By Ayaz MUSEYIBOV, Head of Department, Center for Analysis and Communication of Economic Reforms of the Republic of Azerbaijan

Currently, energy and trade routes security is one of the major considerations at the global level. In the wake of the recent global events, the importance of energy resources is more likely to become a dominant matter which the global economy tremendously needs.
Energy supply to Europe, particularly to South and South-Eastern Europe, depends on only one source. However, the European Commission is accelerating the economic diversification processes beginning with the gas routes in order to reduce the economic dependency. Hence, the EU has already held various talks with energy players such as Egypt, Qatar, the United States, South Korea, Nigeria, and Azerbaijan to increase natural gas supplies in the case of a gas crisis. READ MORE

• EGF Editor  |  Published on EGF: 06.04.2022  |  Markets
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

When President Trump pulled the US out of the Iran nuclear deal in May 2018, and launched his “maximum pressure campaign” against Tehran, the other signatories of the nuclear deal did not join the US and took steps to save the deal. The EU even launched a special trade mechanism – INSTEX - to facilitate non-USD and non-SWIFT transactions with Iran, while China continued to buy Iranian oil. The re-imposed US sanctions have significantly worsened the economic situation in Iran but have failed to reach the main goal – to force Tehran to change its regional policy and give up on its ballistic missile program. READ MORE

• EGF Editor  |  Published on EGF: 06.04.2022  |  External Relations
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

As large-scale hostilities continue in Ukraine, politicians, geopolitical experts and international media outlets seek to assess the outcomes and implications of the conflict. When Russia launched its “special military operation” on February 24, the widespread assumption was that Russia planned a blitzkrieg to take major Ukrainian cities within days or maximum weeks. The narrative changed as the first week of hostilities passed with no significant Russian successes. Experts and commentators started to claim that the Russian plan failed due to miscalculations and stiff resistance of the Ukrainians. According to these assessments, Russian President Vladimir Putin was misinformed by his advisors and generals, who promised him that many Ukrainians would meet Russian troops with flowers and that the “special military operation” would be an “easy evening walk.” According to this narrative, facing a different reality, at the beginning of March 2022, Putin started to look for ways out of the mess hastily and end the war. READ MORE

• EGF Editor  |  Published on EGF: 31.03.2022  |  Security
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By Yeghia TASHJIAN, Beirut-based regional analyst and researcher, columnist, "The Armenian Weekly”

As the “frozen conflict” with Armenia over Nagorno-Karabakh (Artsakh) persists, the Ukrainian crisis poses a different challenge for Azerbaijan. “Neutrality” appears to be the watchword as Baku seeks to preserve its ties with both Moscow and Kyiv. While Baku is concerned about the developing situation, it potentially stands to benefit from the trouble with its gas exports to Europe. Given Azerbaijan’s strategic partnership with Russia after the war on Nagorno-Karabakh and its friendly relations with Ukraine (not to mention its significant gas reserves), some may think that Baku is in a prime position to benefit from the looming energy crisis presented by the region’s unrest. READ MORE

• EGF Editor  |  Published on EGF: 31.03.2022  |  External Relations
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By Yeghia TASHJIAN, Beirut-based regional analyst and researcher, columnist, "The Armenian Weekly”

Neither friend nor foe, Turkey and Russia have backed opposing sides in several regional conflicts, yet managed to avoid direct confrontation. Now the Ukraine crisis poses a serious challenge.
The war in Ukraine has become the latest test for Turkey’s regional ambitions in confronting those of Russia, in what has clearly become a “cooperative rivalry.” This is where both sides, despite their opposite views on various regional conflicts ranging from Libya to Syria to the South Caucasus, have worked to manage these conflicts without directly challenging one another.
The current crisis has raised Turkey’s concerns of being in the firing line of Russia’s hegemonic ambitions. It is important to note that Turkey and Russia are not allies, but bitter ‘frenemies.’ Despite having robust commercial, energy, diplomatic and military ties, Turkey’s President Recep Tayyip Erdogan warned back in 2016 that NATO has to act and increase its presence in the Black Sea. READ MORE

• EGF Editor  |  Published on EGF: 23.03.2022  |  External Relations
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By Fuad SHAHBAZOV, Baku-based independent regional security and defence analyst

A remarkable event occurred on March 11 in Baku when Azerbaijan and Iran, after a period of turbulence in their bilateral relations, signed a new document establishing new transport and electricity supply links connecting mainland Azerbaijan to its exclave of Nakhichevan via Iranian territory. The Minister of Urban Development of Iran, Rustam Ghasemi, signed the document from the Iranian side. The fact that Rustem Ghasemi had previously paid frequent visits to Azerbaijan to discuss potential economic cooperation with Azerbaijan indicate persistent Iranian attempts to gain at least a minimal political foothold. The signing of a major cooperation document between Baku and Tehran so soon following the heated border tensions in October 2021, surprised some observers. READ MORE

• EGF Editor  |  Published on EGF: 23.03.2022  |  External Relations
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By Yeghia TASHJIAN, Beirut-based regional analyst and researcher, columnist, "The Armenian Weekly”

On February 21, 2022, Russian President Vladimir Putin officially recognized the Donetsk People’s Republic and the Luhansk People’s Republic, two self-proclaimed states controlled by pro-Russian groups in Donbas, Eastern Ukraine. The next day, Russia’s Federation Council unanimously authorized the use of military force, and Russian soldiers entered both territories. On February 24, President Putin announced a “special military operation” to “demilitarize and de-nazify” Ukraine. Minutes later, missiles struck the military infrastructure across Ukraine, including the capital Kyiv. Russia’s actions received widespread international condemnation, as many Western countries imposed new sanctions, aiming to trigger a financial crisis in Russia. READ MORE

• EGF Editor  |  Published on EGF: 17.03.2022  |  External Relations
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By Alan WHITEHORN, Professor Emeritus in Political Science, The Royal Military College of Canada

Coming to power after the break-up of the Soviet Union in the 1990s, Lukashenko had ruled Belarus in a highly autocratic fashion for almost three decades, while seeking to navigate his country within Moscow’s sphere of influence. However, the aging leader’s arbitrary rule began to teeter and he faced a major challenge in the election of 2020. When skewed and rigged election results were announced, hundreds of thousands of voters of Belarus peacefully protested their strong objections.
The West echoed moral support to the mass of citizens voicing democratic demands on the streets, but provided little material assistance. Somewhat optimistically and naively, the West trusted that the unarmed people would peacefully prevail over the coercive might of the internal and external dictators in Minsk and Moscow. Putin, by contrast, sensing a vulnerable and weakened regime, provided his fellow authoritarian colleague with external assistance to forcefully crush the peaceful demonstrators. READ MORE

• EGF Editor  |  Published on EGF: 17.03.2022  |  External Relations
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

While the world’s attention is focused on the war in Ukraine, tensions are on the rise in Nagorno Karabakh. The 2020 war devastated the region economically and left Karabakh fully encircled by Azerbaijan with only one five-kilometer long corridor connecting it with Armenia. The November 10, 2020, trilateral statement signed by Armenia, Azerbaijan and Russia envisaged the end of hostilities, the deployment of Russian peacekeepers for the initial period of five years and fixed Azerbaijan’s territorial gains. However, the statement did not solve the core issue of the Karabakh conflict – the final status of Nagorno Karabakh. The two additional trilateral statements signed in Moscow on January 11 and November 26, 2021 did not touch the status issue and were focused on restoration of communications and the start of the Armenia-Azerbaijan border delimitation process. READ MORE

• EGF Editor  |  Published on EGF: 17.03.2022  |  External Relations
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

If Russia successfully resists the unprecedented pressure from the West and remains one of the main poles in the emerging multipolar world, its interests lie in balancing Turkish influence in its neighborhood, including the South Caucasus. It does not imply that Russia and Turkey will stop their economic cooperation. It simply means that Russia will seek to prevent Turkish dominance over the South Caucasus.
The Russian “special military operation” in Ukraine launched on February 24, 2022, has shaken global geopolitics and geoeconomics. It completely ruined Russia – West relations and resulted in unprecedented sanctions on Russia, including cutting several Russian banks from the SWIFT financial messaging system, dubbed by economists as a "financial nuclear option". NATO member countries, including the US, UK, Germany, and several east European states, supply Ukraine with various lethal weapons while rejecting Ukraine's plea for imposing a no-fly zone, as the Russian President indicated that the Kremlin would perceive that move as a declaration of war. READ MORE

• EGF Editor  |  Published on EGF: 08.03.2022  |  External Relations
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