Azerbaijan expands coop over Caspian Sea through boosting transport & logistics

Azerbaijan's transport and logistics capabilities are pivotal in strengthening both regional and global cooperation. In recent years, Azerbaijan has made substantial strides in expanding transportation links, especially among the littoral states around the Caspian Basin. As a result, those states are increasingly choosing to transport their cargo through Azerbaijan, acknowledging the nation's strategic role and its substantial contributions to regional connectivity.

On August 12, the countries of the Caspian region—Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan—celebrate International Caspian Sea Day. This date marks the signing of the convention that established principles for the division of the Caspian Sea among Russia, Iran, Azerbaijan, Kazakhstan, and Turkmenistan, following extensive negotiations.

It is noteworthy that the Framework Convention for the Protection of the Caspian Sea Environment, which came into force on August 12, 2006, is celebrated annually as "Caspian Day." This convention represents the first legal agreement between the Caspian littoral states addressing environmental protection.

Without determining the Caspian Sea’s legal status, effective transportation cooperation among the coastal states would have been challenging. Today, it is possible to say that a solid legal foundation exists between the Caspian littoral countries, with Azerbaijan playing an irreplaceable role in creating and ensuring the functionality of this platform.

Since 1992, meetings among the coastal states regarding the Caspian Sea’s legal status have been ongoing. The signing of the Convention on the Legal Status of the Caspian Sea during the V Summit of Caspian Heads of State in Aktau, Kazakhstan, on August 12, 2018, marked the culmination of these bilateral and multilateral discussions.

Throughout all stages of negotiations regarding the legal status, Azerbaijan has firmly protected its national interests based on international law and mutual trust. Despite proposing a fair division of the Caspian Sea under international legal norms for many years, certain artificial obstacles prevented reaching an agreement on the final status.

At the V Summit of Caspian Heads of State, President Ilham Aliyev highlighted Azerbaijan’s active role in establishing the legal framework for cooperation among Caspian countries. “Azerbaijan has actively participated in creating the legal basis for cooperation among Caspian states. The III Summit of Caspian Heads of State, held in Baku in 2010, made a significant contribution to strengthening cooperation among our countries,” said President Aliyev.

Additionally, President Ilham Aliyev noted that the Caspian littoral states do not compete in the energy resources sector but rather engage in successful collaboration. He also emphasized Azerbaijan’s openness to neighboring countries in valuing its transit opportunities.

“Azerbaijan engages in multifaceted activities related to the transportation of energy resources. We strive to contribute to energy security. Modern infrastructure has been established in Azerbaijan for delivering oil and gas resources to global markets. This infrastructure can also be offered to meet the interests of neighboring countries. In short, we are ready to present our transit opportunities to our neighbors,” the President said.

The III Summit in Baku, as recalled by the President, contributed significantly to strengthening cooperation among the countries. At this summit, the "Agreement on Cooperation in the Field of Security in the Caspian Sea" was signed, which is crucial for maintaining regional security and stability.

This agreement provides an important mechanism for collaboration among border services and other state bodies in combating smuggling, poaching, illegal migration, human trafficking, organized crime, and terrorism.

The summit’s agreement conceptually established sovereignty and fishing zones at a high level. It also included principles for Caspian cooperation, focusing on respect for sovereignty, independence, and territorial integrity, as well as transforming the Caspian into a zone of peace, friendly relations, and cooperation. These principles are reflected in the "Convention on the Legal Status of the Caspian Sea" signed in Aktau.

In subsequent stages, Azerbaijan actively participated in other summit meetings regarding the Caspian Sea’s legal status, presenting and substantiating its constructive proposals based on international norms. The draft of the "Convention on the Legal Status of the Caspian Sea" was finalized during a meeting of the foreign ministers of Caspian states in Moscow on December 4-5, 2017.

The Convention signed at the V Summit of Caspian Heads of State in Aktau is a crucial document that ensures equal access for the coastal states to the sea's resources. It establishes fundamental norms for the legal regime of the Caspian Sea and has been evaluated by experts from various aspects. The general consensus is that the Convention provides a legal foundation for the sectoral division of the Caspian Sea among the five littoral states. According to the document, the Caspian states exercise sovereignty, sovereign rights, exclusive rights, and jurisdictions.

The agreement signed by the Caspian Five leaders was realized through goodwill, trust, mutual respect, common interests, and friendly relations. Foreign experts note that the signing of the "Convention on the Legal Status of the Caspian Sea" marks a turning point for the five littoral countries.

In its August 12 post celebrating International Caspian Day, the Russian Embassy in Azerbaijan highlighted the increasing role of the Caspian Sea as a vital coordinating link at the center of Eurasia, considering its potential.

“The Caspian region’s geostrategic, political, transport and economic potential will continue to enhance its role as the most important coordinating link in Eurasia.”

The importance of the “North-South” international transport corridor, which passes through all Caspian countries, was also emphasized.

“The significance of the ‘North-South’ international transport corridor, which runs through all Caspian countries, is increasing. Five-way cooperation in trade, economic, energy, transport, and other areas is developing rapidly.”

The Russian Embassy also stressed the importance of addressing ecological issues of the Caspian Sea:

“This work requires enhanced joint efforts from all coastal states to preserve biodiversity, efficiently use resources, combat pollution, and prevent shallowing of the water body, as well as conducting necessary research and taking preventive measures.”

“It is crucial to maintain and deepen friendly and good-neighborly relations between coastal states, strengthen the unity of the ‘five’ based on a common approach to various challenges and problems, and contribute to transforming the Caspian into a zone of peace, friendly relations, and cooperation,” it was noted.

The coastal states have agreed on and adhere to the principle of no third-country armed forces in the Caspian Sea to ensure the region’s security and stability. As part of efforts to deepen cooperation in this area, the Caspian Five are negotiating measures to build trust in military activities in the Caspian Sea.

In developing the Caspian Sea’s abundant hydrocarbon resources, coastal states, including companies from Iran and Russia, play a significant role as investors. Additionally, companies from Kazakhstan and Turkmenistan benefit from Azerbaijan’s state-of-the-art infrastructure for transporting oil and its derivatives. Enhancing investment conditions to further commercial and economic relations, resource development, and international market access remains a top priority for Azerbaijan. This includes creating reliable and secure communication networks and attracting high-revenue, environmentally friendly technologies.

Large-scale initiatives are also underway to establish new transport and communication routes. Notably, Azerbaijan and Kazakhstan are constructing a major fiber-optic cable corridor across the Caspian Sea, a key component of the "Digital Silk Way" project. This ambitious project aims to create a new digital telecommunication corridor between Europe and Asia via the Caspian Sea, promising to significantly influence the future of the region through improved data transmission and accelerated digitalization.

As President Ilham Aliyev aptly put it, “The Caspian is a sea of friendship and cooperation that unites us.” The oil and gas extracted from the Caspian region play a crucial role in the global energy market. Effective collaboration in this area benefits all the Caspian littoral states and serves their collective interests.