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The Outlook for Lugansk People’s Republic after 4 years of War with Ukraine

George Eliason

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Leonid Pasichnik, the acting Head of Lugansk People’s Republic (LNR) has been in office for almost one year. With the state of his reforms in LNR, you want to judge him against leaders of countries at peace, not as one that just formed in the middle of a war four years ago.

For the last thirty years, Donbass was neglected in Ukraine. The infrastructure across Ukraine was bad, but in Donbass it was notorious. Key infrastructure like the water supply has been neglected since 1983.

Political Leaders and oligarchs from what would become LNR historically were only interested in what they could take out of the region. Donbass coal and industry historically provided the basis of Ukrainian wealth. No other region contributed as much and no one including Victor Yanukovych had any interest in investing any of that money back in the region to build it up.

Pasechnik is providing a marked difference. During what is still considered nation building, his interim administration is taking the economic and social problems in the newly formed republic head-on.

In the spring of 2018, his administration introduced their five-year socio-economic development plan called “Our Choice.” His administration included input from 70,000 LNR residents to make sure people’s concerns about the future are addressed as reforms go forward.

LNR’s Current Outlook

For the last four years, LNR has worked to build a lasting peace. Fulfilling their side of the Minsk Agreements LDNR (Lugansk &Donetsk People’s Republics) negotiated with Poroshenko’s regime has been a key part deciding what direction the republic is taking. Kiev hasn’t attempted to fulfill any point agreed to and tries to use the agreement to beat Russia over the head within the US and the EU.

The often overlooked part of the Minsk agreement in the west is Ukraine is not negotiating with Russia. Russia is a guarantor for the agreement the same as the EU is, nothing more. If Poroshenko had any intention of reintegrating Donbass, Ukraine would negotiate in good faith and keep its word. This hasn’t happened.

Because of this, Pasichnik’s government recognizes the fact that until the government in Ukraine changes, real negotiation and progress remain impossible. For Ukraine to be taken seriously, decentralization in the form of federalization will have to take place. Ukraine will also have to start creating the conditions for building an economy in all its regions.

Even in view of this LNR has consistently fulfilled its part of the Minsk agreements.

The West’s Shortsighted Spectacle

Unfortunately, even recent history shows there is no reason to take any offer Ukrainian nationalists make or are part of negotiating seriously. Poroshenko is only after sound bites and not substance. Pravy Sektor nationalist leader Dimka Yarosh has announced he is pulling his troops away from the front line to monitor Ukrainian elections. Ultra-nationalists monitoring elections? Yeah, this should go well.

In a recent interview with Ukrainian “Novoye Vremya,” Condoleezza Rice commented it was “bad” that the world was starting to believe Russia’s version of what was going on in Donbass.

At the end of the day, world leaders still have to believe somebody. After four years of looking at the diplomatic and economic train wreck, Ukraine has evolved into, they have no reason to believe Ukraine.

Instead of becoming the promised European model they could all look to, Ukraine has taken away every safety net even marginal civilizations provide for their people. Manufacturing is gone and instead of working through internal issues, the new government attacked its powerhouse region in Donbass. LNR and DNR provided a lion’s share of wealth because of the coal industry and manufacturing. The nation’s most important engineering universities are ensconced in the capitals because of this.

That isn’t something the EU or the rest of the world can take lightly. With no possibility of recovery in the near to mid future, Ukraine’s only hope is to find work in Europe. Ukrainians making it to Europe are finding low paying bottom tier work as well as the illegal sex trade.

Under Donald Trump, there is no reason to believe the US would be willing to take in violent nationalists from a country that tried to destroy his candidacy and his presidency.

All of this is the result of Poroshenko’s Ukraine destroying every possible growth industry it had including rocket engines, weapons, and technologies, and traded that for giant corporate farms. Agribusiness giants and agro-holdings companies are the big growth areas but provide no jobs.

The outlook for Ukraine is very poor for the foreseeable future unless drastic policy changes are implemented.

When you contrast this to what LNR is accomplishing under Leonid Pasichnik, it’s easy to see why Condi Rice is so upset.

Lugansk People’s Republic’s Reform Renaissance

It’s easy to argue renaissance is too strong a term to use for the reforms going on in LNR because there is a war going on. The infrastructure and economy have taken serious hits over the past four years. Nineteen bridges have taken extensive damage or collapsed in LNR hampering transportation. Roads were also shelled and in many areas need to be rebuilt.

On top of this, starting at day one, Pasichnik’s government had to fight the civil war as well as the systemic corruption that had not been touched by his predecessor. It’s very difficult to imagine a government starting out with a weaker hand.

In the short time Pasichnik has been in office, his government not only formulated a five-year plan, but they also started implementing it in a grand way. It started with building an energy bridge to power the steel mill in Alchevsk. High voltage transmission lines were installed that not only allowed the plants to go into production, but they are also increasing production and hiring plant workers. Business is opening in other manufacturing sectors because the government has been able to negotiate its way around sanctions to a small degree. In the garment industry, this is creating jobs.

Large-scale road work and bridge work has commenced and the bridge connecting Lugansk to Donetsk is complete. Part of the 5-year plan is to restore the railways for large-scale transportation to service commerce and commuters. Pasechnik just announced fuel prices in LNR will be dropping to Russian levels. This is while a war is being fought.

Water has been an issue for the last four years and part of LNR’s water supply is purchased from Ukraine. Pasichnik has ordered pipelines from LNR’s own aquifers be rebuilt to solve this problem. Redundancy is a consideration for the design of the project. If one water main is down for repair or maintenance, a second water main will be put in use according to the building specifications.

The farming industry was in tatters because of the war. The current government is working to increase yields of high-quality grains like wheat. LNR has achieved food security for the republic. This by itself is an incredible feat given the fluidity of the situation with the civil war.

As part of the reforms, Pasichnik ordered the customs borders be taken down between LNR and DNR on April 1, 2018. DNR still needs to reciprocate but it is only logical considering how closely both republics need to cooperate.

Along with all these concrete reforms, LNR is also writing new equitable laws to replace the old corpus. More importantly, reformation of the judicial system is underway. Currently, the family courts are complete and work has begun on Supreme Court reform.

It is easy to see why Condoleezza Rice would be a little upset when little tiny upstart countries believe in federalized representative governance and can build a society even with all the stumbling blocks and chaff the US and Europe throw at it. While Ukraine, Rice’s model of what a European country should be, looks anemic by comparison.

It’s easy to have the support of the EU and the USA and make these reforms when they give you billions of dollars to do so. It’s certainly easier to jumpstart an economy when the economic zones are in safe areas.

Pashichnik and his political party Peace for Lugansk (Мир Луганщине) have shown the world they can do it on their own. This is what former Secretary of State Condoleeza Rice is concerned Russia will tell the world.

We’re going to start exploring the reforms listed above as well as others going on in depth. We’ll also get to know his party and the other political parties in LNR. I like looking at concrete results and Pasichnik is providing that in a substantial way.

After being here from before the beginning of Kiev’s Euromaidan coup, you get a little-jaded writing about politics and political leaders. From my perspective, it’s a shame he and his party wasn’t elected in the first place. I believe both republics would be in a better place.

After taking a real look at this overview, how do political leaders where you live measure up?

George Eliason is an American journalist who lives and works in Donbass. His articles have been cited in books about the Ukrainian civil war. He has been published at Mint Press News, the Security Assistance Monitor, Washingtons Blog, OpedNews, Consortium News, the Saker, RT, Global Research, and RINF, ZeroHedge, and the Greenville Post along with many other great publications. He has been cited and republished by various academic blogs including Defending History, Michael Hudson, SWEDHR, Counterpunch, the Justice Integrity Project, along with many others. Project Censored listed two article series from 2017,2018 as #2 for national impact for those years.

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Zelensky’s Presidency is Unlikely to Change Ukraine’s Foreign Policy

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The polls after the second round of presidential elections in Ukraine gave Volodymyr Zelenskiy more than 70% of the public’s support. Zelensky, 41, challenged the incumbent president Petro Poroshenko, who has already admitted his defeat.

Questions which occupied analysts around the world were two-fold: how possible is it that a new president would be able to change the internal situation (battle with corruption, etc.) in the country; second, what will happen to Ukraine’s foreign policy?

The situation inside Ukraine will require meticulous work on behalf of the new president. The elites might be unwilling to accept his propositions and policy moves, which could create tensions. What is clear, though, is that the ordinary population would be supportive of even radical moves to clear the country of corruption and ineffective governance.

On the foreign policy front, Ukraine’s major issue will be the war in Donbas and relations with Russia. There have been fears that with Zelensky at the helm, Ukraine’s foreign policy would radically change in favor of Russia. In fact, it will be very difficult for him to do this, as in the last five years since the Ukraine crisis broke out following the annexation of the Crimean Peninsula, Ukraine has ratified the Association Agreement with the European Union, the non-signing of which actually deposed the former president Viktor Yanukovych, and has received visa-free access for its citizens to the EU (except for the UK and Ireland) and four other Schengen-associated countries.

Moreover, Kiev has reinforced the Ukrainian army amid the ongoing conflict and contained the conflict with Russia to eastern Ukraine and the Azov Sea.

On a cultural level, recently, Ukraine’s Orthodox Church gained autocephaly (independence) from the Russian Church. On the economic front, too, there have been changes, as Ukraine’s trade has been redirected to Europe rather being mostly dependent on Russia, as was the case before 2014.

Thus, it is highly unlikely that Ukraine’s foreign policy will change under Zelensky: there are simply too many economic, military and ideological moves made that connect the country to the West.

Zelensky may indeed meet Putin and even soften his rhetoric towards Russia, but on a grander level of state politics, he will not change Ukraine’s view of Crimea and the conflict in Donbas. A recent spectacular rise of national self-consciousness among ordinary Ukrainians will not tolerate any U-turn to the country’s foreign policy. A democratically elected Zelensky is also a hostage of Ukrainian public opinion.

The Russian public is watching the peaceful changes in Ukraine with great interest and even hopes for a similar process inside Russia. The large neighboring Slavic country, Ukraine, will have a greater influence on the Russians than, for example, Georgia’s path to democratization. Georgia’s successes have been small due to the country’s size as well as cultural differences. Moscow, therefore, could easily bend the narrative and argue that Georgia’s recent successes are minimal and contemptuous.

With Ukraine it is different. While the Russians have been arguing since the 2014 that Ukraine’s problems were the result of a “divorce” with Moscow, now they see real results of the democratic changes in Kiev. Public debates, peaceful co-existence of rival candidates and, most importantly, presidential changes; all this is deeply hoped for and expected at least in some sections of the Russian population.

Zelensky’s win also shows that among post-Soviet Slavic states, Ukraine is in fact the only one which has regularly changed heads of the state. Thus, this development might also have an influence on Belarus where eventually the time will come when long-ruling Alexander Lukashenka will have to make a choice between an independent Belarussian successor or Belarus integrated into Russia (and talks about this latter development have become common in media resources of late).

Zelensky’s presidency and the way he was chosen undermines Russia’s narrative, where the success of Ukraine would be against a common cultural, even geopolitical, perception among the Russian elites that Kiev has historically been unable to achieve anything without Moscow’s support.

Author’s note: first published in Georgia Today

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Moldova: Time to Overwrite the Mind Traps

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Image By Andrez1 - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=39746488

Moldova is usually assigned the title of the poorest country in Europe mired in financial and corruption scandals. The ’frozen’ Transnistrian conflict is said to further divide the country between chimeric pro-Russian and pro-Western camps. Oligarchs are blamed for having captured the state and preventing democracy to flourish; and so goes on the litany of reputational prejudices about Moldova.

Although these clichés hold some water, they have generated mind traps and have prevented any alternative reading of Moldova. Caught in a thug of war between Brussels and Moscow, Europe has three options on how to approach Moldova: oppose Moscow on Moldovan territory; scale back its engagement; or honour its commitment to strengthen the rule of law and deepen economic cooperation with Chisinau. The last option requires the political maturity to accept that Chisinau can be a partner of both Brussels and Moscow.

The Bright Side of Scandals

Moldova made headlines in 2014 when the banking sector was defrauded of one billion dollars. Courtesy of the testimony of one oligarch, Ilan Shor, who himself has been convicted of involvement in the fraud, the former Prime Minister Vlad Filat was convicted and sentenced to nine years imprisonment. Despite his own conviction, Ilan Shoris now the mayor of the small town of Orhei, heads the Shor party and recently won a seat in the parliament. For many, this was a typical “à la moldave” scenario where most of the thieves got off scot-free whilst only one sits behind bars. Taken from another angle, even though Ilan Shor has been granted some form of witness protection and has escaped punishment himself, at least some part of the truth has been divulged and justice has been partly served. Following Shor’s revelations about the scandal, people took the streets and a citizen movement emerged under the name of Dignity and Truth, now a political party headed by politician Andrei Nastase.

The one-billion theft has understandably attracted a lot of public attention, as did the role of Moldova in the Russian Laundromat, a scheme that laundered tens of USD billions from Russia between 2010 and 2014, involving over one hundred countries. Following these two scandals, Moldova launched a large package of reforms of its banking and judiciary systems, and put in place a National Integrity and Anti-Corruption Strategy for 2017-2020. These improvements have not gone unnoticed: the World Bank extolled the efforts of the National Bank of Moldova and the country’s economic progress, which should boost investors’ trust. Furthermore, criminal activities, such as smuggling, have been curtailed thanks to international cooperation, but the grey zone of Transnistria remains a thorn in Moldovan development.

Transnistria – A Peaceful Frozen Conflict

The active phase of the short 1992conflict lasted four months and left a thousand people dead. Due to the prolonged absence of military engagement, the situation was branded as a frozen conflict – thisvague concept was coined to qualify the blurry simmering situations of violence that followedthe several wars in various post soviet republics. As time passed, the term conflict has become redundant in the context of Transnistria; not much is frozen: population travels freely, students from Transnistria study in Chisinau and Transnistrians voted for the first time in the most recent February elections. There is a need to rethink our reading of this so called frozen conflict in Transnistria – violence is unlikely to resume between Tiraspol and Chisinau as long as escalating tensions between Moscow and Brussels do not boil over.

Former Vice-Minister of Foreign Affairs, Professor Osmochescu, asserts that the settlement was on right track with the 1992 Settlement Agreement, although he questions the decision to include Transnistrian representatives in the joint commission as it eventually gave Russia – allied with Tiraspol – the upper hand. The former diplomat is convinced that settlement dialogue should only include Russia, Ukraine, Romania and Moldova, excluding Tiraspol authorities that continue to insist on international recognition as a state. It is highly unlikely that European countries will recognize Transnistria owing to the fact that the EU Council has adopted restriction measures against the leadership of Transnistria for stalling progress of the political settlement.

Thecurrent process is a 5+2 settlement format, named after its composition including 5 negotiators (Russia, Ukraine, OSCE, Moldova and Transnistria) + 2 observers (EU and US). Unfortunately it has not yielded any meaningful results with the tensions between Russia and the West increasingly running counter-productive to the intent of the mechanism. During the recent conference on Transnistria, Russian academic Natalia Kharitonova underlined the unprecedented situation whereby relations between the external participants to the settlement process are far worse than between the parties to the conflict.

Today, some observers claim that a new conflict is poised because of Russian troops’ presence in Transnistria and in 2018 the UN General Assembly adopted a resolution introduced by Moldova on the withdrawal of foreign troops, specifically targeting Russian troop and armament presence. These elements demonstrate that Transnistria is being utilised by both the West and Russia in pursuit of their own strategic objectives and, arguably, Transnistria is more an international affair than an internal one.

An Unhelpful International Involvement

For decades the presence of Russian troops in Transnistria has been a major concern for NATO, which has been amplified by the situation in Ukraine; and in its efforts to counter Russia, NATO opened an Information Office in Chisinau in December 2017. In view of the militarisation of the region and the recent collapse of the Intermediate-Range Nuclear Forces (INF),the NATO-Russia confrontation directly affects Moldovan sovereignty and security. The Foreign Policy Advisor to the President, Mr Ciocoi, acknowledged that his country is trapped between a rock and a hard place:‘as a constitutionally neutral country, we are not pleased with the presence of Russian troops or NATO on our soil. It is a legacy of the past and a consequence of today’s geopolitical realities. We have to deal with it.’

With most international efforts focusing on security issues and more recently on the fight against so-called Russian propaganda, little effort has been comparatively made to promote sustainable economic development and the rule of law in Moldova. Moldovans’ daily concern is about making ends meet and employment, whilst Brussels and Moscow use the carrot and stick approach to promote their policies. Using economic incentives and sanctions, Brussels and Moscow are forcing Chisinau to choose between the West and the East. This dilemma is leading nowhere as Moldova is both West and East with the country depending on Russia for its energy and the EU market to export its goods. No reasonable politician or businessman in Moldova today embraces a west or east approach, but all favour a mixed approach. It is thus misleading to label President Dodon as a pro-Russian or the tycoon Plahotniuc as a pro-Western.

Blame it on the Rich

An oligarch turned politician, Vlad Plahotniuc presides over the Democratic Party, which won 30 seats at the recent parliamentary elections. Often described as the puppet-master who captured the state, most people blame him for all wrongs in the country and believe that he pulls the strings of the country including the judiciary system.

In a recent discussion with Vitali Garmurari, the Spokesperson for the Democratic Party said that the accusations against Vlad Plahotniuc need to be substantiated. Only a court can rule over the guilt of a person and so far, Mr Plahotniuc has not been sentenced, he added. Recently, Interpol rejected the request of Russia to place Mr Plahotniuc on their wanted list for alleged involvement in the attempt on the life of German Goruntsov, a Russian banker. For Vlad Plahotniuc’s detractors, the absence of condemnation is not a proof of his innocence but evidence of his control over the judiciary.

In Moldova and abroad, rumours flourish about this man who has unquestionable power thanks to his key role in the energy sector. As a veteran in the oil and gas business, he has forged strong connections in the US, who are obsessed with replacing Russia as the leading gas exporter to Europe. The situation though is not as straightforward as it seems. Moldova relies completely on Transnistria for its energy and the region acts as a small hub for Russian gas to the Balkans. Moldovagaz – a joint venture between the Ministry of Industry of Transnistria, the Moldova Government and the Russian giant Gazprom – has the monopoly over gas transactions. One of the issues is that Moldova has committed to the European Third Energy Package that calls for the unbundling and opening of the energy market. As part of its commitment Moldova must strip Moldovagaz of its privileged position and, given the complexities at play, Chisinau was granted an exceptional delay until 1 January 2020. This European requirement corners Moldova as the country is totally dependent on Russian gas and Gazprom holds 50% of Moldovagaz shares and, de facto, the 13% nominally held by Transnistria. The situation gets even more complicated as the contract between Gazprom and Moldovgaz are valid until the end of 2019and Moldova does not have a meaningful gas alternative in place. Mr Plahotniuc understands perfectly the gains to be by playing Russian, the US and European against each other in the energy sector. In 2017,his close ally Vasile Botnari was appointed as the new head of Moldovagaz.

The ruthless energy competition between Russia and the United States for the European market is driving their political and security agendas. The year 2019 will be pivotal in the Moldovan energy market and, as this deadline approaches, the manoeuvrings of those invested parties both within Moldova and externally will be a riveting game to observe.

An Oligarchy on the Way to Democracy?

In the meantime, the Moldovan constitutional court has validated the result of the 24 February elections and Plahotniuc’s Democratic Party has emerged as the party with second largest number of seats. Alongside the Democratic Party with 30 out of 101 seats, the Socialists gained 35 seats, the ACUM group gained 26 and the remaining 10 seats were shared between the Shor party and independents.

One of the features of the Moldovan political landscape is the fact that oligarchs head several parties: Vlad Plahotniuc heads the Democrats, Ilan Shor has his eponymous party and Renato Usatii is the president of Our Party. According to popular narratives, oligarchs are involved in politics to further their own profit and wealth; however their involvement does not necessarily pose a barrier to democracy. Commenting on the recent elections and the political landscape, Professor Osmochescu sees the emergence of these parties as a genuine mirror of the diverse opinions held by the population. Looking back at the political developments over the past thirty years, Professor Osmochescu recalls the evolution from an early enthusiasm with plethora of parties, the uncertainties around the future and the disillusion with both Russia and Europe. Today, he is hopeful that the leading parties will observe democratic principles and contribute to a new political paradigm.

The OSCE statement on the recent elections echoes the same opinion: although violations were recorded, fundamental rights have been generally respected, says the preliminary report. Taken as a whole, Moldova is transitioning and some are definitely looking at the cup half full rather than focusing on shortcomings.

It’s All About the Money

Conflict specialist Iulia Cozenco has worked on various projects in Transnistria over the past decade and today she has one message: efforts should be directed towards social inclusion, and not only in Transnistria. Due to all the challenges Moldova has gone through over the past three decades, the population has become increasingly vulnerable and the country lacks a social protection system capable of responding to all the problems. She concludes that international assistance should be directed at broader social inclusion and protection initiatives rather than narrow Tiraspol-Chisinau confidence-building projects.

Commenting on the situation in Transnistria, Dumitru Budianschi, an economist at the Moldovan ExpertGrup,has observed that, the lack of a political settlement between Tiraspol and Chisinau does not prevent economics agreements from forging on. These agreements cover energy and mobile communications, however Mr Budianschi has raised the concern that these agreements lack transparency and have been extremely profitable to a select few people on both sides of the river. Unsurprisingly, the lack of settlement is perversely convenient for such shady deals. According to Mr Budianschi, the international policy of small steps in Transnistria will not pay off and a crackdown on the criminal activities in the region is needed in order to give any settlement a chance of succeeding. The growing trade with Europe, Moldova’s first export partner, is a positive development that can no longer accommodate the black holes around Transnistria.

International involvement in Moldova is both a part of the problem and the solution. Should involvement take the shape of interference advancing eastern or western interests, it will only serve to polarise and destabilise Moldova and will ultimately backlash on European security. Disengagement would be equally damaging as Moldova today relies on both Brussels and Moscow and wishes to maintain relations with both partners. At this point in time, Chisinau needs international cooperation with Moscow and Brussels to assert itself as a solid partner to both the West and the East.

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Georgia Stands With Azerbaijan: Strategic Partnership In The South Caucasus

Aliyar Azimov

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Authors: Aliyar Azimov and Aynur Azimzade*

South Caucasus has always been a focus of geopolitical competitions for centuries with its geo-strategic location and natural resources. The transportation and energy projects, which implemented in the region, have further increased strategic importance of South Caucasus due to being in the junction West and East in the globalized 21st century. After the dissolution of USSR two major processes occurred: 1) regional cooperation between independent states in terms of common threats and economic-political projects; 2) geopolitical interests and competition among the regional powers (Russia, Iran, Turkey) and the US and the EU.

After the disintegration of the Soviet Union, the three South Caucasus countries found themselves in a new geopolitical vacuum, which resulted in serious events also (territorial conflicts and separatism). On the other hand, this vacuum enabled two of the newly independent South Caucasus countries – Azerbaijan and Georgia – to build and maintain good neighboring relationships, to jointly implement major and strategic regional oil and gas projects (Baku-Tbilisi-Ceyhan oil pipeline, Baku-Tbilisi-Erzurum gas pipeline) without any intervention of Russia. Until 2008, Russia was a major gas supplier to Georgia. However, the August War in 2008 ended with cut off relations between Russia and Georgia. Starting from 2007, Azerbaijan has steadily been supplying the majority of Georgia’s oil and gas demand, especially after the August War Azerbaijan provided more energy flow by completely meeting its strategic ally’s energy needs.

The development of east-west energy corridor in the South Caucasus allowed Azerbaijan and Georgia to involve in the projects as the main partners and to promote the development of the infrastructure by improving the macro-economic environment and international integration. Turkey also gives support to the international projects in the region and deepening the multilateral relations between Azerbaijan-Georgia-Turkey also promotes and intra-regional cooperation and diplomatic resolutions of regional problems. This cooperation is the most functional; it is built on interdependence by trade and transportation relations.

Since 1992, political relations between Azerbaijan and Georgia has reached a high level, cooperation in all fields has become more strategic year by year, and neighborship relations are based on the principles of the strong friendship and mutual respect. Because of this, all officials in Georgia have always firstly visited Azerbaijan in their terms.

Why Georgia needs Azerbaijan?

The East-West strategic energy cooperation helped to strengthen the state independence of Georgia and Azerbaijan. The projects, which implemented and proposed to be realized, are the basis of a strong foundation for economic stability and prosperity for both countries, even for South Caucasus. Considering this fact, in 2009 Georgia was not affected by the energy crisis thanks to Azerbaijan and energy contracts for the supply of gas and oil. Georgia is especially interested in energy transportation from Azerbaijan because since the gaining independence Georgia has had a permanent and stable supply of energy which allowed industries to operate smoothly and contributed the economy of Georgia significantly by making it as a transit country.

Azerbaijan also plays a vital role in the transformation of Georgia into the EU and the development of EU-Georgia relations. The lack of stability in the Middle East increases the role of Caspian Basin not only as a significant energy source but also more secure and shortest supply route for both countries as well as for the EU. Azerbaijan-Georgia good neighborhood relations are vital for the EU in the context of east-west energy cooperation. As the EU is more interested in ensuring a reliable flow of energy resources to the Member States and cooperates with Azerbaijan and Georgia, it makes both countries to be a significant player in the projects and economically and politically powerful in the South Caucasus region.

Salome Zourabichvili’s first official visit to Azerbaijan

On 27 February 2019, newly elected Georgian President Salome Zourabichvili made her first official visit to Azerbaijan. It was a signal of Georgian administration’s desire to continue its strategic partnership with Azerbaijan. Azerbaijan is one of the biggest investors to the Georgian economy and considering large regional projects between both countries, her first official visit to Azerbaijan in the region was not surprising.

In the recent past, there was a tension between Azerbaijan and Georgia due to:

  • The monument of an Armenian separatist, who fought against Azerbaijan during the occupation of the Nagorno-Karabakh territory of Azerbaijan by Armenian military, in the Akhalkalaki region of Georgia, where ethnic Armenians live, and the participation of Georgian administration in the opening ceremony of this monument,
  • In the response of this event, protest of Baku against the unveiling of a monument to a separatist in Georgia.

For this reason, the Georgian President’s visit to Azerbaijan was of particular importance. The Georgian President knew well that Azerbaijan plays a crucial role in the energy supply and settlement of the problems in the region. At the same time, because its energy sector is dependent on Baku-Supsa, Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines and Southern Gas Corridor, Georgia does not want to lose Azerbaijan as a strategic partner. Georgian President’s visit to Azerbaijan also showed that some provocations could not affect the relations between the two countries. Zourabichvili’s speech in Baku once again confirmed that Georgia always stands together with Azerbaijan on the issue of Nagorno-Karabakh by stating, “Conflicts and violation of territorial integrity are tragedies for both countries. We still fight together to restore and recognize our territorial integrity in international organizations.” The Armenian media expressed assurance that Zourabichvili would change her statement during her visit to Armenia on March 13-14.However, Georgian President protested visit to Abkhazia and South Ossetia paid by Nagorno-Karabakh separatists by stating “It is very unfortunate when delegations from Nagorno-Karabakh visit Abkhazia and South Ossetia and discuss these two conflicts as of the same type. This is very sad and painful for us. These conflicts impede the development of our region. Georgia has two occupied territories, and if we talk about the country’s interests, then one single concern for us is recognition of our sovereignty in deeds than in words.” After the meeting, the Russian newspaper “Kommersant” mentioned about the Georgian president’s visit in its article by stating, “These statements by President Zurabishvili were not seen in the Georgian post-Soviet history, because Georgia has pursued an impartial policy in the Armenian-Azerbaijani conflict till now.”

Armenia has tried to position itself as a bridge between Iran and Georgia to transport Iranian energy resources to Europe. However, in 2008, its position in the Russian-Georgian war strained relations between Georgia and Armenia. Armenia was interested in North-South cooperation in order to escape from regional isolation and to revive its economic condition. Nevertheless, newly elected Georgian President’s visit to both countries and her statements declared that relations with Azerbaijan are a high priority for Georgia and for being leading countries in East-West cooperation, Georgia has extensive interests in establishing strong friendship relations.

Azerbaijan and Georgia have been cooperating in several political and economic projects since the early years of independence. Several factors influence the dynamics of the Georgian-Azerbaijani relations in a positive way. Firstly, cooperation in transportation, energy, and economics is interdependent. Georgia’s location makes it more essential for Azerbaijan in terms of to reach European and World markets. On the other hand, Georgia has increased its economic prosperity by participating in regional projects. In 2018, Azerbaijan was a third-largest direct foreign investor (33 million dollars) to the Georgian economy, second in Georgian imports (14.4%) and third in Georgian exports (10.7%).

Another key factor in the Azerbaijani-Georgian relations is that Azerbaijan and Georgia support eachother’s positions on important issues in the international arena. Georgian officials always stress all the official statements that the solution of the Nagorno-Karabakh conflict, which occurred as a result of the occupation of Azerbaijani lands by Armenia, within the framework of Azerbaijan’s territorial integrity. 

When it comes to energy cooperation, Azerbaijani oil-gas company SOCAR is the main supplier of gas to Georgia as a reliable energy partner. Despite the gas agreement signed between Georgia and Russia in 2017, SOCAR has a large share in the Georgian energy sector. In 2018, gas transportation volume was 2.5 billion cubic meters of natural gas to Georgia. High dependence on Azerbaijani gas arose the concerns about national security, but in fact, Azerbaijan never used energy shipments as a political pressure tool. Even Azerbaijan have supplied more energy to Georgia in order to resolve energy shortages during difficult times.

S. Zourabichvili’s recent visit to Baku declared that Georgia does not want to lose its strategic ally. Because political and economic support by Azerbaijan is essential for Georgia in terms of its integration to the West. Also, because of Georgia plays a transit role between Azerbaijan and the West in the field of transportation and energy, losing this position is unacceptable for the Georgian administration.

*Aynur Azimzade is research fellow at the Institute of Caucasus studies of Azerbaijan National Academy of Sciences

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Zelensky’s Presidency is Unlikely to Change Ukraine’s Foreign Policy

The polls after the second round of presidential elections in Ukraine gave Volodymyr Zelenskiy more than 70% of the public’s support....

Energy News12 hours ago

ADB Approves New Financing Support for Renewable Power Projects in the Pacific

The Asian Development Bank (ADB) has approved an umbrella facility of up to $100 million which will provide financing support...

Intelligence14 hours ago

The State of National Security Education and Beyond: The CFR Educators Workshop 2019

The Council of Foreign Relations (CFR) has provided leadership, guidance, and a forum for discussion regarding all matters relating to...

Green Planet16 hours ago

Air pollution and climate change: Two sides of the same coin

Erupting volcanoes, earthquakes, dust storms and meteorites smashing into the Earth’s crust are natural phenomena that can cause climate change...

Travel & Leisure19 hours ago

New York City As Seen On Screen

Whether it be an unplanned holiday trip, an epic clash to save the world, friends experiencing daily life in the...

South Asia22 hours ago

CPEC: Trick or Treat?

Earlier to modern world the nations which upheld the power to subjugate others used to take nudge into considerably week...

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