The topic of a confederation between Georgia and Azerbaijan is being discussed seriously in Tbilisi, although it was born from a diplomatic joke. In Tbilisi, the idea is being considered by the Foreign Ministry and political parties. In Baku, the idea is perceived as a joke.
Mikhail Saakashvili brought the topic up during the recent informal meeting with Ilham Aliyev in Batumi. Later on, a Georgian Foreign Ministry representative commented on this issue as having been finally determined. Nevertheless, Azerbaijani diplomats expressed surprise and said that the topic of a confederation wasn’t discussed.
Integration between Georgia and Azerbaijan is weak, despite some international business projects. The Baku-Tbilisi-Kars trunk railway line is being built the using Azerbaijani capital. The State Oil Company of Azerbaijan (SOCAR) is operating successfully in Georgia. It controls about 50% of the Georgian oil market, operates in the gas market and has bought and completed the construction of the oil terminal in Kulevi.
Azerbaijani business is promoted in Georgia by the International Bank of Azerbaijan. It provides financial support for the projects.
Georgian capital is virtually absent in Azerbaijan. The Georgian economy depends on US and EU financial aid to a great extent.
Political confederation between the two countries is very problematic. The pro-American and anti-Russian policy of Mikhail Saakashvili is not supported by Baku. Azerbaijan develops cooperation with Russia, the EU and the US, pursuing a policy of balance. So Baku is not interested in a confederation with Tbilisi.
Saakashvili’s presidential term will expire in 2013, so he is interested in a confederation with Baku, as this could raise his low ratings.
Eugene Krishtalyov, exclusive to VK
