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Energy Resources of the Caspian Sea: The Role of Regional and Trans-regional Powers in Its Legal Regime

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Abstract

The Caspian Sea is the largest body of closed water between Asia and Europe . Since the collapse of the Soviet Union , which brought entirely new conditions, it is also one of the most important regions in the world in terms of geopolitical strategy. Consequently, regional and international competition has intensified, creating regional conflicts and instability accompanied by significant levels of insecurity. Notably, various ambiguities attend the Caspian Sea ’s legal regime and have thereby complicated efforts to exploit the region’s oil and gas resources. Moreover, environmental issues plague expansionist approaches with a lack of cooperative accords among littoral and trans-regional powers , which have contributed to poorly synchronised activities in addition to a failure to properly allot border demarcations. Focusing on the effective components of these challenges, the authors outline regional energy resources and descriptively analyse local and trans-regional influences on the Caspian Sea ’s legal regime .

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Notes

  1. 1.

    Azerbaijan , Kazakhstan and Turkmenistan are not considered major powers but rather subordinate powers as their policies align with the interests of major powers (US , Russia , European Union and China ).

  2. 2.

    Please note that the greater portion of Russia ’s hydrocarbon reserves is not in this region, but in the Yarnt and Karlyan Seas. See Thomas and Shull (1999: 4).

  3. 3.

    Russia ’s ‘near abroad ’ policy, announced in late 1993, indicated that Russia still pursued interests and policies of the Soviet Union towards Central Asia and the Caspian Sea . Russia ’s recent economic and political rise returned her to the Game.

  4. 4.

    Putin has said: ‘In the past, the Tsar moved towards conquering the region. Today, we move to gain gas and pipelines.’ For this reason, since signing the Energy Charter Treaty in 1991, Russia has yet to confirm it. See Kouzegar Kaleji (2007: 106).

  5. 5.

    Zeynep Oktava believes that since 1990 the US government has prioritized the improvement of America ’s energy-based projects so that the energy transport rate would not only continue to American markets, but also to its economic partners. See Oktava (2005: 17).

  6. 6.

    Richard Morningstar, Bill Clinton’s supreme adviser in the Caspian oil and gas issues, indicated the main elements of this policy: “… newly developed Caspian countries are located in a region surrounded by different problems and risks. These countries that are captive between Russia in Southern and Eastern Iran … have found opportunity, for the first time, to gain control over their destiny. To achieve this goal, as well as strengthen our own security in accessing energy, the region’s independence to access its own energy provides opportunities for our company and will be an absolute benefit for the United States.” See Shouri (2007).

  7. 7.

    European oil experts believe the European Union should take different measures to support and develop hydrocarbon resources in the Caspian Sea while improving access. However, implementation faces serious challenges from rival countries, particularly China and Russia . Nevertheless, the Union’s positive position is that it has the financial and technological ability to develop these resources so as to benefit local economies in the region (Shadivand 2013: 37).

  8. 8.

    In November 2000, the European Commission edited Europe ’s strategies for energy supply security in the ‘Green Book’. This document examines defects in the Union’s energy supply structure, particularly challenges in the coming decade. Consequently, the European Union Commission based its programme on secure energy supplies by diversifying resources, thereby completing the European Union’s energy policy. See Boroujerdi et al. (2011: 9).

  9. 9.

    European Neighbourhood policy is intended, a policy proposed in 2003 when the European Union was extending eastwards. New 2004 members were followed by Bulgaria and Romania in 2008, which caused the Union to share challenges inherited from the Communist era. As a result, some felt that the Union required a set of policies to meet these issues; one that was not limited to its neighbours but included other countries as well. Their logic was based on a continuum for development: ‘as the cooperation between the countries increases and the scope of peace, economic development, and democracy expands, the European Union enjoys more security and stability’. The initial proposal included features such as the right of eligible countries to benefit from participation in the EU ’s domestic market with more convergence with these countries, including the free movement of citizens, goods, service and money, in addition to cooperation in energy, transportation and the fight against terrorism. The final policy included other features, such as effective political cooperation and negotiation, supporting for membership in the World Trade Organization (WTO), cooperation in legal immigration for citizens from eligible countries, cooperation against mutual security threats, cooperation in crisis management, improved cultural cooperation and mutual understanding, increased convergence and cooperation in research, mutual war against drug trafficking and organized crime, improved educational, scientific and technological cooperation, and cooperation in security and environmental protection.

  10. 10.

    A majority of energy experts believe that China ’s unlimited consumption will cause a crisis that will delimit the international energy discourse. See Ramakant (2006: 147). China , which is close to a new increase in the field of energy, will increase its natural gas consumption from the present three per cent to ten per cent by 2020. Its gas consumption in 2005 was 77.8 billion cubic metres while its domestic production was 77.5 billion cubic metres. Hence, China was unconcerned about the import of natural gas. However, the country will soon encounter a deficit of between 70 to 110 billion cubic metres for domestic consumption. Its entire gas imports, including LNG, increased to 18 million tons per year in 2010. Based on predictions, China ’s need for oil imports will reach 250 million tons annually by 2020 with a recently admitted thirty per cent increase in demand for global oil supplies between 2000 and 2004. See Boroujerdi et al. (2011: 21).

  11. 11.

    Although the scheme to build a pipeline by China in the Caspian region is incompatible with western designs, it supports economic energy security for China , even if such a pipeline supplies five per cent of China ’s demand for oil.

  12. 12.

    An example is the problem Turkey has with the Kurds and the attempts by this country to pass a pipeline through that region to the Mediterranean Sea , intended to strengthen its conventional route through the Port of Novorossiysk, which raised serious political conflict with Russia . Each country accused the other of interfering in its domestic affairs. Turkey stands accused of intervening in Chechnyan affairs and Russia stands accused of intervening in Kurdish affairs. See Koulaei (2008: 64). Also, in 2011, Moscow became concerned about coordinated policies between Ankara and the West in the Caspian region , as well as in the Middle East and North Africa . Furthermore, both countries hold different positions on Syria , another source of friction affecting bilateral relations.

  13. 13.

    Russia ’s attempt to define the Caspian Sea as a ‘closed lake’ was evaluated. By proclaiming the Caspian Sea a closed lake, Russia tried to prevent the signing of oil contracts with the West by coastal countries without considering Russia ’s interests and managed to establish its hegemony across the region yet again. See Haji-Yousefi (2005: 133).

  14. 14.

    The Islamic Republic of Iran hasn’t received any proceeds from Caspian oil and gas resources so far.

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Janbaaz, D., Fallah, M. (2019). Energy Resources of the Caspian Sea: The Role of Regional and Trans-regional Powers in Its Legal Regime. In: Ebrahimi, M., Rad Goudarzi, M., Yusoff, K. (eds) The Dynamics of Iranian Borders. Springer, Cham. https://doi.org/10.1007/978-3-319-89836-0_5

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