By Stephen Blank
July 1st, 2016, The CACI Analyst
Despite the ongoing terrorist insurgency, Russian officials claim significant progress in pacifying and reintegrating the North Caucasus. For example, in 2015 alone, Ministry of Interior forces in the North Caucasus (VVMVD) allegedly killed over 70 militants. Yet the National Anti-Terrorist Committee expects that the situation in 2016 will show no signs of marked improvement. Moreover, despite many Jihadis’ departure for Syria or Iraq, local insurgent activity has not slackened. In this context, Russia is reaching out to Saudi Arabia, Gulf States and their investment vehicles, as well as Azerbaijan in what may signify more than just a search for foreign investment. Arguably, these moves mark another stage in the recession of Russian power from the North Caucasus.
By Natalia Konarzewska
June 24th, 2016, The CACI Analyst
Once again, NATO will likely turn down Georgia’s bid for a Membership Action Plan (MAP) during the Alliance’s fast-approaching Warsaw summit on 8-9 July. Instead, NATO assures that Georgia will receive a firm declaration and a strengthened package of support during the summit, but no details have been yet specified. Apparently, some of NATO’s most powerful members are anxious that offering Tbilisi more will irritate Russia, which is already protesting plans to further strengthen NATO’s eastern flank. While NATO at present does not close the door to the future enlargements, Georgians are becoming increasingly dissatisfied with their country’s inability to clear the path to membership – a fact eagerly exploited by outlets for Russian propaganda, which are gaining strength in Georgia.
By Najia Badykova
June 17th, 2016, The CACI Analyst
Free of many sanctions, Iran is becoming an active player in the South Caucasus, taking steps towards greater involvement in the region. Russia is not objecting, and even appears to be supporting these initiatives. In March, Armenia’s Energy Minister Levon Yolyan announced that Iran will build a gas distribution network in southern Armenia. Russia’s Gazprom, which currently controls that country’s gas distribution system, has not opposed this plan. Iran is also involved in another initiative with Russia, Armenia and Georgia. The four countries have agreed to build the North-South Energy Corridor, linking them to a unified electric grid. These recent initiatives are just the first to take off. Iran and Russia have been deepening their economic ties with all South Caucasus countries, securing reliable transit corridors while keeping other foreign competitors out of the picture.
By Tony Pizur
June 14th, 2016, The CACI Analyst
After the ruble crashed in 2014, the Kyrgyz Central Bank (KCB) prevented Kyrgyzstan’s national currency, the som, from depreciating in tandem with the Russian currency. Given Kyrgyzstan’s ascension into the Eurasian Economic Union (EEU) and the country’s heavy reliance on remittances from expatriates living in Russia, the KCB’s decision to maintain a relatively strong Kyrgyz currency seems counterintuitive. However, the stable som policy is predicated on long-term structural changes in trade patterns toward China. With the Chinese currency tied to the U.S. dollar, the decision to keep the som stable is based more on central bank policies in Washington and Beijing than in Moscow.
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.
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