RUSSIA AND AZERBAIJAN NEGOTIATE NEW LEASE OF THE GABALA RADAR STATION

By Mina Muradova (08/17/2011 issue of the CACI Analyst)
At the height of discussions between the U.S. and Russia on potential collaboration on an anti-missile defense system, Russia’s Defense Minister visited Baku to renegotiate a lease for Azerbaijan’s Gabala radar station. Although over a year remains before the current lease agreement expires, official Baku gave a clear message to Moscow that it is ready to extend the lease in return for more cash.

Built in 1985, the Gabala radar station was an element of the Soviet anti-missile defence system. Located in a mountainous area in northern Azerbaijan, it is designed for ballistic missile early warning, including tracking, coordinate measuring and computation of trajectory parameters. Its range capability on targets is 6,000 kilometers, which allows monitoring of Iranian, Turkish, Indian, Iraqi, Pakistani, and partly Chinese airspace, along with several Asian and African countries.

Russia’s 10-year lease on the Gabala radar station will expire in December 2012. Baku will set new terms for extending the agreement, in particular raising the annual fee that Russia currently pays for using the radar station, which is now US$ 7 million. At the same time, Baku allegedly wants to revise the price of electricity supplied to the station. Referring to diplomatic sources, the APA news agency reported in June that Baku wants to increase the electricity price and switch tariffs from the one normally applied to commercial organizations to the tariff for “exported” electricity. Last year, Baku wrote off Russia’s electricity debt accumulated before 1997, which was estimated to several million US$. Another matter the sides are negotiating is an increased number of Azerbaijani personnel at the radar station, as well as the employment of Azerbaijani citizens at shops, cafes and other facilities servicing the Russian personnel operating it and their families. In addition, Azerbaijan will ask for compensation for the financial losses incurred by the limitations on tourism in the Gabala region.

During a July visit to Azerbaijan, Russian Defense Minister Anatoly Serdyukov claimed that Russia plans on upgrade the radar station. “Over the next few days, Russia will set up a working group to visit Baku for two weeks to work out all technical issues. Already after August 15 we can discuss with my Azerbaijani counterpart in detail each of the points of an agreement to extend the lease of the Gabala radar station,” he said.

The Russian minister was received by President Ilham Aliyev and his Azerbaijani counterpart Safar Abiyev. “Our countries have quite good relationships in the military and military-technical cooperation. Almost everything we planned for 2010 has been done and we are on schedule in plans for 2011. We proposed Azerbaijan to increase the quotas for training the armed forces of Azerbaijan. Now the application will be considered,” Serdyukov informed.

The question is whether Russia really needs the Gabala radar station. Opinions are divided between those who consider it a purely political issue and those who think the radar station is still important for defense purposes. From a political point of view, experts note that Russia wants the station in order to keep a military presence in Azerbaijan. Others think that the radar station is an important element of Russia’s anti-missile system for defending its southern borders adjacent to Iran and Turkey.  

AFP reported in June that two key U.S. senators expressed concerns about a possible agreement to base a missile shield radar in Turkey, citing the NATO ally’s strained ties with Israel and relations with Iran. Republican Senators Jon Kyl and Mark Kirk wrote to Defense Secretary Leon Panetta and Secretary of State Hillary Clinton that the South Caucasus is “the optimum placement” if the system is designed as defense against a potential Iranian ballistic missile attack.

The recent intensification of negotiations between the U.S. and Russia on a unified European antimissile framework has increased the importance of the Gabala radar station for Russia. While Washington and other NATO members are convinced that the system is intended to counter an emerging Iranian missile threat, Russia is concerned that the scheme would undermine the credibility of its own strategic deterrent. In 2007, Moscow offered the U.S. and NATO to use the radar station in the development of the European missile defense network. U.S. and Russian experts visited the radar station but no agreement was reached.

However, the U.S. does not rule out a future dialogue with Azerbaijan on the Gabala radar station, Assistant Secretary of State for Political-Military Affairs Andrew Shapiro told a press conference in Baku on June 24. The diplomat noted that the U.S. was discussing missile defense cooperation with Russia and Azerbaijan within the framework of a partnership with NATO. “Negotiations on the missile defense are held both between the U.S. and Russia and within the U.S.-Azerbaijan dialogue on security problems,” Shapiro emphasized. The U.S. may continue negotiations on the format for using the Gabala station with Azerbaijan and Russia in the future.

In turn, Azerbaijan’s Deputy Foreign Minister Araz Azimov pointed out that this radar station plays “an important role in providing security for Russia,” and that the question of rent will be raised again after the term is completed. “Russia’s negotiations with the U.S. and NATO on missile defense issues, particularly issues of security in this area, are of importance as well. That is why we consider that these negotiations will be continued in the future,” Azimov said.

Experts predict that Baku and Moscow will continue hard bargaining throughout next year. While Azerbaijan uses Russia’s interest in the radar station as a means for increasing the rent, the Kremlin will instead seek a deal involving non-cash compensation, such as modernization of the station and expanding the education program for Azerbaijan’s soldiers.