GRAPHICS

Azerbaijan's Energy Resources and Foreign Policy

Dec 27, 2012 | 21:03 GMT

Stratfor's graphic of the day features a standout geopolitical map, chart, image or data visualization reflecting global and regional trends and events.

(Stratfor)

Azerbaijan's Energy Resources and Foreign Policy

Azerbaijan holds a unique position in the volatile Caucasus region. Unlike Armenia, which is pro-Moscow and hosts a Russian military base, and Georgia, which has been partially occupied by Russia since the August 2008 war, Azerbaijan has been able to maintain relative independence from Moscow. The primary driving force behind this independence is energy. Azerbaijan is a significant and growing producer and exporter of both oil and natural gas. These energy supplies have not only been profitable for Azerbaijan, but they have also given Baku a maneuverability in its foreign policy strategy that Armenia and Georgia lack. The majority of Azerbaijan's oil and natural gas flows through the Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines, which run through Georgia before flowing to Turkey and farther on to Europe. This route, known as the Southern Corridor, is also the key to all future energy projects that Azerbaijan is exploring with the expansion of its energy exports from the Shah Deniz II field. This route has given Azerbaijan its leverage over Russia, but if the route were threatened it would seriously undermine the basis of Baku's entire foreign policy strategy.