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Debate entitled â€œIs the South Caucasus the key to Europeâ€™s energy security?â€ organised in Manchester

01 October 2010 12:17 (UTC +04:00)

The European Azerbaijan Society told APA that delegates included Giorgi Badridze, Ambassador of Georgia to the UK; Unal Cevikoz, Ambassador of Turkey to the UK; and Michael Zantovsky, Ambassador of the Czech Republic to the UK. Lord Hunt of Kings Heath, Minister of State for Energy and Climate Change during the last government, explained how energy security is the key issue that must be addressed by the west and that there is no room for complacency. He particularly focused on the importance of gas, and used the Russo-Ukrainian dispute to illustrate the vulnerability of western Europe, much of which is reliant on Russian Gazprom. Lord Hunt stressed that the current and previous government was supportive of gas security policies, achieved via diversity of supply. He emphasised that the southern Corridor is essential in this endeavour and issued a rallying cry for Europe to combine forces and support its construction.

James Nixey, Manager and Research Fellow, Russia and Eurasia Programme, Royal Institute of International Affairs, stated that it is correct to consider the South Caucasus as a single economic unit, yet there are many conflicts amongst the three nations and their neighbours that are impeding their complete transition from the Soviet era. He pointed out the weaknesses in US foreign policy, both under the current and past administration, indicating that this leaves a void for the EU to fill. Nixey spoke at length on the continuing Armenian invasion of Nagorno-Karabakh and seven adjacent territories, which is the greatest threat to regional stability, claiming it had been â€˜neglectedâ€™ by the west. This was later reiterated by Ambassador Cevikoz. Nixey stated that Azerbaijan and Armenia have currently deployed around 25,000 troops along the contact line. Nixey called for France to be replaced by the EU as an OSCE Minsk Group Co-Chair, which has unsuccessfully been attempting to broker peace for the past 16 years. Nixey commented that Russian President Medvedev had been supportive of the Minsk Group process, although Prime Minister Putin seemed content to maintain the status quo.

John Roberts, Global Energy Security Analyst, Platts went on to focus on the pivotal role of the region regarding future energy security. He referred to the investment of $22bn in the Shah Deniz II gas field in Azerbaijan, and the strategic importance of constructing a pipeline through Turkey or shipping LPG across the Black Sea. Roberts predicted that up to 2.5 per cent of international energy could eventually be delivered via the South Caucasus. He explained that Turkmenistan is in the rare position of being a gas exporter at a time when Russia uses three-quarters of its own energy and middle-eastern fields are becoming depleted. Roberts commented that strengthening the Southern Corridor could be of â€œimmense importanceâ€ to Europe, not least because it could force Gazprom to apply a more competitive pricing strategy.

Finally, Chris Bryant MP, Shadow Europe Minister, outlined the challenges for UK companies operating in Russia, indicating that the Caucasus provides opportunities. He also commented on the deterioration of Gazpromâ€™s infrastructure, which is rendering the South Caucasus essential to energy security.