ABSTRACT
The dispute between Azerbaijan and Iran that surfaced in July 2001 over territorial borders and offshore oil-drilling rights in the Caspian Sea revived old grievances. The incident highlighted the changing attitudes of the littoral states to the complex issues surrounding the Caspian Sea. There are a number of prisms through which this confrontation could be analysed, such as domestic pressures in the countries concerned, regional relationships and the interplay between contemporary international political and economic relations. However, there is another aspect to these events that requires attention, namely, the security setting in the Caspian basin as part of the new international relations/security environment. The current force deployment in the Caspian Sea highlights the strategic importance of the region. This chapter focuses on the naval presence and military deployment of the parties involved. It also attempts to explore areas of co-operation in a region often associated with conflict.
