(MENAFN- AzerNews) by dr mehmood ul hassan
khan
The Republic of Azerbaijan is located at the "heart of Eurasia"
and has been dubbed as a "keystone of Caspian". It holds 75-80 per
cent of GDP of South Caucasus region which has further enhanced its
strategic importance and utility for achieving the dreams of
greater Eurasian region. It has rich energy resources which are
contributing to further strengthening and "diversification" of its
socio-economic development, transformation towards green journey,
modernization and qualitative development in the country. Moreover,
it is a key territory for regional integration projects.
The latest high level political consultations, economic
integration, social cooperation and security coordination between
Azerbaijan and Central Asian countries mainly Uzbekistan,
Kazakhstan, Turkmenistan and Turkic organizations have become a
"paradigm shift" in the region which would be "instrumental" for
further strengthening of Eurasia region in the days to come.
Interestingly, Azerbaijan has now become a "preferential" energy
partner of the European Union and exporting its energy resources to
it via Türkiye which has further increased its trans-regional
"outreach" and vividly reflects persuasions of a "balanced" and
pragmatic foreign policy.
Furthermore, Azerbaijan has also enhanced its bilateral
relations with Pakistan which is a "connecting hub" between South
Asia and Central Asia. The volume of trade, investment, tourism,
culture, agriculture, energy (oil & gas), renewables, education,
science & technology and last but not the least, military
cooperation is getting momentum which has become a "balancing act"
in the socio-economic integration, greater regional connectivity
and security, peace and stability of South Caucasus region.
In this connection, "innovative" means of Azerbaijan foreign
mission in Islamabad is brightening the scope of greater energy &
food security mechanism, infrastructure development, aerial
connectivity, trading capacity and cultural cooperation.
Inauguration of Azerbaijan & CIS desk in Rawalpindi and Islamabad
Chambers of Commerce and availability of easy business and tourism
visas have succeeded to disseminate "good-will" gesture in the
business community and potential businessmen in the country which
would hopefully pay its dividends in the days to come.
Azerbaijan since its independence in 1991, its government has
sought to make it a bridge between Europe and Asia. It has invested
millions of dollars in commercial infrastructure and transport
projects over the last decade, aiming to position Azerbaijan as a
"reliable" regional link between Central Asia, the South Caucasus
and Europe and increasing bilateral relations with China and
inauguration of the "One Belt & One Road" has further enhanced
Azerbaijan's status of "connecting hub" and "powerhouse" of
regional integration.
Baku understands the importance of implementing diversification
strategies ahead of the depletion of the country's hydrocarbon
reserves and has already started massive "diversification drive" in
the country by developing other key sectors of its macro-economy
mainly, service, green energy, tourism, real estate, banking &
finance, agriculture, organic production, health, and last but not
least, hospitality sectors which are gradually inching towards
further economic stability and sustainability.
According to official data around 70 percent of its trade came
from oil and gas transport between Georgia and Azerbaijan. Baku and
Tbilisi benefited most from this corridor, which was also good for
Kazakhstan and Turkmenistan. Both Astana and Ashgabat used the
corridor extensively to bypass Russia when transporting oil. During
the ongoing Russia-Ukraine conflict the "alternative route" has
been further flourished and matured, befitting to all the
stakeholders and regional countries' economies.
It is hoped that the Chinese investments help to further widen
Azerbaijan's strategic plan, allowing many projects to go ahead. In
August 2015, the first container to take the BRI route, or Silk
Road, travelled time more than 4,000km from China in a record six
days', arriving at the newly constructed Baku International Sea
Trade Port. It signalled a new era in regional transport links.
China, together with partners from Azerbaijan and Kazakhstan,
was a major player in implementing the project. It demonstrated to
Chinese partners that cargo could reach Europe much faster via the
Silk Road than by sea or by transiting through Russia. Both
Kazakhstan and Azerbaijan used the project to encourage Chinese
establishments to begin infrastructure in their territories so they
could reap the benefits. Azerbaijani authorities believe that by
2030 some 300,000-400,000 containers will be transported via this
route, bringing billions of profits.
Obviously, the ties between Central Asia and the Caucasus have
been strengthened. Especially with the Ukrainian War, the
destabilization of the Northern Corridor, especially, has pushed
Eurasian countries, including China, to look for new routes. The
rapprochement process between the countries in the east and west of
the Caspian Sea, where the Middle Corridor is located, has
accelerated. Undoubtedly, the will of Azerbaijan, brought peace to
the Caucasus by winning an important victory in the Second Karabakh
War which has now brightened the prospects of the opening of the
Zangezur Corridor. Now, the possibility of regional cooperation and
integration between the countries of the Turkish world has further
strengthened strategic role of Azerbaijan in the region and
beyond.
In this regard, an agreement was signed between Azerbaijan and
Turkmenistan in February 2021, and the states agreed on the
disputed regions in the Caspian Sea. Afterwards, various
developments took place in the relations between Azerbaijan and
Kazakhstan. Both states agreed to deepen strategic partnership and
expanding comprehensive cooperation. A consensus has been reached
in areas such as defence, foreign policy, trade, economy,
investment, industry, oil, gas, chemistry, textile, construction,
food and agriculture. The issues of development of transportation
corridors and the improvement of transportation tariffs were also
discussed between the governments. An agreement was reached on
Uzbekistan's utilization of the Baku-Tbilisi-Kars Railway.
Afterwards, an agreement was reached between the Ministries of
Energy of Azerbaijan and Uzbekistan on a road-map the goals and
plans of which will be determined until the end of 2023. According
to this agreement, joint projects will be carried out in the fields
of renewable energy, oil, gas and petrochemicals.
It is also known that the parties have agreed on issues such as
developing joint projects for the exploration and production of
hydrocarbon resources of JSC Uzbekneftegas and SOCAR, as well as
sharing of experience, encouraging mutual investment and
privatizations. In addition, it is claimed that cooperation will be
made in Karabakh-based projects. At this point, the strongest
possibility is the possibility of Uzbekistan using the Zangezur
Corridor to open up to the West. The role of Azerbaijan in Central
Asia, South Caucasus, Middle East, and South Asia has further
enhanced its constructive role in the further strengthening of
Eurasia region.
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