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  • Caspian pipelines meet in Kazakhstan

    Agency WPS
    What the Papers Say Part A (Russia)
    August 10, 2007 Friday



    CASPIAN PIPELINES MEET IN KAZAKHSTAN;
    Nursultan Nazarbayev and Ilkham Aliyev divide interests

    by Arkady Dubnov


    Kazkhstan busy with gas pipeline negotiations; A cooperation
    memorandum for the Trans-Caspian Pipeline project was among the
    bilateral documents signed during Azeri President Ilham Aliyev's
    two-day visit to Kazakhstan. The TCP project is supported by the USA
    and the European Union. Naturally, Moscow disapproves of it.



    Both of Kazakhstan's capital cities - Almaty and Astana - have become
    centers for preparations and decision-making in relation to new
    transport projects within the East-West corridor. Talks under way in
    Almaty are aimed at preparing agreements on building a gas pipeline
    along the Caspian coast and reconstructing the gas transport system
    between Central Asia and Russia. Kazakhstan, Russia, and Turkmenistan
    are supposed to sign these agreements by September 1; this was
    decided at a trilateral heads of state meeting. According to Turkmen
    official media, some experts from Uzbekistan are attending the Almaty
    talks, along with specialists from Russia, Turkmenistan, and
    Kazakhstan.

    In Astana, Kazakhstan's new capital, a cooperation memorandum for the
    Trans-Caspian Pipeline (TCP) project was among the bilateral
    documents signed during Azeri President Ilham Aliyev's two-day visit
    to Kazakhstan. The TCP project is supported by the USA and the
    European Union; it involves laying a pipeline across the Caspian Sea
    floor to deliver gas from Turkmenistan and Kazakhstan to Europe
    across Azerbaijan and Georgia, bypassing Russia. Naturally, Moscow
    disapproves of the TCP project. After the trilateral agreements were
    signed on May 12, President Gurbanguly Berdymuhammedov of
    Turkmenistan announced that the Caspian coast pipeline agreements
    don't mean that Ashgabat is no longer interested in the TCP. In late
    June, Berdymuhammedov also assured a visiting US State Department
    official that he still supports this project.

    The memorandum signed by Azerbaijan and Kazakhstan in Astana on
    August 7 is further evidence that writing off the TCP project would
    be premature - although some analysts came to that conclusion after
    the three heads of state met on May 12. On the other hand, according
    to a high-ranking source in Kazakhstan, "this memorandum is nothing
    more than a declaration of intent so far." And it was only signed
    because two important and controversial points were deleted at the
    last moment.

    As Ilkham Aliyev said in Astana, "Azerbaijan is prepared to make
    every effort to ensure free, unhindered access for energy and cargo
    transport" from Kazakhstan. And President Nursultan Nazarbayev of
    Kazakhstan emphasized: "We are very interested in Azerbaijan as
    transit territory - as agreed earlier, we are involved in the
    Baku-Tbilisi-Ceyhan (BTC) project, and we shall participate in gas
    projects and a rail link across Azerbaijan and Georgia to the Black
    Sea."

    Note the words "as agreed earlier": Nazarbayev reminding Aliyev of
    Kazakhstan's participation in the BTC. According to an Astana source,
    this could hardly be a casual reference, since those agreements are
    now in question. Firstly, Astana and Baku still haven't reached
    agreement on acceptable tariffs for transporting Kazakhstan's oil via
    the BTC. Secondly, Baku recently started saying that Azerbaijan would
    have enough oil of its own to fill the BTC pipeline; this would
    deprive Kazakhstan of any prospect of full-scale participation in the
    BTC. At present, Kazakhstan's oil is transported by tanker from Aktau
    to Baku, in volumes too small to be taken seriously.

    A source close to the Azeri-Kazakh negotiations told us: "The guests
    from Baku invited us to participate in a transport corridor across
    Azerbaijan. We replied that we are prepared to do so, if they offer
    us good terms." For example, President Nazarbayev noted that
    Kazakhstan "is interested in expanding transport infrastructure at
    sea ports around the Caspian."

    According to our sources, Astana is concerned about Baku's
    protectionism with regard to its Caspian shipping - to the detriment
    of Kazakhstan's shipping. Nazarbayev has even proposed a bilateral
    agreement on Caspian shipping. Reportedly, Aliyev promised to think
    it over.

    As for everything else, Nazarbayev said that "there are no problems
    between Kazakhstan and Azerbaijan - neither economic nor political
    problems." The two leaders are resolved to raise bilateral trade
    turnover from $300 million to $1 billion "in the near future."
    Nazarbayev said: "Kazakhstan is grateful to Azerbaijan for supporting
    its application to chair the OSCE in 2009, and Kazakhstan supports
    all of Azerbaijan's international initiatives." Clearly, this applies
    to Aliyev's calls for the international community to condemn Armenia
    as an aggressor state which continues to occupy Azeri territory.
    However, Aliyev made no mention of Armenia during his visit to
    Kazakhstan. It wouldn't have been polite; after all, Kazakhstan is
    regarded as a close ally of Armenia within the CIS Collective
    Security Treaty Organization.

    Source: Vremya Novostei, August 9, 2007, p. 5

    Translated by Elena Leonova
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