Books on Azerbaijan
Update No: 357 -
loses approximately 25% of GDP per year
over occupation of territories by Armenia.
Baku, Fineko/abc.az. The Azerbaijani
government has expanded estimations of
damage from occupation of the country’s
territories by Armenia.
A governmental expert, wished to be
unknown, informed Fineko/abc.az, within 20
years Azerbaijan loses not less than 25 %
of added value per year, which could be
formed, because of occupation.
“15% of Gross Domestic Product (GDP) of
Azerbaijan was formed in Nagorno Karabakh
before the occupation. Also, the occupied
seven districts areas along the perimeter
of Nagorno Karabakh formed 10 % of GDP of
In this connection, we expect that
liberation of Nagorno Karabakh will give
fantastic multiplicatory effect for
development of the country which will
outweigh effect from oil boom conditions.
As a consequence, the national economy
will be diversified, and Azerbaijan will
pass to diversified non-oil development in
regard of branch,” the expert said.
Having occupied Nagorno Karabakh, where
there was an Armenian national minority,
and seven districts along its perimeter,
where this minority was not available,
Armenia started the conflict to Azerbaijan
over 20 years ago.
The Caucasian imbroglio
The Caucasus is a troubled place that has
led to almost as many conflicts and
outright wars as the Balkans since the
collapse of communism.
One such is the uneasy stand-off between
Armenia and Azerbaijan that focuses on
Nagorno-Karabakh, the Armenian enclave in
the latter republic. So long as more than
one and a half Azeri refugees have to live
outside their former homelands in the
enclave, there will always be a casus
belli for new hostilities.
They, alas, commenced again at the end of
August. There were fatalities on either
side; each side naturally blamed the
other. The showdown still goes on.
‘Niet’ to Nagorno-Karabakh
This is the last thing Moscow wants. It
wants a quiescent Caucasus. So too does
everyone else, excepting a few fanatics.
Azerbaijan, for instance, benefits from
the Russian military base in Gyumri,
Armenia, Vladimir Zharikhin, Deputy
Director of the Institute of CIS, told
Echo of Moscow (Ekho Moskvy). According to
him, the base prevents the
Nagorno-Karabakh conflict from developing
into new mayhem. Well, it has not.
In an interview with Echo of Moscow,
President of the Academy of Geopolitical
Problems, Colonel General Leonid Ivashov,
said that the long-term agreement is “a
victory of strategic pragmatism of both
He stressed the new agreement seriously
reduces the risk of Azerbaijan’s attempts
to resolve the Nagorno-Karabakh conflict
in a military way. A diplomatic way must
be found for the agreement not to affect
On August 20, in Yerevan, The RF and RA
Ministers of Defence, Anatoly Serdyukov
and Seyran Ohanyan, signed a protocol
prolonging the deployment of Russian
military base #102 in Armenia for up to 49
The economy forges ahead
Official circles in Azerbaijan are
constantly highlighting the fact of the
country’s regional leadership. Azeri
economic analyst Parhad Omarov stated that
in 2010 Azerbaijan's economic success was
acknowledged the world over. GDP is
clipping along in double figures.
The IMF also acknowledged the Azeri
central bank's effective anti-crisis
policy. As a result, in 2009 Azerbaijan
achieved the largest economic growth in
the world. The Azeri Central Bank believes
that the country will continue to be a
leader in economic growth in the South
Caucasus region. Azerbaijani is the
richest country in the South Caucasus in
terms of currency reserves.
But analysts think that Azerbaijan's
economic success is mainly reliant on oil
and gas and if the country did not have
these reserves their economy would be less
developed than either Armenia’s or
Georgia’s. They conclude that Azerbaijan's
regional leadership in the South Caucasus
economy is based purely on the export of
its oil and gas.
New deal with Russia
Still, that is something not to be
despised. On September 2 Azerbaijan agreed
to more than double its natural gas
exports to Russia and the agreement was
signed during Russian President Dmitry
Medvedev's visit to the country.
The new agreement, signed by Azerbaijani
state oil company SOCAR and Russian gas
giant Gazprom, was a supplement to an
earlier accord signed by the two firms
covering the period of from 2010 up to
According to the new deal, Azerbaijan will
increase its gas exports to Russia to 2
billion cubic meters per year from 2011
and to over 2 billion cubic meters per
year from 2012.
The original accord, signed on Oct. 14
last year, agreed to exports no less than
500 million cubic meters of Azerbaijani
gas to Russia annually.
Azerbaijan began gas supplies to Russia on
Jan. 1 this year and SOCAR has exported
494.6 million cubic meters of gas to
Russia between January and July.
Azerbaijani President Ilkham Aliev said
his country has the potential to extract 5
trillion cubic meters of natural gas a
year. The country is currently extracting
2 trillion cubic meters of gas a year.
Azerbaijani gas reaches Russia through the
Baku-Novo-Filya pipeline. The agreement on
increasing Azerbaijani gas exports to
Russia highlighted Medvedev's two-day
visit to Baku, the Azerbaijani capital.