Azerbaijan and Russia: on the opposite sides of pipe

Documented in last May rupture of "oil transit" agreements between Azerbaijan and Russia on benefit transit of Azerbaijani liquid hydrocarbons via the Baku-Makhachkala-Novorossiysk oil pipeline was quite expected, in view of the circumstances in recent years. At a minimum, such rumors were circulating since the spring of 2012. And the issue is precisely in the commercial differences between the parties, not for political reasons. Although earlier Russia, apparently, considered the contractual obligations of Azerbaijan as an additional channel of influence on it, in spite of the emerging economic losses.

Azerbaijan loses nothing because of the unilateral termination intergovernmental agreement by Russia, taking into account the limited amount of pumping through the pipeline. For example, in 2012 the transit of Azerbaijani oil and gas condensate made up only 2.06 million tons, and in January-July of the current year - 0.99 million tons. At the same time, the bilateral agreements provided for the use of the transit quota of at least 5 million tons annually.