Azerbaijani Minister Remarks on Cooperation With Kazakhstan
Posted on: Tuesday, 6 May 2008, 09:01 CDT
Commenting on economic cooperation between Azerbaijan and Kazakhstan, the Azerbaijani minister of economic development, Heydar Babayev, has said that a parallel oil pipeline in addition to the Baku-Tbilisi-Ceyhan is possible and feasible. He said that Azerbaijan would gain from the transit of energy resources through its territory. Regarding the introduction of restrictions on grain export by Kazakhstan, Babayev said that many Azerbaijani companies had made a 100-per-cent advance payment for the import of grain from Kazakhstan and that in line with international practice a ban cannot be applied to such contracts. "We would like the Kazakh side to answer these questions," Babayev said. The following is the text of an interview with Heydar Babayev, published by the Kazakh newspaper Ekspress-K on 26 April
The Senate of the Kazakh parliament approved a draft law on the ratification of an agreement with Azerbaijan on the transportation of oil through the Baku-Tbilisi-Ceyhan (BTC) pipeline. The document, which is considered to be approved, has been sent to the head of state for signing. In an exclusive interview to the EK [Ekspress- K], Minister of Economic Development of Azerbaijan Heydar Babayev, shared his views on prospects for the new route through the Caucasus bypassing the traditional [route] through Russia.
The events of this week indicate that Kazakhstan has come close to the completion of the legal registration of documents on joining the BTC. This also means that the day when Kazakh oil goes to Europe bypassing Russia is not far, and at least a legal basis for this has practically been created in our country.
Recently, Energy [and Mineral Resources] Minister Sauat Mynbayev at a meeting with his Azerbaijani counterpart, Heydar Babayev, said that "very intensive technical work on joining the BTC was under way at the level of Azerbaijani and Kazakh national companies".
"We hope that there will be rapid progress in this issue," Mynbayev noted. Thus, slowly but unwaveringly Kazakhstan is implementing its policy on multi-vector export of its black gold [oil] to world markets. However, we wanted to know how the things are going on in Azerbaijan, from where this pipeline, proceeding from its name, will originate.
[Correspondent] Mr Minister, the idea of the construction of another new oil pipeline in parallel with the BTC was made public during the visit of Azerbaijani President Ilham Aliyev to Astana last summer, because the BTC will not have the capacity to pump large amounts of Kazakh oil, for example, when the Kashagan [oil field] is commissioned. How feasible is that?
[Babayev] A parallel oil pipeline is possible. This is feasible. In principle, we are interested in this because the more energy resources pass in transit through Azerbaijan's territory the more we gain - both economically and politically, I think. As for the capacity of the BTC pipeline, it currently has sufficient capacity and at the same time we have the opportunity to increase its throughput capacity. This is technically feasible and we are already working on this. However, even if the BTC will not suffice, then we have another two oil pipelines - Baku-Poti and Baku-Supsa, which Kazakhstan can fully use.
[Correspondent] However, it is necessary to transport Kazakh oil to Baku in order to bring it to world markets through the BTC or through the new pipeline. As is known, each of the two states has to begin the construction from its coasts, at what stage is the construction of the Kazakhstan's Caspian system of pipelines?
[Babayev] It has to be said that the policy and responsibility of Azerbaijan ends inside its borders. We are creating the necessary infrastructure inside our country, which will help fraternal countries, including Kazakhstan, transport their energy resources to world markets. Technically, we are ready for Kazakhstan`s decision to transport its oil, as well as gas, through the Caucasus. I have already mentioned above that we have three oil pipelines: BTC, Baku- Poti and Baku-Supsa. We also have the Baku-Tbilisi-Erzurum pipeline. As is known, Erzurum is Turkey`s distribution centre.
There is a railway, the modernization of which we have already started. We are implementing a project for the construction of a railway, which will link Azerbaijan, Georgia and Turkey, from where a tunnel will be built under the Bosporus to Europe. We already have two oil terminals in the sea and more are being built, which will be linked to the single route to Europe. That is to say, we are doing our job and do not ask for any volume of oil, we are simply ready for that. We are trying to be attractive in exporting oil to others. Our task is the creation of alternatives and not competition. We do not say "transport only through Azerbaijan". Not a single state should serve the geopolitical interests of another state. We will create an alternative, and everyone can chose the route which is beneficial to him, that is why I want to stress that diversification has not yet harmed anybody.
[Correspondent] As is known, your visit to Astana was connected not only with oil projects. It was also connected with resolving the issue of Kazakh grain exports.
[Babayev] You are right. The goal of my visit to Astana was also to clarify the situation with grain. If the Kazakh government introduces restrictions on grain exports, this is its right dictated by the national interests of your country. We respect your decisions. However, we have to clarify some issues.
Contracts had been concluded between private companies of our countries before the introduction of the restrictions. Hundred per cent advance payments were also made for them. The owners of our companies are turning to us, and we, as the government, must answer them how the problem will be resolved and whether the funds will be returned. Although, in line with international practice a ban cannot be used for the contracts which have been paid in advance. The failure to implement the commitments cannot in any way be explained by force majeure and we would like the Kazakh side to answer these questions. There has been an answer for one of them, and the others need to be answered. So far, the borders are open until 26 April. Then we will see who exported how much of Kazakh grain and who was not able. Only after this, proceeding from the results, will we resolve the grain issue with the Kazakh side.
Originally published by Ekspress-K, Almaty, in Russian 26 Apr 08, p 3.
(c) 2008 BBC Monitoring Central Asia. Provided by ProQuest Information and Learning. All rights Reserved.
Source: BBC Monitoring Central Asia
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