By Erik Davtyan (19/08/2015 issue of the CACI Analyst)

July was a productive month for bilateral cooperation between Armenia and Georgia. Firstly, the two states expanded their dialogue in the military sphere. On July 16, a delegation headed by Armenia’s first Deputy Minister of Defense Davit Tonoyan visited Tbilisi. A subsequent meeting between representatives of the two defense ministries took place on June 24-25 within the framework of the North Atlantic Council (NAC) Defense Ministers meeting in Brussels, during which Armenia’s and Georgia’s Defense Ministers Seyran Ohanyan and Tinatin Khidasheli discussed bilateral military ties. Khidasheli later explained that the parties agreed “to find new areas of cooperation.”

By Arslan Sabyrbekov (19/08/2015 issue of the CACI Analyst)

On July 21, Kyrgyzstan’s Prime Minister Tamar Sariev signed a government decree, unilaterally terminating the 1993 cooperation framework agreement with the U.S. Bishkek’s decision came as a reaction to the State Department’s decision to reward Azimjan Askarov with the Human Rights Defender Award. To Kyrgyz officials, Askarov is an ethnic Uzbek political activist serving a life sentence for organizing and taking part in the mass riots in Southern Kyrgyzstan in June 2010. In its official protest note to Washington, Kyrgyzstan’s Ministry of Foreign Affairs has referred to him as “a symbol of disruption” and described the award as evidence of an attempt to undermine the country’s unity. 

By Armen Grigoryan (19/08/2015 issue of the CACI Analyst)

The Iranian nuclear deal may create new opportunities for Armenia. However, whereas Armenia’s Ministry of Foreign Affairs and other governmental agencies should consider the opening prospects of energy cooperation with Iran seriously, their traditional pro-Russian attitude reduces the chance for taking advantage of the changing geopolitical situation and, at the same time, increases the risks for Armenia’s own security and regional stability in general.

By Natalia Konarzewska (19/08/2015 issue of the CACI Analyst)

The North Caucasus is the Russian Federation’s most economically impoverished region, as well as the most dependent on government revenues. Due to Russia’s dwindling financial situation, federal subsidies for the region are shrinking, which negatively affects welfare and social service expenditures as well as investment projects. Since last year, many state-owned regional companies have gone bankrupt. Fluctuations in government revenues will pressure local governments to increase borrowing from external sources, loans that they will have a hard time paying back. The North Caucasus therefore risks seeing a series of financial defaults. 

By Stephen Blank (19/08/2015 issue of the CACI Analyst)

The annual summit of the Shanghai Cooperation Organization took place on July 9-10 in Ufa, and ratified the expansion of membership to include India and Pakistan, and Iran may join in the future. Thus the SCO is well on the way to becoming a venue for the most powerful Inner Asian states to work together and discuss policy issues affecting Central Asia and beyond. But new membership is not likely to make this organization any more effective as a regional security provider. In fact, all the disputes among the major members, including India and Pakistan, might be imported into the SCO’s structure and serve as a brake on the expansion of its capabilities.