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Georgia Stands With Azerbaijan: Strategic Partnership In The South Caucasus

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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

Mr. Aliyar Azimov is Senior Specialist in the Institute of Caucasus Studies at Azerbaijan National Academy of Sciences. He is an honored graduate student of Pécs University. He got his Bachelor degree at Baku State University from International Relations and Economics programme. His main research fields concern on energy politics and security, international security and foreign policy issues, peace and conflictology, political economy, and internal/external affairs of South Caucasus. He is successful participator of Essay Contest, titled Russia’s actions against the Southern Gas Corridor and potential impacts in this direction, held by UNEC Research Foundation. He was honored as the best student of year in 2013 at Baku State University. Mr. Aliyar worked as a program manager at Hungarian NGO – Subjective Values Foundation. Currently, he is also External Relations Manager at Technote, which is the biggest tech media company in Azerbaijan.

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Eastern Europe

The Stewards of Hate

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A big bear is rattling the open door of his cage.  He cannot abide a NATO spear in his belly.  Hence Valdimir Putin’s demand for Ukraine to remain out of it, and for the military alliance to stop its advance into eastern Europe.

For 72 years until 1991, Ukraine was a republic of the Soviet Union, and before that for centuries an oblast of the Imperial Russian empire.  In 1939, parts belonging to Poland were annexed.

It was during the breakup of Russia following an independence referendum that Ukraine opted to separate.  But NATO is another story.  After the dissolution of the Warsaw Pact (NATO’s eastern counterpart), Russia had expected the West to do the same.  Instead, NATO became a US fig leaf for its wars in Iraq and Afghanistan.  Apparently, everyone in the world saw through this — except the US — as it embroiled itself in both countries, and the bill for the misadventures rocketed from $80 billion to an estimated $5 trillion.

The EU, a path to riches for East Europeans, is a Ukrainian dream, and Russian troops the reality when they wake up.  Such are the facts, no matter how much the Ukrainians are trying to ignore them. 

If the powerful Russian bear is the Ukrainian bete noire, its polar opposite is the case in India.  A powerful Hindutva movement abhors the Muslim minority.  It blames them for India’s problems, very much akin to the situation for Jews in pre-WW2 Germany.  Not unsurprisingly given the roots of the RSS, which modeled itself after the Nazis, instituting uniforms and drills.  A former member assassinated Gandhi for being too soft on Muslims.  Post independence, the RSS was banned by India’s first government which was led by Jawaharlal Nehru, a secular socialist.

The current prime minister, Narendra Modi, is a former RSS pracharak —  that is an active member who devotes himself full time to promoting RSS doctrine and, like a missionary, in seeking new members.  As an ambitious politician, he shed RSS ties when he entered politics and as leader expresses the wish for unity — sentiments not shared by his BHP colleagues.

There is the yogi elected chief minister of India’s largest state, and his undisguised derogatory opinions of Muslims.  Worse, at a political event at the end of December, leaders called openly for the killing of Muslims, and India’s leaders kept silent.  After general social media outrage at the speeches, the police  finally registered a case against some of the speakers for ‘promoting hatred between religious groups.’

Videos show many of the speakers are prominent religious leaders often present with senior ministers in the BJP government.  Imagine, calling for genocide in 2021.  The world reacted to the effort to eliminate Tutsis in Rwanda where it also began with reviling and dehumanization.  Genocide and even incitement to genocide is a crime.  Hence the prosecutions.  Incitement to genocide is recognized as a separate crime under international law and an inchoate crime which does not require genocide to have taken place to be prosecutable.

The founders of post-independence India, Gandhi and Nehru who took pride in being secular, must be in agony over international outlaws wanting to become the stewards of their child.

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Eastern Europe

Lithuania is left in the dust

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The nearly completed Nord Stream 2 is again in focus. It has become known that the U.S. Senate on January 13 failed to pass a bill to slap sanctions on Russia’s Nord Stream 2 natural gas pipeline sponsored by Republican Senator Ted Cruz. The tally was 55 in favor and 44 against the bill that needed 60 votes to pass. Those who voted against his bill said it risked breaking unity in Washington and in Europe. U.S. senators said also Cruz sanctions on Nord Stream 2 could harm relations with Germany which is very important for the U.S. foreign policy and economy.

Top Ukrainian officials, as well as Lithuanian government supported Cruz’s bill, arguing the United States should do everything in its power to halt the pipeline project.

The link is designed to export gas from Russia directly to Germany by bypassing Ukraine, through which Russia has sent gas to Europe for decades. That would deprive Ukraine of lucrative transit fees and potentially undermine its struggle against alleged Russian aggression. The decision will allow the completion of the gas pipeline to Europe without the imposition of further US sanctions. Earlier Lithuanian Foreign Minister Gabrielius Landsbergis said that the a deal between the United States and Germany on the Nord Stream 2 pipeline was a “mistake”. It is interesting that the vote came as U.S. and European officials held high-level talks with their Russian counterparts. It is quite possible that the decision about Nord Stream 2 pipeline was the result of these negotiations.

This fact has sparked anger and has become great political disappointment for the Lithuanian officials who view the project as a security threat.

Lithuania, positioning itself as the main Ukraine’s patron in Europe, is confused with such U.S. decision. Lithuania promotes the U.S. interests and support all American initiatives even to the detriment of its own interests. Only this month Lithuania took a number of steps to prove its commitment to US policy. Lithuania even has dared to challenge China, one the main US strategic competitors. It continues to spend millions of dollars on military purchases from the U.S. using the narrative of “the threat from the East”. In December Lithuania signed an agreement with the U.S. to improve military interoperability.

The more so, the Lithuanian government has decided to accelerate its planned purchase of a multiple launch rocket system (MLRS) amid Russia’s military buildup on its border with Ukraine. The decision to buy US’ Lockheed Martin system in 2026, two years earlier than Vilnius previously planned.

The country also regularly holds political consultations with the U.S. officials to coordinate its further actions. But the U.S. in its turn does not pay attention to Lithuania’s opinion and makes decision in its favour.

Lithuanian government should gain Lithuanians’ support and pay attention to their needs. The matter is discontent in Lithuanian society is growing every day. Thus, on January 13, the usual commemoration of Freedom Defenders saw loud booing and heckles from the crowd of protesters who called on the government (and the parliament) to resign.

It is obviously that the threat from the East is not so real as threat to be fired due to loss of confidence in near future.

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Eastern Europe

Rebuilding of Karabakh: Results of 2021

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Image source: azerfocus.com

The restoration work in Karabakh entered the active phase in 2021 as several projects had been completed and the foundations for new ones were laid down. The restoration process in Karabakh started right after the November 10th declaration that ended the 44-Day War between Armenia and Azerbaijan. After the war, Azerbaijan liberated its territories that constituted about 20% of the total territory of Azerbaijan and were occupied by Armenian forces in the early 90s.

During the occupation, about thirty years, Karabakh was subject to ruthless destruction and looting by the occupants. As a result, most of the social infrastructure, including residential buildings, schools, and hospitals, were totally destroyed, and most parts of the occupied territories were left empty. Despite the fact that the total destruction in Karabakh makes the restoration process complex and time-consuming, Azerbaijan immediately started the restoration process. For this purpose, the plan for socio-economic development of the liberated territories was prepared, and for the implementation of this plan, “Coordination Headquarters” and 17 working groups on different areas were established. In 2021, $2.2 billion was allocated from the state budget for the restoration process. The same amount of funds is planned to be directed to the restoration process in 2022 as well. The allocation of the necessary financial resources and the establishment of the state bodies for the efficient organization of the recovery process led to the rapid implementation of projects in 2021.

The most notable project that was almost completed in 2021 was the Fuzuli International Airport. The inauguration of the airport took place in Azerbaijan’s liberated city of Fuzuli in Karabakh on October 26. It was the first airport built by Azerbaijan in the liberated areas, and its construction took only eight months. It was built in accordance with the highest international standards, which enables it to accommodate any type of aircraft. A runway with a length of 3000 meters and a width of 60 meters has been put into operation at the airport. The first test flight to Fuzuli International Airport was performed on September 5, 2021, when the largest passenger aircraft of Azerbaijan Airlines, named Karabakh, landed at the airport. Because of its location, the new airport is considered as an “air gate of Karabakh”. Along with Fuzuli airport, the foundations of the other two airports in Lachin and Zangilan districts were also laid down in 2021.

The year 2021 was also marked by the establishment of the Horadiz-Jabrayil-Zangilan-Agband highway. The foundation of this road was laid on October 26, with the participation of the leaders of Azerbaijan and Turkey. With a length of 124 km, it is part of the Zangezur Corridor, the establishment of which was envisioned in the November 10 declaration. The Zangezur Corridor is a very important project that is going to change the transportation architecture of the South Caucasus and its neighborhood. Its proximity to the Karabakh and connection to the main roads in the region will accelerate the restoration and development of the Karabakh.

Within the framework of the restoration process, another important event in 2021 was the foundation of the first “smart village” in Agali village in the Zangilan district on April 26. As of October, the construction work on more than 110 hectares in Agali village was underway. It includes the construction of 200 ecological houses, 4 non-residential buildings, a smart school for about 360 students, and a kindergarten for 60 children. Work on establishing smart agricultural infrastructure on approximately 600 hectares of land is also ongoing. According to the restoration program, it is planned to re-establish cities and villages in the liberated territories based on the “smart city” and “smart village” concepts. Thus, after the Agali village, this concept will be implemented in other areas of Karabakh.

In 2021, the highway that connects the Fuzuli and Shusha cities was also opened. As this highway passes through the territory that was used to liberate Shusha city, it has a symbolic meaning for Azerbaijan, and therefore it is named “The Road to Victory.” The Fuzuli-Shusha highway is part of the Ahmadbeyli-Fuzuli-Shusha highway, one of the main highways in Karabakh. It is 101.5 km in length and reduces the distance from the capital Baku to Shusha to about 363 km. The foundation of another important transport project, the Horadiz–Agband railway, was also laid in 2021 and its construction continues. This railway is 100 kilometers long and has strategic importance as it will connect the mainland of Azerbaijan with Nakhchivan, Azerbaijan’s landlocked exclave, through the Zangezur corridor.

Along with the mentioned roads, the opening ceremony of the 28-kilometer highway that connects the city of Tartar with the villages of Sugovushan and Talish took place in 2021. The length of this road is 28 kilometers, and as planned, the extension of this project will include 22 kilometers of highway from Talish to Naftalan. Construction and planning work on various transportation projects such as the Barda–Aghdam railroad, the Fuzuli-Shusa railway, and the Toganal-Kalbacar highway were also continued.

Comprehensive works in the energy sector were also carried out within the framework of the restoration program, based on the strategy for transforming the liberated territories into “green energy” zones and connecting the energy infrastructure in those territories to Azerbaijan’s general energy system. In 2021, with a total capacity of 20 megawatts, “Gulabird”, “Sugovushan-1” and “Sugovushan-2” small hydroelectric power stations (HPS) were reconstructed and put into operation in the liberated territories. In total, nine digital substations were built in the Karabakh and East Zangezur regions. Simultaneously, in the Aghdam and Jabrail regions, the construction of “Aghdam-1,” “Aghdam-2,” and “Jabrayil” substations as well as the Karabakh Regional Digital Management Center has been completed.

The other important project in the energy sector was the foundation of the Digital Station Management Center in Fuzuli. This project, implemented for the first time in the South Caucasus, allows through automation to reduce the impact of the human factor on the operation of the network, increase reliability and reduce losses during the transmission of electricity. All these projects in the energy sector serve to maintain the energy security in liberated territories and to transform these territories into “green energy” zone.

All the mentioned projects show that Azerbaijan has actively worked for rebuilding Karabakh in 2021. It will enable Azerbaijan to fully integrate the Karabakh economy into the Azerbaijan economy and to use its economic potential in upcoming years. As the liberated territories have great potential in sectors such as agriculture and energy, it will also positively affect the development of the non-oil sector in Azerbaijan. Implementation of all projects that were started in 2021 will not only contribute to the economic development of Azerbaijan, but will also transport Azerbaijan and Karabakh to the transport and economic center of the region.

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