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Eastern Caspian
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Environment and Security
The break-up of the Soviet Union introduced
four new actors to the region: Azerbaijan,
the Russian Federation, Kazakhstan and
Turkmenistan. With Iran they all now border
on the Caspian Sea. The legal status of bor-
ders on the Caspian Sea and its shelf re-
sources have been under negotiation ever
since, accompanied by a build-up in military
forces in the region.
Over the last 25 years the Caspian has at-
tracted increased global attention. The pres-
ence of significant oil and gas deposits and
the lack of thorough geological exploration
before 1991 fuelled hopes of unproven re-
serves capable of rivalling the Persian Gulf,
according to the most optimistic estimates
9
.
In a period of growing demand, and world-
wide decline in oil and gas reserves and cor-
respondingly high prices for hydrocarbon
derivatives, these hopes have done much
to encourage interest in the region, focusing
in particular on the size of its hydrocarbon
reserves, its geopolitical influence and the
route taken by export pipelines.
The transition from a planned to a market
economy has built largely on the extrac-
tion and export of hydrocarbon resources,
a situation that is now changing the national
importance of coastal areas, the structure
of national economies and the livelihoods of
people living in the region. The development
of the oil and gas sector is also a challenge
for the distribution of wealth and benefits
generated by this sector, and strengthens
the dependence of the local economy and
job market on the energy sector.
The most vulnerable local communities,
in addition to the crisis in the system as a
whole, faced severe environmental prob-
lems: the rise in the Caspian Sea level be-
tween 1978 and 1996 flooded pasture and
other land and destroyed infrastructure.
Flooding also contributed to the salinization
of the areas affected. Overfishing, pollution
and the invasion of external species con-
tributed to a significant drop in fishery out-
put, while damage to water supply networks
and interruption of service (in some cases
regional networks crossing borders) led to
lower drinking water availability and quality.
Coastal provinces in the eastern Caspian
became increasingly dependent on the sea
for their water supply by desalination.
Such challenges and in many instances
hardships caused an overall reduction in
the quality of life, especially in rural areas,
prompting outward migration from such ar-
eas. The declining biological resources of
the sea combined with pollution, often inher-
ited from the past, and recent environmental
changes, made it increasingly difficult for the
local population to live in a healthy environ-
ment, produce food, and generate sufficient
income outside of the energy sector.