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 Nurlan Aliyev

May 21, 2018, the CACI Analyst

On March 16, Sputnik Azerbaijan published information on Azerbaijani participants of the international sport competition Football for Friendship, financed by Gazprom. On the same day, the vice-president of the Italian Senate Linda Lanzillotta, visiting Baku, stated that Russia is behind protests against the construction of the Italian segment of the TAP pipeline. This is one example of how Russia’s means for exercising soft and hard, if covert, power coexist in the former Soviet republics. Yet soft power influences receive decidedly less attention in reporting and discussion on Russia’s relations with these countries and Azerbaijan is an illustrative case in this regard. 

 By Fariz Ismailzade

May 11, 2018, the CACI Analyst

The appointment of a new Prime Minister and the new composition of the Cabinet of Ministers of Azerbaijan have raised hopes for speedy economic reforms and liberalization of the national economy. New, young and foreign-educated ministers are expected to create more transparency and accountability in the system, create a more attractive business climate and further ensure the sustainable development of the country. President Aliyev’s new appointments have been welcomed by the public and foreign investors, and hint at the urgent need to deepen the pace of reforms.

 By Stephen Blank

January 25, 2018, the CACI Analyst

On December 5, 2017, Russian Foreign Minister Sergei Lavrov announced that all the key issues regarding the delimitation of the Caspian Sea had been resolved and that a treaty was being prepared for heads of state to sign in 2018 in Astana. Yet less optimistic statements from the other parties, particularly Iran, suggest that Lavrov’s assessment was premature. If Russia and Iran can nevertheless reconcile their differences on the demarcation of the Caspian, this would have important strategic consequences not only for the littoral states, but also for the Caucasus, Central Asia and the Middle East.

 By Ilgar Gurbanov

January 23, 2018, the CACI Analyst

Before the Eastern Partnership’s (EaP) Brussels Summit in November 2017, many observers expected the finalization of the new EU-Azerbaijan agreement. However, neither this agreement nor an expected aviation agreement were signed, as many technical challenges remain to be addressed. Azerbaijan signed only a visa-free agreement with the BeNeLux countries for service passports holders and the indicative maps of the Trans-European transport network (TEN-T). The summit’s final declaration clearly articulated the EU’s support for the territorial integrity and sovereignty of its partners and called for peaceful conflict settlement based on international law. The declaration also hailed the Southern Gas Corridor’s (SGC) strategic importance and the progress made in the negotiations for the new agreement.