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  • Israel Ad Azerbaijan's Furtive Embrace

    ISRAEL AND AZERBAIJAN'S FURTIVE EMBRACE
    by Ilya Bourtman, Middle East Quarterly, Summer 2006

    AZG Armenian Daily
    29/08/2006

    The disintegration of the Soviet Union in 1991 changed the geopolitical
    landscape of the Middle East. Within weeks, six predominantly
    Muslim countries along the southern rim of the Soviet Union gained
    independence.

    Israel, along with Turkey, Iran, and various Arab states, rushed
    to establish embassies in capitals ranging from Ashgabat to
    Tashkent. While Jerusalem maintains good working relations with
    these newly independent states, few could have foreseen how Israel's
    relationship with Azerbaijan would blossom.

    The two countries formally established relations in April 1992,
    one year after Azerbaijan declared its independence. The idea that
    a country 93 percent Muslim would cooperate closely with Israeli
    intelligence, and even provide Israeli officials a defensive
    platform in such a volatile region, was hardly considered. Yet,
    Jerusalem and Baku have quietly become strategic partners-sharing
    intelligence, developing trade relations, and together building
    regional alliances. Although the Israel-Azerbaijan partnership has
    had important regional implications, uncertainty remains how far
    Azerbaijani elites are willing to pursue ties.

    A Convergence of Interests

    While the mutual relationship has not been a priority for either
    Israel or Azerbaijan, both Jerusalem and Baku have expanded their
    ties in response to the realization that policy coordination best
    protects Caspian security and counters Iranian expansionism.

    Both Israel and Azerbaijan face challenges to their legitimacy if not
    their very existence. Both share a sense of trial by fire after winning
    independence only after a territorial war with neighbors. While Israel
    had to face down five invading Arab armies upon its independence and
    remains in a technical state of war with Syria, Lebanon, and Iraq,
    Azerbaijan remains embroiled in a decade-long military conflict with
    Armenia over the mountainous enclave of Nagorno-Karabakh, Azerbaijani
    territory occupied by an Armenian army. Indeed, unproven rumors persist
    in the Arabic-language press and pro-Saudi journals suggesting Israeli
    arms exports to Azerbaijan may have even preceded formal Azerbaijani
    independence.[1]

    Insecurity complexes born of war and siege cause both Jerusalem and
    Baku to see the region through similar prisms. Both countries grapple
    with identity problems: how can Azerbaijan be "the Azeri state"
    when close to 20 million Azeris-almost twice its population-live
    in neighboring Iran? Indeed, Iranian Supreme Leader 'Ali Khamene'i
    is an ethnic Azeri. Israel, meanwhile, grapples both to define its
    relationship to the Jewish diaspora and to its own sizable Arab
    minority.

    The Israeli government reached out to Azerbaijan for a number
    of reasons. Israeli policymakers, like their Arab and Iranian
    counterparts, viewed Azerbaijan and the Caspian littoral as part of
    the "Greater Middle East."[2] Expanding its influence into an area
    of the world heavily Muslim but not Arab has long been a strategic
    Israeli objective. After all, prior to the revolution in 1979, Israel
    had sold weapons to the Iranian army and considered the shah a friend.

    Similarly, since the early 1990s, Israel has reached out to Turkey. New
    allies could also lead to new economic opportunities, greater energy
    security, and, it was hoped, extra U.N. votes.[3] Israel aimed to
    exploit the region's energy resources by lobbying for the development
    of gas and oil pipelines that would help its allies and circumvent
    its foes. Finally, Israeli officials hoped that direct ties would
    facilitate the immigration of Azerbaijan's 20,000-strong Jewish
    community to Israel.[4]

    The Azerbaijani government, meanwhile, found itself cooperating with
    Israel both out of respect for the Jewish state[5] and because of
    lack of an alternative.

    In 1991, Azerbaijan was economically fragile, politically unstable,
    and militarily weak. Desperate for outside assistance, Baku turned
    to Israel to provide leverage against a much stronger Iran and a
    militarily superior Armenia. Israel promised to improve Azerbaijan's
    weak economy by developing trade ties.[6] It purchased Azerbaijani oil
    and gas and sent medical, technological, and agricultural experts. Most
    importantly for Azerbaijan, Israel's foreign ministry vowed to lend
    its lobby's weight in Washington to improve Azeri-American relations,
    providing a counterweight to the influential Armenian lobby.

    According to Azerbaijan's first president, Abulfas Elcibey, "Israel
    could help Azerbaijan in [the] Karabakh problem by convincing the
    Americans to stop the Armenians."[7] Azerbaijani diplomats recognized
    the need to diversify their contacts in Washington, especially after
    the U.S. Congress imposed sanctions on Azerbaijan at the behest of
    the Armenian lobby following the war in Nagorno-Karabakh. Azerbaijani
    military officials also believed that Israeli firms could better
    equip the ragtag Azerbaijani army, which needed new weapons following
    its defeat in Nagorno-Karabakh. On several occasions, Heydar Aliyev,
    Azerbaijan's president between 1993 and 2003, personally requested
    military assistance from Israeli prime ministers.[8]

    A Maturing Relationship

    With Armenian troops and their proxies occupying 20 percent of
    Azerbaijani territory, the influence of Moscow and Tehran growing, and
    Islamist groups gaining strength in the region, Israel and Azerbaijan
    built up their mutual defense capabilities.

    Following its loss in Nagorno-Karabakh, Baku reached out to Israel
    for help in rebuilding its military.

    Israeli defense firms obliged, selling Azerbaijan advanced aviation,
    antitank, artillery, and anti-infantry weapon systems.[9] The arms
    trade has continued. In 2004, the Azerbaijani and Israeli press
    both reported that an undisclosed Israeli weapons system was being
    sent to Turkey where it would be assembled and then delivered to
    Azerbaijan.[10] While Israeli, Turkish, and Azerbaijani officials
    denied the report-Israeli policy prohibits confirmation of such
    deals-an Azerbaijani military official defended the purchase,
    saying "our country's interest in Israeli weapons is natural as this
    country possesses up-to-date types of weapons, military hardware, and
    special equipment."[11] Not every report is true, however. Seeking
    to exploit Islamist and anti-Israel sentiment among some segments
    of the population, neighboring states on occasion exaggerate the
    Israel-Azerbaijan arms trade.[12]

    Weapons sales and shared-threat perception have smoothed intelligence
    and security cooperation.

    Israeli firms built and guard the fence around Baku's international
    airport, monitor and help protect Azerbaijan's energy infrastructure,
    and even provide security for Azerbaijan's president on his foreign
    visits.[13] Israeli intelligence operatives help collect human
    intelligence about extremist Islamist organizations in the region and
    monitor the troop deployments of Azerbaijan's neighbors-especially
    Iran.[14] In a Washington Institute for Near East Policy analysis,
    analysts Soner Cagaptay and Alexander Murinson alluded to reports that
    Israeli intelligence maintains listening posts along the Azerbaijani
    border with Iran.[15]

    Both the Israeli and Azerbaijani governments fear the growth of radical
    Islam. Following an October 2001 meeting with Israeli ambassador
    Eitan Naeh, Azerbaijan's former president Heydar Aliyev declared
    their positions in the fight against international terrorism to be
    identical.[16] While the terrorist threat to Israel is well known,
    Azerbaijan's terrorist challenge is also significant. Azerbaijan is in
    the cross hairs of both Sunni and Shi'ite Islamists. Among the Sunnis,
    there is the spillover from the Chechen and Daghestani conflicts. Since
    the 1994 signing of the "Genuine Islam for Brothers" agreement between
    regional Wahhabi organizations, and in the wake of a southern expansion
    by Wahhabi movements in the Russian Federation, Islamist cells have
    sprung up around the country.[17] According to Axis Information and
    Analysis, a watchdog of security developments in Eurasia, as of July
    2005, roughly 15,000 Wahhabi activists were operating in Baku.[18]
    Supporters of Chechen militants operate a lucrative arms trade along
    Azerbaijan's porous 175-mile (284 kilometer) border with Russia. Groups
    like Hizb ut-Tahrir, which seek both Israel's annihilation and the
    replacement of regional nation-states with an Islamic caliphate,
    threaten both Jerusalem and Baku. Hizb ut-Tahrir is suspected
    of having several hundred members in Azerbaijan; dozens have been
    arrested.[19] Tadeusz Swietochowski, professor emeritus of history at
    Monmouth University and an expert on Azerbaijan, worries that Wahhabi
    organizations may find a breeding ground in Azerbaijan. "There is
    a vast potential for disaffection among the impoverished masses,
    including the Karabakh war refugees, to whom the benefits from oil
    wealth do not filter down through the more privileged elites, who are
    perceived as corrupt unbelievers,"[20] he argued. The sheer number of
    small terrorist networks setting up shop around Azerbaijan forced the
    Azerbaijan Ministry of National Security to respond in August 2005 by
    arresting suspects, placing mosques under direct government control,
    and banning extremist religious literature.[21] Israeli officials,
    for their part, worry about the recent spike in violence by radical
    Islamists against Jewish communities in Azerbaijan.[22]

    Iran, the benefactor of numerous terrorist organizations operating in
    the region,[23] has sought to promote its radical ideology by funding
    and building mosques and religious schools in the region.

    Thus far, Azerbaijani officials have responded to this encroachment
    of their space by outlawing radical imams and mosques. Indeed, while
    reports of Israeli intelligence presence remain shadowy and imprecise,
    failure of Baku and Jerusalem to work together to counter Iranian
    ideological expansionism would be irresponsible.

    Trade

    Economic cooperation between Israel and Azerbaijan has grown
    significantly. As early as 1995, an Israeli journalist visiting Baku
    observed that Israeli goods were flooding the market. "Strauss ice
    cream, cell phones produced by Motorola's Israeli division, Maccabee
    beer, and other Israeli imports are ubiquitous," she wrote.[24] As
    Azerbaijan deregulated its industries and liberalized some markets,
    Israeli companies flocked to the country. Bezeq, a major telephone
    subsidiary, was one of the first to do so.

    Through a devalued contract bid in 1994, Bezeq bought a large share
    of the telephone operating system. Today it installs phone lines
    and operates regional services throughout much of the country.[25]
    According to the president of the Azerbaijani-Israeli Business Forum,
    dozens of Israeli companies operate in Azerbaijan, especially within
    the energy sector.[26] In 2000 for example, Modcon Systems Ltd.,
    an Israel-based supplier of high technology to the oil and gas
    industries, opened shop in Azerbaijan. "The business," according to
    Modcon Systems CEO Gregory Shahnovsky, is "very important to company
    growth." He expects more Israeli companies to enter the market.[27]

    Statistics support the anecdotes. Between 2000 and 2005, Israel has
    gone from being Azerbaijan's tenth largest trading partner to its
    fifth.[28] Azerbaijani industry has benefited tremendously. According
    to U.N. statistics, between 1997 and 2004, exports from Azerbaijan
    to Israel increased from barely over US$2 million to $323 million,
    fueled in recent years by the high price of oil.[29] Indeed,
    Israeli-Azerbaijani trade now outweighs the trade relations Israel
    has developed with the countries of Central Asia by at least a factor
    of five.[30]

    Indirectly, Israeli businessmen have helped encourage Azerbaijan
    to pursue policies of strategic benefit to Jerusalem. Since 1993,
    major Israeli entrepreneurs such as Shoul Eisenberg have spearheaded
    large-scale energy projects in the Caspian region and Central Asia with
    government support. Israeli businessman Yossi Maimon, for example, was
    instrumental in brokering gas pipeline deals throughout Central Asia,
    such as the March 1999 $2.5 billion pipeline deal from Turkmenistan
    to Turkey. He boasted to The Wall Street Journal in 2001 that "this
    is the Great Game all over [again] ... we are doing what U.S. and
    Israeli policy could not achieve. Controlling the transport route
    is controlling the product."[31] Israeli strategic thinkers expected
    that establishing friendly ties to Azerbaijan would not only provide
    energy security but also allow Jerusalem to influence pipeline routes,
    a benefit both to Israeli political clout and a factor to strengthen
    Israel's allies at the expense of its adversaries. In 2002, Israel
    was Azerbaijan's largest importer of oil after Italy.[32]

    The ultimate route of the $3.2 billion Baku-Tbilisi-Ceyhan pipeline,
    for example, circumvents Iran and Russia and ties secular, pro-Western
    Azerbaijan, Georgia, and Turkey together in a way that enhances
    Israel's strategic interests, an aspect acknowledged by Prime
    Minister Binyamin Netanyahu in 1997[33] and recognized in Azerbaijan
    as well.[34] Rafael Abbasov, former director of economic and trade
    development at the Israeli embassy in Baku and now an economics officer
    at the Asian Development Bank in Azerbaijan, believes that there is
    growing covert collaboration in the energy sector between Israel and
    Azerbaijan which does not show up on trade-balance sheets. "In terms
    of oil, Israeli firms are a lot more involved than at first meets
    the eye," Abbasov said.

    "Often they register as U.S. or U.K. branches and thus enter the
    Azerbaijani energy market and participate in bidding for tender
    contracts."[35]

    As the Indian and Chinese appetites for oil increase, so too does
    the possibility to expand cooperation further with the export of oil
    through the Ashqelon-Eilat pipeline which could provide an alternative
    to shipments through the Suez Canal and Persian Gulf.[36]

    Politics

    While trade has increased steadily, political cooperation has ebbed
    and flowed. Mutual statements of diplomatic understanding have seldom
    been followed by decisive action. Little came from the April 1992
    agreement to exchange ambassadors. For several years, Benny Haddad,
    a 24-year-old Israeli Defense Forces rifleman with no diplomatic
    experience represented Israeli interests in Azerbaijan. Only later
    was Eliezer Yotvat, Israel's first ambassador to Azerbaijan, formally
    appointed. Baku meanwhile made overtures toward Jerusalem by appealing
    to Jewish investors and publicly sending state foreign policy advisor
    Vafa Guluzade to Israel, but Baku did not nominate a permanent
    ambassador. To date, Azerbaijan has not yet fulfilled its promise
    to open an embassy in Israel. Likewise, nothing came of Azerbaijani
    secretary of state Ali Karimov's public attempt to organize a meeting
    between Elcibey and then Israeli prime minister Yitzhak Rabin.[37]

    The only public embrace came in August 1997 when Israeli prime minister
    Netanyahu visited Azerbaijani president Heydar Aliyev in Baku. During
    their brief meeting, they discussed various issues ranging from new oil
    deals, to Iran's nuclear ambitions, to trilateral cooperation between
    Israel, Turkey, and Azerbaijan.[38] While the meeting solidified
    strategic understanding and led to increased defense cooperation,
    it had few positive diplomatic consequences. After fifteen years
    of diplomatic relations, the two countries have not signed a single
    official treaty. As one senior Israeli diplomat laments, "There is no
    formalization of these relationships. Not even a cultural agreement,
    or tourism ... Formal relations have not yet yielded one single
    agreement between the two states."[39]

    Perhaps the only successful diplomatic initiatives have been in youth
    exchanges. In 2003, Jerusalem and Baku agreed to facilitate study
    opportunities for Azerbaijani scientists and doctors in Israel.[40]
    The Azerbaijan-Israel Youth Friendship Society works to promote youth
    relations through the teaching of each others' histories. Kanan
    Seyidov, the society's deputy chief of international relations,
    explained that the program works to explain "the real situation of
    Israeli people living under the everyday terror threat, and the impact
    of Armenian aggression and occupation on Azerbaijan."[41]

    The New Great Game

    Nevertheless, both Jerusalem and Baku recognize that they are better
    off working with each other (and Turkey) than allowing Russian or
    Iranian influence to become paramount. Even as diplomatic relations
    remain less formal, Azerbaijan's neighbors recognize the growing
    importance of Israel-Azerbaijan ties.

    Iran. At the heart of Azerbaijan-Israel cooperation lie their
    mutual fear and distrust of Iran. Israel has obvious reasons for
    distrusting the Islamic Republic: Iranian leaders from Ayatollah
    Ruhollah Khomeini to former presidents 'Ali Akbar Hashemi Rafsanjani
    and Muhammad Khatami to current president Mahmoud Ahmadinejad have all
    called for Israel's destruction.[42] Azerbaijan has a more complicated
    relationship with Iran. On the one hand, Azerbaijan shares historic
    ties and a religious bond with predominantly Shi'ite Iran. Far
    more ethnic Azeris live in Iran than in independent Azerbaijan. But
    Tehran has sought to destabilize Azerbaijan. It has engaged in arms
    trafficking with Armenian separatists[43] and trained Azeri mullahs to
    preach an Islamist message that has undercut traditional Azerbaijani
    secularism.[44] Tehran gave little support to their Shi'ite brethren in
    the early 1990s when Azerbaijan's economy plummeted 58 percent.[45]
    Competing claims to energy deposits in the Caspian Sea have also
    harmed relations.

    Today, Iran and Israel play a cat-and-mouse game in Azerbaijan. Both
    have developed vast espionage networks in Azerbaijan. Israeli
    intelligence maintains surveillance and listening outposts on
    Azerbaijan's border with Iran.[46] Published articles attest that
    "Baku is a perfect base for Israeli intelligence operations ... the
    city is home to an Iranian embassy with 200 employees."[47] One
    senior advisor to Prime Minister Ariel Sharon even suggested that
    some Azerbaijani Jews regularly infiltrate Iranian territory.[48]
    Iran has followed suit, spying on Israeli targets in Azerbaijan. In
    September 2004, Israeli security agents caught an Iranian operative
    videotaping the Israeli embassy in Baku.[49]

    Iran has vowed to exact revenge on Azerbaijan for its cooperation with
    the "Zionist entity" and for following Israel and Turkey westward
    after its 1991 independence. Following Netanyahu's 1997 visit,
    Iran's state radio harshly criticized the meeting, declaring that
    "Baku is playing a dangerous game by receiving the Zionist regime's
    expansionist prime minister. By doing this it has destabilized its
    own ties with Islamic states in the region and the world."[50] The
    Iranian foreign minister further threatened Azerbaijan saying that
    Baku's cooperation with Israel would cause instability in the Caucasus,
    harm Islamic unity, and hurt "those governments themselves."[51] To
    this day, Iranian officials are cited in the Iranian press stating
    that Azerbaijan is cooperating with an "occupying power."[52]

    Russia. Another area of mutual cooperation is shared suspicion
    of Russian intentions. Both Jerusalem and Baku distrust Moscow's
    penchant for pursuing two-track policies that undermine regional
    security. The Israeli government, for example, distrusts the Russian
    sale of nuclear technology to Iran, arms to Syria, and legitimization
    of Hamas and Hezbollah. The Azerbaijani government is meanwhile worried
    about Russian bases in Ossetia and Abkhazia and Moscow's support
    for Armenian guerillas in Nagorno-Karabakh.[53] Russian cooperation
    with Iran reinforces to Israeli and Azerbaijani strategic thinkers
    that they must rely on each other.[54] The same dynamic has also
    strengthened relations between Azerbaijan and Israel on one hand,
    and Georgia on the other.[55]

    Some Russian nationalists are displeased that Israel is intruding on
    a region they believe part of their own sphere of influence. A 1998
    article by Vitaliy Demin in the Russian newspaper Zavtra-generally
    recognized as an anti-Semitic newspaper-accused Israel of becoming
    to Russia what Cuba is to the United States. He also blamed Israel
    for seeking to exploit regional energy resources.[56] Some of this
    resentment stems from opposition to pipeline routes that bypass
    Russian territory.

    Persian Gulf states. The Azerbaijan-Israel relationship has
    successfully shut out the influence of Persian Gulf states in the
    Caspian. Neither Saudi Arabia nor the Persian Gulf emirates have
    substantial trade with Azerbaijan. In 2004, none of the Persian Gulf
    states made the top twenty-five of Azerbaijan's trade partners.[57]
    In the early 1990s, Saudi Arabia used its Islamic Development Bank
    to provide Baku with loans and credits, but that money has dried-up
    in recent years.[58] Riyadh seldom invests in countries if they do
    not tow an increasingly Islamist line.

    Saudi ideologues would much rather fund a government like Turkey's
    which seeks to erode secular protections than one like Baku's which has
    worked to preserve them. That none of the Persian Gulf states supply
    Azerbaijan with weapons or have long-standing relations with Baku's
    defense establishment limits their reach in the region. According to
    analyst Anoushiravan Ehteshami, Saudi Arabia, the most active of all
    the Persian Gulf states in the Caspian region, plays no more than
    an "indirect role ... in countering Israeli expanding influence in
    Central Asia."[59] If oil-rich Azerbaijan is successful in cultivating
    an independent energy relationship with Israel and the West, then the
    Organization of the Petroleum Exporting Countries (OPEC) in general
    and the Persian Gulf emirates in particular may lose influence. It
    is certainly a glaring reality that Israel is the only Middle Eastern
    country with real influence in the region.[60]

    Turkey. Among regional countries, Turkey has benefited most from
    the development of Azerbaijani-Israeli cooperation. When the Soviet
    Union disintegrated, Turkish officials began wooing Azerbaijani
    politicians-stressing their shared ethnicity, language, and Armenian
    experiences.[61] Ankara has encouraged the development of a secular,
    free market government in Baku oriented to Europe and the West. In
    2004, official Turkish-Azerbaijani trade amounted to slightly over
    US$400 million with Turkey claiming the fourth largest share of
    Azerbaijan's foreign trade.[62] In 2003, Turkey's leader Recep Tayyip
    Erdoðan expressed his expectation that Azerbaijani-Turkish trade
    would grow to $1 billion.[63] The blossoming of Turkish-Azerbaijani
    ties reinforces Israel's own strategic vision for the region.[64]

    Meanwhile, thanks to Ankara, the partnership between Baku and Jerusalem
    continues to mature. This was demonstrated by the July 2001 "Caspian
    Sea incident."

    That month, the Iranian warship Geophysics 3 threatened an Azerbaijani
    oil exploration ship in the Caspian Sea. As emotions and militaries
    flared, Turkey issued a statement promising to defend Azerbaijan.[65]
    It was clear that Israel would also take part. As an Israeli defense
    minister who was in Turkey shortly thereafter insisted, Israel would
    have joined the triumvirate against "Iranian aggression."[66] Just
    a week earlier, Sharon told journalists in Ankara that Israel would
    expand ties with Azerbaijan and Turkey.[67]

    The United States. The U.S. government also remains a player. Baku
    cooperated with Jerusalem in the hope of improving ties with
    Washington.[68] Not too long ago, U.S. policymakers considered
    Azerbaijan to be, at best, irrelevant and at worst, a nuisance. In
    1992, the United States Congress passed the Freedom Support Act
    promising economic and humanitarian aid to all the former Soviet
    republics except Azerbaijan. Muscled through by the Armenian lobby,
    Section 907 of the act legislated that Washington would not give aid to
    Azerbaijan until the resolution of the Nagorno-Karabakh conflict.[69]
    As a result, Azerbaijan received no economic aid from the United
    States in the 1990s while Armenia received over $1 billion.[70]

    In the mid 1990s, struggling to piece together the weak and
    dysfunctional Azerbaijani state, President Aliyev moved towards
    Jerusalem, thereby winning the allegiance of the pro-Israel lobby
    in Washington. As Hassan Hassanov, Azerbaijan's foreign minister,
    stated in 1997, "We don't conceal that we rely on the Israeli lobby
    in the U.S."[71] This paid dividends when, in 2002, President Bush
    waived Section 907 of the Freedom Support Act.[72] In a rare and
    understated public admission, an official at the Azerbaijani embassy
    in Washington acknowledged that, "Jewish organizations made a certain
    contribution in the Section 907 waving process."[73]

    In the aftermath of the 9-11 attacks, the Bush administration
    recognized what a strategic asset Azerbaijan could be. Baku allowed
    overflight rights to U.S. planes flying to Afghanistan and supported
    Iraq's liberation.[74] Azerbaijani oil provides a useful counterweight
    to that of Saudi Arabia and other states supporting radical Islam. In
    March 2002, the U.S. State Department reversed a ban on arms sales to
    Azerbaijan that had been in effect since 1993.[75] Simultaneously, the
    U.S. government granted $4.4 million in U.S. foreign military financing
    grants to Azerbaijan with which to purchase American-made weapons.[76]
    In return, Azerbaijan sent peacekeepers to Iraq in 2003.[77]

    Publicly the Bush administration has pledged that it remains
    committed to seeing a more democratic Azerbaijan. In the run-up to
    Azerbaijan's parliamentary elections in November 2005, Assistant
    Secretary of State Daniel Fried stated that the United States is
    "serious" about democracy-building in Azerbaijan.[78] Yet just how
    serious Washington is remains a question. U.S. foreign policymakers
    need Azerbaijan to continue providing much needed energy security
    and bases for U.S. special operations.

    Upsetting the already volatile regime of Heydar Aliyev's son may do
    more harm than good to U.S. interests. Authorities in Tehran remain
    ready to exploit any political instability.

    Increased U.S. attention to Azerbaijan has been a double-edged sword
    for Israel, though. While the Baku-Washington rapprochement helped
    cement Azerbaijan in a pro-Western, anti-Islamist camp, it has also
    reduced Jerusalem's leverage. Azerbaijani authorities, feeling that
    they have exhausted the use of pro-Israel groups in Washington,
    now worry they will be seen by others in the region as too close
    to Israel.[79]

    Where Goes the Israel-Azerbaijan Relationship?

    The relationship between Israel and Azerbaijan is at a
    crossroads. While Baku once embraced ties to Israel, many Azerbaijani
    elites are privately reconsidering their strategy.

    Azerbaijan's recent decision to curtail expansion of cooperation with
    Israel is part of a trend.[80] While Azerbaijani officials travel to
    Israel at unprecedented levels, the visits are rarely covered in the
    press and produce few results. Still, there remains potential for
    expansion of cooperation not only in the energy sector but also in
    agriculture, Azerbaijan's largest employer and second largest sector
    after oil.[81]

    The most vital question for both states remains Iran.

    While there is broad bilateral consensus that countering Iranian
    influence is vital to both Azerbaijan and Israel's national
    security,[82] Iranian officials remain dedicated to reversing
    that perspective. Many Iranian officials remind their Azerbaijani
    counterparts that Iran will always be present, long after U.S. and
    Israeli attention focuses elsewhere.[83] Here, any Israeli-Azerbaijan
    cooperation could be beneficial. As Azerbaijani foreign policy expert
    Vafa Guluzade has said, if "Israel will construct a factory that
    will give jobs to thousands, or even to hundreds, it will be good
    anti-Iranian propaganda."[84]

    Yet there is little evidence that Azerbaijani elites will take
    advantage of the opportunities Israel presents. Many of the same issues
    that hampered cooperation between Israel and Azerbaijan in the 1990s
    remain unresolved. One Israeli diplomatic likened the relationship
    to that between "a virgin and a gentlemen caller ... she wants it
    but is afraid."[85]

    Israeli politicians, while always calling for closer cooperation with
    Azerbaijan, have become frustrated with Azerbaijan's cold feet. Some
    high-level Israeli diplomats privately wonder whether state interests
    or personal interests such as business contacts with senior Iranians
    are driving Azerbaijani officials away.[86] They wonder whether Arab
    refusal to support pro-Azerbaijani U.N. resolutions regarding issues
    such as the Nagorno-Karabakh dispute may erode Azerbaijani resolve.[87]

    The ball is largely in Azerbaijan's court. As Rafael Abbasov said,
    there is "a huge demand on both sides for cooperation, but a lack of
    eye-level cooperation and a lack of political backbone hurts future
    prospects. Specifically harmful is the lack of an Azerbaijani embassy
    in Israel."[88]

    Many Azerbaijanis recognize that their ties to Israel have benefited
    their state. As one Azeri columnist wrote in 2002, "Everybody knows
    well that Israel is one of the few countries with which Azerbaijan has
    only positive experiences. It is high time for Azerbaijan to dare to
    have its own path."[89] Indeed, as Iran's nuclear program and Saudi
    support for Islamist groups threaten regional security, it is also in
    Washington's interest to help cement the Baku-Jerusalem relationship.

    Ilya Bourtman is a former researcher at the Begin-Sadat Center for
    Strategic Studies in Ramat Gan, Israel.

    [1] Jane Hunter, "Israel and Turkey: Arms for Azerbaijan?" Middle East
    International, Oct. 23, 1992; Soner Cagaptay and Alexander Murinson,
    "Good Relations between Azerbaijan and Israel: A Model for Other
    Muslim States in Eurasia?" The Washington Institute for Near East
    Policy, PolicyWatch, no. 982, Mar. 30, 2005.

    [2] Bulent Aras, "Post-Cold War Realities: Israel's Strategy in
    Azerbaijan and Central Asia," Middle East Policy, Jan. 1998, p. 68-9.

    [3] Jacob Abadi, "Israel's Quest for Normalization with Azerbaijan and
    the Muslim States of Central Asia," Journal of Third World Studies,
    Fall 2002, p. 66.

    [4] Ibid., p. 74.

    [5] Aras, "Israel's Strategy in Azerbaijan and Central Asia," p. 68-9.

    [6] Ha'aretz (Tel Aviv), Dec. 21, 1993.

    [7] Sedat Laciner, "Armenia's Jewish Skepticism and Its Impact on
    Armenia-Israel Relations," The Journal of Turkish Weekly, Oct. 11,
    2004.

    [8] Ma'ariv (Tel Aviv), Oct. 24, 1995.

    [9] Jane's Defense Weekly, Oct. 16, 1996.

    [10] Ekho (Baku), Apr. 16, 2004.

    [11] Ekho, Apr. 16, 2004.

    [12] See A. I. Novikov, "Otnoshenia Izrailia co stranami bivchsego
    SSSR," Institute Blizhnego Vostoka, Jan. 25, 2005.

    [13] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [14] Ibid.

    [15] Cagaptay and Murinson, "Good Relations between Azerbaijan and
    Israel."

    [16] Itar-TASS News Agency (Moscow), Oct. 22, 2001.

    [17] Zerkalo (Baku), Jan. 4, 2002.

    [18] "Baku Is Fearful of Mojahedin," Axis Information and Analysis,
    July 17, 2005.

    [19] "Hizb ut-Tahrir al-Islami," Global Security.org, accessed
    Mar. 13, 2006.

    [20] Tadeusz Swietochowski, "Azerbaijan: The Hidden Faces of Islam,"
    World Policy Journal, Fall 2002, p.

    75.

    [21] Shahin Abbasov and Khadija Ismailova, "The Wahhabi Watch,"
    Transitions Online, Aug. 22, 2005.

    [22] Ha'aretz, Feb. 15, 2006.

    [23] "Overview of State-Sponsored Terrorism," Patterns of Global
    Terrorism: 2002 (Washington, D.C.: U.S.

    Department of State, 2003), accessed Apr. 19, 2006.

    [24] The Jerusalem Report, Sept. 21, 1995.

    [25] The Jerusalem Report, May 19, 1994.

    [26] BBC News, July 26, 2002.

    [27] Personal e-mail correspondence with author, June 14, 2005.

    [28] "Statistical Yearbook of Azerbaijan, 2005," The State Statistical
    Committee of Azerbaijan Republic, Baku, accessed Feb. 21, 2006.

    [29] Data compiled from the United Nations Commodity Trade Statistics
    Database, accessed July 17, 2005.

    [30] Data compiled from the United Nations Commodity Trade Statistics
    Database, accessed Feb. 22, 2005.

    [31] The Wall Street Journal, Oct. 2, 2001.

    [32] United Press International, Nov. 4, 2002.

    [33] The Jerusalem Post, Aug. 31, 1997.

    [34] Personal e-mail correspondence with Elshan Gurbanov, professor
    of political science, Baku State University, June 20, 2005.

    [35] Personal e-mail correspondence with Rafael Abbasov, July 20, 2005.

    [36] The Financial Express (New Delhi), June 10, 2005.

    [37] The Jerusalem Report, June 17, 1993.

    [38] "Turco-Israeli Oil Agreement," Turkish Press Review, Directorate
    General of Press and Information, Office of the Prime Minister,
    Istanbul, Sept. 1, 1997.

    [39] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [40] Baku Today, Jan. 29, 2003; Azerbaijan International Independent
    News Agency (AssA-Irada, Baku), Jan. 27, 2005.

    [41] Personal e-mail correspondence with Kanan Seyidov, July 18, 2005.

    [42] Michael Rubin, "Iran Means What It Says," On the Issues, American
    Enterprise Institute, Jan. 25, 2006.

    [43] Alex Wagner, "Washington Levies Sanctions for WMD-Related
    Transfers to Iran," Arms Control Today, June 2002.

    [44] Swietochowski, "Azerbaijan: The Hidden Faces of Islam," p. 73;
    The Jerusalem Report, June 17, 1993.

    [45] "The Republic of Azerbaijan: Country Profile 2005," Ministry of
    Economic Development and Azerbaijan Investment Promotion and Advisory
    Foundation, Baku, p. 3.

    [46] Cagaptay and Murinson, "Good Relations between Azerbaijan and
    Israel."

    [47] Avi Machlis, "Azerbaijan Courts Jews, Israel to Win Favor with
    U.S.," Jewish Telegraphic Agency news service (New York), Feb. 1, 2000.

    [48] Personal interview with a representative of the Israeli government
    involved in discussions, Tel Aviv, June 13, 2005.

    [49] The Jerusalem Post, Sept. 20, 2004.

    [50] The Jerusalem Post, Aug. 31, 1997.

    [51] OMRI Daily Digest, Open Media Research Institute, Washington,
    D.C., Aug. 10, 1995.

    [52] Tehran Times, Jan. 25, 2005.

    [53] Turkish Daily News (Ankara), Dec. 28, 1998.

    [54] The Jerusalem Post, June 10, 2005.

    [55] Novikov, "Otnoshenia Izrailia co stranami bivchsego SSSR."

    [56] Zavtra (Moscow), June 23, 1998.

    [57] "Azerbaijan in Figures 2005: Azerbaijan's Main Trading Partners
    in 2004 (thsd. US$)," The State Statistical Committee of Azerbaijan
    Republic , accessed Mar. 1, 2006.

    [58] Anoushiravan Ehteshami, "New Frontiers: Iran, the GCC and the
    CCAR's," in Anoushiravan Ehteshami, ed., >>From the Gulf of Central
    Asia: Players in the New Great Game (Exeter: University of Exeter
    Press, 1994), p. 96.

    [59] Ibid.

    [60] Shirin Akiner, "Political Processes in Post-Soviet Central Asia,"
    in Mehdi Parvizi Amineh and Henk Houweling, eds., Central Eurasia
    in Global Politics: Conflict, Security and Development (Leiden:
    Koninklijke Brill NV, 2004), p. 137.

    [61] Svante E. Cornell, "Iran and the Caucasus," Middle East Policy,
    Jan. 1998, p. 51.

    [62] "Azerbaijan's Main Trading Partners."

    [63] Eurasia Insight (New York), Jan. 22, 2003.

    [64] Aras, "Israel's Strategy in Azerbaijan and Central Asia,"
    pp. 68-9.

    [65] Hurriyet (Istanbul), Aug. 13, 2001.

    [66] Hurriyet, Aug. 13, 2001.

    [67] Hurriyet, Aug. 8, 2001.

    [68] Hershel Shanks and Suzanne Singer, "Oil and Jews on the Silk
    Road," Moment, Oct. 1998, p. 68.

    [69] The Freedom Support Act, Public Law 102-511, Sec.

    907, Oct. 24, 1992.

    [70] Shanks and Singer, "Oil and Jews on the Silk Road," p. 70.

    [71] TURAN Information Agency (Baku), Aug. 21, 1997.

    [72] "Presidential Waiver of Section 907 of the Freedom Support Act,"
    White House press statement, Jan. 30, 2002.

    [73] Personal e-mail correspondence with Sultan Malikov, July 28, 2005.

    [74] Amb. Hafiz Pashayev, Embassy of Azerbaijan, "Iraq and the
    Caucasus: How Will War Affect the Region?"

    Center for Strategic and International Studies, May 27, 2003.

    [75] Wade Boese, "U.S. Halts Arms Sales to Zimbabwe, Lifts Ban on
    Armenia, Azerbaijan," Arms Control Today, May 2002, p. 38.

    [76] Ibid.

    [77] Agence France-Presse, Aug. 13, 2003.

    [78] The National Interest, Nov. 8, 2005.

    [79] Cameron S. Brown, "Observations from Azerbaijan," Middle East
    Review of International Affairs, Dec.

    2002, p. 2.

    [80] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [81] "Azerbaijan at a Glance, Agriculture," Embassy of Israel,
    Azerbaijan, Economic and Trade Relations Department, accessed Mar. 1,
    2006.

    [82] The Jerusalem Post, June 10, 2005, Feb. 12, 2006.

    [83] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [84] Jewish Telegraphic Agency, Sept. 11, 2002.

    [85] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [86] Personal e-mail correspondence with senior official, Israeli
    Foreign Ministry, June 10, 2005.

    [87] Ekho, Mar. 26, 2005.

    [88] Personal e-mail correspondence with Rafael Abbasov, economics
    officer, Asian Development Bank, Azerbaijan, July 20, 2005.

    [89] Zerkalo, Feb. 7, 2002.

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