russia’s pipelines through iran
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PIPELINES IN THE CASPIAN
By: Ye-Ji Hwang
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The Caspian Rich natural re-
sources Competition US-Rus-
siaRussia wants to
remain Europe’s main supplier
US-Iran Oil to Europe Turkey, Armenia, and
Azerbaijan conflicts
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Little Bit of History
Before the fall of the Soviet
Nobel Brothers Soviet nationalism in
1920 and more oil dis-coveries in 1960’s
OPEC established Over production, poor
management, and too much water injected to the ground = decline
Oil production = “saving grace” to new indepen-dent nations
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Iran and Russia Iran turns to Russia be-
cause of sanctions 1995 Clinton- Executive
Orders (reaffirmation in 1997)
1996 Mandatory sanc-tions
Conoco withdrew left door open to Total and Petronas
Foreign oil companies pressured to leave
Russia major player in Central Asia
Share interest of limiting US power in the region
Co-founded Gas Export-ing Countries Forum
Signed agreement July 2010 Gazprom and Lukoil in-
creasingly involved
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Around Caspian 2007 Turkey and Iran Memorandum Baku-Tblisi-Ceyhan oil pipeline Trans-Caspian gas pipeline Central Asia-Center gas pipeline
Gazprom Dauletabad-Sarakhs-Khangiran gas pipe-
lineInaugurated early this year
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Four Conflicts
1. Ongoing problem between Armenia and Azerbaijan
2. Tensions between Armenians and Turks
3. US keeping pipelines out of Iran and Russia
4. Iran and Russia’s legal issues1921 and 19401982 Law of Sea
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Solution 1 Support Trans-Caspian oil pipeline
Pipeline between Turkmenistan and Azerbaijan Can be collaborated with Baku-Tblisi-Ceyhan
pipeline in Turkey
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Solution 2 Support Kazakhstan’s new oil route to Europe
Plans to triple exports in following years83% destined for EuropeHowever only small portion
Collaborative with Trans-Caspian pipeline then to Europe through Azerbaijan and Georgia
Already to Europe through Russia…. China
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Solution 3 Support Dauletabad-Sarakhs-Khangiran
gas pipelineTurkmenistan-Iran-Turkey
Pressure by Washington to back out of IranSanctions on companiesRoyal Dutch ShellGlencose and VitolTrafigureBPReliance
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Proposal
Solution 1 “Lobby” for Trans-Caspian pipeline
On-going routeIran faster- contradictionRussia
○ Not another Cold War
Obama more engaging