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EU Limitations in the Caspian Sea
With the EU paying more attention to the diversification of energy resources, the
Caspian Sea presents itself as an ideal alternative to Russia. However, for this potential to be realized, and for the EU to really become a key player in the region, it must
do so with limited financial resources. The EU requires a strategic angle when compared with Russia and China, who not only share immediate borders with the
regional states but also have made remarkably greater financial commitments
(Denoon 2015:217). The total budget which EU has been allocated for the Central
Asia region from 2007 to 2013 under the Development Cooperation Instrument
(DCI) program was 675 million Euros, while China and Russia have invested, and
pledged to invest further billions of Euro into the same region (Denoon 2015:217).
The EU is promoting sustainable development, stability, and security in all five
countries in Central Asia. It is also encouraging closer regional cooperation between
them and with the EU. This approach falls in line with the strategy followed for a
new partnership with Central Asia, launched in 2007. Funding priorities for the
implementation of this strategy fall under the “Development Cooperation
Instrument” (DCI)—at both regional and national levels—as set out in the Regional
Strategy Paper for Assistance to Central Asia. They include: boosting sustainable
development, promoting stability and security, and fostering closer regional cooperation both between countries of the region and with the EU. The DCI has allocated €675 million to the region, 2007–2013, under consecutive “multi-annual
indicative programmes” (MIP). The first MIP (2007–2010) earmarked €354 million
over 4 years. The MIP, 2011–2013, provides €321 million over 3 years of which
€216 million is for bilateral cooperation and €105 million for regional cooperation.
The DCI replaces the former Technical Assistance to the “Commonwealth of
Independent States” (TACIS) which supported the five newly independent states in
their economic and social development during the transition period (www.europa.
eu 2017).
According to Brenda Shaffer, the European Union was more active in the Caspian
Sea during the second phase of its relations than the first, with active attempts to
engage in natural gas agreements with Caspian Sea states (Shaffer 2005:7212).
After approving an economic stimulus package, the EU made its pledges concrete
with a moderate commitment in funding the Nabucco project in the hope of its eventual materialization (Shaffer 2005:7212).
With the aim of securing and strengthening energy independence and diversification in long term, the EU must be active in the region. An active EU partnership in
the region could also secure the EU’s position in the global energy market, encouraging the stable development of domestic energy industries allowing for the upgrading and reconstruction of the hydrocarbons transportation system and the
infrastructure required for interconnector projects (www.ceep.be 2015).
The EU also welcomed the more active involvement of the United States in the
Caspian region. The EU and the US share several common interests in the region.
According to EIA estimates world economy is preparing to enter the Golden age of
3 International Context of the New Era and the Caspian Sea Region
EU Limitations in the Caspian Sea
With the EU paying more attention to the diversification of energy resources, the
Caspian Sea presents itself as an ideal alternative to Russia. However, for this potential to be realized, and for the EU to really become a key player in the region, it must
do so with limited financial resources. The EU requires a strategic angle when compared with Russia and China, who not only share immediate borders with the
regional states but also have made remarkably greater financial commitments
(Denoon 2015:217). The total budget which EU has been allocated for the Central
Asia region from 2007 to 2013 under the Development Cooperation Instrument
(DCI) program was 675 million Euros, while China and Russia have invested, and
pledged to invest further billions of Euro into the same region (Denoon 2015:217).
The EU is promoting sustainable development, stability, and security in all five
countries in Central Asia. It is also encouraging closer regional cooperation between
them and with the EU. This approach falls in line with the strategy followed for a
new partnership with Central Asia, launched in 2007. Funding priorities for the
implementation of this strategy fall under the “Development Cooperation
Instrument” (DCI)—at both regional and national levels—as set out in the Regional
Strategy Paper for Assistance to Central Asia. They include: boosting sustainable
development, promoting stability and security, and fostering closer regional cooperation both between countries of the region and with the EU. The DCI has allocated €675 million to the region, 2007–2013, under consecutive “multi-annual
indicative programmes” (MIP). The first MIP (2007–2010) earmarked €354 million
over 4 years. The MIP, 2011–2013, provides €321 million over 3 years of which
€216 million is for bilateral cooperation and €105 million for regional cooperation.
The DCI replaces the former Technical Assistance to the “Commonwealth of
Independent States” (TACIS) which supported the five newly independent states in
their economic and social development during the transition period (www.europa.
eu 2017).
According to Brenda Shaffer, the European Union was more active in the Caspian
Sea during the second phase of its relations than the first, with active attempts to
engage in natural gas agreements with Caspian Sea states (Shaffer 2005:7212).
After approving an economic stimulus package, the EU made its pledges concrete
with a moderate commitment in funding the Nabucco project in the hope of its eventual materialization (Shaffer 2005:7212).
With the aim of securing and strengthening energy independence and diversification in long term, the EU must be active in the region. An active EU partnership in
the region could also secure the EU’s position in the global energy market, encouraging the stable development of domestic energy industries allowing for the upgrading and reconstruction of the hydrocarbons transportation system and the
infrastructure required for interconnector projects (www.ceep.be 2015).
The EU also welcomed the more active involvement of the United States in the
Caspian region. The EU and the US share several common interests in the region.
According to EIA estimates world economy is preparing to enter the Golden age of
3 International Context of the New Era and the Caspian Sea Region