By Stephen Blank
November 27th, 2016, The CACI Analyst
Few people think about trends in the Caucasus with reference to or in the context of Russia’s Syrian intervention. But Moscow does not make this mistake. From the beginning, Moscow has highlighted its access to the Caucasus through overflight rights and deployment of its forces in regard to Syria, e.g. sending Kalibr cruise missiles from ships stationed in the Caspian Sea to bomb Syria. Therefore we should emulate Russia’s example and seriously assess military trends in the Caucasus in that Syrian context.
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 Ilgar Gurbanov
October 17th, 2016, The CACI Analyst
The Iran-Armenia-Georgia gas talks have recently gained momentum. Iranian and Georgian companies have signed gas purchase contracts, to supply natural gas to Georgia through Armenia. While the perspective of enhanced Iran-Armenia-Georgia gas cooperation is limited from political and technical viewpoints, Armenia is actively seeking to carve out a new role for itself in order to mitigate the repercussions of its long-running isolation in the region. Yet the dominant role of Russia’s Gazprom in Armenia’s energy sector, as well as the lack of technical opportunities, pose significant obstacles to the delivery of large amounts of Iranian gas to Georgia through Armenia.
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.
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.