By Benyamin POGHOSYAN, PhD, Chairman, Center for Political and Economic Strategic Studies

Since the start of the Ukraine war in February 2022, discussions have been underway about the impact of the war on the evolving global order. The transformation of the world order is a very complicated and multi-layered process, and history tells us that it takes decades and is often accompanied by bloody conflicts between great powers. In the last decade, there were several prevailing predictions of the world order – a new bipolar world dominated by the US and China, a multipolar world with several equal players such as the US, China, Russia, India and the EU, and a nonpolar world characterized by constant conflicts and instability. READ MORE

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

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.

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

Joint Armenian-Azerbaijani Liaison Group on confidence-building measures

The Joint Armenian-Azerbaijani Liaison Group on confidence-building measures in support of lasting peace in the South Caucasus has published its report in which it proposes 30 short, medium and long term measures in support of ongoing efforts to establish peace in the region. On Wednesday, 6 April, members of the Working Group, presented their report to the EU Special Representative for the South Caucasus, Toivo Klaar, and other EU officials at a special briefing in Brussels. In their report, published on the eve of the meeting between the leaders of Armenia and Azerbaijan and the president of the European Union in Brussels on 6 April, the group says that "all the ingredients for peace exist in the South Caucasus. All the ingredients for war exist too. What is in front of us is a choice". The group says that the proposed measures are a building block in the quest for peace but if the ideas being proposed are implemented the objective of building a peaceful, secure and prosperous South Caucasus will be much closer to being achieved. It was now necessary that all concerned should put effort into turning the thirty measures being proposed in the report into tangible action.
The work of the Joint Liaison Group was co-ordinated and facilitated by LINKS Europe - an independent foundation based in The Hague, The Netherlands - in the framework of the European Union's EU4Peace initiative. READ MORE

by Dr Jack Sharples (Oxford Institute for Energy Studies and EGF Associate Researcher)
Mike Fulwood (Oxford Institute for Energy Studies)
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We analyse the drivers behind ongoing price rally and offer an outlook for the coming winter. On the global LNG market, unexpected outages meant that growth in supply simply did not keep pace with the increase in demand. Given its role as the ‘balancing market’, European LNG imports declined. This combined with declines in European production and pipeline imports to open a supply gap that could only be met by withdrawals from storage. We conclude that with gas markets noticeably tighter, the ongoing price rally is driven by fundamentals, with an added ‘fear premium’ that the forthcoming winter could be as cold as that in 2020/21. If that proves to be the case, the current price levels will persist, and even rise, while a milder winter could see the market turn slightly more bearish. READ MORE.

By Eugene Kogan, Tbilisi-based defence and security expert

Undoubtedly, the Russian annexation of Crimea in March 2014 caused serious damage to the Ukrainian Naval Forces. About 70 per cent of the fleet has been lost and what remained is in poor shape and in need of repairs.
The resulting conflict in the Eastern part of Ukraine drew attention, energy and resources away from the difficult state of the Ukrainian Navy towards the urgent needs of the army and air force. The perilous state of the economy has further decreased financial support for the Navy’s needs. In addition, a debate on the conceptual vision of the Navy divided the expert community and top naval personnel for about 15 months. READ MORE

By Fuad Shahbazov, Baku-based independent regional security and defence analyst

President Donald Trump’s announcement at the end of 2018 that he would withdraw U.S. troops from Syria came as a surprise to all parties involved, sparking particular concerns among America’s Syrian Kurdish allies. The move followed President Trump’s declaration of victory over ISIS after a four-year military campaign fighting alongside Syrian Kurdish forces. This sudden and unexpected decision has been widely criticized not only by allies but also inside the White House, with many analysts arguing that the U.S. withdrawal will expose the Syrian Kurds to an attack by Turkey READ MORE