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Central Asia

Kazakhstan pushes for trilateral Caspian deal
By Sergei Blagov

MOSCOW - In the wake of a series of bilateral Caspian deals between Russia, Azerbaijan and Kazakhstan, widely seen as an alternative to an overall agreement of all five Caspian littoral states, now Kazakhstan has floated an idea of a trilateral agreement in the oil-rich region.

Bilateral agreements could provide "efficient recipes" for an overall Caspian solution, Kazakh President Nursultan Nazarbayev told the Russian Izvestia daily on October 4. Nazarbayev described the Russia-backed "median line" division plan as a "just solution".

Kazakhstan, Russia and Azerbaijan now aimed at signing a trilateral Caspian agreement, Kazakh deputy foreign minister Vadim Zverkov announced in Almaty on October 3. Kazakh diplomats had worked out a draft agreement, which had been sent to Moscow and Baku for further discussion, Zverkov said.

Kazakhstan is set to become a major beneficiary of the so-called median lines division principle, which would leave Kazakhstan with the largest part of the Caspian. Moreover, this solution would give Kazakhstan huge economic benefits, such as 4.5 billion tons of the sea's estimated hydrocarbon reserves. Median lines division would give Azerbaijan 4 billion tons of reserves, Russia 2 billion, Turkmenistan 1.5 billion and Iran 0.9 billion.

Not surprisingly, Iran insists the sea should be split equally between the five littoral states. This solution would give Azerbaijan and Kazakhstan 2.84 billion tons of the reserves, Russia 2.34 billion, Turkmenistan 2.14 billion and Iran 1.94 billion. Therefore, for Kazakhstan, some 2 billion tons of valuable energy resources are at stake. No big wonder, then, that the Kazakh leadership is pushing for the Russia-backed median lines division principle.

On the other hand, not only Iran, but also Turkmenistan is set to remain a loser of the median lines division principle. Turkmen President Saparmurat Niyazov is yet to change his opposition towards bilateral Caspian deals. For instance, a disgruntled Niyazov declined to attend a Commonwealth of Independent States (CIS) summit meeting in Chisinau, Moldova, on October 6-7 - a potentially good venue to discuss Caspian issues with his Russian, Azeri and Kazakh counterparts.

Subsequently, the Chisinau summit made no mention of the Caspian dispute. However, leaders of the six post-Soviet nations inked a charter of the Collective Security Treaty Organization (CSTO). Russia and Kazakhstan are the CSTO's largest member states, hence the move may arguably be seen as yet another push towards a Russia-Kazakh alliance.

In the meantime, Russia has solved differences with its Caspian neighbors on how to define sea borders in the oil-rich inland sea. On September 23, Russian President Vladimir Putin and Azerbaijani President Geidar Aliyev signed a border agreement on defining the sea border between their respective Caspian sections. Putin described the agreement as a victory of Russia's idea "to share the seabed but not the water itself".

The agreement between Russia and Azerbaijan, which implied for national sectors to correspond approximately to the length of each country's coastline and to end at a median line drawn down the middle of the sea, was expected to come easily as the two countries have no disputed oil fields. However, last June's Moscow drive toward a series of bilateral deals as an alternative to an overall agreement of all five Caspian littoral states was dealt a blow as a pre-announced agreement with Azerbaijan did not materialize. It took Azerbaijan three more months to sign the agreement on the Caspian with Russia.

In recent years, there have been repeated moves to resolve disputes over the Caspian Sea. Notably, leaders of Russia, Azerbaijan, Turkmenistan, Iran and Kazakhstan met at the unprecedented Caspian summit in the Turkmen capital, Ashgabat, on April 23-24 this year. Yet they failed to achieve a consensus on how to divide the Caspian riches. Subsequently, Iran and Turkmenistan were blamed for the impasse.

In the wake of that failure, Putin stated that Moscow could push for a series of bilateral deals, instead of an overall consensus of all five littoral states. Russia, Kazakhstan and Azerbaijan, reluctant to refrain from oil exploration until the elusive consensus on the Caspian is achieved, have been discussing bilateral agreements, basing on the so-called "median-line" principle.

Subsequently, on May 13 Putin and his Kazakh counterpart Nursultan Nazarbayev signed a bilateral agreement on how to divide the Northern Caspian. The deal implies that three hydrocarbon fields divided by the median line, Kurmangazy, Central and Khvalynskoye, would be exploited on parity basis by the two countries.

In the wake of the Soviet collapse, Iran has suggested that the Caspian should be divided equally and the five littoral states would get 20 percent of the sea each. According to the treaties of 1921, 1940 and 1970, Iran controls just 13 percent of the sea and is posed to benefit greatly from equal division. Iran wants the sea split equally between the five states, while Russia, Kazakhstan and Azerbaijan support the so-called middle lines division principle, which would leave Iran with the smallest part of the Caspian.

Russia had earlier supported Iran in opposition against attempts to divide the sea into national sectors according to the length of the shore. Russia currently controls 19 percent of the Caspian - according to the length of its shore - and was also to gain from equal division.

Not surprisingly, Kazakhstan (29 percent) and Azerbaijan (21 percent) were against the idea of equal division. However, the Russian position eventually changed and Moscow now advocates the "median line" solution - delineation of the seabed but not the water itself. Nonetheless, Iran is understood to be opposed to the division of the sea according to the length of the shore at principle, and Turkmenistan is also against that idea. Both nations are posed to benefit from equal division.

Russian officials have been arguing that bilateral agreements, such as deals with Azerbaijan and Kazakhstan, should serve as a model for bilateral arrangements between other Caspian littoral states. Moscow expects that Iran and Turkmenistan could follow Russia, Kazakhstan and Azerbaijan in clinching respective bilateral Caspian deals as multilateral negotiations proved to be "too slow", Russia deputy foreign minister and Caspian envoy Viktor Kalyuzhny announced in Kazakhstan's Almaty of October 2.

Kalyuzhny's referral to the Caspian multilateral negotiation as "too slow" sounds indicative. Presumably, Russia is rushing to reach any solution for the Caspian Sea so that yet another potential arbiter, the US, would have no opportunity to intervene in the oil-rich region.

(©2002 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)

 
Oct 10, 2002



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