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PONARS Eurasia
PONARS Eurasia
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Manas Revisited

  • January 10, 2011
  • PONARS Eurasia

 

The situation around the fueling contract for the Manas Air Transit Center continues to involve the highest levels of government in both the United States and Kyrgyzstan. A new actor was added to the complex roster of associated companies and characters when a new Kyrgyz state-owned fuel company, Refueling Complex Manas, apparently became a subcontractor to Mina Corp in early January 2011. A recent U.S. congressional report outlines a scheme devised by Mina Corp and its sister company Red Star Enterprises, along with former Kyrgyz officials. The scheme involved purchasing jet fuel from Russian companies, bypassing the Russian ban on the sale of fuel for military use. Officials from Mina and Red Star claimed that Russian officials were “in the know,” but when the story became public, Russian sales to the two companies halted and fuel availability at Manas dwindled rapidly. During a 2006 investigation conducted by the Defense Logistics Agency (DLA), Mina Officials told investigators it was best to “absolutely let sleeping dogs lie.” Furthermore, the Director of Operations for both Mina and Red Star, Chuck Squires, is quoted as saying: “I’m an old Cold Warrior, I’m proud of it. We beat the Russians and we did it for four or five years.” Regardless of the apparent un-checked behavior of Mina/Red Star, the companies were still given a no-bid contract for Manas in 2009 by the DLA. The congressional report concludes with a desire for increased transparency between the DLA, Congress, Mina/Red Star, and their business partner Gazprom. This is not the first time Mina and its sister company Red Star have attracted the attention of the US government. There was a previous investigation into the activities of Red Star Enterprises involving diverting fuel trucks in 2006 for private sale. Despite these connections, the Congressional Committee claims no evidence of wrongdoing was found, and that the Pentagon can be faulted for completing deals in ignorance of diplomatic fallout and high levels of secrecy (Washington Post). Mina/Red Star continues to attract the attention of Kyrgyz interim President Roza Otunbayeva, as well. In an interview (24.kg) on 30 December, Otunbayeva repeated her allegations that Mina/Red Star is connected to the Bakiyev family. On the Kyrgyz-language news website 24.kg, Mina/Red Star published a piece stating that Otunbayeva is not well informed on the state of affairs inside her own country. The editorial describes meetings held between Mina/Red Star with Otunbayeva’s son, and stated that the corporation did not receive any favors from any Kyrgyz regime as they are protected from domestic interference by treaty. What is interesting about the relationship between the United States, Kyrgyzstan, and Mina/Red Star is that it appears that Mina/Red Star is increasingly being treated as an equal partner to Kyrgyzstan, where a corporation is drawing the attention and revealing the impotency of the newly formed Kyrgyz government. While the Kyrgyz government is floundering under dwindling natural gas imports, political instability, low-level violence wracking its major cities, Red Star and Mina are flourishing economically and politically. Red Star and Mina Corp are part of a larger, umbrella organization by the name of Aspen Wind. Aspen Wind controls a pearl-trading company out of Bishkek, Coca-Cola distribution centers in Afghanistan, wireless internet providers at Bagram, Manas, and several airfields in Iraq. To track Aspen Wind’s, and therefore Red Star and Mina Corporation’s, successful accumulation of wealth is to track American foreign policy since 2001. Red Star and Mina Corp also subcontract out energy supplies to Kazakh firms operating oil fields on the border between Kazakhstan and the Russian Federation. DLA officials claim that they were unaware of this relationship, the Congressional report claims. Such sales of fuel originating in Russia are illegal according to Russian law. While the Congressional report did not find any evidence to support Otunbayeva’s claims that Mina and Red Star are involved with pro-Bakiyev forces in the country, no real action will likely be taken against the two entities. The reason behind this inaction can be explained in a 2006 statement from Mina Corporation: “No other company can currently offer this option and inquiries or attempts by others could severely disrupt fuel supplies to the U.S. Military in Kyrgyzstan and Afghanistan and cause significant material damages.” In an interesting new development in 2011, the Kyrgyz news agency “24″ reported that a new Kyrgyz state-owned fuel company, Refueling Complex Manas, became a subcontractor to Mina Corp. It will use TS-1 jet fuel from the company to help meet the requirements of the U.S. Armed Forces. “We are pleased to be working with the recently created Kyrgyz state company and look forward to a productive partnership supplying jet fuel to the Manas Transit Center,” said Denis Grigoriev, Mina Corp’s Chief Executive Officer (24.kg). – Wilder Bullard, staff contributor

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