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Global Insight
May 24, 2012
Russian Defence Ministry Admits Standstill in Missile Defence Radar
Talks with Azerbaijan
by Lilit Gevorgyan
The Russian state-controlled RIA Novosti news agency reported today
(24 May) that the on-going talks with Azerbaijan over the extension of
the lease of an missile defence radar located in the Azerbaijani town
of Gabala are not progressing, citing sources in the Russian defence
ministry. The admission comes weeks after the Russian officials stated
that they are hoping to conclude the new deal very shortly. The soviet
era missile defence radar has been in Russian lease since 2002. But
the ten- year agreement is due to expire on 24 December this year. The
talks to extend the deal until 2025 ran into problems after reportedly
the Azerbaijani side decided to increase the asking price for the
station from USD7 million to USD300 million. According to media
reports in the Russian press this is a very high price considering
that the station needs full renovation. The Russian experts have
suggested that USD300 million could be instead channeled into building
a new anti- missile station.
Significance:The talks are likely to gain traction as the negotiating
parties get closer to the expiry of the lease. Azerbaijan's tough
stance on the lease terms which, the high price tag aside, also
included the involvement of local staff and their training on-site,
has been undermined by neighbouring Armenia. Following the news of
stalling talks between Russian and Azerbaijan, the Armenian prime
minister Tigran Sargsyan told media in April that his government was
ready to provide a site for the new Russian station. Armenia is
already hosting Russian military base on its territory. While Gabala
is not of critical importance and certainly not the only early warning
system for Russia, it is nonetheless an important component of the
former Soviet anti-missile defence shield. In the light of NATO's
reiteration that it will pursue the construction of its own missile
defence shield in Eastern Europe and Turkey, despite Moscow's strong
opposition, the latter will be keen to pursue either a lease of Gabala
or construction of a new station. Despite the difficulties in the
talks Azerbaijan is likely to soften its position in the coming months
and agree to a new deal.
May 24, 2012
Russian Defence Ministry Admits Standstill in Missile Defence Radar
Talks with Azerbaijan
by Lilit Gevorgyan
The Russian state-controlled RIA Novosti news agency reported today
(24 May) that the on-going talks with Azerbaijan over the extension of
the lease of an missile defence radar located in the Azerbaijani town
of Gabala are not progressing, citing sources in the Russian defence
ministry. The admission comes weeks after the Russian officials stated
that they are hoping to conclude the new deal very shortly. The soviet
era missile defence radar has been in Russian lease since 2002. But
the ten- year agreement is due to expire on 24 December this year. The
talks to extend the deal until 2025 ran into problems after reportedly
the Azerbaijani side decided to increase the asking price for the
station from USD7 million to USD300 million. According to media
reports in the Russian press this is a very high price considering
that the station needs full renovation. The Russian experts have
suggested that USD300 million could be instead channeled into building
a new anti- missile station.
Significance:The talks are likely to gain traction as the negotiating
parties get closer to the expiry of the lease. Azerbaijan's tough
stance on the lease terms which, the high price tag aside, also
included the involvement of local staff and their training on-site,
has been undermined by neighbouring Armenia. Following the news of
stalling talks between Russian and Azerbaijan, the Armenian prime
minister Tigran Sargsyan told media in April that his government was
ready to provide a site for the new Russian station. Armenia is
already hosting Russian military base on its territory. While Gabala
is not of critical importance and certainly not the only early warning
system for Russia, it is nonetheless an important component of the
former Soviet anti-missile defence shield. In the light of NATO's
reiteration that it will pursue the construction of its own missile
defence shield in Eastern Europe and Turkey, despite Moscow's strong
opposition, the latter will be keen to pursue either a lease of Gabala
or construction of a new station. Despite the difficulties in the
talks Azerbaijan is likely to soften its position in the coming months
and agree to a new deal.