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For Members Only: The Consequences of the Caspian Summit’s Foreign Military Ban

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Last September brought with it major changes to the hotly contested Caspian Sea region. These changes were revealed at the IV Caspian Summit held on September 29th in Astrakhan, Russia.

Of the greatest significance was the unanimous vote by the “Caspian 5” (Russia, Iran, Azerbaijan, Turkmenistan, and Kazakhstan) to no longer allow foreign military presence in the Caspian region and that all issues that were to arise would be solved between the littoral states only. The political declaration, according to an announcement by Vladimir Putin and signed by all five presidents “sets out a fundamental principle for guaranteeing stability and security, namely, that only the Caspian littoral states have the right to have their armed forces present on the Caspian.” [1]

Iran’s President Hassan Rouhani echoed this sentiment stating “there is consensus among all the Caspian Sea littoral states that they are capable of maintaining the security of the Caspian Sea and military forces of no foreign country must enter the sea.” [2]The five further agreed to expand cooperation on the Caspian Sea in terms of meteorology, natural disasters, and environmental protection. [3] The declaration also revealed clear formulations on the delimitation of the seabed with each country having exclusive sovereign rights to a 15 mile area. [4] This puts to rest an issue that had been contested since the breakup of the Soviet Union and the emergence of the new independent states. [5]Apart from being a unique body of water in terms of its bio and ecological resources, the Caspian Sea comes with a massive amount of oil and gas reserves, an estimated 18 billion tons with proved reserves of four billion tons. These numbers put the Caspian Sea directly behind the Persian Gulf in terms of the world’s largest oil and gas reserves. [6]

This declaration also outlined many other projects in the works for this region – a major one being the joint construction of a railroad that would encircle the Caspian Sea, connecting key Caspian ports and cutting transportation time in half. The five states also signed an emergency prevention and response agreement which called for joint efforts in responding to emergencies in the region. [7] Additionally, plans were revealed for a joint emergency response exercise to take place in 2016 that will test the capabilities and partnerships between the nations and develop procedures of notifying and coordinating rescue units. [8]

Disguised underneath these projects, exercises, cooperation, and initiatives is a very real threat to the United States and NATO. Russia and Iran have long felt threatened by the possibility of a foreign military presence in the Caspian Sea and Moscow was determined to find a way to ensure it would not lose any more influence in the global energy sector (this in light of Europe slowly but surely diversifying away from Russian gas after the Ukrainian crisis began). The best way to do this was to bring these nations into the fold of Kremlin interests, while making them feel their own interests were also being served. By strengthening relations in their own backyard Russia has been able to increase influence and gain back power in the region. Shutting NATO out of the region also significantly increases Kazakhstan, Azerbaijan, and Turkmenistan’s dependence on Moscow in many different aspects. [9] Another added bonus is that a clear alliance made up of Iran, Russia, Turkmenistan, and Azerbaijan, Ukraine (absent any ‘outsider presence’) would be comparatively easy to control. [10]

The effects of this agreement have already resulted in major changes to relations between Caspian nations and the United States. For years Azerbaijan has welcomed American-Azeri relations by stepping up logistical support for NATO operations in Afghanistan and even serving in Afghanistan as part of the ISAF, but relations have clearly cooled between the two nations. There were also serious talks between Kazakhstan and the United States for building a base on the border in Aktau that would cater to the needs of the United States and NATO troops, but since the signing of this declaration the project has been halted. Finally, the geopolitical shift in the region has resulted in the closing of the North route for NATO military equipment being sent to Afghanistan. [11]Prior to this Caspian Summit agreement the United States had played an active role in helping Azerbaijan, Turkmenistan, and Kazakhstan bolster their military defenses and develop their own navies. [12] The maintaining of close relations in this region was of great political and strategic importance to the United States, not only due to its vast oil and gas riches (originally outside of Russia’s control) but its strategic location that connects it with many regions of Western interest.

Other ways that Russia has benefited from this deal include: the creation of a rapid response force unfurling along the Caspian Sea coast as a means to extend influence over the Nagorno-Karabakh enclave and its troops in the Armenian Gyumri base; jumpstarting cooperation with Giorgi Margvelashvili, the new Georgian Prime Minister; maintaining the ability to block Georgian and Azerbaijan pipelines; improving relations with Turkmenistan; beginning plans for building a pipeline with Turkey (named the Turkish Stream) out to Europe, which will compete with the Trans-Anatolia Gas Pipeline project (sponsored not coincidentally by the US, EU, and Azerbaijan). [13]

The United States has another reason to worry about being blocked from the region – Chechnya. In Azerbaijan, jihadists from the Jamaat (Community) Group are already operating and maintaining connections with Chechen Islamists, the Caucasus Emirate, and Syria’s Islamic State: the attack on Eurovision in 2012 and the murder of several Shiite clerics all carry their hallmarks. This insurgency is threatening to turn the region into one of the most ungovernable locations in the world where neither aggressive use of military/intelligence force (counterterrorism operations courtesy of Russia) nor engaged economic assistance has helped the situation. With the United States not being able to join together with forces in the region this threat will not just remain present but will likely only continue to grow. [14]

Arguably, the signing of this agreement to ban foreign militaries has been the biggest game-changer to take place in the Caspian over the last 20 years. The West not being able to be involved in the region not only decreases energy development and security in the oil and gas-rich Caspian sea basin, but also wounds in several other respects: it reduces the ability to deter adversaries in the region against attacks; it weakens what were growing U.S. alliances; it allows Moscow to project its power over the other Caspian nations with little interference; it cuts off access to ports for deployments to the Middle East; it does not allow for responses to humanitarian crises in the region; and it does not allow for the U.S. to project its own power and reach as easily as it once did. All of these make the United States and NATO much weaker than before the Summit began. Round One in this heavyweight prize fight has clearly gone to the Russian bear.

 


[1]Dettoni, J. (2014). “Russia and Iran Lock NATO Out of Caspian Sea.” The Diplomat. Retrieved from http://thediplomat.com/2014/10/russia-and-iran-lock-nato-out-of-caspian-sea/

[2]Ibid.

[3]PressTV. (2014). “No foreign military force must enter Caspian region: Rouhani.” PressTV.ir. Retrieved from http://www.presstv.ir/detail/2014/09/29/380453/no-foreign-force-in-caspian-region/

[4]Belinksi,S. (2014). “Caspian Sea Could Be Key To Russian Control Of Eurasian Energy Markets.” Oilprice.com. Retrieved from http://oilprice.com/Energy/Energy-General/Caspian-Sea-Could-Be-Key-To-Russian-Control-Of-Eurasian-Energy-Markets.html

[5]PressTV. (2014). “No foreign military force must enter Caspian region: Rouhani.” PressTV.ir. Retrieved from http://www.presstv.ir/detail/2014/09/29/380453/no-foreign-force-in-caspian-region/

[6]TASS, (2014) “Real breakthrough reached at 4th Caspian Summit – Putin.” TASS Russian News Agency. Retrieved from http://tass.ru/en/russia/751856

[7]Ibid.

[8]Sputniknews. (2014). “Countries bordering the Caspian Sea will hold joint emergency exercises in 2016, Russian President Vladimir Putin said Monday.”   Sputniknews.com Retrieved from http://sputniknews.com/military/20140929/193422433.html

[9]Belinksi, S. (2014). “Caspian Sea Could Be Key To Russian Control Of Eurasian Energy Markets.” Oilprice.com. Retrieved from http://oilprice.com/Energy/Energy-General/Caspian-Sea-Could-Be-Key-To-Russian-Control-Of-Eurasian-Energy-Markets.html

[10]Ibid.

[11]Armanian, N. (2015). “Turning point in Eurasia: Azerbaijan distances itself from the USA and the EU.” TheFifthColumnews.com. Retrieved from http://thefifthcolumnnews.com/2015/06/turning-point-in-eurasia-azerbaijan-distances-itself-from-the-usa-and-the-eu/

[12]Ibid.

[13]Ibid.

[14]Cohen, A. (2012). “Anti-Terrorism Operation in North Caucuses Exposes Russia’s Vulnerabilities.” TheDailySignal.com. Retrieved from http://dailysignal.com/2012/10/23/anti-terrorism-operation-in-north-caucasus-exposes-russias-vulnerabilities/

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Eastern Europe

Armenia’s Role in South Caucasus Policy of Russia

Aliyar Azimov

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The Caucasus has long been one of the most important regions in the world. Many states had the desire and plan to rule this region from time to time. For centuries Russia has a great influence in the Caucasus and the main reason for the importance of the Caucasus region for Russia is its geostrategic location on important trade routes. Because by passing through this region Russia can reach the Balkans, the Black Sea and the White Sea, the Persian Gulf, as well as the Indian Ocean. The other important reason is the Caucasus is a great source of raw materials for the Russian economy. North Caucasus regions, such as Chechnya, Dagestan and Tatarstan, cover almost half of Russia’s energy needs. Also, the Caucasus region has significant strategic importance in terms of the routes that aimed to bring the Caspian Sea resources to the West and controlling these routes.

After the dissolution of the USSR, relations between Russia and Armenia intensified since 1992. There are numerous agreements have been signed between Russia and Armenia in various fields. The most important agreement was signed in Moscow a Treaty of Friendship, Cooperation, and Mutual Assistance by Presidents Boris Yeltsin of Russia and Levon Ter-Petrosian of Armenia. The treaty also envisages consultations and mutual military support if either side is attacked or considers itself threatened by a third party. Despite Russian and Armenian officials denied this, it was one of Russia’s interference in the South Caucasus through Armenia. This agreement has made Russia’s presence stronger in the region. Russia has military bases in Armenia and the main purpose of these bases is to protect Russia’s interests and Armenia’s national security. After the recent crisis in Georgia and the withdrawal of Russian military bases, Armenia became a more important actor for Russia.

Russia has a significant impact on the processes in the region by using the Nagorno-Karabakh conflict. The conflict started with Armenian occupation of Azerbaijani lands and as a result of Russia’s efforts, a ceasefire was declared and negotiations started. The Kremlin supports the peaceful settlement of the conflict within the OSCE Minsk Group, as well as in bilateral meetings. Consequently, Russia provides political and military support to Armenia as an important ally in the region, as well as prevents Azerbaijan moving away from it by being as a guarantor of the peaceful settlement of the conflict. Time to time Russia uses this conflict to make political pressure on both countries which makes it another most important factor for Russia. Georgia’s attack on North Ossetia and later on Russian intervention in Georgia and recognition of North Ossetia and Abkhazia, have led to thinking whether there will be a change in the status of Nagorno-Karabakh. Also, Russian intervention in Georgia has shown that the problems in the CIS region cannot be solved without Russia. Therefore, it is possible to say that resolving the Nagorno-Karabakh dispute is highly dependent on Russian presence. However, the growing interest of the West in this region and proposing new solutions to the conflict, make Azerbaijan and Armenia use this dispute card against Russia. The possibility of Western-South Caucasus rapprochement in the future may lead to not only a political, but even a serious economic impact on Russia. Russia’s economy is heavily dependent on energy resources and the European energy market is the most important, profitable, and stable market for Russia. At the same time, the EU tries to diversify its energy routes and to reduce its dependency on Russian energy exports. The South Caucasus, especially the Caspian region has rich oil and gas sources. Hence, in the light of the Western-Caucasus relations, the role of Azerbaijan becomes more significant and strategic. In addition, strengthening and developing relations between Armenia and the EU is important in terms of ensuring the security of supply. Such a significant reduction of the EU’s dependence on Russia will have a great impact on Russia’s economy. Considering the fact that there are numerous sanctions on Russia, the weakening of the Russian economy may hamper its regional power. Even more likely, this may lead to domestic riots in Russia, and Russia may face the threat of a division of the country.

The Kremlin and Moscow have a special control over the region to prevent this scenario and creates barriers to the South Caucasian countries’ integration into the European Union. For instance, abandoning the Nabucco project, Russia’s military intervention in Georgia, and being a shareholder in projects in this region (excluding TAP and TANAP) are some examples of these barriers.

Diasporas also play an important role in Russia’s Caucasus policy. They are most influential tools in key areas of government and are closely involved in political activities. Moreover, the existence of many Russian citizens in Armenia, the wider use of Russian language in the country, and the broadcasting of Russian radio and television channels are the core elements of Russian presence in Armenia. Some Russians living in Armenia also have the opportunity to participate actively political and cultural relations due to their Armenian language knowledge.

Conclusion

After the collapse of the USSR, Armenia became Russia’s main ally in the South Caucasus. Integration of Georgia into West, conflicts and problems with Turkey and Azerbaijan, threats to national security urge Armenia to be closer to Russia. At the same time, large-scale projects implemented by Azerbaijan and Georgia with Turkey and Western countries, integration into the Western markets, and problems with Armenia hinder Armenia’s regional, political and economic development. To ensure this development, Armenia sees Russia as its biggest ally and closely cooperates with Russia.

The basis for the national security of Armenia relies on military cooperation between Russia and Armenia, however, the dependence on Russia in the economic sphere and the fact that all the strategic enterprises are controlled by the Russians is contrary to Armenia’s interests. Therefore, Armenia is in search for ways to integrate into the West without undermining its relations with Russia. However, Armenia’s political and economic dependence on Russia and tensions with Azerbaijan and Turkey make difficult to integrate into the West. in order to get rid of isolation, it is important for Armenia to step back in disputes with Turkey and Azerbaijan and mitigate relations.

In the near future, it is impossible for Armenia to completely break the dependency on Russia and integrate into the EU and the West. The grounds for this integration, which depend on Russia’s foreign policy strategies, have not yet been established. Today, the Armenian authorities understand that it is impossible for Armenia without Russia to exist in these conditions. While the integration into the West is on the agenda, the isolation of Armenia in the region prevents the achievement of political and economic prosperity. Russia’s active involvement in the region is important for Armenia, both for internal and external stability. Armenia’s integration to the West will continue in the frame of Russia’s interests, but from now on the Armenian government will pursue a more discreet policy towards Russia. Russia, on the other hand, can take two actions; to take a step which can lead to the end of the Nagorno-Karabakh conflict and Armenia’s defeat, or to control Armenia without military intervention by making some concessions to current or future authorities. The first option is dangerous for Russia in terms of losing Armenia and reputation in South Caucasus, however, in the second variant, Russia can maintain its influence in the region by ensuring its long-term interests.

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Eastern Europe

Latvians will choose their future

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The general elections in Latvia will take place on October 6, 2018. On Saturday Latvians will choose their future. Though it sounds very pathetic, future of the country really depends on the results of these elections.

In an interview with Latvian information agency LETA, Foreign Minister Edgars Rinkevics, commenting the atmosphere during this pre-election period, said that a serious battle of people’s minds and hearts is going on right now.

And this is true. But this fight is too cruel. Just this pre-election period shows all things bad as they are. The “truth” about corruption on high banking and political levels all of a sudden has been poured out on population. “Latvia’s central bank chief has been charged with bribery. A lawyer liquidating the bank that was accused of bribing him was killed in a hail of machine-gun fire. One of the country’s biggest lenders was shut down after the U.S. levied allegations of money laundering and violations of sanctions on North Korea. What’s going on in Latvia? “ ask the authors of article “Where Latvia’s Financial Corruption Scandal May Lead” published in Bloomberg on September 27.

Situation in small Latvia reminds gangster times in the United States, when criminals held people in awe. The difference is only in the fact that American gangsters were not high ranking officials. Gangsters’ activity was officially considered criminal. On the contrary, Latvian case demonstrates activity of corrupted authorities, who influence the whole country, all 2 milllion people.

Ilmars Rimsevics, who’s been in charge of Latvia’s central bank as governor or deputy since 1992, is accused of soliciting a bribe from Trasta Kommercbanka AS, a small lender that was shut in 2016 after being implicated in a $20 billion money-laundering scheme. Specifically, he’s accused of receiving 250,000 euros five years ago.

It is difficult to imagine, that he got a bribe once, ruling the bank for so many years. Nobody saw his misconduct, nobody knew about it. Nonsense!

Now it is a question of trust to all top officials in Latvia.
For example, about 1 percent of all U.S. dollars moving around the world in 2015 were going through Latvia, according to Daniel Glaser, then a top official in the U.S. Department of the Treasury. It means that Latvia had a chance to become the second Switzerland at least.

But Latvians did not even feel the benefits. They tried to survive in 2015 and they continue to survive in 2018. Nothing has changed. Rich people have become richer and poor have become poorer. That is Latvian Reality.

The other news stroke Latvians this week. Prime Minister Maris Kucinskis confirmed that EUR 2 million more could be allotted for national defense.

He said with pride that “thanks to the increasing budget revenues, the funds will not have to be taken away from other national economy sectors.”

A question arises: why should these additional revenues go to defense and not to other national economy sectors? Is it the sphere that needs money most of all?

Corrupted political system decides for people where their money should go and for what purposes. It is well known that it is very difficult to track money spending in military sphere because this sector of economy is not transparent to the society due to security measures.

The only thing Latvians can do under such circumstances – to choose the right politicians to rule the country and they are surely should not be the same corrupted officials.

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Eastern Europe

Lithuania violates the Universal Declaration of Human Rights

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DELFI, which is the major Internet portal in the Baltic States providing daily news, stated on September, 10 that the number of emigrants from Lithuania exceeds that of immigrants by 1,000 in August. Shocking statistics shows that the country has registered a negative migration balance. Some 4,382 people left Lithuania in August. Thus, Lithuanians are leaving the country despite authorities’ claims on economic growth, stability and favorable perspectives.

On the one hand, according to “Lithuanian economy review – 2017”, the GDP growth in Lithuania accelerated. In 2017, as compared to the previous year, Lithuania`s GDP increased by 3.8%. On the other hand, this fact contravenes the increasing number of emigrants.

What makes people change their life and say “Good bye” to their homes? This is a rhetorical question. The answer lies on the surface.

Lithuanians do not satisfy with their standards of living. For example, survey of public opinion and market research company “Baltijos tyrimai” reveals that Lithuanians still haven’t domesticated the Euro. The pool conducted in July shows that more than 46,3% of Lithuanians blame the European currency in lowering their life standards. In other words they do not agree with the authorities’ decision to adopt the euro.

People compare their life with the other European countries and it is not in favor of Lithuania. The words and promises are not fulfilled, corruption flourishes. Thus, Freedom House document “FREEDOM IN THE WORLD 2018” reports that “the major problem for Lithuania’s democracy – corruption – continued to dominate the public sphere, as a series of scandals plagued members of the Seimas (parliament) and public institutions. Even Lithuanian President Dalia Grybauskaitė on Monday called on lawmakers not to waste their time on squabbling.

Officials, who today name themselves democrats, did not manage to get rid of Soviet thinking and way of behavior. When they get political power they forget about their duties. Permanent political scandals in small country led to the fact that people stopped believing authorities. And authorities’ activity is seemed to be suspicious in all spheres of life.

Thus, Lithuanians are wary of a new agreement on the country’s defense policy for the next decade signed by Lithuania’s parliamentary parties on Monday. The document calls for joint efforts to resist “irresponsible speculation that sets defense funding in opposition to other sensitive areas”. It means that Lithuanians do not have the right to decide to what area allocate budget money though they pay taxes. They do not have the right to speak on this topic and express their opinions if they contradict the official point of view. The parliament members forget the basic human rights. Article 19 of Universal Declaration of Human Rights of the United Nations states that ”everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.”

An ordinary person cannot solve the puzzle why television and Government controlled media describe his country just another way he sees it. Freedom House states also that “Regional economic disparities remain acute. The minimum wage remains one of the lowest within the EU, and the share of the population at risk of poverty and social exclusion is a little over 30 percent.

This discrepancy forces Lithuanians to seek better life abroad, usually in Old Europe. More than 20 years of expectation is too much. Life is too short to waste it to sit around waiting for changes.

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