By Fuad Shahbazov

June 28, 2018, the CACI Analyst

On May 29, Azerbaijan’s President Ilham Aliyev officially inaugurated the first phase of the long-awaited flagship project Southern Gas Corridor (SGC), through which Caspian natural gas from the Shah-Deniz II field will be transported to Europe. The new project consists of several pipeline networks that pass through Georgia and Turkey (via the Trans-Anatolian Pipeline, TANAP) and further through Greece, Albania and Italy (via the Trans-Adriatic Pipeline, TAP). As Shah Deniz Stage 2 is implemented, gas production will increase from 9 to 25 billion cubic meters (bcm) per year. 

 By Casper Wuite

May 10, 2018, the CACI Analyst

EU neighboring countries such as Georgia are carefully monitoring the Brexit negotiations. Georgian government officials worry that Brexit will further delay Georgia’s Euro-Atlantic integration. Under a post-Brexit French-German leadership, few expect significant changes to the EU’s neighborhood and enlargement policy. The lack of new incentives short of a membership perspective will be a setback for Tbilisi, which is keen to determine new perspectives on further integration. To advance its Euro-Atlantic integration it should temper its expectations and focus on implementing reforms associated with the AA/DCFTA, exploring defense and security co-operation, and engage with the public on the European Union and its policies.

 By Armen Grigoryan

December 21, 2017, the CACI Analyst

The new framework agreement between Armenia and the European Union creates some opportunities to implement governance reforms and to amend the legal framework, which would improve the investment climate. The new agreement excludes free trade provisions which would contradict Armenia’s commitment to the Russia-led Eurasian Economic Union (EEU). Meanwhile, EEU membership continues to undermine the welfare of Armenian citizens, despite previous official assurances, while the lack of political will deriving from both internal and external factors may potentially limit the government’s readiness to implement reforms.

By Surayya Mammadova

September 12, 2017, the CACI Analyst

Prior to the 2015 Riga summit, Azerbaijan began to distance itself from EU partnership initiatives. Responding to criticism on crackdowns that intensified since 2013, the country adopted an increasingly anti-Western rhetoric in its foreign policy. Since then, the geopolitical and economic situation in Eastern Europe and the South Caucasus has become more complicated and unpredictable, forcing both the EU and Azerbaijan to reevaluate their strategic priorities. Negotiations on a new partnership agreement began in February 2017, during Ilham Aliyev’s long awaited visit to Brussels, and the parties plan to finalize a draft agreement by November. Although Azerbaijani and EU interests align in some areas, issues such as political and security cooperation could become stumbling blocks once again. 

By Boris Ajeganov

January 23, 2017, the CACI Analyst

Foreign investment in Georgia is strengthening the country’s importance in connecting East Asia with Europe, which has positive implications for the broader region. The rise in FDI in commercial and transportation infrastructure in combination with the signing of international free trade agreements will reduce Georgia’s vulnerability in terms of economic and, ultimately, ‘hard’ security. The growing importance of the South Caucasus as node for EU-China trade will weaken Russia’s incentives to undermine its southern neighbors by military, political, and economic means as it has done in the past. Accordingly, Tbilisi’s ability to conduct an independent foreign policy is set to improve despite the absence of Western security guarantees.