MEDVEDEV CALLS AZERBAIJAN `STRATEGIC PARTNER`

AzerNews
July 9 2008
Azerbaijan

Russian President Dmitry Medvedev has called Azerbaijan Moscow`s
strategic partner in the Caucasus, in a statement that is seen as
courting the resource-rich country to secure gas purchases.

"The two countries are linked with many-century-long friendship ties,"
he said after talks with President Ilham Aliyev on a visit to Baku
last week.

During broad discussions following the two leaders` one-on-one meeting,
Medvedev said "special kind of relations" and very strong economic
cooperation between the two countries facilitated the solution of
various problems.

"The accomplishment of the goal to bring bilateral trade turnover
to $2 billion is not far off. In four months of 2008 alone, a 50%
increase was posted. This indicates that there is tremendous potential
[to boost trade]," Medvedev said.

The Russian president said he had discussed with his Azerbaijani
counterpart "important, complex and serious, but very prospective
issues", including cooperation in the economic, trade and humanitarian
fields.

"Energy, industry and transport are in spotlight of the two countries`
presidents and governments. Collaboration in the sales of energy
resources will be given a boost soon," said Medvedev.

President Aliyev, for his part, termed Russian-Azeri relations as
"friendly, good neighborliness and strategic" and voiced hope that
they would be taken to a new level after Medvedev`s visit.

The two leaders signed a declaration On Friendship and Strategic
Cooperation in conclusion whereby the two countries pledged to expand
military cooperation. The parties also expressed content with the
work of the joint commission on border delimitation and a hope that
all disputed issues would be resolved fully and swiftly, which would
bring about the signing of a final agreement.

The document also said Azerbaijan and Russia would not allow any
activity by their companies, organizations or institutions in one
another`s territory that runs counter to the sovereign rights and
interests of the other side.

In a clear demonstration of close relations, the joint declaration
contained an unusually strong support for the Azeri stance in Baku`s
long-running dispute with Moscow`s ally Armenia over Upper (Nagorno)
Garabagh.

"The two sides underlined the importance of a speedy resolution of
the conflict on the basis of respect for … sovereignty, territorial
integrity and the inviolability of a state`s borders," the declaration
said.

The two countries also called on all Caspian littoral states to sign
an agreement on the division of the sea-bed similar to the one already
inked by Azerbaijan, Russia and Kazakhstan.

Medvedev left Azerbaijan for Turkmenistan on Friday where he
had a one-hour tete-a-tete meeting with President Gurbanguly
Berdymukhammedov.

The new Russian president`s visit to the two countries reaffirms
Moscow`s decisiveness to maintain its dominance on the supplies of
energy resources to Europe and a host of other CIS states.

The three-day trip, which came several weeks after Medvedev visited
Kazakhstan within his first regional tour as president, shows that
Russia is striving to bolster its influence in the resource-rich
Caspian region and secure its role as the main link between Caspian
and Central Asian gas and Europe, as rival states are intensifying
their struggle for resources. Medvedev undoubtedly discussed with
President Aliyev Russian gas monopoly Gazprom`s recent proposal on
gas purchases from Azerbaijan. Russian officials said they were
prepared to buy all of Azerbaijan`s exported gas. But the South
Caucasus republic which already has a pipeline transporting its
crude to Western markets bypassing Russia is unlikely to move toward
undermining its steadfast relations with the United States and agree
to sell gas to its northern neighbor, analysts say. However, Moscow`s
offer certainly appears lucrative as it would allow Azerbaijan to
export gas sooner than within the Western-backed NABUCCO project,
which aims to ship fuel from the region directly to Europe.

Last week Azerbaijan agreed to discuss selling gas to Russia. The
announcement was made by the head of Gazprom on the first day of
President Medvedev`s tour.

"In the course of talks, Gazprom and Azeri colleagues decided to
start talks …. on the conditions for buying Azeri gas," Gazprom
chief executive Alexei Miller told reporters in Baku after the
Medvedev-Aliyev talks.

Russia is one of the world`s largest gas producers but it needs to
import the fuel from its ex-Soviet neighbors to cover its own needs
and export gas to lucrative European markets.

Most of the gas from ex-Soviet states around the Caspian Sea flows
into Russia`s pipeline network. A push by the European Union and
United States to court those states and build alternative export
routes has alarmed Moscow.

Gazprom spokesman Sergei Kupriyanov said Russia was seeking a long-term
contract with Azerbaijan and was ready to buy as much gas as Baku
was willing to sell.

President Aliyev said he was aware of potential new energy projects
between the two countries but made no direct comments about the sale
of Azeri gas to Russia.

An executive of Azerbaijan`s state energy firm SOCAR said: "Gazprom
has made only a proposal so far but it is not a commercial one. If
the price and conditions of transit are realistic, it is not ruled
out that we will be exporting gas to Russia."

From: Emil Lazarian | Ararat NewsPress