Energy resources of the South Caucasus Region: the political and security dimensions

Abstract

Vast energy resources and geographic location of the South Caucasus region between the Middle East, Europe and the Russian Federation dictate its complexity. The development of regional energy sectors is influenced by the competition between energy producing and consuming markets aimed at the control over energy routes. Regional energy resources are an important driver for the European engagement in the region, especially due to the EU’s need for diversification of energy supplies in the context of its dependence on Russian supplies.The aim of the article is to study development of energy sectors of post- soviet Azerbaijan, Armenia and Georgia at the beginning of XXI century. Also, the growing challenges faced by the South Caucasian countries in the field of energy security are examined. In order to conduct the research comparative method, statistical and case-study approaches were applied. The article comprises the analyzes of factors undermining the potential of energy sources as a regional economic and political cooperation driver.Protracted conflicts, distrust, spoiled interstate political relations and countries’ political instability are major obstacles to cooperation.The complexity of situation is also dictated by different interests and strategies of the main external actors, namely the EU and Russia. Such issues as sustainable energy supply, energy efficiency and the renewable energy resources are also relevant to the region. Consequently, in order to develop the transit potential of South Caucasus it is necessary to resolve vital stability and future development issues, what implies democratic political transformation and multilateral cooperation between the energy producing, consuming, and transit countries. Thus, there is a need to overcome the geopolitical fragmentation of the South Caucasus and establish legal, institutional, political and economic framework for the development of regional energy sectors.