Roundup: Legal limbo remains over Caspian Sea

by Jiang Xiaofeng

As expected, the summit of the Caspian Sea littoral states wound up without any deal. Presidents of the five coastal countries, however, agreed to confer in the future to narrow their differences over how to divide the energy-rich waters.
Divergent as they were over the redrawing of national boundaries since the fall of the former Soviet Union in 1991, which created three new Caspian states, leaders from Iran, Russia, Turkmenistan, Azerbaijan and Kazakhstan hailed the latest gathering as successful and constructive.
The host of the summit, Turkmen President Saparmurad Atayevich Niyazov, said that the five countries pledged to refrain from using force or creating tension in the disputed sea, so that contention will be resolved through understanding and compromise. Niyazov also praised the mechanism of trading views freely with each other, established during the two-day talks.

Iran, deeply concerned over losing the 50 % access it had until 1991, refused to back down from its claim, insisting that any unilateral deals for energy exploration in the sea are "null and void" before the issue of Caspian legal regime is settled.
"No one expects the issues to be solved overnight," Iranian President Mohammad Khatami said during the meeting held in the Turkmenistan capital of Ashgabat. The Iranian leader said that common sovereignty on the sea is " the best choice "for the littoral states and voiced opposition to any unilateral action on tapping the waters, the third largest energy reserves in the world after the Gulf region and Siberia.

Bringing his trademark idea of "dialog" onto the table, Khatami called for regional cooperation and harmonious coexistence on the thorny issue, stressing that Tehran does not pursue its interests at the expense of others. Khatami also noted that no one has the right to interfere in the Caspian apart from these five countries, adding that it should be a "sea of peace and accord."
Sounding an upbeat note over the first-ever presidential summit devoted to the Caspian row, Russian President Vladimir Putin also acclaimed the summit as "constructive." The five Caspian coastal states were originally due to convene in March last year to sign a framework of the Caspian legal regime, but because of the differences over the formula, the gathering was delayed several times.

Iran and Turkmenistan have been pushing for an agreement to secure an equal sharing, or 20 %, of the underwater wealth, a formula opposed by Russia, Kazakhstan and Azerbaijan. The latter three favour a principle of carving up the sea into national sectors, corresponding roughly to the length of each country's shoreline, leading to a possibility that might leave Iran with only a 13 % share.
Defending Iran's rights and interests, Khatami described the agreements signed in 1921 and 1940 between Iran and the former Soviet Union as a "suitable yardstick" to finalize the Caspian legal regime. The two agreements stipulated that the two countries should share the Caspian riches on a50-50 basis.

But since Turkmenistan, Azerbaijan and Kazakhstan emerged as newly independent states around the Caspian Sea 10 years ago, the five littoral countries started to haggle over how to share the widely coveted economic potentials.
Iran and its neighbour Azerbaijan were even at loggerheads over the legality of Caspian oil exploration last July when an Iranian warship chased an Azerbaijani survey vessel out of the disputed waters. The stakes were so high that Kazakh President Nursultan Abishevich Nazarbayev said during the summit that the five nations had been unable to sign even a declaration as they failed to settle their rival claims to the oil and gas resources.
However, analysts still believe that the historic summit at least represented a step forward towards resolving the division of the Caspian's oil and mineral reserves after years of unsuccessful negotiations.

The importance of finding a legal regime to govern the exploitation of the sea is a matter of common sense. The impasse and the lack of clearly defined borders will not only hinder further development of the region's resources but open the door to US military expansion in the area.
Iran has been trying to boost its influence in the Caspian region and Central Asia where the United States has secured its foothold and begun exerting influence.