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Environment and security
As a source of potential wealth
the environment with its natural
resources can easily fuel tensions
between neighbours and endan-
ger the security of people living
in the region. Threats may stem
directly from environmental im-
pacts on health and well-being,
but also from conflicts triggered
by the associated pressures.
– a fragile balance
In areas where the economic interests vested in nat-
ural and mineral resources are as strong as around
the Caspian, environmental protection tends to be a
low priority. But some of the natural resources such
as fish, which form the basis for human survival
and economic activities in the region, depend on an
intact environment. The exploitation of other natu-
ral resources is particularly profitable, because little
account is made for possible negative side-effects.
The region’s valuable natural resources – some
non-renewable such as oil and gas, others renew-
able such as fish – are an important factor in rela-
tions between states and the various communities
living around the Caspian sea. In particular they
may create international tension, as for instance
with the ongoing discussions about sustainable ex-
ploitation of fish resources.
With dwindling overall oil resources, enduring in-
stability in the Middle East, new markets and rising
demand for energy, many players have good reason
to be interested in the Caspian basin and the export
of its resources: states (the producers themselves,
the countries through which products transit, and
end users), and oil and gas companies. In princi-
ple it is in the interest of such players to maintain
regional stability in order to secure investments in
the energy sector.
7
Clarifying territorial limits to prevent
conflict
Access to hydrocarbon resources has
caused several disputes between the five
states bordering on the Caspian. The une-
ven distribution of hydrocarbon resources
gives rise to disputes over oilfield owner-
ship. There is also disagreement as to how
best to use the sea (separate or joint exploi-
tation). The inadequate legal framework
and overlapping claims to ownership have
made it more difficult to find solutions to
these disputes. Preference has so far been
given to bilateral agreements to facilitate
the exploitation of the Caspian’s energy
resources.
Transport of oil and gas further complicates
conflicting interests and claims, and brings
additional players into the game. So far the
main export pipelines run through Russia.
A recently developed alternative, the Baku-
Tbilisi-Ceyhan (BTC) pipeline that started
operation in 2005, opened a new possibil-
ity for transporting 1 million barrels of oil
daily. Other similar pipeline projects are
also being developed like the one that goes
through Kazakhstan to China.
To further complicate matters, the
region’s political order has recently
been reshuffled and there remains
an unresolved dispute about terri-
torial claims to the sea basin and
the natural resources that may be
found there.