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WSJ: The Caspian Moment By Elmar Mammadyarov

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  • WSJ: The Caspian Moment By Elmar Mammadyarov

    THE CASPIAN MOMENT BY ELMAR MAMMADYAROV

    Wall Street Journal
    Jan 21 2008

    BAKU, Azerbaijan -- The Caspian is back on the international energy
    agenda. Our region, rich in oil and gas, is emerging from the Soviet
    past with a bang. But we still have unfinished business. Regional
    integration is a priority for Azerbaijan. It makes economic sense in
    the Caspian and the global context. Integration, however, can only
    happen if we can find a lasting solution to the Nagorno-Karabakh
    conflict.

    When Armenian forces occupied this south-eastern region of our country
    and seven surrounding territories in 1992, close to one million Azeris
    were forced to flee. They are now living in temporary settlements. They
    should be allowed to return to their homes.

    Azerbaijan cannot make any compromises when it comes to its
    territorial integrity and the right of return for internally displaced
    persons. This is in accordance with the norms and principles of
    international law, the relevant U.N. Security Council resolutions and
    decisions taken by the Organization for Security and Co-operation in
    Europe. Other international organizations, including NATO, the Council
    of Europe, and the European Union, have repeatedly stated the same.

    It is almost 14 years since the Azerbaijan-Armenia war ended in a
    Russian-mediated ceasefire. But to this day we still have Armenian
    troops on our territory. The continued occupation of parts of our
    nation is something we cannot tolerate. The so-called Minsk process,
    an OSCE-led effort to find a peaceful, negotiated settlement to this
    conflict, has been helpful in providing the framework for dialogue
    between Azerbaijan and Armenia. It also gives an international
    dimension to this conflict. But we need to urgently conclude this
    process. Maintaining the status quo is just too costly.

    The current market price for oil and gas is high and we should be
    able to maximize the economic potential of our strategic resources.

    The unresolved Nagorno-Karabakh conflict, however, threatens the
    security of the existing pipeline infrastructure, preventing us from
    optimizing the region's energy trade with Europe. For us in Azerbaijan
    this will impede economic growth, which has been averaging around 30%
    in the past few years.

    Diplomacy is Azerbaijan's preferred solution. I believe that Armenia
    would also benefit from regional integration and development, and
    should look beyond the protracted conflict. The resolution of this
    issue would not only improve our bilateral relations. It could also
    improve Armenia's relationship with Turkey.

    Some critics have accused Azerbaijan of overspending on military
    procurement. But we are only responding to the security reality in the
    region while at the same time modernizing our military and upgrading
    it to NATO standards. Close cooperation with NATO is a centerpiece
    of Azerbaijan's security doctrine.

    Transnational threats like organized crime, smuggling and terrorism,
    which affect this region as well, can only be effectively countered
    if addressed through a collective framework. This is yet another
    reason why Armenia should be serious about finding a solution
    to the Nagorno-Karabakh conflict. Unresolved border disputes and
    quasi-autonomous territories give room to organized crime. To properly
    deal with asymmetric threats requires good regional cooperation, which
    in turn necessitates that we resolve our differences with Armenia.

    Having said this, Armenians should know that we are ready to grant
    Nagorno-Karabakh the widest possible autonomy within Azerbaijan. And
    we are even ready to substantially increase central funding for the
    development of this Azeri province.

    Resolving this frozen conflict would also help Azerbaijan assume its
    role as a bridge between the EU and Central Asia. As EU expansion
    moves further east, Central Asia, with its rich oil and gas resources,
    becomes increasingly important. The EU must have a strong interest
    in stability and economic development in a region that could play a
    central role in helping Europe meet its energy needs. Closer relations
    with Azerbaijan can also be seen as part of a European outreach to
    Central Asia.

    With our partners from Kazakhstan and Turkmenistan we are building
    a strong and genuine trans-Caspian partnership. We are discussing
    connecting the two sides of the Caspian Sea with a network of
    pipelines. We are talking about setting up mechanisms for regional
    economic and security cooperation. The regional market, if integrated,
    will be more competitive, more efficient, and better organized. This
    has positive implications for all countries involved.

    Surrounded by massive economies like the EU, Turkey, Russia, and China,
    the case for rapid and sustained growth across the Caspian region is
    more than convincing. This is why we are optimistic that Baku could
    be transformed into a European hub in this region.

    A European perspective of closer economic integration is as relevant
    to the Caspian as is the partnership with Russia and China.

    Azerbaijan is committed to pursuing all these links. However, a truly
    regional framework hinges on the resolution of the Nagorno-Karabakh
    conflict, which is why this problem can no longer wait. Baku is
    serious about moving on.

    Mr. Mammadyarov is foreign affairs minister of Azerbaijan.
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