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Strategic Importance of Baku–Tbilisi–Ceyhan Pipeline for Republic of Azerbaijan

The Baku–Tbilisi–Ceyhan (BTC) pipeline is a 1,768 kilometers (1,099 mi) long crude oil pipeline from the Azeri–Chirag–Gunashli oil field in the Caspian Sea to the Mediterranean Sea. It connects Baku, the capital of Azerbaijan and Ceyhan, a port on the south-eastern Mediterranean coast of Turkey, via Tbilisi, the capital of Georgia. Surely, this gigantic project has implications for the three countries involved in it and for the neighboring countries. The political and economic implications of this project for Azerbaijan will be discussed in this paper.

Constructing the Baku–Tbilisi–Ceyhan (BTC) pipeline was a strategic decision taken by Azerbaijan to remove any dependency on Russia or Iran for exporting energy. Successful completion of the project, in spite of the predictions which deemed it unrealistic and impossible, culminated in stronger ties with Europe and the two countries the pipeline goes through, i.e. Georgia and Turkey. BTC surely gives Azerbaijan more autonomy in its foreign and domestic affairs. Looking for other sources than Russia to supply energy, Europeans strongly welcomed Azerbaijan and gave their support for this highly ambitious project.

Azerbaijan, as the main party of the project, revels in the prosperity and robust economy bestowed by this mega-project. Azerbaijan enjoyed a sharp rise of GDP in a period of ten years. According to the 2015 census taken by British Petroleum Azerbaijan, 2735 Azerbaijan nationals get to work as a result of this project. Moreover, local goods and services are welcomed by BTC company if the meet the required standards. The main factors were at work in the success of BTC project were powerful U.S. diplomats' lobby and the rising oil price at that time. BP is the main shareholder of the BTC pipeline and 70 percent of this project was funded through loans.

In the political arena, BTC pipeline will be a great help for Azerbaijan to evade the dominance Russia is persistently exercising on the near abroad. Having Europeans and Americans as the commercial partners and supporters, Azerbaijan can act with more confidence without having much concern about Russian influence. Unlike Georgia and Armenia, which rely on the U.S.A. and Russia respectively, it’s not difficult for Azerbaijan to make balance between the USA and Russia. Only two countries in central Asia, i.e. Kazakhstan and Uzbekistan have similar status as Azerbaijan.

From the very beginning, the political implications of this economic project was conspicuous since the project unveiled new abundant revenues for the countries involved. Azerbaijan was pretty sure that exclusion of Iranian or Russian territory in the route of the pipeline will culminate in more independence of Azerbaijan. Commitments to this project did not falter in the countries involved in spite of changes in the governments.

Azerbaijan and Georgia pursue independence from Russian, both in politics and economy. Therefore, they eagerly welcome the U.S.A. and Europe as their partners. Moreover, it is widely believed that BTC project would empower Azerbaijan by allowing it to build strong military forces. Therefore, the change in the balance of power is highly expected. The two countries have started all-out cooperation with the West and take every measure to meet European standards and become a member in European structures. The U.S.A. and NATO have priority over the European Union as partners in Azerbaijan. It should be noted, however, that inclination towards west is more dominant among the educated people rather than general population of Azerbaijan. Reveling in foreign investments and oil revenue, why should the authoritarian president, Ilham Aliyev, should bother to make political or economic reforms. Moreover, Azerbaijan is pretty sure about U.S. tendency to have widespread military presence on its territory due to being close to Iran. After joining the European Union in 2001, Azerbaijan's domestic affairs came under close European scrutiny. The European Union is highly suspicious of the the 2003 transfer of power which culminated in Ilham Aliyev's presidency. However, the ruling authorities claim and boast that they have established democracy in Azerbaijan.

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