Category: Asia and Pacific

  • Turkey Reiterates Commitment to Southern Corridor with Trans-Anatolia Pipeline

    Turkey Reiterates Commitment to Southern Corridor with Trans-Anatolia Pipeline

    Turkey Reiterates Commitment to Southern Corridor with Trans-Anatolia Pipeline

    Publication: Eurasia Daily Monitor Volume: 9 Issue: 1
    January 3, 2012
    By: Saban Kardas
    Turkey and Azerbaijan signed a memorandum of understanding that will facilitate the transit of Azerbaijani natural gas to Europe, changing the calculations over the EU-backed Southern Corridor concept. In October 2011, the two countries signed numerous agreements regulating the volume and price for Turkey’s gas imports from Azerbaijan as well as the transit terms for Azerbaijani gas exports to Europe through Turkish territory (EDM, November 1, 2011). Among these documents they agreed to work on a dedicated pipeline that will transport gas from the second phase of the Shah Deniz gas field through a pipeline from Turkey’s eastern frontier to its western border, in addition to using the existing Turkish grid for transiting Azerbaijani gas.

    On December 26, 2011, Turkey’s Energy Minister Taner Yildiz and his Azerbaijani counterpart, Natig Aliyev, signed a memorandum of understanding on the construction of the Trans-Anadolu natural gas pipeline. The Trans-Anadolu consortium will be formed by the State Oil and Gas Company (SOCAR) and Turkey’s BOTAS and TPAO. While the Azerbaijani side will hold 80 percent of the shares, the Turkish participants will control the remaining 20 percent, but the stakes might change over time, as the consortium will be open to participation by other international energy companies. The construction work is scheduled to start in 2012 and be completed in 2017, when the Shah Deniz-II is also expected to become operational. The pipeline will have an initial annual capacity of 16 billion cubic meters (bcm), which could be increased to 24 bcm. The 6 bcm capacity will be used for consumption in Turkey’s western regions, while the rest of the throughput will constitute Azerbaijan’s exports to Europe. Since Turkey will retain the re-export rights for its imports from Azerbaijan, the total volume of gas available for European markets could increase depending on the market conditions. Though the construction costs will be determined after feasibility studies, Yildiz estimated these costs at around $5 billion (Anadolu Ajansi, December 26, 2011).

    This development raises many interrelated issues about the future of bilateral relations, as well as the EU’s Southern Corridor project seeking to diversify European natural gas supplies tapping into Caspian basin reserves.

    With this decision, Turkey and Azerbaijan took another step to cement their evolving strategic partnership, while Ankara also reconfirmed its Baku-centered South Caucasus policy. Energy occupies a major place in both countries’ ambitious foreign policy agendas. While Azerbaijan is eager to capitalize on its developing hydrocarbon reserves to emerge as a major regional actor in the South Caucasus, Turkey has sought to use its geographic location as an asset to establish itself as a major transportation corridor for oil and gas from the Caspian basin and Central Asia as well as the Middle East.

    Given Azerbaijan’s need for a reliable export route and Turkey’s interest in sustainable throughput to feed its ambitions to become an energy hub, there are economic and strategic imperatives forcing the two countries to forge a closer partnership in the energy sector, which is further strengthened by overlapping perspectives on regional issues. Such a shared vision led to the construction of the Baku-Tbilisi-Ceyhan pipeline marketing Azerbaijani oil globally and the Baku-Tbilisi-Erzurum pipeline exporting Azerbaijani gas to Turkey, part of which is re-exported to Greece by using the Turkish grid. With the successive energy deals signed in recent years, including a rising volume of Azerbaijani investments in Turkey’s energy sector, and deepening political dialogue such as the establishment of a high level strategic cooperation council, the two countries are healing the frictions caused by Turkey’s thwarted normalization efforts with Armenia.

    Currently, there seems to be a strong determination to develop joint energy projects and turn this partnership into a solid axis in the South Caucasus and beyond. Natig Aliyev’s remarks that with the trans-Anatolia project the two countries will work in European energy markets together reflected this shared vision (www.ntvmsnbc.com, December 26, 2011).

    Moreover, the implications of this development for the EU-backed Southern corridor remain a matter of controversy. The competing projects including Nabucco, Interconnector Turkey-Greece-Italy (ITGI) and Trans-Adriatic Pipeline (TAP) submitted their bids to the BP-led consortium operating the Shah Deniz field in October 2011. While Azerbaijan and the consortium were expected to make their decision, the trans-Anatolian project has altered the equation in the ongoing competition to secure access to Azerbaijan’s export volumes.

    To complicate these calculations even further, Turkey also moved to sign an accord with Russia by the end of 2011. An agreement finalizing Turkey’s approval for the construction of South Stream in its territorial waters in the Black Sea was signed in Moscow by the heads of BOTAS and Gazprom, overseen by Yildiz and Prime Minister Vladimir Putin. With this decision, which Russia had been expecting for over one year, Turkey removed its objections to the South Stream project, which Russian sources expect to be completed by 2015. In return, Yildiz claimed that he secured guarantees from the Russian side to resolve the dispute over the western pipeline in terms favorable to Turkey, especially including a reduction in the price for gas imports from Russia (Anadolu Ajansi, December 29, 2011).

    The Turkish government has faced the criticism that by taking these controversial steps it is effectively killing the Nabucco project, which it claimed to have deemed as a strategic priority (Hurriyet, December 31, 2011). For its part, the Turkish government has been arguing that the trans-Anatolian project was in fact complementary to Nabucco and Southern corridor projects, as it will reduce the costs of the other projects (Anadolu Ajansi, December 26, 2011; Yeni Safak, November 19, 2011).

    Ankara considers that it has fulfilled its responsibilities towards the Nabucco project by granting the necessary permissions earlier for its construction on its territory. The recent deal on the trans-Anatolian project in that context reiterates that Turkey would not be the deal-breaker in Southern corridor projects, as it effectively resolves issues pertaining to the transit of Azerbaijani gas. More importantly, the willingness of the BP-led Shah Deniz consortium, for Azerbaijan and Turkey to undertake a major portion of the transportation corridor might allow Nabucco and other projects to redesign themselves on scalable terms. Now it will be up to other Nabucco partners to do their part, readjust to the new conditions, and find a supply source, which remains the main obstacle before the project.

    https://jamestown.org/program/turkey-reiterates-commitment-to-southern-corridor-with-trans-anatolia-pipeline/
  • Armenia and Turkey not to reconcile this year

    Armenia and Turkey not to reconcile this year

    88060MOSCOW. – The process of reconciliation between Armenia and Turkey will not move forward this year, political scientist at the Eastern Studies Institute of Russian Academy of Sciences Alexander Skakov told Armenian News-NEWS.am correspondent adding that the suspension is conditioned by several factors.

    “First, it is domestic political situation in Turkey. Serious steps by Ankara are suspended by the pre-election struggle. Second, Azerbaijan blackmails Turkey openly threatening to raise prices for the energetic resources and to refuse transportation, which is beneficial for Turkey. When Azerbaijani actions will no longer work, new steps are possible in normalization of the Armenian-Turkish relations,” Skakov said.

    via Armenia and Turkey not to reconcile this year – Russian expert | Armenia News – NEWS.am.

  • Armenia-Turkey: the end of rapprochement

    Armenia-Turkey: the end of rapprochement

    A diplomatic process designed to normalise relations between Armenia and Turkey led to the signing of two protocols in 2009. Its failure is rooted in the miscalculations of both sides, says Vicken Cheterian.

    About the author
    Vicken Cheterian is a journalist and political analyst who works for the non-profit governance organisation CIMERA, based in Geneva. He is the author of War and Peace in the Caucasus: Russia’s Troubled Frontier (C Hurst, 2009; Columbia University Press, 2009), and From Perestroika to Rainbow Revolutions: Reform and Revolution After Socialism (C Hurst, fortcoming, 2012)

    The genocide museum in Yerevan lies north of the Armenian capital at the top of a hill called Tsitsernakapert. The physical effort of walking to the summit is an appropriate spur to the visitor to reflect on the hardship of hundreds of thousands of Ottoman citizens of Armenian origin, who in 1915 and subsequent years were forced by their state to walk to the Syrian desert, there or on the way to die of hunger, exhaustion or by an act of murder. Today, the end-point is the sight of a sober, forty-four-metre high stele pointing skywards, as if claiming justice; and beside it, a circular monument of twelve basalt slabs that both open to and protect the eternal flame.

    On 24 April each year, the day of commemoration of the Armenian genocide, thousands of people gather at Tsitsernakapert to place a flower at the monument – and then walk down the other side of the hill where, on a clear day, there is a magnificent view of Mount Ararat, with its white glaciers as if hanging from heaven. It is a poignant sight, for Ararat is both the visible totem of the Armenians yet remains unreachable to them, since it lies on the other side of the border that divides Armenia from Turkey. The two countries’ 300-kilometre-long frontier, which runs only 40 kilometres from the centre of Yerevan, is closed: the last closed border of the cold war.

    I went to Tsitsernakapert to visit Hayk Demoyan, the director of the genocide museum which is part of the cluster of monuments on the site. “This museum tells the history of not only the Armenian people, but also that of the Turkish people”, Demoyan tells me. He refers to the the diplomatic exchanges since 2008 that sought to normalise Armenian-Turkish relations, saying that he expected these to prompt “a flow of Turkish visitors”. It has proved a vain hope. “The international community, especially the Americans, did not exert enough sustained pressure on Turkey to open up the border”, Demoyan says. “Now the process is at a dead-end”.

    From blockade to diplomacy

    The complicated relationship between Armenia and Turkey is rooted in the events of the great war of 1914-18, when the Ottoman administration deported en masse its Armenian citizens from their towns and villages in Anatolia, the prelude to the anihilation of almost the entire Armenian population of the empire. The legacy of this bitter history was such that only in the early 1990s, amid the break-up of the Soviet Union and Armenia’s attempts to secure its independence, did a chance arise for Armenia and Turkey to move beyond deep antagonism and create normal relations.

    At the time, Armenia’s new political leadership was trying to escape Moscow’s influence and prepared to establish diplomatic relations with Turkey without preconditions. But the escalation of the conflict in Nagorno-Karabakh, an enclave inside the new state of Azerbaijan with a majority Armenian population, posed a major obstacle to this course. Turkey’s then leadership supported Azerbaijan in this conflict, refused to open diplomatic links, and (in 1993) joined Azerbaijan in imposing an economic blockade on land-locked Armenia in an effort to force it to end its backing for the Karabakh Armenians’ quest for self-determination.

    A frozen conflict ensued, until the war between Russia and Georgia in August 2008 overturned the region’s geopolitical map. Ankara saw a chance to address this anomaly of its Caucasus policy. On 8 September 2008, Turkey’s head of state Abdüllah Gül visited Yerevan during a football world-cup qualifying match between the two national teams, and this was followed by a series of diplomatic meetings where practical steps were discussed.

    In fact, secret diplomatic talks had been held in Bern since 2007, mediated by the Swiss foreign ministry. The chain of diplomatic contacts culminated in the signing in Zurich on 10 October 2009 of two “protocols”, dedicated to establishing diplomatic relations and on opening the borders. The ceremony, hosted by Swiss foreign minister Micheline Calmy-Rey, was attended by international dignitaries such as United States secretary of state Hillary Clinton and Russian foreign minister Sergei Lavrov.

    “What is ironic is the fact that during the cold war this border was not so hermeticaly closed as it is now. At the time, trains travelled regularly between Kars and Leninakan [now Gumri]”, says Tatul Hakobyan, a Yerevan-based author who is finishing a book on Armenia-Turkey relations. Hakobyan’s interpretation of the failure of dialogue is interesting: “The expectations of the various sides were based on wrong calculations. The Armenian side thought that it was possible to change the status quo on Armenian-Turkish relations without changing the status quo on the Karabakh issue. Turkey thought that dialogue with Armenia will lead to Armenian concessions on Karabakh. And the international community did not pay enough attention to details.”

    The protocol-signing process in Zurich was fraught: the Turkish side wanted a public declaration linking the protocols with the Karabakh negotiations process, leading the Armenian delegation to boycott the ceremony, meaning that in the end there was no declaration. “In Zurich, the sides showed that they were not ready to compormise. Turkey wanted Armenian concessions on Karabakh, not just on the question of genocide and fixing the current border”, says Hakobyan.

    The results of failure

    When the process began, both presidents took risks in the hope of bringing peace and stability to their countries. For Armenia’s Serge Sarkissian, entering a dialogue with Turkey was a particularly bold step; he was already challenged by a powerful domestic opposition that contested the legitimacy of his election, and the diplomatic move so angered the Tashnaktsutyun party (which has a large diaspora base) that it left the government coalition in protest. The signing of the protocols also created a schism between Yerevan and Armenian communities abroad, which Sarkissian experienced directly when, during a foreign tour of diaspora communities, he was faced by demonstrations in Paris, Los Angeles and Beirut.

    For Turkey’s diplomacy, the policy of rapprochement with Armenia was part of a wider effort to ease tensions in the Caucasus’s several conflict-zones, especially that of Karabakh. They believed that ameliorating Ankara’s relations with Armenia would facilitate negotiations between Armenia and Azerbaijan. Instead, they were confronted by a vehement reaction from Azerbaijan that accused Turkey of betraying Baku’s interests. Baku threatened to suspend relations with Ankara and to cancel future hydrocarbon deals. As a result, the Turkish leadership insisted that Armenia made concessions over Karabakh on the grounds that this would enable the protocols to be ratified by the Turkish parliament. Ankara was here not just seeking measures additional to those foreseen in the protocols, but reverting to its earlier position that Armenian-Turkish relations can only move forward if Armenia complies with Azerbaijani demands on the Karabakh conflict.

    Thus, both Armenia and Turkey entered the process of negotiations without anticipating all the moves they might be expected to make, and were surprised along the way. Yerevan’s diplomats proceeded to sign the protocols without consulting diaspora communities, amid protests by diaspora communities against the president of Armenia for the first time since independence. Ankara similarly misjudged its capacity to resist opposition from Baku, and even a reversal of its policy has not allayed Azerbaijani suspicions.

    The failure of the protocols is so great that it will have long-term consequences. “The failure of Armenian-Turkish negotiations will harden the Armenian position on Karabakh negotiations”, according to Ara Tadevosyan, the director of the Media Max news agency in Yerevan. Even worse, what started as personal initiatives and cautious trust has turned into mistrust. Today, the Armenian leadership feels deceived by its Turkish equivalent: it signed two protocols for which it had already paid a political price back home, only to be asked to make further concessions on Nagorno-Karabakh.

    This perceived deception will harden Yerevan’s position in relation to Turkey, only three years before the centenary commemoration of the Armenian genocide in 2015. Turkey’s official reaction to the proposed outlawing of the denial of genocide in France shows that attitudes on its side are becoming even more intransigent. The hopes of 2009 look ever more distant.

  • Indian automaker Mahindra & Mahindra interested in buying Saab

    Indian automaker Mahindra & Mahindra interested in buying Saab

    The news, reported by Bloomberg, indicates that Mahindra & Mahindra wants to talk with the Swedish bankruptcy court overseeing Saab’s bankruptcy proceedings. Meetings have not been setup and it seems that everyone close to Saab and Mahindra & Mahindra are being tight-lipped as the talks are private.

    Saab 1

    Mahindra & Mahindra, which is based in Mumbai, is interested in buying parts of Saab or possibly the whole company. The price or what technologies or parts are not known at this time.

    Mahindra & Mahindra has been on a buying spree of automakers over the past few years. Earlier this year it bought a 70 percent stake in a Korean automaker, Ssangyong Motor Company, for about $368 million. It also recently bought Reva Electric Car Company, another Indian automaker, from Renault. It seems the company wants to broaden its lineup and become a global automotive player with all these acquisitions, and the potential investment in Saab.

    This writer reported Saab filed for bankruptcy on December 19th, 2011. It seemed for a time they would be able to avoid bankruptcy as a Chinese bank and a car company were going to give Saab a large cash infusion. GM blocked the deal at the last minute, since they still had rights over technologies Saab owned, forcing Saab into bankruptcy. (Read my editorial “GM gets Bailout, Why not Saab?”)

    It seem Saab now has a chance to emerge from bankruptcy, with not only Mahindra & Mahindra showing an interest in Saab, but also a Turkish automaker.

    The Turkish government is eager for Turkey to have a car brand of its own. They want to at least take over parts of Saab and interested in investing into the company.

    Victor Muller, CEO of Swedish Automobile NV which owns Saab, confirmed that several companies are pursing investing in Saab.

    So goes the ebb and flow of the global automotive market. One company falls and another will likely rise from it ashes. Saab seems to have a second chance, with some interesting investors. I wonder what future Saab cars or dealerships will sell?

    Please contact Adam Yamada-Hanff – adamsautoadvice@gmail.com – for comments, questions, or topics. You can also follow him on Twitter @AdamsAutoAdvice

    via Indian automaker Mahindra & Mahindra interested in buying Saab.

  • Turkey prepares ecological catastrophe for Azerbaijan and Georgia

    Turkey prepares ecological catastrophe for Azerbaijan and Georgia

    Turkey intends to build a hydro-electric station on the upper part of Qur River. This means that the river-bed must be changed and the river will be filled not into Caspian Sea but the Black Sea. This project will be a real ecological catastrophe for both Georgia and Azerbaijan. According to Turkish side this plan is already ready and it has been discussed in frame of the Turkish delegation’s visit to Georgia.

    barajRussian “Nezavisimaya gazeta” (“Independent magazine”) writes about this and considers that the effective building will claim to change the river-bed. But in this case Azerbaijan and Georgia will remain without Qur River. This river has a vital meaning for Azerbaijan. This river fills the Mingechaur reservoir and Baku can not lose it.

    According to Georgian “Rezonansi” news agency this plan has been discussed by the highest level, during the meeting of Georgian President Mikhail Saakashvili and Turkish Prime Minister Recep Tayyip Erdogan.

    Leader of the Georgian opposition Christian-democratic Party this is a really troubling issue and it is always discussed with Ankara. He said that its fulfillment will be real catastrophe for Georgia, Azerbaijan and for some parts of turkey is as well.

    “Turkish wish is clear. It needs source of energy. Wrong use of Jorokh river has already made many problems for Georgia and the use of Qur will have more terrible consequences”, Georgian source writes.

    Leader of the Greens Party in Georgia George Gachechialdze considers that such conversations have political context and are “in style” for Ankara.

    via Turkey prepares ecological catastrophe for Azerbaijan and Georgia.

  • Saakashvili Says Relations with Turkey is Vital for Georgia

    Saakashvili Says Relations with Turkey is Vital for Georgia

    The existing relations between Georgia and Turkey have “vital importance” for Georgia, Georgian President Mikheil Saakashvili said at a meeting with visiting Turkish delegation in Tbilisi, the Georgian President’s Administrations told Trend on Monday.

    The Turkish delegation included the representatives of ruling party of justice and development, as well as the representatives of Public republic party.

    During the meeting of Georgian President and members of Turkish Grand National Assembly Saakashvili drew attention to relations between the two courtiers and joint projects. He mentioned the Free trade agreement signed between Georgia and Turkey, visa-free travel and noted importance of growing Turkish investments. Saakashvili particularly stressed bilateral relations existing between the two countries and leaders of the two countries.

    “Bilateral relations are vital for Georgia,” Saakashvili noted and once again stressed the importance of strategic relations with Turkey.

    “Along with the impressive economic development through consistent and correct policy Turkey keeps more decisive position in the regional and world policies,” Georgian President said. “Your country is the reliable partner of Georgia.”

    According to Saakashvili, “we have reached visa-free travel and citizens of Turkey and Georgia can cross the border only on the basis of identity, which is really a model for many countries in the world.”

    “The Batumi airport is in joint operation, like the Geneva airport which is jointly operated by France and Switzerland,” Saakashvili noted. “This is also major precedent. I was in Batumi and saw there two airbuses – flights were implemented to Ankara and Istanbul at the same time. Not so long ago it was impossible to imagine. The daily flights are carried out, and several flights from Turkey to Batumi will be carried out per day shortly. This, in its turn, means movement of tourists, businessmen, and accordingly, cash flows. So, the human welfare will be enhanced in both directions.”

    Monday, 26 December 2011

    Trend AZ

    via Saakashvili Says Relations with Turkey is Vital for Georgia, 26 December 2011 Monday 14:3.