RIA Novosti, Russia
Dec 14 2004

AZERBAIJAN PRESIDENT DISCUSSES BTC CONSTRUCTION, INVESTMENT AND
KARABAKH PROBLEM IN LONDON

LONDON, December 14 (RIA Novosti) – President Ilkham Aliyev of
Azerbaijan has said the parties to the project for the construction
of the Baku (Azerbaijan) – Tbilisi (Georgia) – Ceyhan (Turkey) (BTC)
pipeline, a Turkish oil terminal in the Eastern Mediterranean, faces
no financial problems whatsoever.

“We have not faced any problems in financing the project, including
from international sources,” the president emphasized as he spoke to
reporters at the European Bank for Reconstruction and Development on
Tuesday.

Mr. Alieyv said the Azerbaijani section of the pipeline had been
completed already, while the Georgian and Turkish sections would be
completed soon.

“We have never regarded underfunding as a major problem. And we
believe the shareholders will hopefully reaffirm their resolve to
complete the construction of the pipeline according to schedule,”
said the president.

The Azerbaijani leader said hydrocarbon resources would start being
pumped along the pipe in 2005. The BTC project is being implemented
with the participation of major international concerns, among them
British Petroleum.

Mr. Aliyev maintained the territorial dispute with Armenia over
Nagorny Karabakh, the Armenian enclave on Azerbaijani territory,
which proclaimed independence and backed by Armenia upheld its status
of an independent republic in a war with Azerbaijan in the 1990s, did
not act as a deterrent for foreign investors in Azerbaijan.

“This situation does not deter potential investors, and a whole bunch
of major foreign investors are present in Azerbaijan today,” said Mr.
Aliyev.

Speaking about ways to settle the Karabakh problem, Ilkham Alieyv
emphasized that “Azerbaijan has signaled adherence to the principles
of international law and has demanded that Armenia’s occupying forces
be pulled out from Azerbaijani territory.” (Since the war Armenia has
retained control over up to 15% of Azerbaijan’s territory, including
what is known as the Lachin corridor linking Nagorny Karabakh to
Armenia.)

“We accept various solutions to the Karabakh problem, which will base
on international law and ensure Azerbaijan’s territorial integrity,”
noted Mr. Aliyev. “Azerbaijan’s territorial integrity is instrumental
and is not subject to debate, although we are prepared to meet
halfway on other aspects, in particular the autonomous status for the
region and security issues,” said the president.