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House Foreign Affairs Subcommittee: "Azerbaijan: U.S. Energy, Securi

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  • House Foreign Affairs Subcommittee: "Azerbaijan: U.S. Energy, Securi

    Congressional Documents and Publications
    February 12, 2015


    House Foreign Affairs Subcommittee on Europe, Eurasia and Emerging
    Threats Hearing: "Azerbaijan: U.S. Energy, Security and Human Rights
    Interests."


    Testimony by Richard Kauzlarich, Adjunct Professor, School of Public
    Policy, George Mason University, (Former American Ambassador to
    Azerbaijan)

    U.S. HOUSE OF REPRESENTATIVES DOCUMENTS



    Introduction

    Mr. Chairman, I thank the Subcommittee for the opportunity to comment
    on Azerbaijan. I have had over two decades of experience with the
    South Caucasus -- as a senor Foreign Service Officer and Ambassador, a
    think tank and intelligence analyst, and an academic teaching at the
    graduate level on the geopolitics of energy security. I was U.S.
    Ambassador in Azerbaijan for three years and have been back several
    times to observe elections and to train local non-government
    organization (NGO) representatives in conflict resolution skills.

    I commend the Committee for holding these hearings. Azerbaijan and US
    relations are at a critical point because of human rights violations
    and the conflict with Armenia regarding Nagorno-Karabakh.

    Background

    The period of engagement with Azerbaijan since the breakup of the
    Soviet Union has been a remarkable success for US diplomacy. From my
    first visit to Baku in 1992 until today, many positive changes in our
    relations have taken place. This despite the unfair limits imposed on
    US Government (USG) assistance by Section 907 of the Freedom Support
    Act of 1992 (FSA907), and the intense conflict with Armenia over the
    Nagorno-Karabakh region of Azerbaijan.

    Both Azerbaijani officials and some US-based analysts argue that the
    US lacks a coherent policy toward Azerbaijan. I disagree. For two
    decades, the United States has pursued the following bipartisan policy
    objectives in Azerbaijan.

    . Support the Government of Azerbaijan in maintaining its independence
    and territorial integrity.

    . End the military conflict between Armenia and Azerbaijan regarding
    Nagorno-Karabakh and, through the Minsk Group process of the
    Organization for Security and Cooperation in Europe (OSCE), support
    Azerbaijan and Armenia in achieving a peaceful, negotiated settlement.

    . Encourage US commercial interests in the production and
    transportation of Azerbaijan's substantial energy resources to global
    markets.

    . Work for closer Azerbaijani relations with transatlantic
    institutions such as the OSCE and North Atlantic Treaty Organization
    (NATO); and stronger economic relationships with the European Union
    (EU).

    . Strengthen the commitment of Azerbaijan to (1) implementing
    internationally recognized principles of democracy and human rights;
    while (2) adopting transparent approaches to governance that minimize
    corruption.

    Azerbaijan and its people have benefited from this US policy and those
    similar policies of our European allies including Turkey.

    . Thanks to USG political support and US energy companies pursuing
    their commercial interests, the Azerbaijan energy sector has enjoyed
    enormous success. From the signing of the Contract of the Century in
    1994 to the completion of the Baku-Tbilisi-Ceyhan (BTC) pipeline in
    2005, US leadership has been critical. Azerbaijan has earned tens of
    billions of dollars from these energy resources.

    . The OSCE Minsk Group process has provided a venue for mediating
    direct contacts between Baku and Yerevan to conclude peacefully this
    tragic and painful conflict regarding Nagorno-Karabakh.

    . Increased Azerbaijani engagement since the September 11 attack on
    the US in the international community's priorities of dealing with
    international terrorism, and participating in NATO-led peace making
    activities in Kosovo, Iraq and Afghanistan.

    This progress was not easy. FSA 907 prohibited direct USG assistance
    to the Government of Azerbaijan -- unlike its neighbors Armenia and
    Georgia -- in those early days when institutions and attitudes toward
    good governance, democracy, and human rights were being developed.
    Azerbaijanis saw this as unfair treatment of Azerbaijan especially
    compared to Armenia.

    Regarding the Nagorno-Karabakh conflict, as the Minsk Group process
    produced no results favorable to Azerbaijan, USG positions on
    resolving the conflict were contrasted with USG positions vis-a-vis
    the Balkans and more recently Ukraine/Crimea.

    Finally US pressure to hold more democratic elections and observe
    international human rights standards clashed with leadership desires
    to preserve stability - as they saw it -- and political power.

    Times are Changing

    Many observers have noticed deterioration in the tone and, in some
    respects, the substance of US - Azerbaijan relations, especially since
    the flawed Azerbaijani presidential elections in the fall of 2013.
    Part of this reflects fundamental shifts in the global and regional
    political and economic environment.

    . The global energy markets have changed profoundly over the past two
    decades. Global oil and gas production especially in North America has
    reduced the significance of gas and oil from the Caspian region, and
    in particular Azerbaijan. The potential energy resources in Azerbaijan
    are not as great as they appeared in 1994. Gas has replaced oil as the
    high demand (for energy security reasons) hydrocarbon. Unlike in the
    1990s, energy development is being determined more on commercial terms
    than political priorities as applied when the BTC pipeline was
    developed.

    . Despite the dedication of talented US Minsk Group negotiators,
    neither Baku nor Yerevan has negotiated directly in a manner leading
    to a peaceful settlement of this conflict. The leadership in Yerevan
    and Baku has not prepared their respective publics to accept the
    compromises that must accompany a negotiated settlement. Further there
    have been attempts to hold the Minsk Group responsible for finding a
    solution acceptable to one side and imposing it on the other side. The
    longer the impasse in the Minsk Group continues the greater the risk
    of resumed armed conflict. We are at such a point today.

    . As the US and NATO drawdown in Afghanistan continues, the importance
    of Azerbaijan and its neighbors in securing the northern supply route
    to Afghanistan diminishes. Also Iran's greater engagement in its quest
    for a nuclear agreement with the West has reduced the security
    priority accorded to Azerbaijan in that context.

    . International support for the observance of human rights and
    promotion of democracy in Azerbaijan has increased in recent years. At
    the same time, Azerbaijani support for its international obligations
    in this area has waned. From the US and Europe, private and official
    voices have been raised about why after two decades of prosperous
    stability in Azerbaijan, elections still are not conducted in a free
    and fair manner, the number of political prisoners has increased,
    religious freedom is restricted, and freedom of expression shut down.

    While such external factors play a role in this deterioration, the
    most critical factors flow from choices the Baku regime is making for
    its own reasons, including:

    . Frustration over the lack of Western support for the Azerbaijani
    position on return of Nagorno-Karabakh to Baku's full sovereign
    control, while supporting Ukraine's position on the return of Crimea
    to Ukraine.

    . Unfairness of FSA 907 while the USG provides economic assistance to
    Armenia and Nagorno-Karabakh

    . With the extraordinary growth of Azerbaijan's energy revenue,
    Azerbaijan now has the resources including financing and access to
    technology that it depended on Western companies and governments to
    provide in the 1990s. It no longer "needs" US and Western political
    support in the energy arena.

    . Lack of respect for Azerbaijan's support for US/NATO efforts
    especially in Afghanistan, the global fight against terror, and
    standing up to Iran. Failure of the US to provide lethal capabilities
    that Azerbaijan could use in its confrontation with Armenia.

    . Concern about internal political instability and the imagined role
    of US assistance and foreign NGOs and media outlets in supporting the
    political opposition. Anti-regime demonstrations in Baku and elsewhere
    in the country in 2013 called attention to corruption, mistreatment of
    draftees in the Azerbaijani military, and unlawful detention and
    arrest of opposition politicians, NGO representatives and reporters.

    . In particular following the flawed Presidential elections in 2013,
    the regime began attacking US officials for promoting anti-regime
    activities. The persons targeted included congressional staffers, US
    ambassadors (bilateral and Minsk Group co-chair), and finally the
    President of the United States.

    . The shutdown of US NGOs such as IREX and the National Democratic
    Institute (NDI), and information services including Radio Free
    Europe/Radio Liberty (RFE/RL).

    This culminated with the December 3, 2014 polemic by Chief of the
    Presidential Apparatus, Ramiz Mehdiyev. This document accuses the USG
    of fomenting a color revolution in Azerbaijan through "fifth columns"
    created by USG assistance to US NGOs and affiliated local NGOs.

    End of the Heydar Aliyev Era

    I have written elsewhere that I believe the Mehdiyev attack on the US
    represents the end of the Heydar Aliyev (the current President's
    father) era - an almost two decade long effort by both the United
    States and Azerbaijan to improve relations despite differences. During
    that period there was a public profession from the Azerbaijani side of
    cooperation with the US and support for internationally recognized
    standards for democracy and observance of human rights.

    More than anything else, the many USG statements about flawed
    elections and human rights abuses, and critical assessments from some
    European partners pushed official Baku over the top. I believe that
    the Azerbaijani decision not to follow Georgia on an explicit path
    toward closer association with the EU reflected official Baku's
    assessment that closer engagement with the EU would mean a brighter
    spotlight on its unacceptable treatment of opposition figures and
    independent media.

    The regime is walking a line between being forced to join Russia's
    Eurasian Economic Union or rejecting the EU - Azerbaijan's largest
    market for natural gas exports. Yet, it appears that either Europe or
    Russia is a more acceptable strategic partner for Azerbaijan than the
    US as long as Washington advocates on behalf of the 90 plus political
    prisoners, the NGOs, RFE/RL, and an independent Azerbaijani media.

    What Can the US Do?

    The US and Azerbaijan are in a different place than just five years
    ago. There are new global and regional geopolitical realities. The
    global energy picture in particular has changed making Azerbaijan and
    the Caspian region less critical to US energy security needs.

    Rather than trying to construct an abstract "strategic partnership,"
    we need to establish a limited set of attainable goals. Progress on
    these goals would determine whether a strategic partnership between
    the US and Azerbaijan is realistic. These could be:

    . Serious engagement between Armenia and Azerbaijan by a specific date
    leading to a peaceful settlement of the dispute regarding
    Nagorno-Karabakh, and resumed Track-II unofficial contacts between
    Armenians and Azerbaijanis.

    . Support for stability in Azerbaijan based on Baku's movement toward
    greater democracy and observance of internationally recognized human
    rights standards.

    . Freedom for the over 90 political prisoners.

    Without progress in each of these areas, I fear:

    . Resumption of armed conflict between Armenia and Azerbaijan.

    . Further internal suppression of the remaining liberal democratic
    elements in the run-up to the 2015 Parliamentary elections in
    Azerbaijan.

    The US cannot allow that to happen. On the human rights front, there
    are more political prisoners in Azerbaijan than in Belarus and Russia
    combined. That is unacceptable. Years of diplomatic engagement have
    not improved the situation. Recently it has become markedly worse than
    anything I have observed in my experience with Azerbaijan.

    If there is no progress toward release of all these prisoners then the
    USG should consider imposing travel and other sanctions on those
    officials responsible for the arrest and continued detention of NGO
    activists and journalists.

    I also believe that as long as there is a risk of surveillance and
    possible detention or arrest of American citizens in Azerbaijan, the
    Department of State should issue a travel warning for all Americans
    planning to travel to Azerbaijan.

    Why Should the USG Care about Human Rights in Azerbaijan?

    Lately Azerbaijani officials have questioned why the US pays attention
    to "minor issues" like abuses of human rights when there are far more
    important areas of concern (e.g. European energy security, Iran,
    Russia, cooperation on anti-terrorism) that the US should be
    addressing.

    Let's set aside for the moment the obligations Azerbaijan has freely
    undertaken in the UN, the Council of Europe, and the OSCE.

    Human rights are a major US security concern. We support, as we have
    for two decades, the independence and territorial integrity of
    Azerbaijan. We are limited in what we can do, however, when the regime
    in Baku suppresses liberal democratic institutions, arrests those who
    peacefully oppose the lack of democracy and human rights in
    Azerbaijan, and creates political and social space for other forces
    that are more dangerous to real stability in Azerbaijan. Make no
    mistake: radical Islamists are quickly filling the void. They not only
    burn American and Israeli flags but also send recruits to fight in
    Syria. When these fighters return to Azerbaijan they represent not
    only a threat to Azerbaijan but to US security interests as well. That
    is why human rights are not minor issues.

    Thank you.

    Read this original document at:
    http://docs.house.gov/meetings/FA/FA14/20150212/102956/HHRG-114-FA14-Wstate-KauzlarichR-20150212.pdf

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