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The TAPI Pipeline: The Politics of Energy Balancing

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There is a new energy rush among many Greater Caspian states, one that continues to focus on breaking free of the heavy Russian influence while also diversifying their supply chains.

However, in the continual game of energy politics, many geopolitical and geostrategic foes have been born. One such nation, Turkmenistan, is spearheading an energy initiative that will both diversify and expand its customer base while at the same time release itself from Russian authority.

In addition to being a landlocked country and a former Soviet Republic, the nation is also the richest Caspian state in natural gas and untapped energy resources. Yet the nation has also struggled throughout the past in diversifying its export transportations. This issue stems back into the 1980s and 90s when Russia attempted to exert its influence throughout Central Asia by occupying Afghanistan. During this time Russian gas giant Gazprom refused to sign an energy deal with Unocal – a previous petroleum explorer and marketer based in California – over a Trans-Afghanistan pipeline, due to U.S. support for the mujahideen, a move it believed was aimed at undermining Russian influence in the region. Moreover, Gazprom’s chief executive at the time, Rem Vyakhirev, declared that Russia would not allow Turkmenistan or Kazakhstan to export its oil and gas through non-Russian pipelines. This was aimed as a move that would eradicate any form of Russian influence or energy developments throughout Central Asia in the near or far future.

While projects like the aforementioned Trans-Afghan pipeline failed to develop and efforts to build the Trans-Caspian pipeline are continually stalled due to political contestations, on December 13, 2015, a deal outlining the details to build the Turkmenistan, Afghanistan, Pakistan, and India (TAPI) pipeline was signed. This ratification hopes to allow the destination countries to break free of those political and economic chains that have restricted Turkmen gas from diversifying its transport routes and becoming independent of Russian influence. Nevertheless, this may come with a price of its own.

The timeline to begin operations is set for the year 2019 and will hold a cost of over $10 billion USD, from which Turkmenistan is the leading sponsor. The TAPI pipeline will have the ability to transport an estimated 33 billion cubic meters (bcm) per year. But with all the hype and allure of generating energy independence, diversifying exports, and expanding each destination country’s energy infrastructure, there has also been a lack of foreign investments as well as various geopolitical ramifications tied to these attempts at building another pipeline.

The TAPI pipeline is alive today due to Turkmengaz’s 85 percent stake in the project—leaving the remaining 15 percent stakes split equally among the destination countries. Turkmengaz is the national gas company of Turkmenistan and the largest gas company in Central Asia. Its lead investment depicts Turkmenistan’s prioritization to generate energy diversification and independence, which the nation believes are necessary to keep pace with its domestic productions that are slowly surpassing its current export capacities. Before 2011, Russia was Turkmenistan’s main market for imports of natural gas. However since 2011, China has become the recipient of the bulk of Turkmen natural gas exports. This was made possible by the willingness of China to create the necessary environment. Since these expansions, two-thirds (45 bcm) of natural gas has been transported annually to China, with the rest being split between Iran (9 bcm), Russia (9 bcm), and Kazakhstan (0.5 bcm).

This new China pivot presents two geopolitical problems. First, this shift away from Russia may aggravate regional tensions as Moscow may observe this move as one that once again attempts to undermine its influence across the Greater Caspian and Central Asian regions. Second, even if the TAPI pipeline allows the sponsor nations to escape the grip of one of the largest Caspian powers—Russia—they may find themselves shackled to the dominance of Beijing, a move that would only replace one great power with another. China is already closing its economic grip on the project, seeking to assist in financing Pakistan’s 5 percent stake through its $46 billion USD investment project known as the China-Pakistan Economic Corridor. Furthermore, Afghanistan, which already has limited financial resources and a security situation that presents multiple dilemmas, must raise 3 percent of its own financing before the Asian Development Bank will provide the rest.

Undoubtedly, the single most important consideration during the development and construction phase will be to stabilize the security situation in Afghanistan and Pakistan. In addition, territorial conflicts and boundary disputes stemming from Pakistan and India over Kashmir must be quelled in order to attract more outside investors and improve the overall security situation. Russia and Iran may observe the TAPI pipeline as a hindrance to their own economies and may surreptitiously exacerbate the security issues stemming heavily from Afghanistan and Pakistan. This may lead the two nations to indirectly economically and politically suppress the effort to build what some are calling “The New Silk Road”, perhaps rendering the TAPI pipeline nothing but a pipe dream.

Despite the various historical tensions, conflicts, and uncertain security equation throughout the destination countries, the success of the TAPI pipeline may be more possible than it seems. This is because Turkmenistan’s president Gurbanguly Berdimukhammedov, has actively pushed each country’s leader to move the project forward, offering them a direct, unobstructed investment in another pipeline project originating at the world’s second-largest natural gas field—the Galkynysh natural gas field in southern Turkmenistan. It would be against any of the destination countries’ best economic interests to muddy the waters of an opportunity this large. Moreover, the political will of each nation and the economic prospects for the region could be balanced against the long and still powerful grip of Russian energy controls. In short, the TAPI pipeline is not just a quick-fix solution to energy independence. Rather, it is a calculated, coherent, and long-term energy focused strategic vision for the Greater Caspian state of Turkmenistan and the Central Asian states of Afghanistan, Pakistan, and India.

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Central Asia

Shanghai Cooperation Organization Summit and Later Developments: The Politics Analyzed

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The summit’s mood was a somber one, toned down by Ukraine war, mounting global economic and environmental crises.

Important developments are:

  1. Strengthening Economic Ties

New initiatives planned to develop economic and transport corridors, tourism and services trade and expansion of the Belt and Road Initiative. Trade within SCO grew 12 percent annually. China aims $2.3 trillion trade with SCO within next 5 years.

Today, China and Russia conducted $140 billion in trade, which will reach around $200 billion by yearend. India also increased purchases of Russian oil, coal, and fertilizer and became one of its largest fuel customers since the Ukraine invasion.

Pakistan plans to import Russian gas and Putin offered building a pipeline to supply it. Pakistan desperately needs Russian gas because of its energy crisis.

Meanwhile, economic developments in Central Asian resulting from Russian and Chinese investments have exceeding $61 billion.

  •  Strengthening Collective Security Mechanisms

There has been some success in collective security cooperation. The Regional Anti-Terrorist Structure is functioning, and several new independent security mechanisms planned.

China and Russia had steadily built economic and strategic ties. Russia plans further strengthening them.

  • Expansion of the SCO

Iran has now become SCO’s ninth member. Belarus seeks full membership. Egypt, Qatar, and Saudi Arabia will become dialogue partners. Turkey’s received observer status. Eight countries are expected to become members.

5. Voice of Developing Nations

Joint statement on climate change called for balance between reducing carbon emissions and allowing poorer states to catch up with developed countries. SCO called for a balanced approach between emissions reduction and development.

  • Divisions within the SCO

Summit was expected to provide chance for Russia and China to make a case for new world order. However, the war sowed divisions, as no government favored Putin’s actions. Clinched in confrontation with the West, Putin denied isolation, but the summit proved otherwise.

Given the war, some Central Asian leaders worry about Russian behavior. Kazakhstan and Pakistan refuse to toe Moscow’s line. Kazakhstan has aided Ukraine. China’s refusal to condemn Russia has caused unease among some countries, hindering efforts building regional ties. Also complicating picture is India, which like China had not outrightly condemned Russia, nor participated in Western sanctions on it. India has strong military ties with Russia but is changing tone. Both China and India have mildly criticized Russia. On September 21 Putin raised the threat of nuclear response in the war and ordered reservists mobilization. He was widely condemned. America said threats were nothing new. So far, Putin seems undaunted by criticism.

Economic cooperation between China and Russia likely to grow being mutually beneficial. However, China trying to stay out of Ukraine mess and its danger. While Putin’s war has yet to spread beyond Ukraine, it could trigger larger war between Russia and NATO. Therefore, China has wisely urged Russia to de-escalate and called for a cease-fire. China continues balancing positions as the goal of Xi’s foreign policy is to put country first.

Since Biden supports India as permanent member of UNSC, it will also call Russia not to escalate conflict. Earlier, India had repeatedly called for diplomacy. Modi’s recent criticism of Russia is setback for Putin as war drives a wedge in relations.

  • Failures

Firstly, Modi did not meet Xi. The two have not met since the border conflict more than two years ago. Delhi is wary of Beijing’s growing regional influence, especially in Pakistan.

Also, the leaders of rivals Pakistan and India did not meet.

Two failed opportunities.

Secondly, the summit failed to take any meaningful action on the current global food and energy crisis linked to the war. Resultantly, the regional food supply may face even bigger challenges in the future.

Thirdly, region requires massive investment in climate resilience development. Though requested by Pakistan, climate action framework not discussed.

Fourthly, China and Russia failed committing needed financing of institutions because of their own economic weaknesses.

Fifthly, Russia’s Ukraine actions not condemned by members. Only Turkey’s President Erdogan urged Putin to return occupied territory to Ukraine.

Sixthly, there was leadership failure. For Putin, the summit was a chance to show that Russia was not isolated. For Xi it was an opportunity to shore up credentials as global political leader. Both failed.

Lastly, summit did not focus on regional challenges: war in Ukraine; rippling impact of rising regional food prices; energy crisis roiling economies; and climate emergency in Pakistan.

Today, SCO is not suitable for China to push any world order. As a multilateral organization, it is much weaker than EU or ASEAN. Fortification of SCO remains daunting challenge.

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Kyrgyz-Tajik Conflict: Small States Becoming Victim In Games Of The Great Powers

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Kyrgyzstan and Tajikistan sign protocol on regulation of armed conflict in border areas. Photo: © AKIpress News Agency

The Military conflict on September 14th 2022, on the border of two post-soviet countries- Kyrgyzstan and Tajikistan took lives of more than 90 people from both sides. “The Ministry of Foreign Affairs of Kyrgyzstan considers that the events which took place on September 14-17, 2022 necessary to state as a pre-planned armed act of aggression by Tajikistan against the sovereign state Kyrgyzstan. As a result of the inhuman actions of the Tajik side 59 citizens of Kyrgyzstan were killed and 140 were injured, about 140,000 people were forced to evacuate. But the Tajik officials and mass media actively accusing Kyrgyzstan of aggression and violation of non-attack agreements. Both sides blame each other for the outbreak of violence. As the Ministry of Foreign Affairs of Kyrgyzstan declared that the information of the Ministry of Foreign affairs and other authorities of Tajikistan did not correspond to reality. The Kyrgyz side has all the evidences (photo and video materials) that recorded the beginning of the aggression, as well as all the crimes committed by the Tajik military on the territory of Kyrgyzstan. If necessary, the Kyrgyz side is ready to provide this evidence.

Main Reasons.

The Kyrgyz-Tajik border 950 kilometers long. At the moment, Bishkek and Dushanbe have recognized only 520 kilometers of a common border, the rest of the sections since the collapse of the USSR are considered controversial and run along villages and roads.

The conflict has many aspects: here are territorial disputes, competition for the possession of water resources, and inter-ethnic problems. It is also associated with activities on the border of criminal structures, with smuggling, with drug trafficking. Radical religious organizations may also be involved in it. Therefore, all relations in the conflict zone between the Kyrgyz and Tajik sides are extremely aggravated. And the reason for the next clashes can be anything, any petty domestic situation.

In spring 2021 a similar bloody conflict took place on the border of two republics. As it turned out later, this escalation had domestic reasons. It was provoked by a dispute over the sharing of a water distribution point located between Kyrgyz and Tajik villages, which ended with a fight afterwards by killing each other by weapons. The state border between Tajikistan and Kyrgyzstan is 950 kilometers, and 520 km of it has not yet passed the demarcation procedures. Despite that the Central Asian states gained independence more than thirty years ago.

The reasons of the latest invasion of Tajikistan to the territory of Kyrgyzstan still not clear. What could be the reason of breaking the Agreement of non invasion? Why it started the same day of the Shanghai Cooperation Organization Summit? Why its happening after the Azerbaijan-Armenia conflict? Why Post-Soviet countries are in war with each other? Scholars and some officials have various assumptions about the latest bloody clash. “There are provocateurs and third forces.” – says the head of the government of Kyrgyzstan Akylbek Zhaparov.

The military conflict started the same date of the summit of the SCO in Samarkand. On September 14, the governments of China, Kyrgyzstan and Uzbekistan signed a long-anticipated  agreement to push ahead with construction of a railroad linking these countries that will  establish a shorter route to Europe bypassing sanctions-hit Russia. So according to some Kyrgyz officials the clashes on Tajik and Kyrgyz borders started after the signing of the agreement about the construction of the railway-plausibly as a warning about the discontent of Russia, which throughout the history of the Central Asian countries has tried to make the region as economically dependent as possible. Moreover the President of Tadjikistan Emomali Rahmon wouldn’t invade into territory of Kyrgyzstan without Putin’s support.

If the first group of people considering that two countries are in this battle because of Russian tactics, the second group of people like the Deputy of the State Duma of the Russian Federation Alexei Chepa noting that the cause of this conflict lies not only in unresolved disputes between the two countries. They suppose the external forces, primarily enemies of Russia, have decided to take advantage of the situation and create conflicts in the region. As they use the internal problems of Tajikistan and the conflict situation with Afghanistan, where the United States left a huge amount of weapons and a certain contingent of troops. And all this are aimed at using conflicts to further discredit Russia. We see this in the example of conflicts arising in Kazakhstan, Armenia and Azerbaijan and in some countries of the Caucasus.

This conflict would repeatedly escalate and next time would lead more death of civilians until the demarcation and delimitation of Kyrgyz-Tajik borders process would be finished and signed. This kind of military battles can lead to the unleashing of a large-scale interstate conflict, as well as to the destabilization of the situation in the Central Asian region as well.

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Shanghai Cooperation Organization: Crouching Tiger, Hidden Dragon

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On September 15 and 16, 2022, the extended format of participants of the Shanghai Cooperation Organization (SCO) are scheduled to meet in Samarkand, the ancient Silk Road Karavansarai in Uzbekistan. SCO —founded in 2001— is the first international organization founded by Beijing. It started as the Shanghai Five with the task of demarcating borders between China and its Central Asian neighbors: Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan, following the breakup of the Soviet Union. The meeting in Samarkand marks the 21st Head of State summit of this organization, which is growing in international importance. All Heads of member states have confirmed their attendance.

SCO came to the attention of Washington policy makers, when Vladimir Putin used it as a vehicle to set a timeline on U.S. bases in Central Asia there to support operations in Afghanistan. Through direct engagement of President Bush with Chinese President Hu Jintao, this deadline was not repeated in the communique of the following year. This demonstrated Beijing’s unwillingness to have an open rift with Washington and made clear China’s leadership of the organization. Beijing’s interest in preventing anti-American statements has changed in the last 17 years. With the return of Great Power Competition in the Washington-Beijing relationship, who leads the SCO and what is on its agenda should be of considerable interest in Washington.

The SCO is no longer just a talk-shop between Russia and China with its Central Asian neighbors, but is now expanding to the Gulf, South Asia, South East Asia, and the Caucasus. The expanded membership of the SCO makes up 24% of the global GDP, more than half that of the G7 and more than that of the European Union in 2020. SCO’s expanded participant list accounts for 44% of the global population.

If those seeking membership status at the upcoming meeting in Samarkand achieve their goal, the SCO will include in its ranks: Azerbaijan and Armenia who recently fought a war in Nagorno-Karabakh; Saudi Arabia and Iran, competitors over the direction of the Gulf; and current members India and Pakistan, historic adversaries. Afghanistan and Mongolia are currently observer states in the organization. Partner countries of the organization are Azerbaijan, Armenia, Cambodia, Nepal, Turkey, and Sri Lanka. The status of dialogue partner state will likely be granted to Egypt, Qatar, and Saudi Arabia in September. Bahrain and Maldives are next in line for the latter status.

In 2005, the US had an opportunity to pursue observer status with the SCO. Those who supported it, saw it as opportunity for the US to shape this organization and for Afghanistan to reconnect with its neighbors with American support. Others thought our being an observer of the SCO would lend legitimacy to this nascent organization. Yet, overtime, flaws in the latter stance surfaced and was repeated by the Obama Administration’s failed attempt to isolate China’s Asian Infrastructure Investment Bank.

In a vote on April 7 for the suspension of Russia’s membership in the UN Human Rights Council, Turkey was the only participant in the expanded SCO out of 18 countries that voted in favor of the resolution. Of the member states, all voted against the resolution, with India and Pakistan abstaining.

For members of the SCO, energy highlights their importance on the global stage and is a tool used in their foreign policy. Following the 2022 summit, SCO states, including Russia, Saudi Arabia, Iran, among others, will account for over half of the world’s oil production annually.

Until 2020, the Shanghai Cooperation Organization played a largely regional role for China, the heart of which was Central Asia. Initially reluctant, the recent rapid expansion of the SCO shows that China realigned the organization from a regional one, to one capable of implementing its global ambitions.

The Shanghai Cooperation Organization gained greater significance with the outbreak of hostilities in Ukraine, where an economically weaker Russia can turn to China, a partner with no limits and its leadership over the SCO.

At the 2022 Boao Forum, President Xi restated the goal of the 2021 SCO Dushanbe Declaration, where he articulated a world order not directed by the West. At this same summit, SCO members approved Iran’s membership despite international sanctions after a 15 year waiting period. Xi articulated in a flourish, calling it a community of a common destiny of mankind.

This has echoes of Chairman Mao’s vision of world relations, dating back to the 1970s. In meetings with Dr. Kissinger, Mao posited that imperialism and hegemony violate the world order. Instead, China should expand into what is now known as the Global South, including countries in the Middle East, Southeast Asia, and Central Asia. China’s mission lives on and the Shanghai Cooperation Organization is becoming its vehicle.

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