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
1In a region described as the “pivot of history’, where great power rivalry has often been a cause of conflict and tension, governments are sensitive to anything that might upset the existing balance of relations. This is already having an effect in fostering new alignments and complicating plans for Eurasian integration under Russian leadership. David Clark for New Statesman.
2Turkmen President Gurbanguly Berdymukhammedov has pledged to move forward in constructing a railroad line from Turkmenistan to China. Berdymukhammedov, on his first official visit to Kyrgyzstan on August 5, said after talks with Kyrgyz counterpart Almazbek Atambaev that the two discussed energy and security issues that hold “great importance for the whole world.””The construction of a gas pipeline from Turkmenistan to China via Uzbekistan, Tajikistan, and Kyrgyzstan will be implemented in the very near future,” Berdymukhammedov said, without elaborating. Atambaev said Berdymukhammedov’s two-day visit to Bishkek was “the new phase of the development of ties between the two nations.”
3Russia and France cancel $1.3 billion warship deal. The two countries have terminated a contract worth 1.2 billion euros ($1.3 billion) for France to supply two Mistral-class amphibious assault ships to Russia. The deal was signed in 2011 but France faced pressure to withdraw from the arrangement after Russia annexed Crimea from Ukraine. The French government suspended delivery of the ships last year. Russian President Vladimir Putin and French President Francois Hollande said in a joint statement that the parties had reached a “mutually acceptable agreement.” Russia will be reimbursed for money already paid under the contract, and France will retain ownership of the helicopter carriers. Russian media reported that more than one billion euros had already been deposited in a Russian bank account by France.
4Kazakhstan: United Nations Security Council 2017-2018. Kazakhstan is scooping up high-profile chairmanships in regional organizations for two primary reasons: to advance Kazakhstan’s image as a peacemaker and mediator; and to fulfill President Nazarbayev’s vision for Kazakhstan of being the “Eurasian Bridge,” linking Asia to Europe. With a track record of high participation in international organizations, Kazakhstan can benefit from and build lasting trade and political and economic relationships. Obtaining the UNSC seat reinforces Nazarbayev’s multi-vector foreign policy and adds diversity to the Asia bloc of countries of the 15 member UNSC. Samantha Brletich for Modern Diplomacy.
5Tourism sector observes growth in Azerbaijan. The tourism sector of Azerbaijan has marked a minimum of 20 percent growth, said Tural Aleskerov, an independent expert in the field of tourism. The first European Games held in June in Baku is the reason for this increase, he believes. To attract more tourists into the country, Azerbaijan facilitated visa procedures for foreign citizens wishing to watch the Games.Over 2 million tourists came to Azerbaijan last year, which amounted to about one billion manats (over $950,000 million) in revenue from tourism. In the near future, the country is expected to increase its tourist flow up to 5 million a year. Nigar Orujova for Azernews.
6What opportunities will Azerbaijan get as result of lifting of sanctions against Iran? Azerbaijan has several advantages over the West. First of all, the geographical location plays a major role here. The proximity to Iran simplifies trade relations. Currently, the trade turnover between the countries is not high. As of 2014, it amounted to only $186.6 million (0.6 percent of the total trade turnover of Azerbaijan). However, after the lifting of sanctions, one can be confident in the growth of trade between the countries.Second, Europe and Iran have a certain lack of confidence. Being a neighbor of Iran, Azerbaijan has much in common with this country. Therefore, one can assume that Azerbaijan will have an advantage over the European companies.Of course, most likely, the oil and gas sector will remain the basis of economic cooperation between the two countries. But, nevertheless, there are other areas where Azerbaijan and Iran could cooperate, for example, Iran’s mining sector. Azad Hasanli for Trend.
7The Irony of Revolution: JCPOA as Youth Coercion Tool in Iran. When one considers that Iran has expended a great deal of resources over previous decades on building up its nuclear program, there has to be a serious reason for it to give up its nuclear aspirations now. Iran has spent billions of dollars on building infrastructure: nuclear reactors, centrifuges, and facilities; attaining nuclear materials; and thousands of man-hours expended on uranium enrichment. So why after all that material, time, and man-power investment does Iran reverse course and agree to curb its nuclear aspirations? Dr. Matthew Crosston for Modern Diplomacy.
8Pakistan and Turkmenistan are set to engage in talks in a bid to take a giant leap forward in executing the US-backed transnational pipeline project that will connect four countries in Central and South Asia. Gas companies of Turkmenistan, Afghanistan, Pakistan and India have already established a company that will build, own and operate the natural gas pipeline, which will be 1,800km long, starting from Turkmenistan and reaching India after passing through Afghanistan and Pakistan. The four state-run gas companies will have an equal share in the pipeline operator. According to officials, the shareholding agreement was reached before selecting the consortium leader.
9The International Monetary Fund has improved its forecast for GDP growth in Kazakhstan in 2016. The organization reported that Kazakhstan’s GDP growth will be 3.25 percent in 2016 while the country’s economy will increase by 2 percent.”Real GDP growth is projected to decelerate to 2 percent in 2015. Weaker demand from Russia and China, lower oil prices, confidence effects, and continuing delays in the Kashagan oil field are the main factors behind the projected slowdown. Next year, growth is projected to pick up to 3.25 percent, driven by gradual recovery in oil prices and external demand,” the IMF said on August 5.
10Resolving territorial disputes in the Far East – Kuril Islands. A dispute over Kuril Islands is the reason why Russia and Japan still after more than 70 years have not signed a peace treaty to end the World War II. Could compromise about so long stagnating conflict which was so far discussed by Gorbachev, Yeltsin and also by Putin, be found this year during Russian planned visit in Japan? Teja Palko for Modern Diplomacy.