CONTEMPORARY EURASIA VI( 1)
ARMEN MANVELYAN
THE IMPLICATIONS FOR EURASIAN ECONOMIC UNION SOUTH CAUCASUS ENERGY POLICY
Abstract The Eurasian Economic Union could change the economic and political landscape in Eurasia and in the South Caucasus. Armenia, with its recent decision to join the Union, is especially sensitive to resulting changes in the South Caucasus. Low oil prices are changing the energy politics in the South Caucasus, which means that that the importance of Azerbaijan as an oil-exporting country is decreasing, and this in turn impacts the entire South Caucasus as an oil transit route. Armenia ' s ambitions to be involved in the process of establishing a " single energy space " are of strategic importance. This, together with its participation in the " North- South high-voltage energy corridor " project- might help Armenia to reinforce its position in the South Caucasus. Keywords: Armenia, energy politics, the South Caucasus, the Eurasia Economic Union, Energy transportation infrastructure, Azerbaijan.
Introduction
Energy politics remains a key factor in the South Caucasus. An East-West energy transportation corridor connecting Azerbaijan, Georgia, and Turkey was established in the region after the collapse of the Soviet Union and became dominant in the South Caucasus in the long-term perspective. In recent years, Armenia, in cooperation with neighboring Iran and strategic partner Russia is building a new electricity corridor – the so-called North-South high voltage powerline, which will connect the energy systems of four countries – Russia, Georgia, Armenia, and Iran 1. Because of this initiative, we can expect a new phase of confrontation in the region, with energy policy a key factor.
This article aims to analyze and show energy policy factors in the South Caucasus and the Eurasian Economic Union as a common pattern particularly in the context of oil price volatility. The low oil
1
Participants of Tender for Construction of Armenia-Georgia Overhead Power Line are known, 09.02.2017, http:// www. minenergy. am / en / article / 815
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