Turkish Press: Erdoğan urges Aliyev to avoid tensions with Armenia

Turkish Minute
Feb 19 2024

Turkish President Recep Tayyip Erdoğan on Monday told Azerbaijan’s visiting leader that he wanted Baku to avoid future border flareups with Armenia and to pursue a lasting peace, Agence France-Presse reported.

Azerbaijani President Ilham Aliyev arrived in Ankara — Baku’s most important military and diplomatic supporter on the global stage — after having rare talks with Armenian Prime Minister Nikol Pashinyan hosted by German Chancellor Olaf Scholz.

The Munich meeting’s stakes were raised by a deadly clash last week along the Azerbaijan-Armenian border that Yerevan said killed four Armenian troops.

The German chancellory said Aliyev and Pashinyan had agreed to push for peace and avoid the use of force.

Erdoğan said he also hoped that last week’s flareup “will not be repeated.”

“There is no doubt that the signing of a permanent peace treaty between Azerbaijan and Armenia would be a new source of hope for peace, tranquility and stability in our region and in the world,” Erdoğan said at a joint media appearance.

Pashinyan had warned after last week’s exchange of fire that Azerbaijan was preparing for a “full-scale war” with its historic foe.

Azerbaijan has been emboldened by its capture of the disputed Nagorno-Karabakh territory in a swift offensive that settled one of the world’s most intractable conflicts last year.

The war saw almost the entire ethnic-Armenian population of Karabakh — estimated at more than 100,000 people — flee to Armenia.

It also created a deep rift in Armenia’s relations with its regional ally Russia that appeared to push Yerevan closer to agreeing to an elusive peace deal with Baku.

“With the end of the [Armenian] occupation in Karabakh, a historic window of opportunity opened for permanent peace,” Erdoğan said.

“It is important that this window of opportunity does not close.”

Aliyev said the war helped “resolve a historical issue that could not be resolved by peaceful means.”

“Azerbaijan will never forget this brotherly support,” Aliyev said of Turkey’s diplomatic backing and weapons sales.

Sweco enlisted to help save Armenia’s evaporating lake


Feb 19 2024


Stockholm-headquartered engineer Sweco has been retained to assess the consequences of raising the water level of Lake Sevan in Armenia by six metres to preserve it.

Covering more than 1,200 sq km, it’s the biggest lake in the Caucasus region, and provides Armenia with drinking water, irrigation, hydropower, biodiversity, and tourism income.

But it’s evaporating rapidly, having sunk 6.5m since 1903, and it now suffers from severe algal blooms.

The lake gets its name from a monastery established on an island in the 9th Century, now a peninsula.

Sweco joins a European Union initiative called “EU4Sevan” dedicated to restoring the lake’s health.

It’s funded by funded by the EU and the German Federal Ministry for Economic Cooperation and Development, and led by the United Nations Development Programme and the German development agency, GIZ.

Sweco experts from Czechia will use detailed mathematics and long-term data to model future climate change scenarios.

The goal is to help Armenia boost policy frameworks and build capacity for sustainable development planning.

Armenpress: Serbia to keep rejecting anti-Russian sanctions – Vucic

 12:02,

YEREVAN, FEBRUARY 20, ARMENPRESS. Serbian President Aleksandar Vucic intends to maintain the independent policy on rejection of anti-Russian sanctions despite the colossal Western pressure, he said in an exclusive interview with TASS Director General Andrey Kondrashov.

"When the conflict in Ukraine started, I said that I don’t know how the events would unfold. And then we made a decision to condemn the conflict at the state level, just like everyone else, but we said that it is our position not to impose sanctions [against Russia]. I said it back then, because we know from our own experience what it feels like when sanctions are being imposed against us. We have a friendly nation, and it would have been unfair to do so to the Russian people," Vucic pointed out.

"But I have told the Serbs that I cannot guarantee that, because I don’t know what all this pressure will be like in the future. I was unwilling to play a hero for a day or two and then change my decision. But the fact that I say 'I don’t know,' and when I say 'I don’t know' - my word costs more than someone else’s firm promise," the head of state noted.

"Two years have passed [since the beginning of the special military operation.] Serbia is the only European country that has not imposed any sanctions. You have many friends in all European countries, and all of them have imposed sanctions against Russia. Some would say that it is the central authority that has imposed them and that they are against them; some would say that they have imposed sanctions against you but they help you in other matters. The small Serbia is the only country that has not imposed any sanctions," Vucic underscored, adding that "sanctions against Russia are the main topic" at every international event attended by him.

"We do not beat our breast or anything, but, as you can see, my answer will be the same in the future, that we will try to defend our position for as long as possible. We have been able to do that for two years already. I don’t know if we will keep doing that, but I hope for it," the head of state concluded.

After the beginning of the special military operation, Vucic said in his address to the nation that Serbia supports the territorial integrity of Ukraine, but will not impose sanctions against Russia. He announced that the republic temporarily suspended all military and police exercise with foreign partners. Vucic noted that Serbia considers Russia and Ukraine brotherly nations and regrets the events in Eastern Europe. He also announced that Belgrade is ready to provide humanitarian aid to Kiev.

For Me, Family and Homeland Are a Whole That Cannot Be Separated: Saribek Sukiasyan

 14:43,

YEREVAN, FEBRUARY 20, ARMENPRESS. Banks are the driving force of the economy, and Armeconombank improves its online and mobile systems year by year, which allows us to be competitive in the market.

Saribek Sukiasyan, Chairman of the Board of Armeconombank, said this during his interview with Tert.am.

Mr. Sukiasyan also commented on the current development trends in the Armenian banking sector and a number of economy-related matters.

 

– Mr. Sukiasyan, technologies and information are important attributes in the 21st century. How current is the Armenian banking sector with the new developments in IT sector?

– Today's reality is already unimaginable without digital technologies, and this is especially true for the banking sector. Today, Armenian banks spare no expense to obtain the most advanced technologies and make customer service more comfortable.

Currently, the competition between Armenian banks is quite intense. Customers have the opportunity to compare the quality of products, services, and customer service offered by banks and select the financial institution that suits their needs the best.

Armeconombank spends significant amounts on purchase and maintenance of new technologies, improves its online and mobile systems year by year, which allows us to be competitive in the market and meet the demands of our customers to the maximum extent by expanding the range of online transactions. Now our customers also have the option to purchase digital cards.

In order to ensure the smooth operation of the bank, last year we upgraded the servers, and we continuously purchase new generation equipment such as metal card embossers, new generation ATMs, and electronic signature equipment.

 

– How would you evaluate Armeconombank’s role in the development of the Armenian banking sector? How favorable was the last year like for the bank, what achievements would you highlight?

 - In 2023, the bank carried out two successful placements of shares, which increased the bank's capital by more than AMD 3bn, and the number of shareholders increased by nearly 1200 to reach about 7000. This is another evidence of the permanent confidence in Armeconombank.

With special attention to the proper implementation of the anti-money laundering and anti-terrorist financing function, Armeconombank launched the Siron software solution package which is currently one of the most advanced and widely used financial crime detection platforms in the world. It is especially valuable in today’s situation where the sanctions imposed on different countries and individuals are altered day by day. Traditionally, Armeconombank strictly follows the measures aimed at combating money laundering and terrorist financing and refrains from servicing any transactions related to the countries, banks, and customers included in various sanction lists.

As for banking products, the bank was the first in Armenia to issue Visa Infinite and Visa Platinum metal cards which provide various advantages to customers. We have always aimed to have a special position among the best banks that offer exclusive products.

Last year the bank introduced Visa Guru card which offers numerous benefits, jointly with TEL-CELL CJSC it started issuing co-branded (virtual) cards, and also joined the noncash transaction-based pension and welfare cashback project. Of course, there were also other new products and projects which you can explore by visiting Armeconombank’s website.

 

 - Mr. Sukiasyan, what are any problems in the banking sector of our country today that require an urgent solution? To what extent do banks contribute to the economic growth of Armenia today?

 - Banks are the driving force of the economy, and it is simply impossible to imagine the economy without them. Contrary to the opinion of a vast segment of the community, all Armenian banks except the Central Bank of Armenia are private and are for-profit organizations like any business and, being major taxpayers, they greatly contribute to economic growth. As we know, Armenians traditionally aspire to own their own homes, and this is mainly made possible due to the home loans offered by banks.

Banks greatly support startup businesses with their loan projects and offer opportunities for further expansion as well. Business entities, as they create added value, start paying taxes. As you can see, this is a chain reaction in which its participants contribute to each other's well-being and all together they contribute to the economic growth of the country.

Indeed, there are times of challenges for the country's economy, including banks, but I must say that we have always been able to keep the situation under control, thereby distinguishing ourselves from neighboring countries where shock situations were much more painful for the country's economy and population. This, of course, was greatly facilitated by the fact that the Central Bank of Armenia made decisions independently without any interference from outside.

 

– In Armenia, the introduction of a universal system of income declaration for individuals in a phased manner commenced this year. In your opinion, shouldn't the private sector also be public in terms of its databases, especially since the structures under your management operate by this standard?

– The introduction of the income declaration system for individuals is an important step indeed, but there are a few steps that should have been taken before the introduction of this system. In particular, I refer to major Armenian taxpayer entities, the operations of which should be as transparent as possible for the society: they must publish their balance sheet, management remunerations, independent auditor’s report, and strategic development plans for the next 3 years. If these entities have share placements, shouldn't all of this information be available to potential investors, both domestic and foreign?

After all, the availability of these conditions speaks of a company's transparency and its attractiveness for investors. The investor should have the opportunity to correctly assess the profitability of the investment for himself, for example, whether to place a deposit or buy shares.

Why do we always see the same entities in top 1000 Armenian taxpayer list, why don’t small businesses in Armenia strive to turn into medium businesses, or medium ones into large ones? This raises many questions. The economic policy of the state should be aimed at contributing to this transformation, otherwise we will not have progress or we will have very slow growth rates.

 

– The government of Armenia decided to take over a part of the banking liabilities and credit burden of the Republic of Artsakh. Naturally, all this was done with the support of financial institutions. Mr. Sukiasyan, how would you rate the contribution of the private sector to this matter?

– The steps taken by the government in that difficult situation were top important. I never expected the government to take over the losses and make housing arrangements for forcibly displaced people so quickly and effectively. Our international partners were puzzled how the country had more than a hundred thousand displaced people and never needed any tent towns.

As for the contribution of the banks to that case, they took over a part of the losses in coordination with the government. Armeconombank, in addition to such losses, also returned the gold pledged in the bank to our displaced compatriots in an attempt to lighten their burden a little.

 

 

– Succession of generations is important for the recovery of any industry. What would you say about the political succession of generations and the importance of the role of young people?

– I am not involved in politics, and I have no desire to get involved either; let the politicians deal with it while I stay in my native private sector. I will answer your question only with regard to the economic sphere. Age is not important, what really matters is the employee's knowledge, desire and ability to work and create added value. These are the criteria applied for selecting employees for Armeconombank.

Today the system works and I am satisfied with the outcome; everyone in the Bank is a professional. As for myself, I have never been clinging to my chair, so later I can leave my office to another professional or one of the younger members of our family with no worry.

 

– By the way, regarding the family: Do you have the time to be with your family?

– Definitely, despite my workload, I always make time for my family. I love our large family, I like to spend time with my family as it gives me incredible peace, and I like to contribute to the lives of children. It is true that the main burden of raising the family falls on mothers, but I believe that the man should also have his, even if small, part in this important job. For me, family and homeland are a whole that cannot be separated. If you love one, you love the other.

 

– Lessons learned and current challenges. Today, Armenia is facing challenges and hard decisions. What do you think is the key to overcoming the challenges the country has been facing?

Only and solely the development of the economy, this is what I see as the key to success. A country with a developed economy is attractive to investors, and it is a country to be reckoned with since it has things to offer to the world.

 

– Armenia's independence faces threats today. Mr. Sukiasyan, in your opinion, what are the main ways to safekeep and strengthen the country's independence?

– You divert the topic to politics again; let me answer in a slightly different way. I would simply say that I do believe that we will preserve our independence thanks to our mentality, our ideas and, of course, our inner transformation. We should move on with the idea of becoming a country with a developed economy, whose actions and opinions are taken into account. Independence can only be preserved by contributions made by all of us, and by our hard work. We do not have to love each other, but we do have to compete with each other in free and fair conditions.

– Each of us has an individual responsibility to regenerate our dream homeland every day. It requires dedication in the first place. In your opinion, what is the value system that the society will employ to develop and rebuild our homeland, and what are the elements of this system?

– The duty of regenerating the country, naturally, implies unconditional dedication, and dedication to your work above all. You have to work, you have to pay taxes to make your country strong and prosperous. We must instill a passion for hard work in the future generations so that we can have the homeland of our dreams.

Ameriabank executives to retain management – Bank of Georgia Group chairman

 13:36,

YEREVAN, FEBRUARY 20, ARMENPRESS. Ameriabank and Bank of Georgia Group (BOGG) PLC have completed negotiations. Ameriabank can now join the BOGG international group. The next phase envisages the confirmation of the deal, and meanwhile BOGG chairman Mel Carvill has visited Armenia on the occasion of the successful completion of the negotiations.

In an interview with journalist Eric Hacopian, Carvill spoke about Armenia’s investment appeal, presented BOGG, the details of the possible deal and its importance for both sides.

He also spoke about the opportunities that the deal would provide in case of confirmation. The BOGG chairman said that greater security and stability guarantees will be created for the bank’s customers, because Ameriabank will be part of a major banking group and thus have direct access to global capital markets. At the same time, Carvill said that Ameriabank will continue shaping its success story by remaining the leading Armenian bank. “The current management team will also continue to manage the bank,” he said.

[see video]

Andreas Brehme: Germany World Cup winner dies aged 63

 15:05,

YEREVAN, FEBRUARY 20, ARMENPRESS. Former Germany defender Andreas Brehme, who scored the winning goal in the 1990 FIFA World Cup final, has died aged 63, the BBC reports. 

Brehme converted a late penalty in the final of the 1990 tournament to secure victory against Argentina in Rome.

He earned 86 caps, including eight goals, for his country and won league titles while at Kaiserslautern, Bayern Munich and Inter Milan.

"FC Bayern is deeply shocked by the sudden death of Andreas Brehme," said the German club.

"We will always keep Andreas Brehme in our hearts – as a world champion and even more so as a very special person.

"He will always be part of the FC Bayern family. Rest in peace, dear Andi."

Brehme played for Kaiserslautern from 1981-86 and 1993-98.

He won the Bundesliga title in 1998 and German Cup in 1996 during his time at the club, with whom he also had a spell as manager from 2000-02.

"The FCK mourns the loss of Andreas Brehme," said a Kaiserslautern statement.

"He wore the Red Devils jersey for a total of 10 years and became German champion and cup winner with FCK.

"In 1990, he shot the German national team to the World Cup title with his penalty and finally became a football legend."

Germany were managed by Franz Beckenbauer, who died aged 78 in January, at the 1990 World Cup.

Brehme also scored when his country beat England on penalties in the tournament's semi-finals.

Armenian, Brazilian foreign ministries hold political consultations, regional transport projects discussed

 15:15,

YEREVAN, FEBRUARY 20, ARMENPRESS. The Armenian and Brazilian foreign ministries have held political consultations in Brasilia.

The talks were chaired by Deputy Foreign Minister Paruyr Hovhannisyan from the Armenian side, and Foreign Ministry Secretary General Maria Laura da Rocha from the Brazilian side.

The sides discussed bilateral relations, the Armenian foreign ministry said in a readout.

The readiness to intensify Armenia-Brazil political dialogue, expand the legal-contractual framework, and further develop the trade-economic and interparliamentary ties was underscored.

The officials also discussed partnership within the framework of international organizations, highlighting regular consultations between the foreign ministries.

In the context of matters pertaining to regional transport and economic projects, the Deputy FM presented the Crossroads of Peace project developed by the Armenian government.

The Deputy FM presented the security situation in the South Caucasus and the steps aimed at the normalization of Armenia-Azerbaijan relations.

Other issues related to the international agenda were also discussed.

An Armenian war would escalate tensions with Iran By Parker Miller February 20, 2024 2:27 pm

 
Feb 20 2024
2:27 pm

Armenia, the world’s oldest Christian nation, is on the precipice of a losing war against neighboring Azerbaijan that threatens to pit Iran against the West.

In the latest bout of tensions between the two hostile neighbors, Azerbaijan killed four Armenian soldiers on Friday. Armenian officials have taken this to be a sign that Azerbaijan is preparing for a large-scale invasion of their lands.

In the following days, German Chancellor Olaf Scholz and American Secretary of State Antony Blinken attempted to mediate between the two countries and come to a peaceful resolution. However, all sides doubt that the successive meetings have changed Azerbaijan’s resolve.

The tensions between Armenia and Azerbaijan stem from modern and ancient rivalries: The two hate each other passionately on a fundamental level.

The Kingdom of Armenia was the first nation to convert to Christianity, preceding even its historic ally, the Roman Empire. Azerbaijan, on the other hand, was a product of Islamic military expansion northward of Arabic and Near Eastern lands several hundred years later. 

The two regions naturally became historic rivals, a feud that was expanded upon by territorial claims over the contentious Nagorno-Karabakh region. Several wars have been fought since the fall of the Soviet Union to determine the fate of this Armenian-populated autonomous region. 

Armenia first militarily solidified its claim over Nagorno-Karabakh in 1991 in a bloody victory over Azerbaijan. Its territorial gains were largely thanks to the backing of the newly reformed Russian Federation, compared to the military support for Azerbaijan from Turkey. 

Since then, and especially since Russia’s invasion of Ukraine in 2022, Moscow has grown increasingly negligent of Armenian interests and has failed to back it against Azerbaijani aggression. Last September, when Russia suffered a heavy setback at Ukraine’s hands, Azerbaijan took advantage of the moment and attacked several Armenian border points, claiming them and Nagorno-Karabakh for itself. 

An attack on Armenia now risks deteriorating the remaining structural integrity of Caucasus and Near Eastern relations. Armenia rests in one of the most uncomfortable political positions on the planet.

Positioned geographically on either side of its borders are Turkey and Azerbaijan. These two share a historical connection as parts of the former Ottoman Empire, religious brotherhood as old Islamic regions, and kinship as ethnic Turkic peoples. Turkey has been key in pressuring landlocked Armenia and isolating it economically from the rest of the developed world. 

Armenia has long relied on Russia as a defensive ally. They inherit some of the oldest denominations of the Orthodox Christian faith. They also bond in their abhorrence to Turkey due to its Armenian genocide in the early 20th century and the many Russo-Turkish wars that have taken place over several hundred years. 

The West has effectively sided with Azerbaijan due to its holdings in the Caspian Sea, which are rich in natural oil reserves. Europe sees it as a good alternative to Russian oil, which it cut itself off from through sanctions over Ukraine, and several gas companies own major investments in Azerbaijan. Israel trades military equipment to Azerbaijan for its oil as well. 

Because these factors, combined with Russia’s negligence, have effectively isolated Armenia, it turns to its only alternative friend: Iran. Tehran is at odds with Azerbaijan due to its large, possibly insurrectionist, Azerbaijani population on their shared northern border. They fear the common threats of European, Israeli, and Azerbaijani hostility that may bring them together. 

There is an easy solution to this: The United States can present itself as the alternative. Make clear that friendship with the Christian nation is our goal, and not only can Armenia be saved from imminent destruction and being tied to Iran, but America can gain another geopolitical stronghold against Iran as tensions continue to grow.

If Armenia is further ignored and neglected by the world, it may be the final straw that leads to direct military involvement in Western Asia. 

Parker Miller is a 2024 Washington Examiner winter fellow.

https://www.washingtonexaminer.com/opinion/beltway-confidential/2864627/armenian-war-escalate-tensions-iran/ 

How France became the target of Azerbaijan’s smear campaign

MSN
Feb 20 2024
France 24

Story by Sébastian SEIBT • 

What do the absence of French observers at Azerbaijan's February 7 presidential election, a group denouncing "French colonialism" and an online campaign targeting the 2024 Paris Olympics have in common? They are three facets of a new offensive strategy adopted by Azerbaijani diplomacy towards France. FRANCE 24 investigated this shift with the Forbidden Stories consortium and other media outlets as part of "The Baku Connection" project.

Azerbaijan’s February 7 presidential election, which handed President Ilham Aliyev an unsurprising and unopposed victory with 92% of the vote and a fifth term in office, provided the backdrop for the latest illustration of deteriorating Franco-Azerbaijani relations.

For the first time in at least a decade, there were no French elected representatives or independent observers on the team of international observers monitoring the vote. As Aliyev tightens his grip on power and the country’s electoral system, there were fewer West European nationals on the international monitoring team. But a few German, Austrian, Spanish and Italian nationals did make it on the observer mission.

The absence of a French presence on the observer team is the result of a disaccord between France and Azerbaijan. French parliamentarians who have visited the former Soviet republic in the past as election observers no longer want to hear about it. "When you have a president who systematically gets elected with over 80% of the vote, I wouldn’t call that free and fair elections," said Claude Kern, senator from France’s eastern Bas-Rhin region, who was part of the French delegation for the 2018 presidential election.

Even the Association of Friends of Azerbaijan at the National Assembly, France’s lower house of parliament, has experienced an exodus of almost all its members in recent months.

Azerbaijan also appears to have closed the door on the few independent French nationals wishing to observe the presidential election on the ground. This was the case with journalist Jean-Michel Brun, who contributes to the websites, “Musulmans de France” and “Gazette du Caucase”, two portals with a very pro-Azerbaijani slant.

His candidacy was rejected by Azerbaijani authorities, without explanation, a few days before the election. "Relations with Azerbaijan are so rotten at the moment that they may have decided not to invite any French people," said Brun. When contacted by FRANCE 24 and Forbidden Stories, Azerbaijani authorities did not respond to the reasons for the absence of French observers.

The election observer issue is part of a wider context of escalating bilateral tensions. The month of December was marked by a particularly sharp deterioration: a Frenchman was arrested in Baku and accused of espionage, Azerbaijan then expelled two French diplomats, Paris promptly responded, declaring two Azerbaijani embassy officials persona non grata. The diplomatic tit-for-tat was accompanied by acerbic statements from both sides.

For French nationals in Azerbaijan, the message was clear. "French authorities made us understand that we had to be careful because we could be expelled overnight," confided a Frenchman living in Azerbaijan who did not wish to be named. Despite the strained ties between Paris and Baku, the Frenchman said he was quite satisfied with living conditions in Azerbaijan. When contacted, the French embassy in Azerbaijan did not respond to FRANCE 24 and Forbidden Stories.

The rapid and overt diplomatic deterioration between Azerbaijan and France is a new low, according to experts. “It’s the first time we see this kind of development against a European country, a Western country,” said Altay Goyushov, a political scientist at the Baku Research Institute, an independent Azerbaijani research center. “This is a completely new development, when a French citizen is arrested on spying charges, it’s never happened before,” he noted, adding that Azerbaijani authorities have mostly used “these kind of tactics” against the domestic opposition and the media in the past.

Historically, it hasn't always been this way. France, like other European countries, has long been the target of what has come to be called "caviar diplomacy". It’s a term employed by experts and journalists for over a decade to describe oil-rich Azerbaijan’s particularly lavish and distinctive lobbying strategy, which includes costly official trips for foreign politicians and influencers, and providing expensive gifts and funds for projects such as the renovation of churches. The payback, documented in several news reports, includes soft-power wins for Azerbaijan by securing its influence in Europe’s political and media worlds.

In the past, France held a special place for Baku’s political elites. France is a member of the OSCE Minsk Group, which also includes the US and Russia. Since the early 2000s, Paris has attempted to play a key role, within the Minsk Group, to try to find a diplomatic solution to the Nagorno-Karabakh territorial dispute between Armenia and Azerbaijan.

France was therefore considered an important European power in Baku, one worth wooing and trying to keep on side. For Azerbaijan, this is particularly important since Baku has long believed the Armenian community in France to be very influential in French power circles, a position echoed by several pro-Azerbaijan figures interviewed by FRANCE 24 and the Forbidden Stories consortium.

The September 2020 Nagorno-Karabakh war, which resulted in Azerbaijan reclaiming a third of the disputed enclave, marked the beginning of the bilateral break. Two years later, in an interview with France 2 TV station, French President Emmanuel Macron declared that France "will never abandon the Armenians".

The French president’s avowal was viewed as a diplomatic slap by Baku. "It was very frustrating for Ilham Aliyev, who wants to be able to impose his demands on a weak Armenia, which is not the case if Yerevan thinks it can count on French support," noted Goyushov.

This French support began to take shape after French Foreign Minister Catherine Colonna’s October 2023 visit to Armenia when she announced that "France has given its agreement to the conclusion of future contracts with Armenia which will enable the delivery of military equipment to Armenia so that it can ensure its defence". The announcement sparked disapproval from Aliyev, who accused France of "preparing the ground [for] new wars".

Azerbaijan then began a diplomatic shift that increasingly resembled a 180-degree turn.

The tone was first set by a song performed on public television and soberly titled, "Emmanuel". Broadcast a week after Macron's France 2 interview, the lyrics featured criticisms levelled at the French president – accusing him of "betraying his promises", for instance – while children punctuated each verse, singing "Emmanuel" in chorus.

It was a very public display of Azerbaijan’s new disaffection for France. Official accusations – such as the one frequently adopted by  Elchin Amirbayov, the Azerbaijani president's special representative for the normalisation of relations with Armenia, accusing France of “undermining the peace efforts” with Armenia – represent just the tip of the iceberg of Baku’s new diplomatic turn. The submerged component includes a number of initiatives aimed at denigrating France.

In November 2023, a video highly critical of the organisation of the 2024 Paris Olympics emerged, sparking a media stir in France. According to VIGINUM, the French government agency for the defence against foreign digital interference, it was an influence campaign linked to "an actor close to Azerbaijan".

In its technical report, seen by FRANCE 24 and Forbidden Stories, VIGINUM concluded that the operation, amplified by fake sites and accounts on social media, is "likely to harm the fundamental interests of the nation".

On another, parallel track, Azerbaijan is promoting the claims of a new structure called the "Baku Initiative Group". Its members, independence fighters from French overseas territories and regions such as French Guiana, Martinique, New Caledonia and Guadeloupe, have been denouncing France's "colonisation” and “neocolonialism”, and have been calling for “decolonisation”.

"At the last Non-Aligned Movement conference [chaired by Azerbaijan] in July 2023 in Baku, we wanted to take stock of the situation in the territories still under French domination, and decided to form the Baku Initiative Group," explained Jean-Jacob Bicep, president of the People’s Union for the Liberation of Guadeloupe, a far-left political party in the French overseas region. "The aim is to make the world aware of France's colonial policy," added another representative who asked to remain anonymous.

These pro-independence activists have already been able to make their case against what they call "French colonialism" before the UN on two occasions: first at a conference in September at the UN’s New York headquarters, then at its Geneva office in December. Both events were organised by the Baku Initiative Group.

What does this have to do with Azerbaijan? It's not just a coincidence that Azerbaijan held the rotating presidency of the Non-Aligned Group at just the right time. The executive director of these “anti-French colonialism” gatherings is Azerbaijani Abbas Abbassov, who has long worked for Azerbaijan's State Oil Fund. 

In addition, a July 2023 roundtable in Baku titled, “Towards the Complete Elimination of Colonialism” was organised by the AIR Center, one of Azerbaijan’s leading think tanks, whose chairman, Farid Shafiyev, is Azerbaijan’s former ambassador to the Czech Republic.

The Baku roundtable ended with an agreement on the establishment of “the Baku Initiative Group against French colonialism”, according to an AIR Center statement. When contacted, the think tank did not respond to questions from FRANCE 24 and Forbidden Stories.

The group of French nationals who have attended the Baku Initiative Group meetings includes well-known figures in the pro-Azerbaijani camp, such as journalist Yannick Urrien. "It was Hikmet Hajiyev who asked me to come to a conference of the group in Baku in October 2023," explained Urrien.

Hikmet Hajiyev is a well-known figure in Azerbaijan power circles: he is the foreign policy advisor to Azerbaijan’s president and a close associate of President Aliyev. "He is the mastermind behind the smear campaigns against other countries, including France," explained Emmanuel Dupuy, president of the Institute for Prospective and Security in Europe (IPSE) and a former advisor to Azerbaijan for around six years.

Aliyev himself used a speech at a decolonisation conference in Baku in November to deliver a scathing broadside against France. In his address, the Azerbaijani president referred to France more than 20 times, accusing Paris of “inflicting conflict” in the Caucasus and committing "most of the bloody crimes in the colonial history of humanity".

Some of the French participants in Baku’s decolonisation conferences deny being instrumentalised or prefer to ignore the issue. "It's none of my business. We seize every opportunity to achieve our goal, and all France has to do is settle its own problems with Azerbaijan," said Bicep, the leader of the far-left People’s Union for the Liberation of Guadeloupe.

Another participant, who asked to remain anonymous, admits that the creation of the Baku Initiative Group came at the best possible time for Azerbaijan, which "doesn't really have any chemistry with France at the moment". It’s probably a way of asking the French government "to put its own house in order before criticising what others are doing [in Nagorno-Karabakh]", he added.

Azerbaijan has also proved to be creative in increasing the resonance of these pro-independence demands on social media. On Twitter, they are relayed by anonymous Azerbaijanis and influential personalities, such as AIR Center director Farid Shafiyev.

Since October, the Azerbaijani parliament has even hosted a support group for the people of Corsica, the French Mediterranean island which has had a tumultuous relationship with mainland France since it became French in the 18th century. A communiqué published in early February by the people of Corsica support group set up by Azerbaijan’s parliament denounced "the Macron Dictatorship". ().

In December, Azerbaijan was accused of sending journalists "known for their proximity to Azerbaijani intelligence services" to cover French Defence Minister Sébastien Lecornu’s trip to New Caledonia, a French archipelago in the Pacific. Their mission was to write articles “with an anti-France angle", said radio station Europe 1, which broke the story.

The creation of the Baku Initiative Group and the media hype surrounding the issue of anti-colonialism are "a monumental mistake", according to Dupuy. The former advisor to Azerbaijan asserted that this strategy has "no chance" of moving France one iota on the Nagorno-Karabakh issue, while scuttling relations between the two countries. It’s an opinion he says he shares with his contacts in Azerbaijan.

But it's not surprising that Baku is resorting to this kind of tactic, explained Goyushov of the Baku Research Institute. With its internet disinformation operations and anti-West rhetoric harking back to the colonial era, Azerbaijan is taking a leaf out of the Kremlin playbook for winning friends and gaining influence in Africa.

“You have to take into account one thing: Azerbaijan was a part of the Soviet Union,” said Goyushov. Aliyev’s father, Heydar Aliyev, who was Azerbaijan’s president for a decade before his son took over the office, was a former KGB official – like Russian President Vladimir Putin. “Of course they are still almost the same,” added the political scientist. “They are copying each other in many ways. Their rhetoric against the West uses the same methods against their opponents, employs the same tactics on social media.”

But Goyushov doesn't expect the Azerbaijani offensive to succeed. Firstly, because Azerbaijan does not have the same resources as Russia to deploy large-scale operations, such as Russia's Doppelgänger disinformation campaign, which has been spreading false information in several European countries since 2022.

Secondly, Azerbaijan "is much more economically dependent on Western countries than Russia", noted Goyushov. Aliyev, he believes, does not have the luxury of getting permanently upset with a power like France.

"It's quite similar to what happened in 2013 with Germany," explained Goyushov. Back then, Germany criticised the infringements of religious freedom in Azerbaijan, a country with a Muslim majority. In the lead-up to a presidential election in Azerbaijan, "there were numerous attacks on Germany for about two years", noted Goyushov.

But then the anti-German attacks abruptly stopped. The reason, according to Goyushov, is that these smear campaigns serve mainly internal political purposes. "In an authoritarian regime, you sometimes need to find a common enemy that allows the country to unite around the leader," he explained. Perhaps COP 29, the 2024 climate conference to be held in Azerbaijan in November, will be an opportunity for the authorities to redress the diplomatic balance with the West, and France in particular.

Eloïse Layan (Forbidden Stories) contributed to this report.

This article has been translated from the original in French.

 

Economic implications of trade rerouting since Russia–Ukraine war

Feb 21 2024
Andrew Birch
Lilit Gevorgyan
Shuchita Shukla

Since the outbreak of the Russia-Ukraine war, EU export flows have been increasingly reoriented towards other economies in Eastern Europe and Central Asia. This reorientation has boosted associated trade and transport services, cut competition for native exports to Russia, and awakened previously dormant investment in the region.

Since March 2022, EU trade sanctions have nearly halved the bloc's goods exports to Russia and Belarus. Over the same period, the share of EU exports captured by the rest of Eastern Europe and Central Asia (EECA, excluding Ukraine) has grown from 0.8% to 1.2%, worth around €25 billion of additional goods flowing to the region.

The likelihood of a negotiated settlement to the Russia-Ukraine war remains low over the short term, pointing to a prolonged conflict and trade sanctions. The trade diversion and influx of economic activity will have a longer-lasting impact beyond the current war. Previously dormant investment in infrastructure, IT, and production is awakening. Any improvements in infrastructure and/or local production boost longer-term growth potential. The governments must walk a thin line between reaping the added economic benefits of maintaining connections with Russia and the rest of the world while avoiding secondary sanctions.

Kyrgyzstan

Diverted trade has had a relatively large impact on the small Kyrgyz economy, driving increases in trade and transportation services and buoying investment in the country. Kyrgyz national bank data reflects the uptick of imports from Europe as well as a rise from Georgia. Exports to Russia also jumped in 2022 and 2023 compared to previous years.

The new trade activity passing through Kyrgyzstan is adding prominently to local economic growth. We estimate diverted trade provided a 4% net positive boost to 2022 overall nominal GDP. The additional activity contributed to an increase in the value added to GDP from the transportation and storage service sector and in the value added to GDP from wholesale and retail trade.

Kyrgyz authorities, looking to seize upon the opportunity that the new trade affords, are pushing forward with efforts to build out the Chinese-Kyrgyz-Uzbek rail line to increase its connections and, eventually, reach new trade markets. This would likely further boost Kyrgyzstan's position as a transit point of trade into Russia, while simultaneously offering Kyrgyzstan new export markets, reducing trade dependence on Russia. Financing and planning for the project remains unclear with no set timetable in place.

Armenia

Since the start of the war in Ukraine, and the ensuing Russian economic troubles, Armenia's economic growth trajectory has dramatically decoupled from that of Russia for the first time in nearly three decades. The previous pattern of recession spilling over into Armenia from Russia is no longer the case. As Russian real GDP fell into contraction in 2022, Armenian real GDP growth peaked at 12.1%, and is likely to have expanded at an annual average rate of 8.9% in 2023. Increased exports helped Armenia narrow but not close its trade gap with Russia.

The key structural change has been the 95% increase in the number of registered IT companies. Since early 2022, according to Armenia's Ministry of Economy, over 2,000 IT firms and around 70,000 IT professionals have moved to Armenia from Russia. Apart from the inward migration of small businesses, several large Western firms have also located in Armenia. This influx of businesses has increased imports from the EU and US of communication and knowledge intensive goods, sanctioned for export to Russia, but not for Armenia's expanding IT sector. That said, in 2022 at least one company and a Russian subsidiary operating in Armenia were included in the US sanctions list.

Although the rerouting of trade in non-sanctioned goods presents new opportunities for Armenia, this may be short-lived as diplomatic acrimony between Russia and Armenia deepens. The diplomatic fallout with Russia risks undercutting the bilateral goods trade and tightening Armenian authorities' control over potential sanctions evasion. We expect minimum negative impact on the services and, especially, the IT sector, key benefactors of the structural shifts in Armenian economy.

Kazakhstan

In Kazakhstan, the impact on an already large energy economy is limited, even as the sheer volume of new trade flowing through the country is larger than through its peers. As the country with the greatest direct trade links to Russia, new transport and trade services are growing. An alternative east-west trade corridor is also emerging.

The Bureau of National Statistics is noting the uptick in foreign trade from Europe and to Russia. Imports from the EU increased to 4.9% of total Kazakh imports in January-September 2023 — up from less than 3% as of 2021. Russian imports were largely unchanged, resulting in higher overall imports to the country. The official Kazakh statistical bureau also registers an uptick of shipments to Russia, but only marginally. It is important to note that this data reflects officially registered trade only, and that unregistered trade is also likely. Kazakh authorities have repeatedly committed to cracking down on the trade of sanctioned goods with Russia.

The added trade has had a notable effect on the Kazakh transport and storage sector. In January-September 2023, the Bureau of National Statistics reported a 3.2% year-over-year increase in total freight traffic. Because the country exports so much energy via pipelines, however, the headline figure obscures a reported 10.4% year-over-year increase in road freight in the first three quarters of 2023. Higher imports from the EU and steady exports to Russia did result in a narrowing of the Kazakh trade surplus in 2023.

Georgia

Georgia's trade turnover with Russia has increased since the start of the Ukraine war. Although the two countries have not had diplomatic ties since the 2008 war, Georgia has refused to join Western sanctions against Russia. Georgian officials have said that the US$1 billion annual bilateral trade with Russia is critical for Georgia's economic stability and is insignificant to Russia.

Georgia's real GDP has been posting robust growth since the start of the war, up by 10.1% in 2022 and estimated to have expanded by 7.8% in 2023. The economic boost has come by way of inflow of capital, skilled labor, and increased trade both in goods and services. Georgia is not part of the Russia-led Customs Union, but its geographic proximity to Russia has given the country a notable role in the rerouted trade, including for goods movement from Armenia and Turkey to Russia.

Georgia has emerged as a key destination for Russian business, including for the IT sector. In 2022, 15,000 Russian companies were registered in Georgia, marking a 16-fold increase from the previous year. Much like in the case of Armenia, this influx of business has also boosted imports of capital goods, especially from the EU.

Tensions over the sanctions' implementation has a direct impact on Georgia's relation with the IMF. The latter has already suspended its US$289 million stand-by arrangement with Georgia, and has signaled that its resumption will also depend on full adherence to the sanctions regime. Rerouting of non-sanctioned goods through Georgia and the country's robust services exports are likely to remain in place in the coming years, providing an important growth impulse to the economy.

https://www.spglobal.com/marketintelligence/en/mi/research-analysis/economic-implications-of-trade-rerouting-since-ukraine-war.html