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How do you assess present development rate of the Georgian-Azerbaijani relations?
The relations between the states are developing in many fields. These are the economy, policy, and culture. In the sphere of economic relations we are successfully enough moving ahead. Azerbaijan and Georgia cooperate in the project of the world importance in which famous European oil companies take part. After our country became independent we started to work on projects contributing to prosperity of the Caspian region – the project of the Western pipeline on the Baku to Supsa route, MEP, TRACECA, future gas pipelines and telecommunication projects. Besides there are projects relevant to our countries: we have got huge recourses in this direction. Mutual augmentability of the production structures enables development of the economic potential of our states.
Are you satisfied with the run of the negotiating process on implementation of the strategic projects for the Caspian energy recourses transit via Georgia?
During the negotiations started in 1995 on a possibility of attracting Georgia as a transit country Azerbaijan made a decision of historical importance on laying the Baku-Supsa pipeline.
For Georgia the pipeline is one of the most important projects being implemented within its territory. The putting of the Baku-Supsa project into practice allowed proving to the whole world the ability of Georgia to be the transit country.
Despite that fact that the negotiating process on the Baku-Tbilisi-Ceyhan is protracted, Georgia has always been in favor of putting the project into effect. The wishes proposed from our side have been dictated by the unbiased reasons. The decision of President Heydar Aliyev of Azerbaijan on assigning own share of tariffs over Georgia would allow starting the construction of MEP in the nearest future.
What do you think whether the last assignation of a part of own transit tariff on MEP project by Azerbaijan to Georgia would be reflected on the bilateral relations?
Georgia has perceived this step in a very favorable way. It strengthened believe that Azerbaijan is not only the neighbor but also a strategic partner. For Georgia as a participant of the project it was important to weight own opportunities against responsibilities. The decision of Azerbaijan on assigning a fixed part of the tariff became an important step for implementation of the strategically significant project for the entire region. Start of opportune implementation of the project will make it possible for Azerbaijan and the whole Caspian region to obtain energy independence.
In your opinion, how truthful are the assumptions saying that the MEP construction would only be underway in 2008?
The Georgian and Azerbaijani expert groups have completed work on the legal documents on MEP. According to initial plan the ratification will be conducted by the end-May. From this standpoint we have met our engagement. You know, now we are starting next important stage – the initiative group will be developing necessary technical documentation. I am sure that the work will be performed in accordance with agreed schedule. It is forced by the oil strategy of Azerbaijan, interest of Turkey and Georgia in laying the MEP. We believe that the Azeri oil supplies will be in quantities enough for commissioning the MEP.
Whether negotiations on construction of the Baku-Tbilisi-Erzerum Azeri gas pipeline are held in Georgia at present?
The negotiations are ongoing. Some difficulties have been observed because of engagement of the Azerbaijani and Georgian expert groups in the Baku-Tbilisi Ceyhan project. At the present moment the study of existing gas pipeline in Azerbaijan, review of route for future gas pipeline are ongoing, a legal framework necessary for implementation of the Baku-Tbilisi-Erzerum project is being established. The gas project is important for Georgia from both economic and political points of view. Mutual understanding formed with the Azerbaijani negotiating group at all levels from the Baku-Supsa talks gives a hope that the project would be implemented within the framework of the schedule.
How Georgian participation in the strategic projects does affect its investment climate?
An interest of the foreign companies to Georgia, first of all, can be observed due to its being a neighbor and strategic partner of Azerbaijan on putting into practice the projects which are of great world importance. Many foreign investors operating in Azerbaijan have found spheres in Georgia where their business can be mutually effective for them and Georgia. These are the telecommunication, transportation, tourist, oil & gas companies. According to the exploratory work performed by such companies as Frontera and Ramco, Georgia owns the oil reserves, which would allow it to come to the world market in the nearest future as an oil production state.
Whether Putin’s coming to power in Russia will impact the balance of interests in the Caspian region?
In spite of polysemantic relations with Russia, our states have great aspiration for cooperation in all spheres. The fact of becoming Georgia independent allowed it to build new relations with many states including Russia. New person’s coming to power raises hopes of improving bilateral relations. In think that the fact of being a person of great enterprise as well as his age would allow the President of Russia to be engaged in issues concerning the both our states.
What is your assessment of present influence of Russia on economic and integration process taking place in the region?
Azerbaijan and Georgia have always been supporters of that Russia is an economic partner of the projects implemented in the region. The Russian oil company Lukoil is a participant in a few Azeri oil projects. One of the major Azeri pipelines on the Baku to Novorossiysk route is laid through Russia. Reasonable participation of the Russian companies in the projects of our republics contributes to enhancement of the economic growth both in Azerbaijan and Georgia and Russia. Russia is the country that owns large oil and gas reserves. Of course, it has own oil & gas strategy. Lack of convergence in the interests leads to some disagreements in the issues relevant to the oil and gas transportation. The most important is that the governments participating in large-scale integration process along with own state interests take into account the interests of own strategic partners.
What do you think about influence of recent Russian statement on establishment of so-called Gas OPEC on the oil & gas strategy of Azerbaijan (it is supposed that Russia, Iran and Turkmenistan would become the members of the union).
May be I am arguing not as a specialists in oil and gas industry, but I do not really understand what does Gas OPEC mean. Oil is the recourse, which can be transported through many means of transportation, but gas can only be pumped by pipelines. Price for gas is defined on the base of distance from loading point to the point of delivery. We do not yet possess enough information about what steps are undertaken for putting this idea into effect.
What is your relation to implementation of the Great Silk Way?
Restoration of the Great Silk Way will play a key role in development of the economic and cultural relations of the states through which the corridor will be laid. Operation of the Eurasian transport corridor, first of all, sets a task of transporting energy recourses by it.
Such projects as MEP (Baku-Ceyhan), Transcaspian gas pipeline, Great Silk Way transport project are connected with each other. As a whole all these projects are urged to lay a firm investment basis to each of them. The work on every project is intensively carried out. TRACECA Secretariat started operating in Baku this year.
I think that each country is trying to link the geopolitical opportunities to development of infrastructure; however, our corridor has never set a task of competing with anybody. For Georgia this corridor is not only East-West and West-East, but also North-South and South-North.