By Ayaz MUSEYIBOV, Head of Department, Center for Analysis and Communication of Economic Reforms of the Republic of Azerbaijan

After implementing a number of trans-Eurasian energy and logistics mega-projects, such as the Baku–Tbilisi–Ceyhan oil pipeline, Southern Gas Corridor and Trans-Caspian International Transportation Route, Azerbaijan has also strategically committed itself to policies designed to turn the South Caucasus country into a regional digital hub. This initiative has already secured buy in from several countries and major companies in the IT space. Notably, this past April, Italy’s largest internet service provider and one of the world’s leading operators, Sparkle, and Azerbaijan’s top wholesale telecommunications operator, AzerTelecom, signed a memorandum of understanding on cooperation within the framework of the Digital Silk Way project (not to be confused with China’s Digital Silk Road), aimed at creating a digital telecommunications corridor connecting Europe and Asia via Azerbaijan. READ MORE

• EGF Editor  |  Published on EGF: 01.07.2022  |  Markets
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By Eugene KOGAN, Tbilisi-based defence and security expert

Even though Israel and Turkey normalised relations in June 2016 following the May 2010 Mavi Marmara Flotilla incident when Israeli soldiers killed ten people on board a Turkish vessel and the subsequent diplomatic rupture, Ankara’s support of the Hamas movement situated in the Gaza Strip continues to undermine bilateral relations.
The establishment of an official office in Istanbul in 2012 and its members are perceived as a thorn in the eye by the Israeli Government. Tel Aviv would like Erdoğan to close the Hamas office and expel its members from Turkey; however, this Israeli wish is not going to be granted any time soon since Erdoğan’s words do not translate into deeds. The signature of the Abraham Accords highlighted two divergent trends in the region: Turkey’s continued isolation and Israel’s strengthened position. This resulted in Erdoğan’s intention to improve relations with Israel. READ MORE.

• EGF Editor  |  Published on EGF: 23.06.2022  |  External Relations
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By Fuad SHAHBAZOV, Baku-based independent regional security and defence analyst

Amid mounting domestic unrest and ongoing diplomatic standoffs with regional states, Iran has devoted a significant and increasing amount of national resources toward upgrading its national drone program. On May 17, the Iranian government officially inaugurated its first overseas drone factory in Dushanbe, Tajikistan; the facility manufactures the indigenous Ababil-2, a multipurpose drone model with reconnaissance, combat, and suicide capabilities. The Ababil-2 boasts a maximum range of 200 kilometres and can sustain roughly 90 minutes of flight time. The new drone factory will help Iran to improve relations with Tajikistan after a period of lingering diplomatic tension, and General Mohammad Bagheri described its inauguration as a turning point in bilateral military cooperation between the two countries. READ MORE

• EGF Editor  |  Published on EGF: 23.06.2022  |  Security
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

There is broad consensus in the region and in the international community on the need to restore communications in the South Caucasus and on the possibility of finding mutually accepted solutions for this to be achieved. However the constant focus on the routes passing via the Syunik region and connecting Azerbaijan with Nakhijevan has made the whole process of restoration of communications a bone of contention for both sides. The restoration of communications may still play a positive role in the establishment of good neighbourly relations between Armenia and Azerbaijan, by creating conditions from which both societies can benefit. However, if the sides continue this tit-for-tat discussion around the "Zangezur corridor," blaming each other for violating previous agreements, the restoration of communications issue will only deepen the mistrust between them, he adds. Starting instead with a railway connection between Armenia and Nakhijevan via Yersakh on the other hand, requires only a further 1 km of railroad to be constructed, and will serve as a significant confidence-building measure between Armenia and Azerbaijan and will make it easier for Armenia and Azerbaijan to agree on the modalities for the restoration of other routes. READ MORE

• EGF Editor  |  Published on EGF: 23.06.2022  |  External Relations
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

In late May 2022, Armenia and Azerbaijan established national commissions for border delimitation and demarcation. The two countries are close to signing a deal on the restoration of communications and will soon launch negotiations on elaborating a bilateral agreement. Currently, experts and societies wonder what these developments mean for the future of the self-proclaimed Nagorno Karabakh Republic. Discussions are underway, and different ideas have been put forward. Some Azerbaijani experts started to circulate the possibility of autonomy for Nagorno Karabakh, hinting that Azerbaijan may change its post-2020 war rhetoric, denying the existence of Nagorno Karabakh and claiming that the issue of status was thrown into the dustbin of history. There is a lack of details on what this autonomy could be. READ MORE

• EGF Editor  |  Published on EGF: 16.06.2022  |  Security
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By Yeghia TASHJIAN, Beirut-based regional analyst and researcher, columnist, "The Armenian Weekly”

Despite Azerbaijani President Ilham Aliyev’s adherence to the ideology of pan-Turkism, the former-Soviet republic has long managed to successfully balance its relations between Russia, Turkey, and the west. However, the ‘frozen conflict’ with Armenia over disputed Nagorno-Karabakh territory, and the on-going conflict in Ukraine, have recently tested the limits of this balancing act. In January 2022, as Russia’s military build-up on Ukraine’s border was in full swing, Aliyev visited his counterpart Volodymyr Zelensky in Kyiv and reaffirmed Baku’s support for Ukraine’s territorial integrity. Then, the following month – just two days before Russia announced its ‘special military operation’ in Ukraine – Aliyev was in Moscow signing a treaty of alliance with Russian President Vladimir Putin. READ MORE

• EGF Editor  |  Published on EGF: 16.06.2022  |  External Relations
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By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

As Armenia and Azerbaijan come closer to launching bilateral negotiations over the normalisation of relations, many issues wait for a solution. Currently, the hottest debates are underway regarding the future status of Nagorno Karabakh and the legal modalities of the transit for Armenian and Azerbaijani goods passing each other territories. The war in Ukraine and the complete collapse of Russia – West relations added geopolitical components to the equilibrium. Do we have EU – Russia competition over the mediation process? Are there any disagreements between Brussels and Moscow on promoting lasting peace and stability in the South Caucasus? All these issues are worthy of being discussed and debated. READ MORE

• EGF Editor  |  Published on EGF: 09.06.2022  |  Security
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By Fuad SHAHBAZOV, Baku-based independent regional security and defence analyst

Tensions between Turkey and Iran were recently rekindled by the latter constructing a dam over transboundary waterways, namely the Aras, Tigris, and Euphrates rivers. Iran is accusing Turkey of intentionally triggering a regional drought and water shortage –– both of which have impacted Iran brutally. Ankara says Iran’s claims are a diversion.

A new round of disagreements between Iran and Turkey began when Iranian Foreign Minister Hossein Amir-Abdollahian criticized Turkey’s dam projects on the Aras and Tigris rivers –– the main transboundary waterways in the region –– citing the threats to water flow in the area and environmental damage to regional states in his speech before Iran’s Parliament on May 10. Abdollahian said he has called on “his Turkish counterpart at least three times over the past months to pay serious attention to the construction of dams on the Aras River.” READ MORE

• EGF Editor  |  Published on EGF: 09.06.2022  |  External Relations
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By Eugene KOGAN, Tbilisi-based defence and security expert

The unprovoked Russian invasion of Ukraine on February 24th, 2022 has substantially changed the security situation around the Black Sea. The three NATO member states Bulgaria, Romania, and Turkey have pursued a very different and distinct policy with regard to Russia. Bulgaria, as will be further presented, remains dependent on Russian gas and oil. Despite the recent Russian decision to halt gas exports to Bulgaria over the country’s refusal to pay for supplies in roubles, Bulgaria did not buckle under pressure. Romania maintains a watchful eye after the Russian military operations along the Black Sea coast, in general, and the city of Odessa, in particular. Turkey maintains balanced relations with Russia and Ukraine. READ MORE.

• EGF Editor  |  Published on EGF: 09.06.2022  |  Security
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By Eugene KOGAN, Tbilisi-based defence and security expert

Russian-Turkish relations are in large part based on the personal chemistry, affinity, and trust between Presidents Vladimir Putin and Recep Tayyip Erdoğan. Russia’s invasion of Ukraine has put these personal ties to the test. While President Erdoğan also maintains a close working relationship with Ukrainian President Volodymyr Zelenskyy and Turkish-Ukrainian military ties are strong, it has become clear that Erdoğan is not willing to sacrifice relations with Putin for Zelenskyy’s sake. Moreover, Erdoğan’s efforts to mediate between the two leaders have been either rebuffed or ignored by Putin. As Russia’s war in Ukraine continues, where things go from here is far from certain, but it is worth considering the range of possibilities. READ MORE.

• EGF Editor  |  Published on EGF: 01.06.2022  |  External Relations
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