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Azerbaijan: Is Baku Offering A Natural Gas Carrot To Moscow For Help

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  • Azerbaijan: Is Baku Offering A Natural Gas Carrot To Moscow For Help

    AZERBAIJAN: IS BAKU OFFERING A NATURAL GAS CARROT TO MOSCOW FOR HELP WITH KARABAKH?
    Shahin Abbasov

    Eurasianet
    April 20, 2009

    As talk of a potential Nagorno-Karabakh deal gains momentum, Azerbaijan
    appears to be making serious overtures toward Russia in hopes that
    the Kremlin will push Armenia to make key concessions, analysts in
    Baku believe. As an incentive, Azerbaijan is playing one of its most
    strategic cards - cooperation in the natural gas sector.

    During a joint press conference with Russian President Dmitri Medvedev
    on April 17, Azerbaijani leader Ilham Aliyev stated that he does
    "not see any restriction" on possible sales of Azerbaijani gas to
    Russia. The assertion has been understood to include sales of gas from
    Stage 2 of the multilateral Shah Deniz project, which is expected to
    yield 14-16 billion cubic meters of gas per year. He also indicated
    that oil transportation via the Baku-Novorossiysk pipeline could also
    increase. [For background see the Eurasia Insight archive].

    Baku had earlier avoided making any commitments about gas sales to
    Russia or the Baku-Novorossiysk pipeline.

    President Medvedev, in turn, stated that the chances for reaching "a
    full-fledged" agreement on gas sales between Gazprom and the State
    Oil Company of the Azerbaijani Republic (SOCAR) are high. A recent
    agreement envisages the sale of gas produced by SOCAR alone. [For
    background see the Eurasia Insight archive].

    In a separate statement on April 17, the last day of Aliyev's
    two-day visit to Moscow, Novruz Mammadov, head of the presidential
    administration's Foreign Policy Department, elaborated more
    definitively. Gas sales to Russia or to Iran could be an alternative to
    the Western-backed Nabucco project, he told the Turan news agency. "If
    countries interested in Nabucco do not move, Azerbaijan has no option
    but to think about its interests," Mammadov said.

    One Baku expert, however, states that Azerbaijan's energy-sector
    promises were not solely intended to spur Nabucco's sponsors into
    action.

    Elhan Shahinoglu, head of the Atlas Center for Political Research,
    believes that Aliyev may have received some assurances in Moscow
    about the potential withdrawal of Armenian forces from the five
    regions surrounding Karabakh. [For background see the Eurasia Insight
    archive]. "Roughly speaking, in exchange for guarantees of gas supplies
    to Russia, Moscow could put pressure on Armenia in order to liberate
    the five occupied regions, i.e. to launch the step-by-step conflict
    resolution plan," Shahinoglu said. [For background see the Eurasia
    Insight archive].

    Shahinoglu believes that such a development could be advantageous
    not only to Baku and Moscow, but also to Ankara and Yerevan. "Russia
    gets gas, Azerbaijan gets the territories, Armenia opens its border
    with Turkey. Ankara also gets progress in resolution of the Karabakh
    conflict, which allows it to normalize relations with Armenia without
    problems with Azerbaijan," the expert said. [For background see the
    Eurasia Insight archive].

    In an April 18 interview with the Russian television channel Vesti,
    Aliyev indicated readiness to make one serious concession to Yerevan -
    signaling that Baku might be willing to live with a final settlement
    in which the Lachin corridor that links Karabakh proper to Armenia
    remains under Armenian control. "[W]e do not see problems here," Aliyev
    said. "The issues with the Lachin corridor could be effectively solved
    in order to not cause anxiety for those who live in Nagorno-Karabakh
    and for the Azerbaijani population which will return there after the
    conflict's resolution."

    But Rauf Mirkadirov, political columnist for the Russian-language
    daily Zerkalo (Mirror), believes that "it is difficult to talk about
    real progress even after Aliyev's visit to Moscow."

    While interest from the United States and the European Union in
    resolving the Nagorno Karabakh conflict and establishing a corridor
    for gas from Central Asia to Europe may goad Moscow's interests in
    brokering a conflict resolution, the terms may prove unpalatable for
    both Armenia and Azerbaijan, Mirkadirov said.

    "Moscow wants a resolution under its full control -- in other words,
    with its peacekeepers in the conflict zone -- while Azerbaijan and
    even Armenia are not ready for that," he said.

    Former presidential foreign police aide Vafa Guluzade also believes
    that the chances for progress are slim. Without clarity on the ultimate
    question -- Karabakh's final status - statements by Aliyev, Medvedev
    and others "are just diplomatic words," Guluzade argued.

    Nonetheless, those "words" show little sign of slacking off.

    In an April 17 interview with the Voice of America, US Deputy Assistant
    Secretary of State for European and Eurasian Affairs Matthew Bryza
    stated that Aliyev and Armenian President Serzh Sargsyan are now
    examining "painful compromises" that have to be made before a
    breakthrough can occur. Nonetheless, Bryza, a noted optimist in
    the Karabakh peace process, believes that a "real" breakthrough is
    possible in the coming weeks.

    In an April 20 interview published by the Trend news agency, the
    presidential administration's Mammadov stated that if Armenia "defines
    its position" at an expected May 7 meeting in Prague between Aliyev
    and Armenian President Serzh Sargsyan, "a decision will be adopted."

    Mammadov called on Moscow, which will be hosting an official visit by
    Sargsyan in late April, to "fulfill its historic mission" to resolve
    the 21-year conflict.

    According to Bryza, a special meeting of the US, French and Russian
    presidents on the Karabakh issue is possible this summer.

    Editor's Note: Shahin Abbasov is a freelance correspondent
    based in Baku. He is also a board member of the Open Society
    Institute-Azerbaijan.
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