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Saudi Arabia Plans to Build Canal to Bypass Strait of Hormuz

Dimitris Giannakopoulos

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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

1Saudi Arabia is planning to construct a water canal in Yemen named Salman to use it as a link between the Persian Gulf and the Arabian instead of the Strait of Hormuz.”Studies are underway on the construction of a waterway which starts from a part of Saudi Arabia’s water border in Khour al-Adid area between the UAE and Qatar and stretches 950km to the Arabian Sea,” Sa’ad Ibn Omar, the head of Arab Studies Center in Riyadh, revealed on Wednesday. Omar said that the Salman Canal is due to be built so that Qatar, the UAE and Kuwait can export their oil to other world states through this canal instead of the Strait of Hormuz which is controlled by Iran.”Saudi Arabia has also considered two other alternative paths for the canal which include Oman to replace Yemen if necessary,” Omar said.

2Reports say Russian President Vladimir Putin and Ukrainian President Petro Poroshenko will meet with the French and German leaders in Paris in early October to discuss efforts to resolve the Ukraine conflict. The meeting would be the first face-to-face talks by the four since they met in mid-February to forge a cease-fire agreement in Minsk. The Elysee Palace said in a statement that the four leaders had spoken via phone on September 9 for about 90 minutes and that they agreed that a general cease-fire in eastern Ukraine between government troops and Russian-backed separatist fighters has generally held since September 1.

3Greece and Iran have reportedly granted Russia permission to fly over their territory when supplying aid to Syria. The Interfax news agency quoted a Russian Embassy official in Tehran as saying on September 9 that Iran approved all of Moscow’s requests on flights delivering humanitarian aid to Syria. Separately, a Russian Embassy official in Athens told TASS that Greece granted Russia the right to use its airspace for humanitarian flights to Syria on August 31. Greece said this week that the United States had asked it to close its airspace to Russian aid flights to Syria because of concerns that Moscow might be building up military forces to support Syrian President Bashar al-Assad.

4A conference titled “Religious tolerance: the culture of coexistence in Azerbaijan” has been organized in the French capital as part of the “Azerbaijan in the heart of Paris” project implemented by the Heydar Aliyev Foundation. Azerbaijan’s First Lady, President of the Heydar Aliyev Foundation, Mehriban Aliyeva, as well as representatives from Azerbaijani and French religious organizations attended the conference.Addressing the event, Mehriban Aliyeva said Azerbaijan is located at the crossroads of civilizations and cultures, serving as a bridge between Asia and Europe, and this plays an important role in the development of cultural diversity.“Traditions of tolerance are alive in our country today. Azerbaijan is a member of both the Organization of Islamic Cooperation and the Council of Europe. We are proud of our cultural and historical heritage,” the first lady said.

5In January-August 2015, Kazakhstan produced 30.2 billion cubic meters of natural gas, which is 6 percent more than in the same period last year, Deputy Minister of Energy of Kazakhstan Uzakbai Karabalin said during a press conference at the office of the Central Communications. He said that the growth of gas production in Kazakhstan has been observed not for the first time. Last year, gas production in the country amounted to 43.2 billion cubic meters, which is 2.2 percent more than the same period of 2013. The main growth of gas production is provided by such large mining companies as Karachaganak Petroleum Operating, Tengizchevroil, CNPC-Aktobe.

6Turkmenistan has seen a 8.3 percent GDP growth in social and economic development from January to August of this year, according to a recent meeting of the Cabinet of Ministers. Summarizing the results from various sectors of the national economy for the first eight months of the current year, production was cited to have grown by 7.2 percent, reported Review.uz website. The high economic potential and stable GDP growth will allow the government to provide a wide range of additional social benefits to citizens of Turkmenistan.

7NATO and the United States have expressed concern over reports of growing Russian military activity in Syria. NATO Secretary-General Jens Stoltenberg said that, if confirmed, Russia’s involvement would “not contribute to solving the conflict.”U.S. Secretary of State John Kerry called his Russian counterpart, Sergei Lavrov, to reiterate his concerns. Spokesman John Kirby said Kerry made clear to Lavrov that if the reports were true “it could lead to greater violence and are not helpful at all” to efforts by the international community to end the conflict.The Russian Foreign Ministry said Lavrov “highlighted the significance of a consolidated response to terrorist groupings that have seized a sizable part” of Syria.” Russia acknowledges it has sent military experts to assist with Russian arms deliveries.

8Azerbaijan is ready to continue supporting fraternal Afghanistan in developing the transport, energy, information and communication technologies, Ashraf Shikhaliyev, the head of the Azerbaijan International Development Agency (AİDA) under the Azerbaijani foreign ministry, said Sept. 9. He said that the Baku-Tbilisi-Kars railway and new Baku International Sea Trade Port will create favorable opportunities for Afghanistan to enter the world markets. This will revive and contribute to the sustainable development of the economy of Afghanistan.

9The depreciation of Kazakhstan’s national currency, the tenge, after the abolition of the currency corridor has put additional pressure on the balance sheets of the country’s banks, but the entire market implements prudential and other regulations, and the situation in the banking sector is under control. This remark was made by the Deputy Chairman of the National Bank of Kazakhstan, Kuat Kozhahmetov at a press-conference in Almaty on September 9. The official also said that the conducted stress tests showed that “the adequacy of the capital is good.” For several months the National Bank has developed a package of legal acts aimed at facilitating conditions for banks in the current economic situation.

10The Ministry of Culture and Tourism has prepared a new bill ‘On tourism’ for improvement of legislative base in the sphere of tourism. In line with the sources in the ministry, the new bill ‘On tourism’ which reflected proposals and recommendations of the Twinning project experts of the World Tourism Organization and European Union, features the major institutional, regulatory and advanced experience for a more effective control of the tourism sphere. According to the ministry, application of this bill will promote further development of the tourism potential of Azerbaijan, raising effectiveness of business processes, regulation of tourism activity by the state and creation of broad opportunities on support of tourism industry.

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

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The COVID-19 Shock to Kazakhstan’s Economy Largest in Two Decades

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For the first time since the late 1990s Kazakhstan’s economy is expected to contract by projected 3 percent in 2020 with a moderate recovery by 2.5 percent in 2021, according to the World Bank’s latest Kazakhstan Economic Update (Summer 2020) – Navigating the Crisis report.

Although Kazakhstan’s GDP showed mild growth at 2.3 percent in the first quarter, economic activities weakened in the following months as commodity prices dropped, trade declined, and COVID-19 preventive measures slowed economic activity. Consumer demand showed moderate growth at  at 1.2 percent,  reflecting growing concerns over COVID-19 and the restriction measures. Investment is expected to ease to 1.0 percent annually, supported mostly by the on-going foreign direct investments into the oil and gas industry and residential construction. Supply disruptions and currency depreciation pushed up inflation to above the upper bound of the National Bank target range.

“The authorities acted early to contain the COVID-19 pandemic, and the accumulated fiscal buffers allow the government to introduce a relief package to mitigate the impacts of COVID-19 on the economy,” said Sjamsu Rahardja, Senior Country Economist, World Bank in Kazakhstan. “Weak demand and oil prices, as well as the protacted pandemic expose significant risks to the economic outlook. Authorities may want to consider using the available resources to provide relief to the poor and vulnerable, protect productive assets, and introduce reforms to sustain economic recovery.”

A prolonged crisis is likely to increase poverty and can increase inequality in Kazakhstan. Preliminary estimates suggest that poverty rate may rise in 2020 from a projected 8.3 to 12.7 percent – equating to more than 800 thousand additional people living in poverty. The shock to the labor market in Kazakhstan due to both the pandemic and the mitigation measures, is expected to have severe implications for jobs, particularly in sectors that employ low-skilled workers.

The report also argues that COVID-19 has a negative impact on human capital development in Kazakhstan. Unequal access to quality education, especially during lockdown, can negatively impact human capital development for the poor. School closures could result in learning loss of more than one-third of a school year and the impact could mean a decline in the Program for International Student Assessement (PISA) points. As most students in the country currently perform around the threshold for functional literacy and assuming some will lose more than others, the estimates suggest that the percentage of students performing below functional literacy will increase by 3 percentage points (from 64 to 67 percent).

“The impact of COVID-19 on education and learning losses will have a decades-long impact on the economy by an estimated 2.9 percent, amounting to an overall economic loss of up to $1.9 billion every year”, says Jean-Francois Marteau, World Bank Country Manager for Kazakhstan.  “A focus on improving access to quality education, including distance learning, would be important to prevent a decline in the quality of human capital, especially among Kazakhstan’s low-income population.”

The report concludes that under the risk of a prolonged slump in the global oil market, Kazakhstan’s pathway for a resilient recovery may focus on strengthening the effectiveness of public administration and services, including the use of e-platforms to deliver key public services, better tax administration, and a mechanism to review and redeploy fiscal resources toward better state programs. A renewed emphasis on reforms in the logistics, digital telecommunications, and financial sectors could help the overall private sector explore new opportunities.

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China-Eurasia Council condemns aggression of Azerbaijan

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China-Eurasia Council for Political and Strategic Research strongly condemns Azerbaijani aggression which Baku started on July 12, 2020.  Azerbaijani Ministry of Defense is a threat for the entire World as it is speaking about its aims to strike Metsamor Nuclear Plant, which is located in Armenia. Baku must understand that this is a crime against humanity, and it is equal to nuclear strike.The destruction of Metsamor Nuclear plant will be a disaster not only for Armenia, but also for Iran, Georgia and Azerbaijan, it will harm World’s environment and stand a real problem for several generations of the World. It is worth mentioning, that this time Baku attacked the Northern borders of Armenia, which are sovereign territory of the Republic of Armenia according to International law. Azerbaijan violated the principle of territorial integrity of a sovereign state, which is one of the important pillars of International law.

China-Eurasia Council for Political and Strategic Research condemns Azerbaijan for using force against civilian population of Armenia and calls for peaceful negotiations. Baku must show solidarity and join global ceasefire initiated by the UN secretary general Antonio Guterres and must not try to escalate the situation on the border to deflect public attention from the situation concerning the outbreak of Covid-19 in Azerbaijan. We call official Baku to take care of Azerbaijani people in the hard times of Coronavirus and not send its soldiers to real death.  Being multinational Council, for us It’s terrible to hear about lossfrom both sides and we express our sincere condolences. Hopefully peace will come to South Caucasus, which is an important crossroad in Eurasian mainland and it can stand a very important link for Belt and Road Initiative, if all problems solved in a peaceful way.

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Condemnation Of Armenian Aggression By Friends Of Azerbaijan (FoA)

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Friends of Azerbaijan (FoA) strongly condemns the coward act of Armenians aggression in the Tovuz district of Azerbaijan that is a sheer violation of international borders and law. The act is an attempt of Armenia to drive global attention from the peaceful dialogue and negotiation process on Nagorno Karabakh.

In an online meeting of the delegates of the Friends of Azerbaijan (FoA), a joint declaration of condemnation has been issued by the honorable members of Friends of Azerbaijan (FoA). 

According to this declaration, Armenian aggression can jeopardize the whole South Caucasus region. The incident on July 12, 2020, is being considered as a direct attack on Azerbaijan and the repercussions of this incident can result in massive catastrophe in the entire region.


The delegates of Friends of Azerbaijan (FoA) stressed the global powers to come forward and take serious action on Armenian intervention by violating the international border of Azerbaijan. The act of Armenia is an open challenge to the sovereignty of Azerbaijan.

Malik Ayub Sumbal founder of Friends of Azerbaijan (FoA) termed that Armenia is losing its legal and moral position on Nagorno Karabakh and there is mounting pressure on Armenia by the international community for the peaceful solution of Nagorno Karabakh according to the UN Resolutions. At this time to get rid of such kind of diplomatic moves, Armenia has launched another major front in Tovuz. 

When the whole world is busy against the Covid19 Armenian Prime Minister has chosen a very dangerous path that can take the whole region into war and bloodshed. 

Friends of Azerbijan (FoA) is firmly standing with shoulder by shoulder to the people of Azerbaijan and martyr’s families at this hour.

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