The "spy crisis" between Georgia and Russia has brought relations between the former Soviet states to their lowest point in decades, reports Shohdy Naguib from Moscow On 27 September, Georgia announced the arrest of four Russian military intelligence officers accusing them of establishing a spy network and organising terrorist acts. Eleven Georgian nationals were also arrested. Georgian police surrounded a Russian military headquarters building in Tbilisi claiming that a fifth suspect was there. The move was marked by an observation of legal norms and wide publicity. The accused were allowed immediate access to lawyers and were swiftly brought to court. The court ordered all four to be detained for two months pending investigations. Emerging from the courtroom the Russian officers were handed over to Organisation for Security and Co-operation in Europe (OSCE) Chairman Karel De Gucht and transferred to the airport to be flown to Russia. This apparent goodwill gesture on the part of Georgia met little appreciation in Moscow. On Monday, before the release of the officers, Russia announced that it would cut off all transport and postal links with Georgia, threatening a total blockade. Georgia relies heavily on Russia's energy supplies; the impact of this diplomatic row potentially severe ahead of the approaching winter. Additionally, hundreds of thousands of Georgian workers in Russia may find themselves unable to send their earnings back home and many of them may face deportation. The estimated one billion dollars annually transferred by Georgian nationals from Russia amount to half of the country's budget. Moscow's apparently disproportionate reaction finds context in other developments that overshadowed relations between the two countries since Mikheil Saakashvilli came to power during the Western-sponsored "Revolution of Roses" in 2003. Western media invariably attributes Moscow's negative stance towards "democratic Georgia" to the unfolding of the "Second Cold War" between Russia and the US. Upon coming to power, Mikheil Saakashvilli vowed to restore Georgia's sovereignty over all of its territory. Three years later, and on the eve of municipal elections, this has not been accomplished. The enclaves of Abkhazia and North Ossetia are still outside the control of Tbilisi and negotiations over their integration have stalled. Striking at Russia with an espionage scandal, the Georgian president probably wanted to discredit Moscow in its role of mediator in the negotiations about the future of the Abkhazia and North Ossetia. Setting Russia out as an interested party and hostile to its national interests would serve to convince the West that the Russian peacekeepers should be replaced with a neutral contingent. There is no consensus in the West with regard to the "frozen conflicts" within Georgia. The US is supporting Tbilisi while Europe is more cautious, fearing escalation. Both Europe and US agree that in the future Georgia may join NATO. This distant promise encourages the Georgian pro-Western elite while setting limits on its aggressive policy towards Russia. Meanwhile, Saakashvilli has few achievements to his credit so evoking an external enemy serves to promote his own ratings and to consolidate the position of pro-Western elites. Lately Russia has been following a pragmatic policy of gradual disengagement with all of its former allies. Instead it is unfolding an ambitious programme of military, economic and agrarian reform. Plans have even been announced to bring back about 25 million ethnic Russians who live in the former Soviet republics in an attempt to cope with Russia's severe population crisis. In this bigger picture Saakashvilli's latest provocation looks pathetic. The West is not going to compensate Georgia for losses from this severing of ties to its powerful neighbour. The vision of a "new Caucasian Switzerland" is just a mirage that has been used to lull Georgians into accepting the Western promise. Bringing NATO in is not a panacea against the economic and social ills that plague the country. On the other hand, the US continues to pursue an aggressive and provocative policy towards Russia in its pursuit of control over energy resources and means of their transportation. With the inauguration of the Ceyhan-Tbilisi-Baku (BTC) oil pipeline, which links the Caspian Sea to the Eastern Mediterranean, Washington has practically set up a new bloc, including Azerbaijan, Georgia, Turkey and Israel. The BTC pipeline bypasses Russia transiting Azerbaijan and Georgia. Israel has a stake in the source oil fields and is now importing some 20 per cent of its oil from the Caspian Sea basin. Energy politics continues to dominate the regional scene and Russia's emerging role as one of the world's energy producers cannot but be a worry to the US, the world's predominant superpower. Addressing the Russian Security Council Sunday, President Vladimir Putin said: "Apparently, there are powers that specialise in continuously creating crisis after crisis, assuming that this will distract attention from old problems." Was he talking of Tbilisi or was he talking of Washington?