Caspian Report - Issue: 08 - Fall 2014

NINO KALANDADZE
64
There are benefits for supplier and
transit countries as well, most notably
for the South Caucasian non-
EU, non-NATO member states such
as Azerbaijan and Georgia. These
post-Soviet states were dependent
on Russian pipelines throughout
the Soviet Union both for exporting
and importing gas for domestic consumption.
This significantly undermining
their political and economic
autonomy, and provided Moscow
with additional leverage. This situation
underwent a major shift with
the Baku-Tbilisi-Ceyhan (BTC) oil
pipeline, which delivers Azerbaijani
oil through Georgia to Turkey. 29 In
addition, since 2006, Georgia’s domestic
needs have been met almost
exclusively by gas from Azerbaijan,
with no further reliance upon Russian
supply. 30 The Southern Gas
Corridor will further contribute to
the region’s political and economic
independence. Azerbaijan, as the
supplier, will reach European markets,
while Georgia and Turkey will
benefit from “Russia-free” supplies
as well as substantial revenues as
transit countries. Moreover, since
good infrastructure and unimpeded
delivery will be of major importance
to all parties involved, the construction
of a new corridor will inevitably
require even closer cooperation between
the Georgia, Azerbaijan and
Turkey on the one hand and the EU
on the other. This can only strengthen
regional political and economic
ties, boosting further engagement
by western Allies in the region,
strengthening their economic and
political independence from Moscow.
This represents great opportunities
for European energy security, as
well as the for long term economic
security and stability of the region.
However, there are also risks. The
Caucasus region is currently host
to several political, economic and
ethnic instabilities. Most importantly
the so-called frozen conflicts,
military occupation and substantial
uncontrolled armed presence of a
foreign country make the region
particularly vulnerable and susceptible
to further destabilisation. Any
kind of escalation has significant
potential to jeopardise regional stability
and the entire energy security
concept.
C. THE SOUTH CAUCASUS AND
ITS SECURITY CHALLENGES
The Caucasus enjoys a strategic location
at the crossroads between
Europe and Asia, between the Caspian
and Black Seas. Consequently, it
attracts interest from different parts
of the world, most notably from big
players such as the US, EU, Turkey
and Russia. The latter has by far the
most significant impact on the post-
Soviet countries. As outlined above,
the region’s specific importance is
increasing with Europe’s growing
awareness of the importance of securing
reliable, stable and diversified
delivery of hydrocarbons on the
one hand, and the Caucasus’ crucial
role as a source and transit route
in this process on the other. Russia,
however, perceives any further political
engagement by the West in
its “near abroad” zone, 31 together
with the attempts to locate alterna-
29.
http://www.bp.com/en_az/caspian/operationsprojects/pipelines/BTC.html
30.
MFA Georgia, http://www.mfa.gov.ge/index.phplang_id=ENG&sec_id=748
31.
A term that first emerged in Russian to describe Russia’s relations with the other former
republics of the Soviet Union underlining Russia’s superiority and the existence of a an
unequal relationship. See also http://www.pearsonhighered.com/assets/hip/us/hip_us_
pearsonhighered/samplechapter/0205189938.pdf