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Energy Security Dilemma at the Post-Soviet Space – Caucasus-Caspian Region Case-Study

 Energy Security Dilemma at the Post-Soviet Space – Caucasus-Caspian Region Case-Study


Mirosaw Sowakiewicz

Vakhtang Maisaia


1.      Introduction

After the collapse of the Soviet Union in 1991, the existing international order underwent fundamental changes. The post-Soviet space has become a place of struggle for political and economic influence of several players; Russia, the West and China. Among the main subjects of the game were energy resources, around which political conflicts arose, related to access to them and issues related to the course of transmission routes (crude oil, natural gas). In the theory of international relations, natural resources are considered the second (after space) source of state power. It is assumed that countries rich in energy resources are superior to countries that do not have them[1]. Thus, the collapse of the Soviet Union gave rise to a new 'big game' around the significant reserves of oil and natural gas in the Caucasus-Caspian region.

            The collapse of the Soviet Union was a new beginning not only for the countries of Central and Eastern Europe, but also for the region of the Caspian Sea and the Caucasus. Once defined by the Soviets as the area of five union republics: Georgia SSR, Armenia SSR, Azerbaijan SSR, Turkmenistan SSR and Kazakhstan SSR. The reign of the authorities from the Kremlin over these areas ended in 1991. Independence was first announced by the Republic of Georgia, which took place on April 9. Then, on September 21, the Republic of Armenia was established, on October 18, the Republic of Azerbaijan, on October 27, the Republic of Turkmenistan, and finally, on December 16, the Republic of Kazakhstan was born.

At the beginning of the 1990s, Russia focused on internal problems, did not have a developed strategy towards the region of the Caspian Sea, rich in energy resources. Incapable of significant investment in the exploitation of the Caspian deposits, Moscow has opted for a policy of 'containment'. Since Russian energy companies were too weak to play a decisive role in this region, it was necessary to block or hinder the implementation of projects carried out by Western corporations[2]. In a situation where Russia was not an attractive partner capable of offering adequate economic assistance, countries with a raw material economy model (e.g., Kazakhstan, Azerbaijan) adopted a policy of opening up to Western energy concerns. In those conditions, no one else was able to provide adequate financial, technical and political support.

            Natural gas and crude oil are currently the most important commodities that the Caspian region can offer to the world. The problem, however, is the location of the deposits, as the countries mentioned do not have direct access to maritime trade routes, with the exception of Georgia, which has access to the Black Sea. Therefore, the export of the indicated energy resources depends on costly investments in land infrastructure. Hence, the weakness of Azerbaijan, Turkmenistan and Kazkhstan, which have the discussed resources, is their vulnerability to political and economic pressure from the great international players surrounding the Caspian Sea region. This was particularly visible before 2009, when the entire export of natural gas and crude oil could take place only through the Russian infrastructure, which was the result of the decisions of the authorities in the Kremlin, which were made during the Soviet era. Thus, natural gas and crude oil from the countries around the Caspian Sea could reach Europe only with the political consent of Moscow.[3]

The situation began to change in 2009, when the oil pipeline from Kazakhstan to China was built, as well as the first branch of the Central Asia-China gas pipeline. This second project, connecting Turkmenistan, Uzbekistan, Kazakhstan and in the future Tajikistan with China, may turn out to be the most important investment in the entire history of the region. Thanks to the new pipeline connections, Caspian natural gas and oil began to flow in a wide stream to the People's Republic of China and Turkey, which is already happening without the mediation of the Russian Federation.

It is worth noting that the European Union has recently joined the game for Caspian energy resources, which was caused by the aggression of the Russian Federation against Ukraine on February 24, 2022. However, contrary to the original plans, the gas pipeline thread that is to run along the bottom of the Caspian Sea and connect Turkmen resources with Baku in Azerbaijan (Trans-Caspian gas pipeline) was never established, although in the longer term it would allow for the transfer of gas to Europe and the acquisition of an excellent alternative to supplies of Russian gas. This project failed due to the decision of the authorities of the Federal Republic of Germany to withdraw from it, which was caused by the construction of the Nord Stream II gas pipeline. However, on October 1, 2022, a new Greece-Bulgaria Interconnector (GB) gas pipeline has been inaugurated at a ceremony in Sofia, with Azerbaijan President Ilhan Aliyev along with leaders from the European Union and several of Bulgaria’s neighbours i.e., Serbia, North Macedonia and Romania[4]. This pipeline may turn out to be a game changer for Bulgaria and for Europe’s energy security and it will likely lead to freedom from dependency on Russian gas.

Apart from economic and energy problems in Europe due to the war in Ukraine, similar obstacles can be faced by the Caucasus-Caspian countries, and in particular the rivalry between China, Russia, the United States and Turkey related to access to energy resources in this the Caspian region.

 

2.      Reserves and geopolitics around it

In order to become aware of the problem of energy security in the Caucasus-Caspian region and the competition for this region, one should first pay attention to the data on energy resources.

Turkmenistan is rich in oil and especially natural gas resources. According to official figures, Turkmenistan’s resource base is approximately 71.64 billion tons of oil equivalent, including 53 billion tons located in onshore fields and 18.21 billion tons in the Caspian Sea. The 2021 British Petroleum (BP) Statistical Review of World Energy indicates that Turkmenistan, as of the end of 2020, had 600 million barrels of proven oil reserves and 19.5 trillion cubic metres in proven reserves of natural gas. According to the same report, Turkmenistan produced 59.0 bcm of natural gas in 2020; of that, Turkmenistan consumed 31.3 bcm domestically and exported 27.7 bcm to China. Oil production in 2020 reached 216,000 barrels per day. Turkmenistan consumes roughly 60 percent of its oil production domestically and exports the remainder over the Caspian Sea to world markets. The Turkmenbashy Complex of Oil Refineries and the gas-to-gasoline plant in Ahal province produce liquefied petroleum gas (LPG), though no official data on production is available. Exploration and development of oil and natural gas fields, especially Galkynysh (formely South Yoloten), Osman, Minara, Tagtabazar-1, Caspian Sea offshore blocks, and mainly Dostluq field, and the Central Karakum group of fields are the most important Turkemnistan’s oil and gas reserves[5]. For example, the Galkynysh field, which is the second largest discovered gas field on Earth (after South Parsi on the border between Iran and Qatar)[6], has such large reserves (estimated reserves of between 4 and 14 trillion cubic metres)[7] that the existing production and transmission infrastructure is insufficient to exploit this potential and increase exports. To change this, Ashgabat decision-makers decided to attract foreign investors in order to increase the exploration capacity. For example, in June 2019, President Gurbanguly Berdymukhamedov opened the world’s only natural gas-to-gasoline plant in Ovadan-Depe settlement, near the capital of Turkmenistan, where gas will be processed. Gasoline, purified diesel fuel and liquefied gas will be produced there[8].

In turn, thanks to the Central Asia - China pipeline, Turkmenistan in 2015 became the largest supplier of gas to China. Back in 2006, the Russian state-owned company GAZPROM received 2/3 of Turkmenistan's natural gas. This state of affairs lasted until 2009, when the Chinese joined the game for the regional energy market. Interestingly, this was due to the fact that the Kremlin authorities took advantage of the region's complete dependence on the Russian transmission infrastructure, which allowed them to impose low purchase prices for Turkmen gas, which the Russian Federation then sold at a considerable commission on European markets. Then, in 2016, the Russians completely stopped the purchase of gas from the Turkmen. The related crisis forced the Ashgabat authorities in 2018 to stop free supplies of natural gas, electricity and water to the inhabitants of the Caspian country. Russia's actions certainly contributed to obtaining more favourable conditions for itself in the new five-year contract for the import of Turkmen gas, which was finally signed in July 2019[9]. However, once again Moscow turned out to be a difficult partner for cooperation, and therefore the Ashgabat government is open to developing economic and political relations in other directions.

Turkmenistan also has oil resources located on the coast of the Caspian Sea, the daily production of which reaches 216 thousand tonnes barrels/day. The 2021 British Petroleum Statistical Review of World Energy indicates that Turkmenistan, as of the end of 2020, had 600 million barrels of proven oil reserves[10]. The country's internal demand for crude oil is roughly 60 % of its oil production which is provided by the state-owned company Turkmenneft and the remainder is exported over the Caspian Sea to world markets. Oil processing for the needs of Turkmenistan is handled by two state-owned refineries, Seidi and Turkmenbashi. The remaining part of extraction is carried out by foreign companies.

The second major producer and exporter of energy resources in the Caspian region is the Republic of Kazakhstan. The sale of natural gas and crude oil is Kazakhstan's most profitable export sector (over 45% of the value of all domestic exports)[11]. As in the case of Turkmenistan, the main oil and gas resources are located in the west of the country, on the coast of the Caspian Sea. Kzakh oil reserves are estimated at about 1.4 billion tons, which is from 1.2% to 2.5% of the world's reserves. In December 2021, daily crude oil production in Kazakhstan was 1.48 million barrels[12]. The internal demand for oil was then over 350,000. barrels/day. In 2021, Kazakhstan was the fifteenth largest oil exporter in the world[13].

In 2013, the Kazakhs sold over 11 million tons of oil to the Chinese. However, in 2018 this level fell to just 1.3 million tonnes[14]. The reason was that the giant oil fields, i.e. Kashagan, Tengiz and Karachaganak are mainly exploited by Western petroleum companies. Therefore, a large part of the oil is pumped to Europe via the Russian network[15]. However, in July 2022 a Russian court threatened to shut the Caspian Pipeline Consortium’s pipeline, which for 20 years shipped oil to Russia’s Black Sea port of Novorossiysk[16]. This action prompted the Kazakh government and major foreign producers to set up contracts for other outlets as a precaution. Therefore, Kazakhstan’s state oil firm Kazmunaigaz (KMG) discussed with the trading arm of Azerbaijan’s state firm SOCAR to allow 1.5 million tonnes per year of Kazakh crude to be sold through the Azeri pipeline that delivers oil to Turkey’s Mediterranean port of Ceyhan (Baku-Tbilisi-Ceyhan pipeline, BTC). Another 3.5 million tonnes per year of Kazakh crude oil will start flowing in 2023 through another Azeri pipeline to Georgia’s Black Sea port of Supsa. Relying on Azerbaijan would allow Kazakhstan to side-step Russian territory. Moreover, BP Azerbaijan will redirect flows away from the Baku-Supsa pipeline to the larger BTC pipeline. The new BTC route means Kazakhstan will have to rely on a fleet of small tankers to take its oil across the Caspian Sea to Baku from it port at Aktau that has limited spare capacity.

Kazakh natural gas proven reserves have been estimated at 3 trillion cubic metres and projected reserves at 5 trillion cubic metres[17]. The country also expects a lot of oil-associated gas that will bring 1,000 cubic meters of gas for every new tonne of oil (100 million tonnes of new oil will lead to 100 billion cubic metres of gas). Natural gas production is utilized for well re-injection, exports and to meet domestic consumption (liquefaction and development of internal gas pipeline infrastructure). The country’s gas output - which is mostly associated gas - is forecast to continue an upward trend, reaching 29.6 bcm in 2027. Gas reserves are mainly located in the Karachaganak, Tengiz and Kashagan deposits. Annual gas production in 2021 was 29.4 billion m3[18].

            Kazakhstan is also 10th in terms of coal production (106 Mt in 2021[19]), and in 2021 it was ranked 10th in the world in terms of the value of its exports[20]. The size of coal reserves in this country is estimated at over 28 billion tons, which is nearly 2.5% of world reserves (10th place globally)[21]. However, it should be emphasized that the consumption of black gold in Kazakhstan is extremely high and amounted to 1.56 exajoules in in 2021, the same figure reported one year earlier[22].

            The third key player in the Caspian-Caucuses is Azerbaijan. This country is rich in oil and natural gas resources. In January 2021, its proved oil reserves were estimated at 7 billion barrels accounted for 0.4% of global reserves[23]. Oil is produced both onshore and offshore in the Caspian Sea. The Azeri-Chirag-Deepwater Gunashli (ACG) field, located about 100 km east of Baku, is the largest oilfield in the Azerbaijan sector of the Caspian Basin. Azerbaijan has three crude oil export pipelines. About 80 % of the country’s oil is exported through the BTC pipeline, which began operations in 2006 and has a capacity of 1.2 million barrels per day. It transports crude oil produced at the ACG field as well as condensate produced at Shah Deniz from the Sangachal terminal near Baku through Georgia to the Mediterranean port of Ceyhan in Turkey; from the oil is shipped by tanker to world markets. The BTC pipeline also transports some Turkmen and Kazak oil[24]. Another pipeline, the Baku-Novorossiysk pipeline runs from the Sangachal terminal on the Caspian Sea to the Novorossiysk terminal on the Black Sea in Russia. It has a capacity of 105000 barrels per day and has been operating since 1996. The state-owned SOCAR operates the Azerbaijani section and Transneft operates the Russian section. Despite proposals to increase the pipeline’s capacity which would be a key transportation addition as production expands in the Caspian Sea, operation of the pipeline was halted in 2014 and resumed in 2015 at lower loading levels. In October 2020, the pipeline was the target of armed attacks by Armenian forces due to the occupied Nagorno-Karabakh region of Azerbaijan[25][26]. In January 2021, a deal was signed between SOCAR and Transnieft to transport over 1 million tonnes of oil through the pipeline but from January to February, 2021, no oil passed through the pipeline (rerouted via Turkey instead)[27]. The Baku-Supsa pipeline transports crude oil from offshore oilfields in the Caspian Sea to Supsa, Georgia, on the Black sea where it continues to European markets via tankers. It has been in operation since 1999 and has a capacity of 145000 barrels per day.

            In addition, Azerbaijan has significant natural gas reserves. In 2007, it became a net exporter of natural gas with the start-up of the huge Shah Deniz natural gas and condensate field; before then it imported gas from Russia. The country has two main gas export pipelines. The largest is the South Caucauses Pipepline (SCP) that transported gas from the Shah Deniz field through Georgia to Turkey parallel to the BTC crude oil pipeline. It has a capacity of 7 bcm. The second export pipeline is the Hajigabul-Shirvanovka-Mozdok, which transported natural gas from Russia to Azerbaijan until 2007 when an agreement between SOCAR and Gazprom allowed the pipeline’s flow to be reversed, and gas exports to Russian began in 2010. The country’s production of 10.3 bcm per year became sufficient to meet its internatl demand of 8.3 bcm. Azerbajian’s Shah Deniz field, which is considered one of the world’s largest gas-condensate fields located on the deepwater shelf of the Caspian Sea, is producing approximately 9 bcm per year. Since its launch in 2006, Shah Deniz has supplied over 96 bcm of gas through the South Caucasus Pipeline and via the Southern Gas Corridor (SGC) mega pipeline since 2018 to Turkey and Europe. SGC consists of the Shah Deniz-II project and three pipelines which traverse six countries including Azerbaijan, Georgia, Turkey, Greece, Albania and Italy. The expanded South Caucasus Pipeline (SCP) is the first segment of SGC connecting Azerbaijan, Georgia and Turkey. Shah Deniz field pumps 16 bcm of gas to Turkey and the European Union annually. According to Azerbaijan’s Energy Minister Parviz Shahbazov the country has 2.6 trillion cubic metres of proven gas reserves, which could be supplied to foreign markets. Azerbaijan is expected to start operating its biggest gas condensate field ‘Absheron’, but also Babak and Umid gasfields[28]. Shah Deniz II and the SCP pipeline are key parts of the SGC infrastructure project to deliver Caspian gas to the EU. The other parts are the Trans-Anatolian Pipeline (TANAP) crossing Turkey to Greece and the Trans-Adriatic Pipeline (TAP) from Greece via Albania to Italy.

            Due to the war in Ukraine, Azerbaijan started benefiting from the EU’s pivot away from Russian energy, boosting oil transit shipments and enjoying high prices for its own crude oil, according to S&P Global Commodity Insights. After the EU agreed on May 30, 2022, to ban Russian oil imports by sea, Azerbaijan may serve as an alternative supplier of oil and gas[29]. However, it quickly turned out that Azerbaijan was unable to increase output due to the lack of spare capacity at ACG (Azeri-Chirag-Gunashli complex of oil fields in the Caspian Sea). In longer term, if these issues were resolved, production from new fields could lift Azerbaijan’s oil production.

            The last two countries located in the Caspian- Caucasus region, Armenia and Georgia, do not have significant oil and gas reserves. Gerogia’s 65 % primary energy supply is from external sources[30]. This country is situated on major energy transmission lines and hence is geopolitically important. Pipelines such as South Caucasus Pipeline (SCP) connects Caspian Shah Deniz gas field to Turkey, the BTC oil pipeline connects offshore oil fields in the Caspian area to the Turkish coast and European markets, and Western Route Export Pipeline Baku-Supsa (WREP) supplies Azeri oil. North-South gas pipeline exports Russian gas to Armenia. Importantly, 60 % of Georgia’s current domestic gas demand is provided from gas transit fees from SCP and North-South gas pipelines.

            Russian-Georgian war in 2008 resulted in energy crisis in Georgia and since then there has been a significant improvement in energy security. The country signed an agreement with SOCAR to supply gas from the Shahdeniz gas field and the portion of Russian gas is now limited to in-kind fee for transit to Armenia. However, Georgia still faces electricity problems because Russia occupies 20 % of Georgian territory where the power house and switchyard supplying electricity to Georgia are located there. Therefore, Georgia needs to develop internal energy resources and diversify energy supplies in the future. Turkey is considered as most promising market for Georgian electricity but also rehabilitation of existing interconnections with Armenia and Azerbaijan can open up new possibilities. Georgia also has own brown coal deposits which can be used in power sector for security and economic development reasons. In addition, exploration of shale gas and construction of gas storage facilities will certainly add to the Georgian energy stability. In October 2022, General Director of the state-owned Georgian Oil and Gas Corporation (GOGS) stated the interest of Georgia in natural gas supplies from Turkmenistan[31] and such a preliminary agreement has been reached on deliveries of Turkmen natural gas and oil to Georgia[32]. This clearly shows that Georgia seeks alternative energy suppliers to become fully independent from the Russian supplies.

            Armenia has no proven reserves of natural gas and oil, and hard coal deposits are estimated at 154 Mt with further potential of 317 Mt[33]. There are six coalfields and some shale oil deposits but the economic viability of mining these deposits has not been determined. However, given its more than 400 mostly small, steep mountain rivers of at least 10 km in length, Armenia’s small hydropower potential is significant. Energy security in Armenia has greatly improved since the gas and power supply crisis in the early to mid-1990’s. Since then, increased natural gas heating, investment in new generation capacity and the network, and improved operational management have restored a consistent and uninterrupted supply of electricity and gas[34]. The gas transmission network comprises 1682 km of pipelines, A soviet-era connection with Russia through Georgia, and a 2.3 bcm connection with Iran built in 2009 to barter gas imports for electricity. Since 2007 Gazprom Armenia increased consumer access to gas, boosting the connection rate from 20% in 2002 to 96.4% in 2019. It also rehabilitated the Abovyan underground gas storage capacity and invested in a new gas unit at the Hrazdan-5 power station. As it can be seen, because of its proximity to Russia, Armenia is an exception in the South Caucasus, where Azerbaijan and Georgia have kept their distance from Moscow since their independence. However, in recent years, Armenia has been diversifying its partnerships and looking particularly to the West[35]. The economy is a source of rivalry between powers in the South Caucasus. While Russia remains a crucial player in Armenia, the latter has initiated an apparent rapprochement with the European Union. Armenia also finds support from its neighbours, Iran and Georgia. Iran’s share in Armenia’s trade is increasing and in 2020 Iran became the 3rd largest supplier country for Armenia, just after Russia and China. Moreover, Armenia intends to construct a railroad and an oil pipeline between Tabriz in Iran and Yeraskh in Armenia[36]. Georgia arouses Armenia’s suspicions because its cooperates with Turkey and Azerbaijan. Yet, Tbilisi retains its place as a stable partner with which several agreements link Yerevan. Georgia is a commercial outlet for Armenia because it also provides it with almost 90% of its Internet network. However, the 44-day war between Armenia and Azerbaijan was a turning point in the region, with the silence of the major Western powers leaving the field open to the Russian and Turkish authorities. Armenia’s destiny, therefore, seems destined to remained tied to Russian power. However, the economic growth and the multidirectional diplomatic activity developed by Yerevan suggest that Armenia is seeking to balance its foreign relations[37]. This is also reflected in Armenia’s neutrality to the Russo-Ukrainian war. This is despite the fact that it is facing an extremely fragile situation both militarily and strategically. Whilst the country is still effectively at war with Azerbaijan, Russia remains its only strategic partner and is supposed to help against security threats[38].

3.      Summary

The Caucasus-Caspian region is a huge storage of raw materials. In a multipolar world, there is no single 'guardian of order' and regional powers (Russia, China) strive for expansion and seizing nearby buffer areas into their spheres of influence. In such conditions, the states of the Caucasus-Caspian region do not seem to be able to maintain the current level of independence. Strong divisions are still visible along the lines Uzbekistan-Tajikistan (the water dispute), Armenia-Azerbaijan (territorial dispute) and Georgia-Abkhazia-South Ossetia-(Russia) (territorial dispute). All countries in the region compete with each other in the export of gas, cotton, agricultural products and mineral resources. In this regard, it is worth mentioning the unexpected appearance of a new actor, particularly on the Armenian scene, Turkey, a historical enemy of Armenia and a traditional ally of Azerbaijan. Turkey would like to implement of communication routes, especially the corridors linking it to the Azerbaijani enclave of Nakhchivan and opening up access to the Caspian. For Armenia, the objectives lie in recognizing the Armenian genocide and opening the border. Nevertheless, if the current international order collapses completely, then one of the neighbours will reach for Caspian resources. The Russian Federation has easier access to Caspian energy deposits. Yet, even if the authorities from Moscow managed to achieve the goal of controlling the Caspian-Caucasian region, the lifting of the entire region would be extremely difficult, because this region is beginning to be economically dependent on the People's Republic of China and Turkey.

Finally, Iran, despite the appropriate potential due to the fight for its own buffer zones in the Middle East, is not interested in fighting for influence in the Caspian-Caucasian region. Such a fight would have to be fought against much more powerful allies and partners, namely Russia and China.

 

References

Mingst, K., 2018. Essentials of international relations. 8th ed, W.W. Norton & Company, 544 p.

Wojczal, K., 2020. Surowce energetyczne a nadchodzące zmiany w architekturze bezpieczeństwa Azji Centralnej. ZonaZero, Warszawa, 426-458.

Wyciszkiewicz, E. (ed), 2008. Geopolityka rurociągów. Współzależność energetyczna a stosunki międzypaństwowe na obszarze postsowieckim. Warszawa, 186 p.

 

 



[1] Mingst, K., 2018. Essentials of international relations. 8th ed, W.W. Norton & Company, p. 125.

[2] Wyciszkiewicz, E. (ed.), 2008. Geopolityka rurociągów. Współzależność energetyczna a stosunki międzypaństwowe na obszarze postsowieckim. Warszawa, p. 150-151.

[3] Wojczal, K., 2020. Surowce energetyczne a nadchodzące zmiany w architekturze bezpieczeństwa Azji Centralnej. ZonaZero, Warszawa, p. 427.

[4] O’Byrne, D., 2022. The new route could allow more Caspian has to be exported to Europe, but can Azerbaijan produce enough to make a difference?: https://eurasianet.org/azerbaijan-opens-new-gas-pipeline-to-bulgaria

[5] http://www.oilgas.gov.tm/en/

[6] https://www.economist.com/asia/2013/09/14/rising-china-sinking-russia

[7] Chazan, G., 2008. Turkmenistan gas field is one of world’s largest.: https://www.wsj.com/articles/SB122409510811337137

[8] https://neftegazru.com/news/electric-power-industry/456366-world-s-1st-gas-to-gasoline-plant-officially-opened-in-turkmenistan/

[9] Kędzierska, J., 2019. Gazprom podpisał pięcioletnią umowę na import turkmeńskiego gazu.: https://biznesalert.pl/gazprom-turkmenistan-gaz-energetyka/

[10] Turkmenistan – Country commercial guide: https://www.trade.gov/country-commercial-guides/turkmenistan-oil-gas#:~:text=2022%2D08%2D08-,Overview,tons%20in%20the%20Caspian%20Sea.

[11] Workman, D., 2022. Kazakhstan’s top 10 exports.: https://www.worldstopexports.com/kazakhstans-top-10-exports/

[12] Kazachstan crude oil: production.: https://www.ceicdata.com/en/indicator/kazakhstan/crude-oil-production

[13] Workman, D., 2022. Crude oil exports by country.: https://www.worldstopexports.com/worlds-top-oil-exports-country/

[14] Paraskova, T., 2019. Kazakhstan looks to boost crude oil exports to China.: https://oilprice.com/Latest-Energy-News/World-News/Kazakhstan-Looks-To-Boost-Crude-Oil-Exports-To-China.html

[15] Kazakhstan: https://www.eia.gov/international/analysis/country/kaz/background

[16] Kazakhstan to start oil sales via Azeri pipeline to bypass Russia.: https://www.euractiv.com/section/central-asia/news/kazakhstan-to-start-oil-sales-via-azeri-pipeline-to-bypass-russia/

[17] Kazakhstan – Oil & gas.: https://www.trade.gov/energy-resource-guide-oil-and-gas-kazakhstan

[18] Kazakhstan natural gaz production: OPEC: Marketed production: https://www.ceicdata.com/en/indicator/kazakhstan/natural-gas-production-opec-marketed-production

[19] Coal and lignite production.: https://yearbook.enerdata.net/coal-lignite/coal-production-data.html

[20] Workman, D., 2022. Coal exports by country.: https://www.worldstopexports.com/coal-exports-country/

[21] Kazakhstan Coal.: https://www.worldometers.info/coal/kazakhstan-coal/

[22] Coal consumption in Kazakhstan from 2000 to 2021: https://www.statista.com/statistics/265486/coal-consumption-in-kazakhstan-in-oil-equivalent/

[23] Oil & Gas Journal, December 7, 2020, "Worldwide Look at Reserves and Production," p. 16.

[24] https://www.bp.com/en_az/azerbaijan/home.html

[25] https://www.argusmedia.com/en/news/2151383-azerbaijan-claims-new-pipeline-attack-thwarted

[26] https://caspiannews.com/news-detail/armenia-keeps-targeting-strategic-azerbaijans-sites-far-from-conflict-zone-2020-10-21-0/

[27] Lmahamad, A., 2022. SOCAR boosts oil transportation via Baku-Novorossiysk.: https://www.azernews.az/oil_and_gas/187685.html

[28] Mammadli, M., 2022. Azerbaijan reveals volume of gas produced at Shah Deniz since 2006.: https://caspiannews.com/news-detail/azerbaijan-reveals-volume-of-gas-produced-at-shah-deniz-since-2006-2022-4-18-0/

[29] https://www.hellenicshippingnews.com/russia-ukraine-war-boosts-azeri-crude-transit-but-production-is-limping-along/

[30] http://weg.ge/sites/default/files/energy_security_georgia_perspective.pdf

[31] Georgia interested in natural gas supplies from Turkmenistan.: https://business.com.tm/post/9351/georgia-interested-in-natural-gas-supplies-from-turkmenistan

[32] Preliminary agreement reached on supplying Turkmen energy resources to Georgia.: https://business.com.tm/post/9313/preliminary-agreement-reached-on-supplying-turkmen-energy-resources-to-georgia

[33] https://www.bgr.bund.de/EN/Themen/Energie/Downloads/energiestudie_2013_en.pdf?__blob=publicationFile&v=2

[34] https://www.iea.org/reports/armenia-energy-profile/energy-security

[35] Lorgeoux, M,. 2022. Armenia: what degree of dependence on Russia.: https://regard-est.com/armenia-what-degree-of-dependence-on-russia

[36] https://armenpress.am/eng/news/591758/iran-and-armenia-agree-on-constructing-an-oil-pipeline.html

[37] Hemar, M., 2019. Presque 30 ans après son indépendance, où en est l’économie arménienne?: https://www.afd.fr/fr/ressources/presque-30-ans-apres-son-independance-ou-en-est-leconomie-armenienne

[38] Hovhannisyan, T., 2022. Why Armenia is neutral on the war in Ukraine.: https://neweasterneurope.eu/2022/04/12/why-armenia-is-neutral-on-the-war-in-ukraine/

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Nika Chitadze Affiliated Prof. Dr., Faculty of Social Sciences, International Black Sea University. Director of the Center for International Studies President of the George C. Marshall Alumni Union, Georgia – International and Security Research Center Tbilisi, Georgia Introduction Environment and its such resources, as water, air, always were the necessary conditions for the human`s life and activities. But, during the many centuries of the history of mankind, environment was not represented the problem neither for the humanity, nor for its further sustainable development. Environment and natural resources were offering the satisfaction the needs of those people, who lived in the concrete period of the world history without causing the damage to the next generations. At the second half of the XX Century, the topic related to the environmental protection was included to the agenda, including the political aspects, because of the fact, that as a result