington and Teheran. The US and Iran are at odds over Iran’s nuclear program, which the Bush administration claims is aimed at producing material for nuclear weapons; however, Teheran argues it is only for power generation.

Kuwait, like other Arab countries in the Gulf, fears it will be caught in the middle should the US decide to launch an air strike against Iran if negotiations fail. The Kuwaitis are finalizing details of their security, humanitarian and vital services, the newspaper reported.

The six members of the Gulf Cooperation Council (GCC) – Kuwait, Saudi Arabia, Bahrain, Qatar, the UAE and Oman – lie just across the Gulf from Iran. Generals in the Iranian military have repeatedly warned that American interests in the region would be targeted if Iran is subjected to any military strike by the US or its Western allies.

Bahrain hosts the US Fifth Fleet, while there is a sizeable American base in Qatar. It is assumed the US also has military personnel in the other Gulf states, The Media Line’s defense analyst said.

Iran is thought to have intelligence operatives working in the GCC states, according to Dubai-based military analysts.

The standoff between the US and Iran has left the Arab nations’ political leaders in something of a bind, as they were being used as pawns by Washington and Teheran, according to The Media Line analyst.

A Reuters correspondent said the roar of warplanes and the explosions of heavy shells were deafening more than three km (two miles) from the town. Many houses were ablaze.

Georgia’s pro-Western president, Mikheil Saakashvili, said his forces had “freed” the greater part of the territory’s capital, Tskhinvali, and ordered a full-scale mobilization of military reservists.

Russia confirmed fighting in the centre of town.

Georgia said four Russian jets entered Georgian airspace and dropped bombs on two places just south of the territory, which has been outside central government control since the 1990s.

There was no immediate comment on the report from Moscow.

The crisis, the first to confront Russian President Dmitry Medvedev since he took office in May, has fuelled fears of full-blown war in a region emerging as a key energy transit route and where Russia and the West are vying for influence.