Caspian sea region countries issue statement on global energy security

Geneva

High-level representatives of Caspian Sea Region countries have issued a joint Statement following their discussions on emerging energy security risks and risk mitigation of the Caspian Sea Region in a global context. The representatives of Azerbaijan, Islamic Republic of Iran, Kazakhstan, Russian Federation and Turkey addressed these problems, challenges and related opportunities of this region in enhancing global energy security during the UNECE Energy Security Forum held in Geneva on 28 June 2005.

The high-level representatives included Mr. Igor Yusufov, Special Envoy of President Vladimir Putin on International Energy Cooperation, Russian Federation; Mr. Vladimir Shkolnik, Minister of Energy and Mineral Resources, Kazakhstan; and Mr. Zaur Yaqubov, Special Advisor to the Minister of Fuel and Energy, Azerbaijan; Ambassador Seyed Mohammad Kazem Sajjadpour, Islamic Republic of Iran and H.E. Mr. Türkekul Kurttekin, Republic of Turkey.

In their Statement, the representatives note that: “the energy import dependence of most UNECE member countries will continue to rise in the foreseeable future, particularly for oil and natural gas, increasing their vulnerability to emerging energy security risks.”

Policy makers in the Caspian Sea region showed their awareness of the strategic importance to their energy resources. The high-level representatives jointly acknowledged that: “the doubling of energy production in the Caspian Sea Region during the next five to ten years and therefore greater exports could provide UNECE energy importing member States with additional energy supply options, thus contributing to mitigation of energy security risks across the UNECE regional energy market.”

But greater energy exports will require significant investments in new oil energy production. Enhanced energy transport facilities and new transport corridors will be needed. The high-level representatives further acknowledge that: “In order for UNECE member States to benefit from the increased oil and natural gas exports from the Caspian Sea Region, multi-billion dollar investments will be needed to expand energy production capacities and provide for new energy transport infrastructure. Countries of the Caspian Sea Region will need to establish and maintain a suitable investment environment, regulatory framework, facilitating the transfer of technology, as well as provide unrestricted access of their energy products to the European market.”

UNECE member States have a strategic interest in encouraging the investments needed to increase energy production and develop export agreements. At the same time, the countries of the Caspian Sea Region have a strategic interest in establishing and maintaining a suitable investment environment.

As a result of the session, the Statement of the participating governments of the countries surrounding the Caspian Sea notes that: “In order to accommodate the potential increase in energy exports from the Caspian Sea Region, the countries concerned will work together and with our partners on enhanced transport facilities, new transport corridors, transit agreements, new energy production and transportation systems while enhancing the environmental quality of the region in accordance with the principles of sovereignty of States over their natural resources and economic activity and freedom to choose a suitable framework for their foreign economic relations.”

This Statement clearly reflects the policy direction of the governments concerned and the specific initiatives they are currently pursuing. Indeed, upon his return to Astana, the capital of Kazakhstan, Mr. Vladimir Shkolnik, Minister of Energy and Mineral Resources, Kazakhstan signed a product sharing agreement on the Kurmangazy natural gas pipeline project with Rosneft Chairman Sergei Bogdanchilkvo and Uzaak Karabalin, President of KazMunaiGaz. Russia and Kazakhstan will invest USD 23 billion in the Kurmangaz gas project on the Caspian Sea, Russian President Vladimir Putin told reporters in Astana.

For further information about the Energy Security Forum and the High-level Meeting, please consult the UNECE website http://www.unece.org/ie or contact:

Ref: ECE/IREEDD/05/P07