The Messenger
Tuesday, February 22, 2005

Cargo accumulating on Azeri border
By M. Alkhazashvili
Azerbaijan continues to delay cargo bound for Georgia as it crossed the
border between the two countries, on the grounds that part of that cargo,
they suspect, may be then transported to Armenia.
Georgian importers report they are losing millions of dollars as a result of
the hold-up, but they are not the only ones losing out: the dispute is
seriously undermining the reputation of the TRACECA (Transport Corridor
Europe-Caucasus-Asia), the functioning of which is also very important for
Azerbaijan. Local importers are demanding Georgian officials to intervene in
the settlement of the issue.
Blocking of cargo trucks bound for Georgia first became a problem in 2004.
Azerbaijani legislation forbids the transit of cargo to any other country if
it is then forwarded on to Armenia. An agreement was signed between
Azerbaijan and Georgia on June 14 last year, according to which it was
forbidden that cargo transported form Azerbaijan to Georgia be then exported
to Armenia. The agreement was finally ratified on November 22.
The existence of this agreement has not stopped the Azeri side from
currently preventing more than 700 rail wagons from crossing the
Georgia-Azerbaijan border. Only when Baku is assured that the cargo will not
be forwarded to Armenia will the trucks be allowed to proceed into Georgia.
The Georgian side is seeking to speed up the process, and part of the
cargo – some 400 rail wagons – have now crossed the border. 316
Georgia-bound wagons remain, however, including 195 loaded with wheat, 36
with liquid gas, 6 with distillates, 2 with flour and 2 with oil, reports
Rezonansi. Georgian officials state that none of the cargo is destined
ultimately for Armenia.
Apart from the rail trucks, road vehicles are also being held at the border,
bringing the total value of cargo not permitted to cross the border to
nearly USD 10 million, according to newspaper Akhali Taoba.
Although the official reason for holding the cargo is that it might be then
transported to Armenia, other reasons for the Azeri decision have been
speculated, including Georgia’s decision to move to Euro-standard petrol,
which is not produced in Azerbaijan, although the introduction of this rule
has been postponed for a year, giving Azeri factories time to change to
producing petrol which meets European standards.
Oil importers believe the main reason for suspending the cargo is an
internal disagreement with Azerbaijani oil producers, reports the newspaper
Rezonansi, while another version is that it represents Azerbaijan’s response
to Georgian efforts to stop contraband from entering the country. Analyst
Gia Khukhashvili, meanwhile, believes Russia may be behind the disagreement
between Azerbaijan and Georgia.
Whatever the truth of the matter, the fact is that the disagreement is
seriously harming businesses on both sides of the border.