ABSTRACT
The geopolitical situation in the Caspian region changed drastically after the collapse of the Soviet Union in 1991. All the newly independent states of the region have embarked on the process of consolidating their independence. Neither the Caucasus nor Central Asia (which together form the Caspian region) can any longer be regarded as being within Russia’s backyard. The development of the Caspian Sea’s abundant hydrocarbon reserves has played a catalytic role in this process. The world’s major oil companies have already invested over billion in exploration and development operations in the Azerbaijan and Kazakh sectors of the Caspian, while more than billion are expected to be invested over the next 25-30 years.1 Progress has been made on the construction of new export pipelines.
