At the Tehran summit the five countries involved – Russia, Kazakstan, Azerbaijan, Turkmenistan and Iran – will address the delicate question of how the sea should be divided up among them. Negotiations have been going on for 15 years since the Soviet Union broke up, without a common agreement so far.

Azerbaijan, Kazakstan and Russia favour a division that would use a median line. This view derives from a reading of the 1982 United Nations Convention according to which the Caspian – including its airspace and mineral resources as well as its waters - should be divided by a median line running roughly north to south and then split into national sectors.

Iran, however, argues that the median principle implied by the convention does not apply, since the landlocked Caspian should be regarded as an inland water body, in other words a lake. Tehran is holding out for a straight division into five equal sections. That would give it a 20 per cent share rather than the 13 per cent it would otherwise get, given that its sea border is relatively short.

The emergence of the Caspian territorial dispute in the post-Soviet era led to situations of near-conflict over certain oil and gas deposits, questions over the viability of pipeline projects, growing militarisation in the region, and the adoption of tough negotiating positions by the littoral states.

In the interim, Russia, Kazakstan and Azerbaijan have succeeded in ironing out their differences by concluding bilateral treaties.

"The practice of conducting bilateral negotiations has proved quite effective, and has allowed the development of Caspian resources to get under way," said Kazakstan-based political scientist Dosym Satpaev. "Kazakstan and Russia were in dispute over deposits located in border areas, but this was resolved through bilateral agreements, and now they are developing these reserves jointly."

However, analyst Eduard Poletaev warns that such bilateral arrangements will not be sufficient to defuse geopolitical risks over the longer term, so it is vital to find a final solution to the legal issues surrounding the Caspian.

Satpaev offered his own warning that lingering uncertainty over the Caspian's is leading towards damaging militarisation in the region, and this might one day spark actual conflict. Institute for War & Peace ReportingCaspian Summit to Discuss Sea Division, Again

Caspian states are to meet in the first three months of next year for further talks on the long-running dispute over ownership of the sea. NBCentralAsia analysts say the growing militarisation in the region and the continuing uncertainty about the legal status of oil and gas deposits and associated energy projects mean it is more urgent than ever to resolve the dispute.

At the Tehran summit the five countries involved – Russia, Kazakstan, Azerbaijan, Turkmenistan and Iran – will address the delicate question of how the sea should be divided up among them. Negotiations have been going on for 15 years since the Soviet Union broke up, without a common agreement so far.

Azerbaijan, Kazakstan and Russia favour a division that would use a median line. This view derives from a reading of the 1982 United Nations Convention according to which the Caspian – including its airspace and mineral resources as well as its waters - should be divided by a median line running roughly north to south and then split into national sectors.

Iran, however, argues that the median principle implied by the convention does not apply, since the landlocked Caspian should be regarded as an inland water body, in other words a lake. Tehran is holding out for a straight division into five equal sections. That would give it a 20 per cent share rather than the 13 per cent it would otherwise get, given that its sea border is relatively short.

The emergence of the Caspian territorial dispute in the post-Soviet era led to situations of near-conflict over certain oil and gas deposits, questions over the viability of pipeline projects, growing militarisation in the region, and the adoption of tough negotiating positions by the littoral states.

In the interim, Russia, Kazakstan and Azerbaijan have succeeded in ironing out their differences by concluding bilateral treaties.

"The practice of conducting bilateral negotiations has proved quite effective, and has allowed the development of Caspian resources to get under way," said Kazakstan-based political scientist Dosym Satpaev. "Kazakstan and Russia were in dispute over deposits located in border areas, but this was resolved through bilateral agreements, and now they are developing these reserves jointly."

However, analyst Eduard Poletaev warns that such bilateral arrangements will not be sufficient to defuse geopolitical risks over the longer term, so it is vital to find a final solution to the legal issues surrounding the Caspian.

Satpaev offered his own warning that lingering uncertainty over the Caspian's is leading towards damaging militarisation in the region, and this might one day spark actual conflict. Institute for War & Peace Reporting