By Ilgar Gurbanov

October 17th, 2016, The CACI Analyst

The Iran-Armenia-Georgia gas talks have recently gained momentum. Iranian and Georgian companies have signed gas purchase contracts, to supply natural gas to Georgia through Armenia. While the perspective of enhanced Iran-Armenia-Georgia gas cooperation is limited from political and technical viewpoints, Armenia is actively seeking to carve out a new role for itself in order to mitigate the repercussions of its long-running isolation in the region. Yet the dominant role of Russia’s Gazprom in Armenia’s energy sector, as well as the lack of technical opportunities, pose significant obstacles to the delivery of large amounts of Iranian gas to Georgia through Armenia. 

By Almaz Rza

July 12th, the CACI Analyst

“Sagol Azerbaijan,” German Formula 1 driver for the Mercedes team Nico Rosberg tweeted on June 20. The leader of the 2016 F1 season thanked the host country of the F1 Grand Prix of Europe. Rosberg collected his 19th Grand Prix win with Ferrari’s Seb Vettel in second and Force India’s Sergio Perez third. 

This June, the Baku City Circuit, a street track in Azerbaijan, saw F1 cars thunder for the very first time. A six-kilometer track with 20 turns is the latest design of Herman Tilke, a 61-year-old German engineer, who has designed every new F1 venue since the Sepang International Circuit in Malaysia in 1999 and also redesigned several older tracks. Like Monaco’s, the Baku track is built through the existing streets of a seaside city but unlike Monaco, which hosted its first race in 1929, the Baku track has a long straight (2.2 kilometers along the seaside boulevard) for overtaking. 

By Mamuka Tsereteli

March 10th, 2016, The CACI Analyst

On March 4, 2016, Georgia and Azerbaijan reached a deal that allows Georgia to receive close to 500 million cubic meters (mcm) of additional gas annually from Azerbaijan. Georgia’s Minister of Energy Kakha Kaladze announced after the signing that Georgia will no longer need to buy additional volumes of gas from Gazprom. This ends several months of speculation about Georgia’s concessions to Gazprom, fueled by a number of controversial statements by government officials. This agreement strengthens the strategic partnership between Azerbaijan and Georgia, and keeps Georgia from becoming further affected by Gazprom’s coercive power. 

By Boris Ajeganov

March 7th, 2016, The CACI Analyst

Uncertainty on the future of Georgia’s energy security has been growing since late 2015, when Georgia’s minister of energy and deputy PM Kakha Kaladze met with Alexey Miller, CEO of Russia’s Gazprom twice in the span of a month. Discussions on Gazprom’s potential return to the Georgian market quickly raised eyebrows in Baku and caused popular protests in Tbilisi. In a March 4 turnaround, Kaladze announced a deal to receive additional gas from Azerbaijan, thus removing the need to import Russian gas. Party politics aside, Tbilisi appears to have skillfully used its strategic position in the South Caucasus to secure a favorable energy deal without sacrificing its sovereignty.

By Natalia Konarzewska

December 7th, 2015, The CACI Analyst

After meeting with Gazprom’s CEO Alexei Miller in Milan on September 25, Georgia’s Energy Minister Kakha Kaladze announced that the parties discussed increasing Russia’s transit of gas to Armenia and opened a possibility for Georgian commercial entities to buy additional volumes of Russian gas. In October, Kaladze reiterated that Tbilisi wants to diversify its natural gas routes and suppliers through imports from Russia and possibly Iran. No details about the eventual increase of gas shipments from Russia have so far been revealed. Yet the prospective agreement has already caused controversy among Georgian political opposition, which questions Gazprom’s reliability as a gas supplier, and raised concerns in Azerbaijan, which is Georgia’s largest gas provider.