Tbilisi: At crossroads, Georgia faces dueling interests

At crossroads, Georgia faces dueling interests
By M. Alkahzashvili

The Messenger, Georgia
Nov 26 2004

Thanks to its geographic location, Georgia is actively involved in
various transit-energy projects. But in addition to certain benefits,
the projects bring complications as well. Neighbors, both near and
far have their own interests in projects and their interests are
often unpredictable.

Most recently Azerbaijani media has expressed dissatisfaction over the
increase of Turkmenistan’s armed forces, an event also connected to
Georgia. The issue stems from the fact that the status of the Caspian
Sea remains vague, and Turkmenistan has put forward claims over oil
deposits in the sea that Azerbaijan has already begun to exploit.

A deputy to in Azerbaijan’s legislative assemble, the Mili-Mejlis,
was recently quoted by the Georgian newspaper Rezonansi as saying
Turkmenistan is taking an aggressive posture over the Caspian.

“The issues of the judicial regulation of the Caspian Sea are still
not completed. I think that Ashkhabad makes this move so it can be
more self-confident during negotiations and to defend its positions
regarding the Caspian Sea,” states deputy, and general, Vladimir
Timoshenko.

At the same time it is widely mentioned that Georgia contributes
in the increase of Turkmenistan’s armed forces. Between 1994-1995,
Georgia’s aviation factory Tbilaviamsheni began covering the costs of
importing natural gas from Turkmenistan by renovating the country’s
military airplanes. So far, 43 military planes and 6 helicopters
have been repaired. In addition to this Turkmenistan bought the SU-25
Scorpion fighter modernized by Tbilaviamsheni.

Azerbaijan is a key partner for Georgia, particular in its Caspian
energy projects. Thus Georgia has no interest in upsetting one of
its closest neighbors, friends and allies. Georgia hopes that the
tension between Azerbaijan and Turkmenistan will be solved without
any conflicts.

It is of no interest to any country in the region rich with energy
resources to further aggravate the situation. On the other hand Georgia
has its commercial interests in particular when Georgia has enormous
debts from natural gas to Turkmenistan.

Meanwhile, Russia’s RAO-UES has initiated a new transit project
through Georgia. Chair of the board of the local Telasi distributor
and member of the executive board of RAO-UES, Andrei Rappoport,
announced this week that his company is considering expansion into
the Iranian energy system.

To successfully implement the project, RAO-UES needs to build an
additional electric transmission line through Georgia. Negotiations
with the Iranian side are underway and as Rappoport said the project
will enable Georgia to better regulate its electricity supply system:
in case of a surplus, to export to Iran, and in case of a deficit,
to import from Iran.

But the question arises, since Russia is taking so much care of
Georgia, one can assume that this project as political background
as well. Here too diverse interests are at stake: Russia wants to
include its ally Armenia in the project and extend its reach further
to middle eastern markets.