Remarks by US Ambassador at Large and Special Adviser for the NIS States S. Sestanovich on US Policy Toward Russia
Washington D.C., 16 July 1998


Our goal since the end of the Cold War has been a democratic, undivided Europe that includes Russia and all of the New Independent States. Our interests dictate that we work to draw Russia into more cooperative relationships with its immediate neighbors and with the world as a whole. Inclusion is a sounder policy than isolation, but it does not mean forgetting our interests or ignoring our differences. During a recent NATO-Russia meeting, Secretary Albright expressed this well when she said, "We are not here to pretend or to paper over differences. We are here to work through them."

Let me start with Russia and its neighbors. Some, perhaps most, of Russia's neighbors believe that Moscow is out to dominate them. (And some Russians accuse us of trying to supplant them in the region.) This Administration categorically rejects the idea of a Russian sphere of influence. The reality is that the region needs a cooperative, constructive Russia, whose dealings with its neighbors accord with international norms for relations among sovereign states.

Nowhere is this clearer than in the Caucasus. Our objective has been to provide firm support for the independence and territorial integrity of these and the other New Independent States. Our cooperation with Russia has made positive contributions to lowering tensions and building new, appropriate relationships among the NIS, but the picture is not uniform.

Remarks by Under Secretary Stuart Eizenstat on Caspian Energy Development and US Interests, 23 October 1997


As a consumer nation, the United States is interested in enhancing and diversifying global energy supplies. It is the Clinton Administration's policy to promote rapid development of Caspian energy resources to reinforce Western energy security. In the longer term the scale of Caspian basin energy resources not only justifies -- but will demand -- multiple transportation options for moving production out into world markets. Multiple pipelines will prompt competition, will ensure reliable, more efficient operations, and will promote commercial viability. The U.S. supports a pipeline route from Baku, Azerbaijan, to Ceyhan, Turkey, as one of multiple routes. We recognize, however, that any pipeline will only be built if it is a commercially viable option for shippers...

U.S. policy in the region is not an attempt to establish a U.S. sphere of influence in the region. Rather, U.S. policy stresses the importance of establishing a commercial basis for development and common benefits to be reaped. We see wide-ranging benefits to regional-actors (excluding Iran) from cooperative commercial development and transportation of Caspian energy resources. Currently, all existing export routes for Caspian energy travel north through Russia to Europe. Russia has very strong commercial and political interests in continuing to be a major transshipment point for the region's energy resources. For that to happen, Russia must address commercial concerns regarding reliability, security, transparency,, competitive tariffs, and access. Furthermore, as the developing markets of Asia attract oil and gas from the Caspian, additional market factors will influence the development of export routes for Caspian hydrocarbons...

Caspian energy development is not a zero sum game -- all the new states can benefit from the region's rapid economic development. Establishment of a Caspian legal regime which resolves concerns about property rights and sovereignty will promote large scale investment in the region. Increased oil and gas exploration and production will spur the pace of pipeline construction and connect new markets to secure energy supplies. Producer and transit countries will earn fees in much needed-hard currency which can be used for capital investment in other sectors of their economies. Improvement in the overall economy and prosperity of the region will translate into a boom in demand for goods and services throughout the NIS and provide added social benefits. And cooperation between domestic and foreign companies will foster the transfer of skills and technology -- a winning combination for all concerned. Most of all, strong, growing economies can become the foundation for long-term stable, democratic governments in the region.

Remarks by Special Advisor to the President and the Secretary of State for Caspian Basin Energy Diplomacy J. Wolf on Caspian Energy Diplomacy, Almati, 4 October 2000


The transportation corridor I describe isn't just a means for moving oil. The security and stability it portends are prerequisites for securing and sustaining the massive investment needed for Caspian energy projects to proceed. An east-west transportation corridor will bolster the independence and prosperity of the new states of the Caspian, strengthen regional cooperation, and enhance investment opportunities for U.S. and other companies. It also will increase global energy security and benefit international energy markets by providing a safe, new oil export route that reaches world markets directly. The U.S. approach is simple, straightforward, and basically unselfish when compared with the historic efforts of others in the region.

Let me re-emphasize one point. The United States derives no direct economic benefit from any particular pipeline routes. We have no territorial ambitions. Some consider the United States a relative newcomer to the Caspian region. True, but we think that we have brought a needed, new perspective. We and our western partners also have brought new investment, modern business techniques, and environmentally safe technologies that are accelerating the area's development. Our underlying objective is to empower the people and governments of the Caspian region to build sustainable and balanced economic growth; to construct efficient and just government structures; and to acquire the world-class technologies and techniques that will safeguard the Caspian Sea's fragile and long suffering environment.

In short, this empowerment aims to help the region's governments and peoples to make their own decisions about their lives, their political welfare, and their future economic prosperity. Big changes have happened over the past decade; much more still is needed. One parenthetic point -- the work of institution building, and help to people of this region to build modern institutions is not a responsibility of governments alone. You in the private sector need to play a very active role building public/private partnerships. Why, because as you have learned all around the world, it makes enormous business good sense.

Negotations on joint developments on oil deposits "Azeri", "Chirag" and "Guneshll" in the Azerbaijani
sector of the Caspian Sea, with reserves estimated over 500 million tonns, with the International Con-
sortium of oil companies, which have been goinfon since 1991 ended successfully.

In September of 1994 Heydar Aliyev, President of the Republic of Azerbaijan, issued a decree to allow
the State Oil Company of the Azerbaijan Republic (SOCAR) to sign a contract with the International
Consortium of oil companies. The Consortium consisted of oil companies like "AMOCO Caspian Sea
Petroleum Ltd".," "British Petroleum Exploration (Caspian Sea) Ltd., "Den Norske Stats Oleselskap
A.S", "LUKoil" joint stock company, "Mc Dermott Azerbaijan Incorporated," "Pennzoil Caspian Corpo-
ration", "Ramco Khazar Energy Ltd.," "Turkish Petroleum A.O." and "UNOCAL Khazar Ltd". The con-
tract provides oil developments in the above-mentioned deposits for the term of 30 years.

On September 20, 1994, a solemn ceremony for the signature of the contract was held in the Palace
of "Gulustan" Heydar Aliyev, President of the Republic of Azerbaijan, made a brilliant speech in the
ceremony of signature.


Paving the way for the foreign companies to Azerbaijan.

This Contract created favourable conditions for making investments to the economy
of the republic.

On November 10, 1995, SOCAR signed a contract with "Pennzoil", "AGIP"" and
"LUKoil" on the Garabag oil structure. Company founded in 1996, began to work in
the perspective "Garabag" structure.

On June 4, 1996, SOCAR signed another contract with "LUKoil" of Russia, "BP" of
Great Britain, "Statoil" of Norway, "Elf-Aquaitaine" of France, "OIEC" of Iran and
"Turkish Petroleum A.O." on joint developments in the highly perspective "Shah-
deniz" oil structure.

On December 14, 1996, SOCAR signed the fourth contract with "UNOCAL" and
"AMOCO" of the USA, "Itochu'' of Japan, "Delta" of the Saudi Arabia on joint devel-
opments in the oil deposits of "Ashrafi" and "Dan Ulduzu".

On January 14, 1997, SOCAR signed the fifth contract with "Elf-Aquaitaine" and "To-
tal" of France on joint explorations, developments and output and "Lankaran-Talish-
Deniz".

And finally on July 4,1997, SOCAR signed a new contract with "LUKoil" and "Ros-
neft" of Russia on joint oil developments in the deposit of "Kepez" in the Caspian Sea
during the visit of the President of the Republic of Azerbaijan Heydar Aliyev to Mos-
cow.

These contracts, signed at the threshold of the XXI century, will raise the welfare of
the Azerbaijan people, provide the qualitative renewal of all the industry, the research
and industrial-technical balance of the oil industry in the first place.

Joint Declaration by President George W. Bush and President Vladimir V. Putin on the New Strategic Relationship Between the United States of America and the Russian Federation, US-Russia Summit, Moscow, 24 May 2002. Released by Office of the Press Secretary, White House


    In Central Asia and the South Caucasus, we recognize our common interest in promoting the stability, sovereignty, and territorial integrity of all the nations of this region. The United States and Russia reject the failed model of "Great Power" rivalry that can only increase the potential for conflict in those regions. We will support economic and political development and respect for human rights while we broaden our humanitarian cooperation and cooperation on counterterrorism and counternarcotics.

    The United States and Russia will cooperate to resolve regional conflicts, including those in Abkhazia and Nagorno-Karabakh, and the Transnistrian issue in Moldova. We strongly encourage the Presidents of Azerbaijan and Armenia to exhibit flexibility and a constructive approach to resolving the conflict concerning Nagorno-Karabakh. As two of the Co-Chairmen of the OSCE's Minsk Group, the United States and Russia stand ready to assist in these efforts.

Patterns of Global Terrorism 2001-Eurasia Overview, Office of the Coordinator for Counterterrorism, US Department of State, 21 May 2002


    The Georgian Government condemned the September 11 terrorist attacks and supports the international Coalition’s fight against terrorism. Immediately following the attacks, the Georgian border guard troops along the border with Russia went on high alert to monitor the passage of potential terrorists in the area. In early October, Tbilisi offered the United States the use of its airfields and airspace.

    Georgia continued to face spillover violence from the Chechen conflict, including a short period of fighting in the separatist region of Abkhazia and bombings by aircraft from Russian territory on Georgia under the guise of antiterrorist operations. Like Azerbaijan, Georgia also contended with international mujahidin using Georgia as a conduit for financial and logistic support for the mujahidin and Chechen fighters. The Georgian Government has not been able to establish effective control over the eastern part of the country. In early October, Georgian authorities extradited 13 Chechen guerrillas to Russia, moving closer to cooperation with Russia. President Shevardnadze in November promised to cooperate with Russia in apprehending Chechen separatist fighters and foreign mujahidin in the Pankisi Gorge—a region in northern Georgia that Russian authorities accuse Georgia of allowing Chechen terrorists to use as a safehaven—if Moscow furnishes T’blisi with concrete information on their whereabouts and alleged wrongdoing. The United States has provided training and other assistance to help Georgian authorities implement tighter counterterrorism controls in problem areas.

    Kidnappings continued to be a problem in Georgia. Two Spanish businessmen who were kidnapped on 30 November 2000 and held near the Pankisi Gorge were released on 8 December 2001. A Japanese journalist was taken hostage in the Pankisi Gorge in August and released on 9 December.