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  • Azerbaijan looks westward

    Spero News
    Feb 22 2007


    Azerbaijan looks westward


    What may now be changing is President Ilham Aliyev's policy of
    maintaining a special relationship with Russia as he balances US and
    Iranian ambitions.

    The geopolitical landscape in the South Caucasus appears to be
    shifting in a fundamentally westward direction, a change triggered by
    the Russian announcement in December that Gazprom, Russia's massive
    state-owned energy consortium, would dramatically raise the price of
    natural gas exports to Azerbaijan. The shift, which is being
    described by analysts in Baku as a reorientation of Azerbaijan's
    foreign policy "towards the West" and a "unique opportunity," was
    spelled out in a strongly worded Wall Street Journal
    opinion-editorial on 19 January written by Foreign Minister Elmar
    Mammadyarov.

    In unusually frank terms, the foreign minister - known for his
    careful use of language - spoke of a "defining moment for Azerbaijan
    and the South Caucasus as a whole," and in comments aimed at Russia,
    complained of "market bullies" and emphasized that Azerbaijan must be
    guided by its national interest.

    What may now be changing is President Ilham Aliyev's policy of
    maintaining a special relationship with Russia as he balances US and
    Iranian ambitions. Even his opponents often admit that Aliyev,
    inaugurated as Azerbaijan's president in 2003, has inherited the
    skills of his late father, Heydar. The elder Aliyev was a cagey
    politico and former KGB general who deftly balanced his country's
    powerful neighbors, Russia and Iran, as well as the distant US
    superpower, in a way that benefited Azerbaijan's national interest.

    Keeping US bases out of Azerbaijan while accepting US assistance in
    modernizing its military; refusing to denounce Iran's nuclear program
    but keeping a watchful eye on Iranian influence in the region; and
    maintaining cordial ties with Russia have been hallmarks of Ilham
    Aliyev's foreign policy.

    But the Russian announcement that it would more than double the price
    of natural gas to Azerbaijan was interpreted as "more than just a
    market message" by the foreign minister, who reminded readers of
    similar actions by Gazprom in Ukraine last year, as well as in
    Georgia and Belarus.

    "In response," he wrote, "we have decided to stop buying Russian gas
    as well as to stop using the Russian pipeline to export Azerbaijani
    oil to Europe"- an apparent reference to the Baku-Novorossiisk
    pipeline that has been utilized for many years. The timing of
    Gazprom's - and Russian President Vladimir Putin's - actions has not
    been clearly explained, although it is widely assumed in Baku that
    the origins stem from the breakdown in relations between Russia and
    its South Caucasus neighbor Georgia.

    The Georgian genesis
    While Russia is rarely accused of subtlety in its foreign policy, the
    Georgians cast subtlety aside when they arrested four Russian
    military officers and 10 Georgians on charges of espionage in late
    September - a move that touched off a war of words with the Kremlin
    and led to the evacuation of Russian diplomatic personnel from
    Tbilisi and suspension of air service to Moscow.

    This episode was the capstone to a continuing struggle with Russia
    over Georgia's difficulties with breakaway South Ossetia and Abkhazia
    - two pro-Russian regions nominally a part of Georgia where Russian
    peacekeeping troops operate. It is a continuing reminder that Georgia
    is militarily weak and has limited room for maneuver, even when its
    own territorial integrity is involved. In November, the
    self-proclaimed Republic of South Ossetia held elections in which
    Eduard Kokoity, the de facto president, won a landslide victory. A
    simultaneous referendum for independence garnered similar results,
    although neither the referendum nor the presidential vote has been
    recognized by the international community. In December, non-binding
    measures in Russia's lower house of parliament - the State Duma -
    called for recognition of both South Ossetia and Abkhazia. The
    measures passed unanimously.

    The spy scandal and the South Ossetian vote were preceded in March by
    Russia's ban on Georgian wine and spring water imports, major sources
    of export revenue in Georgia, as well as the cutoff of gas deliveries
    to Georgia after a pipeline explosion in January - an event that
    Russia insisted was beyond its control, but that Georgian President
    Mikhail Saakashvili charged was an act of "serious sabotage from the
    side of the Russian Federation."

    South Caucasus analysts almost unanimously agree that the real reason
    for the sanctions, if not the explosion, has been Georgia's embrace
    of EU and NATO integration, in part to counteract continuing Russian
    military influence in the two breakaway regions.

    Amid the unraveling of relations between Russia and Georgia and
    despite the successful color revolution in Tbilisi - which was dead
    on arrival in Baku in 2005 - Azerbaijan continues to integrate its
    economy with Georgia's and has discussed the sale of Azerbaijani
    natural gas to Georgia via Azerbaijan's Shah Deniz field in the
    Caspian Sea. The Shah Deniz is not yet fully developed, although the
    Azerbaijani Foreign Ministry estimates that eventually it could
    produce up to 16 billion cubic meters of gas a year, although export
    to Georgia has been delayed in part by Azerbaijan's domestic needs
    now that it has refused to purchase natural gas from Gazprom.

    Thus, Putin has witnessed for some time the growing ties between
    Azerbaijan and Georgia despite his policy of isolating Georgia and
    punishing it for a variety of geopolitical sins.

    Gazprom's lopsided price structure is an oddity, at least on the
    surface, given its argument that it seeks only fair market rates for
    natural gas. Ukraine pays US$130 per 1,000 cubic meters, the result
    of intensive negotiations during the 2005 gas crisis there, and even
    Kremlin-friendly Belarus was recently subjected to a drastic spike in
    gas charges that was negotiated down to US$110 per 1,000 cubic meters
    at the beginning of this year. But Tbilisi has something new in
    common with Baku: both are being charged a crippling US$230, in line
    with European market prices but a hardship especially for
    resource-poor Georgia. Armenia's price of US$110 is also the subject
    of recrimination in Azerbaijan, still in a technical state of war
    with Armenia over separatist Nagorno-Karabakh.

    The issue of Karabakh hangs like a shroud over almost any discussion
    of Azerbaijan's relations with its neighbors, and when Mammadyarov
    wrote in his article that the "frozen conflicts in the region" should
    be resolved "in adherence to the principle of territorial integrity
    of all three South Caucasus states," this was a clear message to
    Moscow that not only does Azerbaijan feel that Russia has given undue
    support to Armenia, but that Baku endorses the Georgian position on
    retaining sovereignty over South Ossetia and Abkhazia.

    Possible Azerbaijani retaliation
    In an effort to apply retaliatory pressure, a member of Azerbaijan's
    parliament - the Milli Majlis - has called for a revision of the
    terms of Russia's use of the Gabala radar station in northern
    Azerbaijan. The Gabala station is reported to have the ability to
    track ballistic missile trajectories in the southern hemisphere and
    much of Asia, and is a critical link in Russia's early warning
    system. The current lease, which expires in 2012, calls for yearly
    payments of US$7 million to Azerbaijan for use of the station.
    Pro-government lawmaker Zahid Oruj told reporters recently in Baku
    that he intended to raise the issue formally in March.

    The chill in Russo-Azerbaijani relations is exacerbated by the recent
    decision of the Azerbaijani National Television and Radio
    Broadcasting Council (NTRBC) to end local television broadcasting
    privileges for Russia's state-owned Channel One and Rossiya (RTR)
    networks. However, Russian networks have not been singled out. The
    NTRBC says that Azerbaijan is merely complying with international
    broadcast standards and in the Russian case is responding to a lack
    of access for Azerbaijani television in the Russian Federation. These
    decisions have coincided with the Azerbaijani government's shutdown
    of local independent television network ANS, one of Azerbaijan's most
    popular media sources, which was taken off the air by the NTRBC for
    nearly three weeks late last year in what became for opposition media
    and much of the international community a test case of freedom of
    speech in Azerbaijan.

    Meanwhile, in an obliquely worded press release, the Russian Foreign
    Ministry stated on 12 February that it would "follow attentively" the
    development of enhanced economic and transportation ties between
    Azerbaijan, Georgia and Turkey. This came on the heels of the
    announcement last week of funding for the ambitious Kars-Tbilisi-Baku
    railway project, which will link Turkey, Georgia and Azerbaijan with
    a new railroad, making it easier for Azerbaijani and Georgian
    passengers and goods to reach destinations in Europe via Turkey. The
    railroad will bypass both Russia and its closest partner in the
    region, Armenia.

    Not all Azeri elites are interpreting recent events as a watershed.
    Leila Aliyeva, one of Azerbaijan's most respected political
    scientists, told ISN Security Watch that the foreign minister's
    article was not so much a radical shift, but rather "a maneuver, or
    reminder, that our course is integration in the West, which in fact
    has never changed."

    The notion that Azerbaijan had previously arrived at a permanent
    rapprochement with Russia, which has now been perhaps fatally
    damaged, "never reached a critical point," she said.

    In a telephone interview last week with ISN Security Watch,
    Azerbaijan's consul general in Los Angeles, Elin Suleymanov, also
    stressed that the country's future would be found with pragmatism and
    Western integration. He echoed the foreign minister's view that
    Gazprom's decision was a largely political message.

    "Azerbaijan's policy at its core is based on its independence,"
    Suleymanov said. "We base our relations with our neighbors on our
    interests. Attempts by other states to impose their will on
    Azerbaijan will be rejected."

    This article was written by Karl Rahder who has taught US foreign
    policy and international history at colleges and universities in the
    US and Azerbaijan. In 2004, he was a Visiting Faculty Fellow in
    Azerbaijan with the Civic Education Project, an academic program
    funded by the Soros Foundations and the US Department of State. He is
    currently based in Chicago.

    Based in Zurich, Switzerland, the Center for Security Studies (CSS)
    at the Swiss Federal Institute of Technology (ETH Zurich), provides
    via the International Relations and Security Network a wide range of
    high-quality and comprehensive products and resources to encourage
    the exchange of information among international relations and
    security professionals worldwide. The ISN works to promote a better
    understanding of the strategic challenges we face in today's changed
    security environment.

    http://www.speroforum.com/site/article.asp?idart icle=8098
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