Railway detour of Russia

Agency WPS
What the Papers Say Part A (Russia)
February 15, 2007 Thursday

RAILWAY DETOUR OF RUSSIA;
Locomotives from Turkey, Georgia and Azerbaidjan will go through the
Caspian Sea

by Yuri Simonyan

A new economic force in the world?; Asia unites to oppose Russia.

The fanfare on the event of the recently signed in Tbilisi framework
agreement between Azerbaijan, Georgia and Turkey for construction of
railroad Kars-Akhakalaki-Tbilisi-Baku (KATB) ceased just a couple of
days ago, as it turned out that the project was not finalized on.
Kazakhstan may become its third participant.

Invitation to join the project will be received by Astana by the end
of February during the visit to Kazakhstan of the Minister for
Foreign Affairs of Azerbaijan Elmar Mamediarov. If the invitation is
accepted, which will be officially announced during the oncoming
meeting of presidents of Kazakhstan and Azerbaijan, the KATB will not
be deemed as "grandiose", but only as a regional project. It will
expand over two continents and will become a key section of the
transport corridor "Europe-Caucuses-Asia" (TRASEKA), the goods
turnover of which is presently evaluated by IMF experts as 600 bln.
US Dollars. Whereas this indicator is not marginal, as the railway
communication will shorten the terms for transportation of goods.

"We want Kazakhstan to join the project and will discuss the issue,"
– said Elmar Mamediarov. He claims that Kazakhstan showed interest to
KATB, and during the ongoing meetings at the end of the month, this
issue will become No.1.

However, Kazakhstan is possibly not the last participant of the KATB.
If Baku and Ashkhabad overcome the existing controversies, which
failed when Saparmurat Niyazov was ruling, possibility of connection
of Turkmenistan is rather high. In any case, Azeri part does not hide
its interest in stabilization of their relationships – two many
promising projects remained on the paper as far, due to the different
approaches to the principles of the Caspian Sea division. If new
Ashkhabad leaders come to the execution of the promised reforms and
taking the country out of the existent isolation, the growth of the
KATB project will become inevitable. It is also clear that it will
scarcely develop in Russian direction. First of all, due to the
political structures, due to which Moscow supporter Erevan was not
included in the project, which keeps on insisting on the use of the
operating branch between the Turkish Kars and Armenian Gumri with a
further exist to the Tbilisi direction.

"The project KATB has a vivid political nature, that is why Armenian
economic reasons are not accounted," – said Stepan Grigoryan, head of
Erevan Centre of globalization and regional co-operation. Baku-based
politologist Rasim Musabekov believes that any construction expenses
will be compensated in the nearest years. "Due to the future
connection of states of South-Eastern Asia to KATB, the goods
turnover may reach 20 mln. ton per year. Besides, oil products will
be transported, that unlike oil may not be delivered via pipes, and
that cost 1.5 -2 times more than the crude oil. This will allow to
raise the revenues of Azerbaijan, that develops plans of
reconstruction of oil processing industry," – said Musabekov to NG.

Source: Nezavisimaya Gazeta, 15.02.2007, p.6