By Najia Badykova
March 30th, 2016, The CACI Analyst
On February 29, 2016, the Southern Gas Corridor Advisory Council met in Baku for the second time and asserted that the diversification of EU energy sources remains a key component of the Union’s energy security policy. But the project faces serious hurdles. After many years of discussions with potential gas suppliers, Brussels has only been able to secure 10 billion cubic meters (bcm) of Azerbaijani gas per year for the corridor, a tiny fraction of EU members’ needs. Without securing significantly larger new gas supplies, it will be difficult economically and politically to justify such a large and expensive infrastructure project. While EU officials continue to assert their commitment to the corridor, it is unclear whether Brussels is moving toward the pragmatic approach necessary to secure more gas for the scheme or if we are only witnessing further rhetoric from bureaucrats.
By Natalia Konarzewska
March 25th, 2016, The CACI Analyst
In late December 2015, Turkmenistan officially announced the completion of the East-West gas pipeline. This 773 kilometer route with an annual capacity of 30 billion cubic meters (bcm) will connect natural gas from fields located in eastern Turkmenistan to those along its Caspian Sea coast, with the potential of further transfer via the Caspian Sea and onward to the Turkish and European markets. The construction of the pipeline is complementary to Turkmenistan’s current strategy for gas exports. Ashgabat seeks broader export opportunities in Turkey and Europe to reduce its dependence on Russia and China as major gas export outlets. However, despite positive political shifts, which might enhance Turkmenistan’s energy cooperation with Turkey, Azerbaijan and the EU, several obstacles remain to the westward transfer of Turkmenistan’s gas.
By Fariz Ismailzade
March 11th, 2016, The CACI Analyst
After a decade of transformational economic growth, reduced oil prices forced Azerbaijan to a double devaluation of its national currency, significant reduction of public spending, slowdown of GDP, and most importantly, panic in the domestic market among both the general population and the business community. The government responded with several anti-crisis programs and measures, aimed at stimulating national economy, supporting local production and easing the business climate for the local entrepreneurs. President Ilham Aliyev has called 2016 “a year of deep economic reforms.” It remains to be seen whether the country will be able to shift gears and transform its economy to achieve sustainable growth from non-oil sectors.
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 Erik Davtyan
March 8th, the CACI Analyst
On February 1-2, Georgia’s Defense Minister Tinatin Khidasheli paid an official visit to Armenia. During a meeting with her Armenian counterpart Seyran Ohanyan, the two defense ministers discussed issues pertaining to Armenian-Georgian relations as well as global and regional security issues. The parties also signed a military cooperation plan for 2016, prioritizing exchanges of experience, military education, professional training, and strategic planning as the main objectives of this year’s agreement. It is noteworthy that Armenia and Georgia have signed military cooperation plans annually since 2010.
The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.