By Ismail Agakishiyev, the head of the Lomonosov MSU Center for Caucasus Studies
Relations between Western states and their eastern partners have been two-sided. On the one hand, the West was trying to limit them economically. On the other hand, certain business relations were formed, pipelines were built from the East to the West, European consortiums were actively developing hydrocarbon fields and extracting energy resources.
Russia, Azerbaijan and Turkey are still limited in their cooperation with Europe today, but each country has geographic benefits and each has unique opportunities for cooperation with the European Union.
Moscow, Baku and Ankara have recently been uniting to evade limitations set by the European Union. They are developing business projects on a pragmatic basis, not forming an anti-European coalition.
Ilham Aliyev’s interview and the results of the meeting in Ankara create new opportunities for cooperation between the countries of the region. The cooperation is reaching a more qualitative level. The bold decisions of Putin, Erdogan and Aliyev are voiced in the light of confrontation between the West and Russia. Relations between Western states and Turkey and Azerbaijan are quite complicated too.
Economic and political limitations and opportunities for cooperation encourage Ankara, Baku and Moscow to consolidate in order to expand collaboration and further cooperation with the West.
In the context of overt confrontation and adoption of anti-Russian sanctions, the problem of pipelines connecting Russia and Europe remains topical. Azerbaijan, as a leader of the South Caucasus since 1997, has been contributing to the energy security of Europe, delivering hydrocarbons via far-reaching networks.
Turkey is more connected with the West economically and politically than Russia and Azerbaijan. Despite the military and political alliance with the West, Ankara remains an “aloof ally.” The country has spent many years striving for membership in the European Union. The country with one of the strongest armies in Europe, a member of a military alliance of Europe, is not given membership in the organization uniting the countries in a political and economic union.
Ilham Aliyev admitted at the opening of a the new building of the Azerbaijani Diplomatic Academy that Europe had been using a double-standard approach in relations with Russia and Azerbaijan.
Relations between the West and Iran have a special status, their contacts are changing and becoming more pragmatic. The new president of Iran is trying to settle old problems with the countries of Europe and the U.S. and cooperate with neighbours. When it comes to gaining profit, improvement of economic contacts in the energy sector becomes especially real for Iran.
Before the events in Ukraine, Western states had been accusing Vladimir Putin and large Russian energy companies of expanding too rapidly. The West was basically demanding that Moscow accept unequal conditions for cooperation in the energy sector to get cheap resources from Russia. Western countries used different standards to form economic relations with Russia and other countries of the post-Soviet space.
The petroleum sector of the world economy is not restricted by exploration and extraction of oil, the main income comes from processing crude oil and production of petroleum. 90% of oil refineries are situated in Europe. The desire of Russian oil refiners to purchase shares in the refineries was quite natural. Oil giants of the West in Russia had no legal problems accessing oil fields and extraction of oil together with local companies on mutually-beneficial conditions. A similar situation happened in all countries except Germany during sales of gas extracted together.
When the political authorities of Russia expressed outrage over “special standards,” the Western media started a campaign on “the gas and oil stick” of Moscow.
The same standards are applied towards Azerbaijan and other oil-rich countries of the post-Soviet space. That was the main reason why oil countries were forced to limit themselves in extraction and sales of crude oil. Considering that development of oil machinery was stopped in many countries, oil states suffered colossal losses.
Regional countries are ready to merge together their opportunities to strengthen their economic and political positions, overcome the limitations set by Europe and prevent large European companies from making super profits from inequality.
Such ideas have gradually been realized in the form of documents and improving relations between the leading countries of the region. They are ready to cooperate on the principles of pragmatism. Russia, Turkey, Azerbaijan and Iran are especially active. Western sanctions had a devastating effect, but they were the boost encouraging Moscow to cooperate more dynamically in regional economic projects.
The projects may benefit Georgia and Armenia, suffering from problems with transportation. The prospects for economic development will improve if their interests coincide with the political and economic interests of regional leaders.
One way or another, most countries of the region are interested in settling conflicts that have been hindering realization of large economic projects for decades. Obviously, the status quo of the Nagorno-Karabakh is tantamount to further negative tendencies pressing on the sides of conflict and slowing development of the region.
Further development of relations meets the interests of the countries of the Caucasus Region and the West. Obstacles on the path towards economic development and market protection should not be absolutized. An advantageous sector on the world market should be taken using advanced technology, as proven by Japan after WWII and South Korea. World experience and active foreign policy and development of competitive and unique economic sectors should become fundamental for that cause. Only then can the countries find their place in the world economy, join the most advanced industrial states of the world, maintain high standards of living and stability of government.
Ankara, Baku and Moscow have the trust they needed to form mutually-beneficial relations. Achieving this goal may become the main binding factor in the formation of fundamental relations between the countries of the region. Only gains and trust can build pragmatic relations. There are no relations or benefit without trust.
