Russia in the South Caucasus Gas Markets

21
DOI: 10.20542/0131-2227-2025-69-2-110-119
EDN: JFWNAR
Russian-Armenian University, 123, Hovsep Emin Str., Yerevan, 0051, Republic of Armenia.
 

Received 10.08.2024. Revised 04.12.2024. Accepted 06.12.2024.

Abstract. The article analyzes the features of Russia’s interaction with the states of the South Caucasus (Azerbaijan, Armenia, Georgia) in the gas transportation sector. The study of the structure of the markets of the South Caucasian republics allowed us to determine the share of natural gas supplied from Russia, to assess the problems and prospects for further supplies. In recent years, there has been an increase in imports of Russian natural gas to the states of the region, which is caused by both economic and some geopolitical reasons, the identification of which is the purpose of this article. Russian natural gas is exported to the states of the South Caucasus via two gas pipelines – North Caucasus – Transcaucasia (Russia–Georgia–Armenia, Mozdok–Tbilisi–Yerevan) and Baku–Novo-Filya (Russia–Azerbaijan). The study of the characteristics of these gas pipelines allowed us to most comprehensively assess the possibilities of developing gas transportation communications between Russia and the states of the region. In the same context, we should consider the Iran-Armenia gas pipeline, which, although geographically has no outlet on Russia, is nevertheless the property of the Russian state company Gazprom. The high transit potential of the South Caucasus facilitates the development of gas transportation infrastructures here, aimed at forming international energy corridors North–South and East–West, which is today significantly hampered by the unresolved nature of a number of military and political conflicts in the region. At the same time, Russia’s interaction with the states of the South Caucasus in the energy and, in particular, gas transportation spheres demonstrates sensitivity to geopolitical processes, which is natural, given the dynamically changing security architecture of the region and attempts of a number of extra-regional actors, including the U.S. and the EU to increase their influence in the region. This dictates the need for Russia and the South Caucasus states to develop a strategy of energy diplomacy aimed at creating sustainable and secure gas transportation communications.

Keywords: South Caucasus, Russia, Azerbaijan, Armenia, Georgia, natural gas, energy security geopolitics


REFERENCES

1. Ayvazyan D. The Southern Gas Corridor as the Instrument for the Diversification of the Gas Imports to the European Union. Scientific and Analytical Herald of the Institute of Europe RAS, 2018, no. 2, pp. 128-134. (In Russ.) Available at: http://dx.doi.org/10.15211/vestnikieran2201820 

2. Chumakov D.M. Perspectives of Trans-Caspian Gas Pipeline. World Economy and International Relations, 2019, vol. 63, no. 8, pp. 47-54. (In Russ.) Available at: https://doi.org/10.20542/0131-2227-2019-63-8-47-54 

3. Bakhshiyan G.S., Akopyan A.R. Increasing the Capacity of the North Caucasus–Transcaucasia Gas Pipeline to Improve Gas Supply to the Republic of Armenia. Gas Industry, 2015, no. 7, pp. 59-60. (In Russ.)

4. Kolomeytseva A.A. Problems and Prospects of Relations between Russia and the CIS Countries in the Gas Market. Moscow, “Scientific Library” Publishing House, 2017. 246 p. (In Russ.)

5. Fedorovskaya I.M. Armenia and Iran: Contemporary Stage of Cooperation. Russia and New States of Eurasia, 2015, no. 3 (28), pp. 94-99. (In Russ.) Available at: https://www.imemo.ru/files/File/magazines/rossia_i_novay/2015_03/Armenia_Fedorovskaya.pdf (accessed 22.11.2024).

6. Gasumov E.R. Analysis of the Current State and Development Trends of the Gas Industry of Azerbaijan. Bulletin of the Altai Academy of Economics and Law, 2022, no. 3–2, pp. 159-166. (In Russ.) Available at: https://doi.org/10.17513/vaael.2111 

7. Kondratiev V. Azerbaijan-Turkmenistan Agreement on the Druzhba Field and Its Impact on Geoeconomics of the Caspian Sea. Geoeconomics of Energetics, 2021, no. 2 (14), pp. 96-110. (In Russ.) Available at: http://doi.org/10.48137/2687-0703_2021_14_2_96 

8. Han Tao. European Energy Security and Turkmenistan. Innovations and Investments, 2022, no. 10, pp. 61-64. (In Russ.)

9. Borovsky Yu.V. World Energy Supply System. Moscow, Navona, 2008. 296 p. (In Russ.)

10. Chomakhidze D. Georgia: Energy Policy. Central Asia and the Caucasus, 2007, no. 6 (54), pp. 107-116. (In Russ.)

11. Chomakhidze D. Georgia: Natural Energy Resources. Central Asia and the Caucasus, 2007, no. 4 (52), pp. 27-36. (In Russ.)

12. Kuzmina E. Russian-Georgian Energy Dialogue in Action. Russia-Georgia. Relations: Energy, Economy, Security, Geopolitics, Migration and Culture. Tbilisi, 2018, pp. 23-36. (In Russ.)


SOURCES

1. US to be Represented at Southern Gas Corridor Meeting in Baku. Day.az, 05.02.2024. (In Russ.) Available at: https://news.day.az/economy/1634501.html (accessed 08.08.2024).

2. Ukraine May Begin Negotiations with Azerbaijan on Gas Transit. Neftegaz.ru, 08.08.2024. (In Russ.) Available at: https://neftegaz.ru/news/transport-and-storage/848175-ukraina-mozhet-nachat-peregovory-s-azerbaydzhanom-o-tranzite-gaza (accessed 08.08.2024).

3. Aliyev Accused Europe of Hypocrisy in Increasing Supplies of Azerbaijani Gas. TASS, 20.07.2024. (In Russ.) Available at: https://tass.ru/ekonomika/21410979 (accessed 08.08.2024).

4. Gas Pipeline Explosions in North Caucasus Recognized as Terrorism. Rossiiskaya Gazeta, 25.01.2006. (In Russ.) Available at: https://rg.ru/2006/01/25/gazoprovod-terakt-anons.html (accessed 08.08.2024).

5. Georgia Will Not Sell a Controlling Stake in the North-South Gas Pipeline to an Azerbaijani Company. 1News.az, 17.02.2011. (In Russ.) Available at: https://1news.az/news/20110217100545863-Gruziya-ne-prodast-kontrolnyi-paket-aktsii-gazoprovoda-Sever-YUg (accessed 08.08.2024).

6. There are Concerns that Baku Will Take Control of the Russia-Armenia Gas Pipeline. Novoye Vremya, 03.07.2010. (In Russ.) Available at: https://nv.am/est-opaseniya-chto-baku-vozmet-pod-kontrol-gazoprovod-rossiya-armeniya/ (accessed 08.08.2024).

7. Armenian Rebus: to whom Will Georgia Sell the Gas Pipeline from Russia? EurasiaDaily, 14.12.2016. (In Russ.) Available at: https://eadaily.com/ru/news/2016/12/14/armyanskiy-rebus-komu-gruziya-prodast-gazoprovod-iz-rossii (accessed 08.08.2024).

8. SOCAR Expanded Its Gas Pipeline Network in Georgia. Trend, 18.07.2019. (In Russ.) Available at: https://www.trend.az/azerbaijan/business/3092355.html (accessed 08.08.2024).

9. SOCAR: Gas Consumption in Azerbaijan to Decrease in 2023. Caspian Barrel, 11.02.2024. (In Russ.) Available at: https://caspianbarrel.org/ru/2024/02/socar-v-2023g-v-azerbajdzhane-snizilos-potreblenie-gaza/ (accessed 08.08.2024).

10. In 2022, Oil Production in Azerbaijan Reached 32.6 Million Tons, and Gas – 46.7 Billion Cubic Meters. Neftegaz.ru, 14.01.2023. (In Russ.) Available at: https://neftegaz.ru/news/dobycha-/766357-za-2022-g-dobycha-nefti-v-azerbaydzhane-dostigla-32-6-mln-t-a-gaza-46-7-mlrd-kubometrov/ (accessed 08.08.2024).

11. Gazprom Returned to Azerbaijan. Kommersant, 22.11.2017. (In Russ.) Available at: https://www.kommersant.ru/doc/3475181 (accessed 08.08.2024).

12. Turkmenistan Has Suspended Gas Exports to Azerbaijan. The Parties Were Unable to Agree on the Terms of Supplies. Chronicles of Turkmenistan, 07.01.2024. (In Russ.) Available at: https://www.hronikatm.com/2024/01/az-tm-gas-swap-halted/ (accessed 09.08.2024).

13. Gas Production in Azerbaijan Increased by 2.5% in January–February. Neftegaz.ru, 13.03.2024. (In Russ.). Available at: https://neftegaz.ru/news/dobycha/823356-dobycha-gaza-v-azerbaydzhane-vyrosla-v-yanvare-fevrale-na-2-5/ (accessed 09.08.2024).

14. Azerbaijan’s Gas Deal with Russia Raises Uncomfortable Questions for Europe. InoSMI, 24.11.2022. (In Russ.) Available at: https://inosmi.ru/20221124/gaz-258166815.html (accessed 09.08.2024).

15. In 2023, the Volume of Natural Gas Supplies to Armenia Amounted to 2 444.8 Million Cubic Meters. “Gazpom Armenia” JSC, 31.01.2024. (In Russ.) Available at: https://armenia.gazprom.ru/press/news/2024/01/1581 (accessed 09.08.2024).

16. Agreement between the Government of the Russian Federation and the Government of the Republic of Armenia on the Terms of Sale and Purchase and Further Activities of ArmRosGazprom CJSC. Bulletin of International Treaties no. 7, Ministry of Foreign Affairs of the Russian Federation, July 2014, pp. 59-70. (In Russ.)

17. 2020–2036 Development Plan of Armenia’s Energy System with Minimum Costs. Market Liberalization and Electricity Trading Program. Washington, USAID, November 2019. 5 p. (In Arm.)

18. Armenia Agreed on the Price of Russian Gas: What the Parties Agreed On. Sputnik Armenia, 23.12.2021. (In Russ.) Available at: https://am.sputniknews.ru/20211223/armeniya-soglasovala-tsenu-na-rossiyskiy-gaz-o-chem-dogovorilis-storony-36786566.html (accessed 09.08.2024).

19. Gazprom-Armenia Plans to Invest Almost 149 Billion Drams in the Armenian Republic. Neftegaz.ru, 20.12.2023. (In Russ.) Available at: https://neftegaz.ru/news/companies/808104-gazprom-armeniya-planiruet-investirovat-pochti-149-mlrd-dramov-v-armyanskuyu-respubliku/ (accessed 09.08.2024).

20. Armenia Started Paying for Russian Gas in Rubles. RBC, 15.04.2022. (In Russ.) Available at: https://www.rbc.ru/business/15/04/2022/625865449a7947d679afc820 (accessed 09.08.2024).

21. Armenia Is Ready to Discuss Gas Purchases with Azerbaijan. Gazeta.ru, 25.04.2024. (In Russ.) Available at: https://www.gazeta.ru/business/news/2024/04/25/22869638.shtml (accessed 10.08.2024).

22. Experience of Georgia in Relation to SDG 7. UNECE, 24.02.2021. (In Russ.) Available at: https://unece.org/sites/default/files/2021-02/8%20Geo_24.02.2021%20-w%28ru%29_0.pdf (accessed 10.08.2024).

23. Oil Production in Georgia Increased by 200%. Oil and Gas Information Agency, 31.10.2023. (In Russ.) Available at: https://angi.ru/news/2911596-Добыча%20нефти%20в%20Грузии%20выросла%20на%20200/ (accessed 10.08.2024).

24. In 2023, Georgia Increased Imports of Natural Gas from RF by 16.5%. Interfax, 26.01.2024. (In Russ.) Available at: https://www.interfax.ru/world/942063 (accessed 10.08.2024).

25. What Volume of Natural Gas Georgia Will Import in 2024? Sputnik Georgia, 08.01.2024. (In Russ.) Available at: https://sputnik-georgia.ru/20240108/kakoy-obem-prirodnogo-gaza-importiruet-gruziya-v-2024-godu-285484200.html (accessed 10.08.2024).

26. Azerbaijan Delivered 2.5 Billion Cubic Meters of Natural Gas to Georgia in 2023. Interfax, 21.02.2024. (In Russ.) Available at: https://dzen.ru/news/story/ca995db1-c1b2-5729-9fdd-e6a0096a7eea?utm_referrer=www.google.com (accessed 10.08.2024).

27. Prime Minister of Georgia Ruled out “Ukrainization” of the Country. RBC, 21.06.2024. (In Russ.) Available at: https://www.rbc.ru/rbcfreenews/6674af829a7947f7590701ca (accessed 10.08.2024).


For citation:
Davtyan V. Russia in the South Caucasus Gas Markets. World Eсonomy and International Relations, 2025, vol. 69, no. 2, pp. 110-119. https://doi.org/10.20542/0131-2227-2025-69-2-110-119 EDN: JFWNAR



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2025, vol. 69, No. 3
Topical Themes of the Issue:
  • Interference Debate within the UN: Record of Systematic Study 
  • Problems and Ways of Russia’s Access to Non-CIS Countries Product Markets
  • The Integration in Central Asia: Restrictions and Perspectives
Announcement

Dear authors of the journal!

Please note that the author's copies of the issues in which your texts are published are kept in the editorial office for no more than one year. After this period expires, the editorial office has the right to dispose of unclaimed copies at its own discretion.

 

Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.