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.
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 Armen Grigoryan
February 22nd, 2016, The CACI Analyst
The confrontation between Russia and Turkey, and the fast-changing situation on the oil and natural gas markets, have strongly impacted the Nagorno-Karabakh conflict resolution process, as well as the internal state of affairs in both Armenia and Azerbaijan. Russia recently increased its military presence in Armenia, which has unsuccessfully sought support from fellow CSTO members in its confrontation with Azerbaijan. The ongoing clashes along the line of contact imply that the situation will likely remain tense in the short term. Meanwhile, the economic downturn in Armenia and Azerbaijan, as well as in Russia, increases the risk of domestically motivated escalation of the conflict.
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.