Putin Said to Plan Islamic State Strike With or Without U.S.

Welcome to the Caspian Daily, where you will find the 10 most important things you need to know on Caspian Sea Region. We appreciate ideas, reports, news and interesting articles. Send along to Caspian[at]moderndiplomacy.eu or on Twitter: @DGiannakopoulos

1Russian diplomacy has shifted into overdrive as Putin seeks to avoid the collapse of the embattled regime of Bashar al- Assad, a longtime ally who’s fighting both a 4 1/2 year civil war and Sunni extremists under the banner of Islamic State. Putin’s proposal, which Russia has communicated to the U.S., calls for a “parallel track” of joint military action accompanied by a political transition away from Assad, a key U.S. demand, according to a third person. The initiative will be the centerpiece of Putin’s one-day trip to New York for the United Nations General Assembly on Sept. 28, which may include talks with President Barack Obama. Bloomberg

2Russia threatens US with nuclear arms 'counter-measures'. Russia has threatened to take “countermeasures” if the United States goes ahead with the deployment of a new type of nuclear weapon to bases in Germany, raising fears of a return to a Cold War style arms race in Europe. The Kremlin said plans reported by German media for the US to upgrade its nuclear weapons arsenal in the country would be “a serious step towards raising tension” in Europe. “Unfortunately, in the case of these plans - and we can say with certainty that they are moving towards realisation - this can lead to a violation of the strategic balance in Europe,” said Dmitry Peskov, Vladimir Putin’s spokesman. The Telegraph

3OSCE Minsk Group Co-chairs' advanced negotiations with Azerbaijan and Armenia on Karabakh conflict settlement helped reduce tensions along the contact line, James Warlick, the U.S. Co-chair said Tuesday, September 22. In an interview with Azerbaijani news agency Trend, Warlick commented on Minsk Group’s work aimed at resolving the Nagorno Karabakh conflict. Warlick said the co-chairs look forward to the Azerbaijani and Armenian Foreign Ministers' meeting at the UN General Assembly to continue the dialogue on presidential level.

4Kazakhstan is keen on strengthening the position in traditional markets for exporting grain - Azerbaijan, Iran, Afghanistan and Central Asian countries such as Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan. Kazakhstan is also interested in increasing grain export to the promising markets, including Europe and Turkey, where there is a constant demand for high-protein and durum wheat. Kazakhstan is among the world's major grain exporters. In 2011, the country had a record harvest of nearly 27 million tons of grain in net weight. Kazakhstan exported 8.7 million tons of grain in 2013-2014 marketing year.

5Turkmenistan Pushes Ahead on TAPI Pipeline. “As the United States Congress prepares to deliberate on the agreement reached between Iran and the permanent members of the United Nations Security Council plus Germany (P5+1) over Iran’s nuclear program, a small flurry of statements were released in mid-September announcing that construction on the long-stalled Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline would commence in December 2015. Facing the impending prospect of competition from Iran’s unfettered participation in global natural gas markets, Turkmenistan has adopted a new policy orientation to expedite TAPI’s construction” The Diplomat

6India is ready to invest more than $15.2 billion to build projects in Iran including taking up full-scale development of Chabahar Port if Tehran offers better terms including cheaper gas, Shipping Minister Nitin Gadkari said on Wednesday. India is one of the few countries that continued trade links with Iran, isolated by Western countries against its nuclear programme. New Delhi is Tehran’s second biggest oil client after Beijing. “We are ready to make a huge investment in Iran and this is mainly linked to gas pricing offered by Iran ... Gas price is a crucial issue,” Mr Gadkari told a news conference.

7The State Oil Fund of Azerbaijan (SOFAZ) and Mitsubishi UFJ Trust and Banking Corporation have jointly acquired landmark retail property Kirarito Ginza in Tokyo, Japan for 52.3 billion Japanese yen (nearly $444.24 million). This is SOFAZ’s first real estate investment in Japan. The property was purchased from Elliott Advisors Asia Limited and Orix Corporation. Kirarito Ginza is located in Chou Avenue, Ginza, which is the most prestigious retail location in Japan. The property was built in 2014 and is one of the very few trophy assets recently completed in Ginza area.

8What Iran’s Nuclear Deal Means for Oil Prices. From early 2016, Western sanctions on Iran will start to wind back. At that point, Iran’s oil production will increase. As will the amount of supply it forces onto global markets. That’s either good or bad, depending on your point of view. For already depressed oil prices, it’s a disaster. Especially for the governments that rely on oil to underwrite budgets. At the same time, low oil prices will help the global readjustment to slowing growth. Low prices, for the foreseeable future, will help weather concerns about the global economy. Not surprisingly, Iran will be the biggest winner from this development. Daily Reckoning

9The housing sector has had a positive impact on the construction industry in Kazakhstan, according to the Ranking.kz analytical service. Kazakh construction companies have added an all-time high of roughly 719,000 cubic meters of new residential property in August. This amounts to a 30.5 percent increase in new residential property compared to last August, adding 3,259 apartments and 2,391 single-family houses on a turnkey basis. The top three areas for housing construction are Astana, Almaty and the Almaty region, while the highest growth rate was seen in East Kazakhstan, West Kazakhstan, and the Akmola region.

10The Azerbaijani Accounting Chamber became a full member of the Working Group on the Public Debt of the International Organization of Supreme Audit Institutions (INTOSAI). The working group defines the main issues for the preparation of procedures and obligations in connection with the audit and evaluation of state debt obligations. It is engaged in the exchange of experience with the research groups, international organizations and similar bodies of other countries involved in public debt, and so on. INTOSAI brings together the supreme audit institutions of the UN member-states. It was founded in 1953. It includes more than 180 national supreme audit institutions.

Dimitris Giannakopoulos

Modern Diplomacy Editor-in-chief

Journalist, specialized in Middle East, Russia & FSU, Terrorism and Security issues. Founder and Editor-in-chief of the Modern Diplomacy magazine. follow @DGiannakopoulos

Top