78
The US and EU sanctions against the Iranian energy sector have alleviated over
the last year, which, in turn, has encouraged Iran to announce its readiness to provide natural gas to Europe. Iran’s provision of gas to Europe functions as a potential
alternative in the process of diversifying the European energy sector and meets
Iran’s attempts to attract more foreign companies into its energy sector. However,
unstable conditions in the Middle East, particularly in Iraq and Syria, have increased
the interest directed toward the EU-proposed Southern Gas Corridor, which runs
from Iran, through Turkey, to the EU market (www.naturalgaseurope.com 2016).
The most logical route for Iranian gas is through Turkey. It is worth noticing that
currently Turkey is the sole importer of Iranian gas. If sanctions were to be alleviated and foreign companies could invest in Iran’s energy sector, the country could
start providing Turkey and Europe with 10–20 bcm of natural gas by the early 2020s
(www.hurriyetdailynews.com 2016a, b).
The EU’s dependence on Russian natural gas and Gazprom’s monopoly of the
EU natural gas market is the main factor prompting its interest in the Caspian Sea
(Bluth 2014:65). (EU65) EU political engagements with Central Asia, the Caspian
Sea, and the Caucasus have been formalized through Political Cooperation
Agreements (PCA) (www.europe.eu 2017). As mentioned on the EU’s official website, Central Asia is of geostrategic importance, acting as a bridge to Afghanistan,
China, and the Middle East. Central Asia is a source of important oil and gas imports
for the European Market. At present, the EU is a trading partner and is planning to
increase its trade volume with a number of states in the region. Yet, as of 2017, the
total turnover of the EU’s trade with Central Asia remains relatively low.
• Central Asian exports to the EU remain concentrated in a few commodities,
especially crude oil, gas, metals, and cotton fiber.
• EU exports are dominated by machinery and transport equipment, and other
manufactured goods. Such products account for more than half of EU exports in
the region. (www.europe.eu 2017)
EU Security and Defence Policy came into effect with the appointment of Jan
Kubis (former Foreign Minister of Slovakia and Secretary General of the OSCE) as
the European Union Special Representative in July 2005. The Mandate pledges to:
Follow political developments in Central Asia by developing and maintaining close contacts with governments, parliaments, the judiciary, civil society and mass media, encourage
countries to cooperate on the regional issues of common interested actors in the region,
contribute in close cooperation with the OSCE, and conflict prevention and resolution by
developing contacts with the authorities and other local actors…, assist the Council in further developing a comprehensive policy toward Central Asia. (Bluth 2014:66)
Both the EU and US have mutual policy objectives toward the Caspian Sea, both
recognizing the importance of the region’s oil and natural gas resources in contributing to energy security, economic prosperity, and the stability of the Caspian Sea
States. They share similar views, such as that (Babali 2006:155):
• resources will be an important addition to world oil and gas supplies and needs
to secure access to the world energy market.
3 International Context of the New Era and the Caspian Sea Region
The US and EU sanctions against the Iranian energy sector have alleviated over
the last year, which, in turn, has encouraged Iran to announce its readiness to provide natural gas to Europe. Iran’s provision of gas to Europe functions as a potential
alternative in the process of diversifying the European energy sector and meets
Iran’s attempts to attract more foreign companies into its energy sector. However,
unstable conditions in the Middle East, particularly in Iraq and Syria, have increased
the interest directed toward the EU-proposed Southern Gas Corridor, which runs
from Iran, through Turkey, to the EU market (www.naturalgaseurope.com 2016).
The most logical route for Iranian gas is through Turkey. It is worth noticing that
currently Turkey is the sole importer of Iranian gas. If sanctions were to be alleviated and foreign companies could invest in Iran’s energy sector, the country could
start providing Turkey and Europe with 10–20 bcm of natural gas by the early 2020s
(www.hurriyetdailynews.com 2016a, b).
The EU’s dependence on Russian natural gas and Gazprom’s monopoly of the
EU natural gas market is the main factor prompting its interest in the Caspian Sea
(Bluth 2014:65). (EU65) EU political engagements with Central Asia, the Caspian
Sea, and the Caucasus have been formalized through Political Cooperation
Agreements (PCA) (www.europe.eu 2017). As mentioned on the EU’s official website, Central Asia is of geostrategic importance, acting as a bridge to Afghanistan,
China, and the Middle East. Central Asia is a source of important oil and gas imports
for the European Market. At present, the EU is a trading partner and is planning to
increase its trade volume with a number of states in the region. Yet, as of 2017, the
total turnover of the EU’s trade with Central Asia remains relatively low.
• Central Asian exports to the EU remain concentrated in a few commodities,
especially crude oil, gas, metals, and cotton fiber.
• EU exports are dominated by machinery and transport equipment, and other
manufactured goods. Such products account for more than half of EU exports in
the region. (www.europe.eu 2017)
EU Security and Defence Policy came into effect with the appointment of Jan
Kubis (former Foreign Minister of Slovakia and Secretary General of the OSCE) as
the European Union Special Representative in July 2005. The Mandate pledges to:
Follow political developments in Central Asia by developing and maintaining close contacts with governments, parliaments, the judiciary, civil society and mass media, encourage
countries to cooperate on the regional issues of common interested actors in the region,
contribute in close cooperation with the OSCE, and conflict prevention and resolution by
developing contacts with the authorities and other local actors…, assist the Council in further developing a comprehensive policy toward Central Asia. (Bluth 2014:66)
Both the EU and US have mutual policy objectives toward the Caspian Sea, both
recognizing the importance of the region’s oil and natural gas resources in contributing to energy security, economic prosperity, and the stability of the Caspian Sea
States. They share similar views, such as that (Babali 2006:155):
• resources will be an important addition to world oil and gas supplies and needs
to secure access to the world energy market.
3 International Context of the New Era and the Caspian Sea Region