By Sudha Ramachandran

December 15th, 2016, The CACI Analyst

India-Afghanistan relations have warmed considerably in recent months. During Afghan President Ashraf Ghani’s visit to Delhi in mid-September, the two countries deepened their defense and security co-operation and signed an extradition treaty. India also pledged US$ 1 billion towards capacity building in Afghanistan. A few days later, when the Lashkar-e-Taiba, a terrorist group with close links to Pakistan’s Inter-Services Intelligence (ISI), attacked an Indian Army base at Uri in Jammu and Kashmir, Afghanistan came out strongly in support of India. The renewed Delhi-Kabul bonding is likely to have stirred Islamabad’s anxieties. ISI and its terrorist protégés could step up attacks in Afghanistan and India in the coming months.

By Robert M. Cutler

November 7th, 2016, The CACI Analyst

According to Azerbaijan’s energy minister Natig Aliev, his country and Kazakhstan will construct an oil pipeline under the Caspian Sea to provide additional necessary routes for export of Kazakhstani oil from the offshore supergiant Kashagan field, which has finally entered commercial production after years of delay. The two sides appear unbothered by the sometimes vexatious and still unsettled matter of the Caspian Sea’s legal regime, which has for nearly two decades prevented Azerbaijan and Turkmenistan from constructing a natural gas pipeline under the sea between their two countries.

By Edward Lemon

October 19th, 2016, The CACI Analyst

Since the death of Uzbekistan’s President Islam Karimov in early September, signs have emerged of a thaw in relations between Uzbekistan and its neighbor Tajikistan. In the years since independence, bilateral relations have been plagued by mistrust, disputes over water resources and outright hostility. Both sides have adopted a series of punitive measures against each other. Although acting President Shavkat Mirziyoyev has expressed interest in “resetting” relations with Tajikistan, any improvement will be tempered by the ongoing conflict over Tajikistan’s planned hydropower plants. 

By Dmitry Shlapentokh

October 12th, 2016, The CACI Analyst

On June 8, 2016, FSU Oil & Gas Monitor quoted former UK Energy Minister Charles Hendry as saying that gas from Turkmenistan could reach European markets by various different means, including “overland routes through Iran.” It is unlikely that Hendry would make such an announcement without having received encouraging signals from both Tehran and Ashkhabad. The prospect of gas deliveries from Turkmenistan to European markets is disconcerting for Moscow, which regards the monopolization of gas supply to Europe as one of its major geopolitical and geoeconomic goals. 

By Stephen Blank

October 10th, 2016, The CACI Analyst

There are several signs of a possible turn for the better in the energy prospects of Caspian states, and especially Azerbaijan. The collapse of energy prices appears to have bottomed out. Even prices stagnating at US$ 40-60 a barrel gives energy producers a certain margin to cushion the shocks they will endure. A major aspect of the Caspian states’ comparative advantage is their proximity to Turkey and Southeastern Europe. As European growth recovers, the demand for energy coming through those states will likely grow. Ukraine’s growing freedom from Russian energy coercion will also stimulate it to look for alternatives and new opportunities for Caspian producers. Yet the perhaps most encouraging sign is the construction of new capacities to tie together and eventually integrate the European market.