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  • Country Bowed to Russians Over Iran Gas Pipeline Project

    Armenian paper says country bowed to Russians over Iran gas pipeline project

    Haykakan Zhamanak, Yerevan
    8 Jul 04


    An Armenian paper has said that Armenian has bowed to Russian pressure
    and refused to take part in the "game" of Iranian gas exports to
    Europe. An agreement on the construction of an Iran-Armenia gas
    pipeline had been signed as Iran was interested in exporting its gas
    to the West and Georgia via Armenia. However 1,200mm diameter pipes
    were needed for this and at the last minute Armenia "succumbed to
    Russia's pressure" and changed the planned diameter to 700mm. This
    meant that it would not be possible to export Iranian gas from Armenia
    by this pipeline and Armenia would therefore not benefit from the
    transit. Russia, the paper said, did not want any new rivals in the
    gas market. However Iran would now want to seek new partners, and
    Azerbaijan and Georgia were both possibilities. The following is the
    text of Arman Karapetyan's report by Armenian newspaper Haykakan
    Zhamanak on 8 July headlined "Rapprochement at the expense of Armenia"

    During hearings in the National Assembly, Armenia's Foreign Minister
    Vardan Oskanyan said that after the Baku-Tbilisi-Ceyhan oil pipeline
    is put into operation, Azerbaijan's income will be incomparable with
    Armenia's. And even the Dashnaks admit that the Baku-Ceyhan oil
    pipeline was a lost chance for Armenia. But you are wrong if you
    think that such regrets can make certain changes to Armenia's foreign
    policy, because the countries of the region give us new reasons to
    worry.

    A delegation led by Georgia's President Mikheil Saakashvili is in Iran
    at the moment. A member of the delegation, Fuel and Energy Minister
    Nikolay Gilauri, told journalists yesterday that one of the issues
    discussed in Tehran was the possibility of exporting Iranian gas to
    Georgia. He added that they have already made an arrangement and
    Iranian gas will go to Georgia via the territory of Azerbaijan. There
    is a gas pipeline which connects Georgia with Azerbaijan, as for the
    connection between Iranian and Azerbaijani gas systems, it requires
    serious expenses, and gas supplies from Iran to Georgia may start in
    2005.

    Undoubtedly, the reader has guessed what Armenia's interest is in this
    context? It is certainly the Iran-Armenia gas pipeline, the contract
    on the construction of which was signed on 13 May in Yerevan. Iran was
    interested in the construction of this gas pipeline because it was
    hoping to export its gas to the West, Georgia, etc. via Armenia. It
    would be possible to fulfil this programme if the Iran-Armenia gas
    pipeline was constructed using 1,200mm diameter pipes. But Armenia
    succumbed to Russia's pressure and changed the diameter to 700mm at
    the last minute. This means that it will not be possible to export
    Iranian gas from Armenia by this pipeline. That is, Armenia will not
    benefit from the transit of Iranian gas. It was clear from the very
    beginning that Russia would be an obstacle to the construction of the
    promising Iran-Armenia gas pipeline. If we do not take into account a
    little exception, today Russia has a monopoly on the European gas
    market and the appearance of new rivals on this market is not
    advantageous to it.

    On the contrary, Iran is in dire need of this market because although
    it has great gas reserves this country, in fact, cannot make
    productive use of them. Iran regarded the construction of the 1,200mm
    diameter gas pipeline to Armenia as the first step towards the
    European market, in the sense that the gas pipeline will extend to the
    West later. While making arrangements on the construction of the gas
    pipeline, our political elite, which loves to talk about a
    Russia-Armenia-Iran "geopolitical axis", was caught in the crossfire
    between Iran and Russia for the first time and succumbed to Russia's
    pressure in these disagreements. That is, it has de-facto established
    a bloc with Russia in order not to let Iran into the European market.

    Today it does not matter any more how many millions of dollars Armenia
    has lost because of this. But it is important that, by its behaviour,
    Armenia lost the opportunity to Azerbaijan, which has the privilege of
    the Baku-Ceyhan and other oil pipelines, and has allowed it to have
    common interests with our partner Iran. It is natural that as a result
    of Armenia's behaviour, Iran will not refuse the strategic goal of
    exporting gas to the European market and will start looking for
    another transit territory after Armenia's failure. Apart from Armenia,
    Azerbaijan is the only country that can serve as such a territory,
    especially as Georgia, in turn, might make Russia understand that it
    will support Iran in the matter of directing its gas to
    Europe. Certainly, all these are projects, but sometimes projects have
    much more value than their implementation. To understand this simple
    reality, let us enumerate once again what happened: succumbing to
    Russia's pressures, Armenia refused to take part in the game of
    Iranian gas exports to Europe. Iran could not but refuse that game,
    but needed a partner. Since Armenia's departure, the role of partner
    was vacant and Azerbaijan and Georgia occupied it.

    In general, Azerbaijan and Georgia do not really need the programme of
    Iranian gas exports to Europe. But they are taking part in this game
    to bring Russia to its knees. Undoubtedly, Russia will try to persuade
    Azerbaijan and Georgia to give up the idea of letting Iranian gas into
    post-Soviet territory. At any moment, Azerbaijan will be ready to
    discuss this suggestion and demand that Russia, say, help return the
    territories controlled by the Armenian troops. It is clear that Russia
    cannot return these territories to Azerbaijan, but it can reduce arms
    supplies to the Armenian armed forces.

    In turn, for giving up the idea of importing Iranian gas, Georgia will
    demand that Russia make compromises on the Abkhaz and South Ossetian
    problems. It does not matter how this geopolitical "argument" ends. It
    is important that Armenia cannot pursue its own interests any more,
    and it gives Armenia's rivals a wide opportunity and new blank
    cheques, some of which will be used against us. It seems there is no
    point in explaining that all this is the consequence of the simple
    fact that an illegitimate president cannot pursue the interest of a
    country. It is evident that our president cannot talk to Putin as one
    equal to another and cannot tell him that the Iran-Armenia gas
    pipeline should be constructed using not 700, but 1,200mm diameter
    pipes because this meets Armenia's interests. Maybe it is possible to
    see Robert Kocharyan as a friend of Vladimir Putin, but it is
    obviously impossible to see him as Armenia's president.
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