The declared end of South Stream and why nobody seems to care. CEPS Commentary, 5 December 2014

More than seven years after the South Stream pipeline project was first announced in June 2007, it finally seems to have been dropped by Russia’s President Vladimir Putin on his visit to Turkey this week. This CEPS Commentary looks at the ostensible reasons for President Putin’s decision as well as on what’s potentially behind them. It concludes that the EU may actually benefit from this decision in being able to secure more gas with less political interference from Russia.

The war of nerves with Iran - consequences for the South Caucasus and Russia. OSW Commentary No. 75, 2012-04-25

Tensions over Iran’s nuclear programme have risen considerably in recent months. This has been visible in numerous threats of – and much speculation about – an imminent Israeli (and US) attack on Iran’s nuclear installations. In this context, the support for the attacks that the countries of the South Caucasus (and Azerbaijan in particular) could provide has been the subject of lively debate, as has been the prospect of a Russian political and military offensive in the Caucasus in response to the attacks on Iran. It seems that the ongoing war campaign in the media has been aimed primarily at putting pressure on Iran and the international community to find a political solution to the Iranian problem. This also applies to the Caucasus’s involvement in the campaign. Given the outcome of the Istanbul round of talks on a political solution to the Iranian issue (14 April), which warrants moderate optimism, the threat of a conflict now appears more distant and this also indirectly proves the effectiveness of the campaign. The war of nerves with Iran, however, is already now actually affecting the stability of the Southern Caucasus. While it seems that Azerbaijan is not Israel’s partner in the preparations to attacks, and that there is no real link between the Iranian problem and the ongoing and planned movements of Russian troops in the Caucasus, the tensions between Iran and Azerbaijan are indeed high. Moreover, the global image of the Caucasus is deteriorating, the USA’s position in the region is becoming more complicated, and Russia’s room for manoeuvre is expanding.

Abkhazia, South Ossetia, Nagorno-Karabakh: unfrozen conflicts between Russia and the West. OSW Special Report, 9 July 2008

The Southern Caucasus is the site of three armed conflicts with separatist backgrounds, which have remained unsolved for years: the conflicts in Georgia's Abkhazia and South Ossetia, and Azerbaijan's conflict over Nagorno-Karabakh (including the areas around Nagorno-Karabakh which were seized by Armenian separatists in the course of the war). Neither Georgia nor Azerbaijan have had any control over the disputed areas since the early 1990s. Both states are simultaneously in conflict with the separatists' informal patrons, respectively Russia and Armenia. After over a decade of relative peace during which the conflicts remained frozen, tension has recently risen considerably: in the case of Abkhazia and South Ossetia, large-scale fighting may break out in the coming months, whereas in the case of Nagorno-Karabakh and the Azeri-Armenian conflict, such a threat may materialise within the next five years. The current formula for politically resolving the conflicts is ineffective and close to exhaustion, and the prospect of any alternative peace plans being developed is rather distant. The conflicts in the Southern Caucasus are of increasing concern to the West, mainly because of the Western actors' constantly growing political and economic involvement in Georgia and Azerbaijan (including support for reforms and development of the gas and oil transmission infrastructures), as well as its less intensive commitments in Armenia. An outbreak of open fighting over the separatist regions would destabilise the Southern Caucasus, largely undoing the results of the actions which the EU, NATO and the USA have taken in the region in recent years. Moreover, the situation in the Southern Caucasus, especially the separatisms themselves, have in fact become an element in the wider geopolitical game between the West and Russia. For Russia, the stakes are maintaining its influence in the region, and for the West, demonstrating its ability to effectively promote democracy and economic modernisation in the countries bordering it.