THE CASPIAN MOMENT
By Elmar Mammadyarov

WSJ
January 21, 2008

BAKU, Azerbaijan — The Caspian is back on the international energy
agenda.

Our region, rich in oil and gas, is emerging from the Soviet past with
a bang. But we still have unfinished business. Regional integration
is a priority for Azerbaijan. It makes economic sense in the Caspian
and the global context. Integration, however, can only happen if we
can find a lasting solution to the Nagorno-Karabakh conflict.

When Armenian forces occupied this south-eastern region of our country
and seven surrounding territories in 1992, close to one million Azeris
were forced to flee. They are now living in temporary settlements. They
should be allowed to return to their homes.

Azerbaijan cannot make any compromises when it comes to its
territorial integrity and the right of return for internally displaced
persons. This is in accordance with the norms and principles of
international law, the relevant U.N. Security Council resolutions and
decisions taken by the Organization for Security and Co-operation in
Europe. Other international organizations, including NATO, the Council
of Europe, and the European Union, have repeatedly stated the same.

It is almost 14 years since the Azerbaijan-Armenia war ended in a
Russian-mediated ceasefire. But to this day we still have Armenian
troops on our territory. The continued occupation of parts of our
nation is something we cannot tolerate. The so-called Minsk process,
an OSCE-led effort to find a peaceful, negotiated settlement to this
conflict, has been helpful in providing the framework for dialogue
between Azerbaijan and Armenia. It also gives an international
dimension to this conflict. But we need to urgently conclude this
process. Maintaining the status quo is just too costly.

The current market price for oil and gas is high and we should be able
to maximize the economic potential of our strategic resources. The
unresolved Nagorno-Karabakh conflict, however, threatens the security
of the existing pipeline infrastructure, preventing us from optimizing
the region’s energy trade with Europe. For us in Azerbaijan this
will impede economic growth, which has been averaging around 30%
in the past few years.

Diplomacy is Azerbaijan’s preferred solution. I believe that Armenia
would also benefit from regional integration and development, and
should look beyond the protracted conflict. The resolution of this
issue would not only improve our bilateral relations. It could also
improve Armenia’s relationship with Turkey.

Some critics have accused Azerbaijan of overspending on military
procurement. But we are only responding to the security reality in the
region while at the same time modernizing our military and upgrading
it to NATO standards. Close cooperation with NATO is a centerpiece
of Azerbaijan’s security doctrine.

Transnational threats like organized crime, smuggling and terrorism,
which affect this region as well, can only be effectively countered
if addressed through a collective framework. This is yet another
reason why Armenia should be serious about finding a solution to the
Nagorno-Karabakh conflict.

Unresolved border disputes and quasi-autonomous territories give room
to organized crime. To properly deal with asymmetric threats requires
good regional cooperation, which in turn necessitates that we resolve
our differences with Armenia.

Having said this, Armenians should know that we are ready to grant
Nagorno-Karabakh the widest possible autonomy within Azerbaijan. And
we are even ready to substantially increase central funding for the
development of this Azeri province.

Resolving this frozen conflict would also help Azerbaijan assume its
role as a bridge between the EU and Central Asia. As EU expansion
moves further east, Central Asia, with its rich oil and gas resources,
becomes increasingly important. The EU must have a strong interest
in stability and economic development in a region that could play a
central role in helping Europe meet its energy needs. Closer relations
with Azerbaijan can also be seen as part of a European outreach to
Central Asia.

With our partners from Kazakhstan and Turkmenistan we are building
a strong and genuine trans-Caspian partnership. We are discussing
connecting the two sides of the Caspian Sea with a network of
pipelines. We are talking about setting up mechanisms for regional
economic and security cooperation. The regional market, if integrated,
will be more competitive, more efficient, and better organized. This
has positive implications for all countries involved. Surrounded by
massive economies like the EU, Turkey, Russia, and China, the case
for rapid and sustained growth across the Caspian region is more
than convincing. This is why we are optimistic that Baku could be
transformed into a European hub in this region.

A European perspective of closer economic integration is as relevant
to the Caspian as is the partnership with Russia and China. Azerbaijan
is committed to pursuing all these links. However, a truly regional
framework hinges on the resolution of the Nagorno-Karabakh conflict,
which is why this problem can no longer wait. Baku is serious about
moving on.

Mr. Mammadyarov is foreign affairs minister of Azerbaijan.

From: Emil Lazarian | Ararat NewsPress