Baku Drives Russia Into Bushehr Impasse

Nezavisimaya Gazeta, Russia
April 23 2008

Baku Drives Russia Into Bushehr Impasse.

Azerbaijani Customs Detain Russian Equipment To Complete Construction
of Iranian Nuclear Electric Power Station

by Sergey Kulikov

Russia’s plans to complete construction of the nuclear electric power
station in Bushehr, Iran, by September 2008 are in jeopardy. For
almost a month now – since 29 March – the Azerbaijani customs have not
been letting through a Russian truck convoy with a load of
heat-insulation equipment for the power station, referring to the
absence of a special permit. In an attempt to resolve the situation
the general contractor for construction – the Atomstroyeksport ZAO
[Closed Joint-Stock Company] – is holding talks with the Azerbaijani
side and declares that all the necessary formalities were
observed. Experts do not rule out a political undercurrent to the
events and ascribe Baku’s position to a desire to display loyalty to
the United States and to demonstrate its strength in relations with
Moscow.

Russia’s Atomstroyeksport ZAO must produce a special permit for the
transit across Azerbaijani territory to Iran of equipment needed to
complete construction of the nuclear power station in Bushehr, Natik
Akhundov, head of the Azerbaijani State Customs Committee Press
Service, declared yesterday when commenting on the Russian equipment’s
almost month-long stay on the border. "This freight is on the list of
special commodities – a list approved by decision of the Azerbaijani
Cabinet of Ministers – and for its transit across the territory of
Azerbaijan, according to Decision No 230 of the Cabinet of Ministers,
the Russian side must produce a special permit," the official
declared. "However, the appropriate permit was not presented to the
Azerbaijani side, for which reason the freight was detained at the
Astara border checkpoint." Anzhela Matiyeva, press attache at the
Russian Federation Embassy in Azerbaijan, in turn reported that
"discussion of this issue is proceeding" at the present time. At the
same time she did not specify on what level the sides are holding
talks.

Representatives of the Russian contractor express total bewilderment
at the problem that has arisen. "The reason for the freight’s
detention surprised us," Irina Yesipova, press secretary of the
Atomstroyeksport ZAO, told Nezavisimaya Gazeta. "The point is that the
freight was documented in accordance with all the necessary Russian
and international customs requirements. It is heat-insulation
equipment which is required to complete construction of the station
and to commission it. At the same time it is wrong in principle to say
that the Atomstroyeksport ZAO did not see to it in good time that all
the formalities were observed: All the appropriate documents were
drawn up in advance and, I will repeat, in accordance with
international standards."

Atomstroyeksport still hopes that the delay over the freight’s transit
will in no way affect the deadline now being stated for commissioning
the Bushehr nuclear electric power station. "All necessary measures
are now being taken to resolve the problem," Yesipova pointed
out. However, experts do not rule out the possibility that the new
problem may lead to further slippage of the deadline for commissioning
the first Iranian nuclear electric power station. Let us recall that
initially, in the mid-nineties, Russia promised Tehran that the
Bushehr power station would be commissioned as early as 1999. Then the
handover deadline was put back several times. Last summer the schedule
was revised once again because of problems that had arisen with fuel
deliveries from Russia and because of delays over the Iranian side
paying for work already done. The deadlock was overcome this year, and
in February Atomstroyeksport delivered nuclear fuel for the first
charging of the reactor. It was then that it was announced that in
July-August this year it is planned to begin tests with the fuel
within the framework of carrying out start-up and adjustment work at
the station so as to make the station ready for commissioning by
September.

"Of course, Atomstroyeksport was not planning for a delay over
transportation, and consequently the deadline for implementing the
Bushehr project may be put back in connection with the freight’s
detention in Azerbaijan," Natalya Sviridova, director of the lawsuits
department of the 2K Audit-Delovyye Konsultatsii Company, believes. In
her opinion, however, the freight’s detention was caused by purely
technical reasons. "Judging from the fact that the freight has now
been stuck on the border for more than three weeks, Atomstroyeksport
simply did not understand the reasons for the delay, since the freight
had gone through the entire export control procedure," Sviridova
explained. "Now that the Azerbaijani authorities have given the
specific reason and it is clear in just what direction it is necessary
to act to resolve the situation, the question will probably be
resolved very quickly."

However, a number of analysts also do not rule out the existence of
political motives in Baku’s decision to detain the freight for Bushehr
on the border. "I believe that there are at least two aspects here,"
Agvan Mikayelyan, general director of the FinEkspertiza Company, told
Nezavisimaya Gazeta. "Despite membership of GUAM, which includes
Georgia, Ukraine, Azerbaijan, and Moldova, Baku takes the most
conservative stand in this organization on Russia and is in no hurry
to support anti-Russian demarches. However, the recent lifting of the
Russian sanctions in respect of Abkhazia and South Ossetia cannot fail
to make official Baku wary, for it has its own headache in the form of
Nagorno-Karabakh. Thus, by detaining freight that is politically
important to Russia, Azerbaijan is trying to show what consequences
may result from a change in Russia’s stance on the Karabakh question."
In addition, Mikayelyan believes that Azerbaijan is displaying at the
same time definite loyalty to the United States, which regards the
Iranian nuclear programme with extreme pain.