AN EVOLVING ENERGY PARTNERSHIP: THE EUROPEAN UNION AND AZERBAIJAN

Abstract

Azerbaijan is a fossil fuel exporter that the EU has paid special attention to since it began prioritizing energy security. This study analyzes the EU’s positioning of Azerbaijan within its foreign energy policy. The article presents a chronological analysis of the significant events and dynamics of the past two decades from both EU and Azerbaijan perspectives, with reference largely to official documents. The gradual rise of Azerbaijan on the EU energy agenda is attributed to the EU’s dependence on Russian fossil resources and the Russia-Ukraine energy crises. The article also focuses on the specific example of how Azerbaijan’s advantage in energy bargaining has created an exception in the EU’s normative neighborhood relations. Most recently, this energy partnership relationship has been evolving to include non-fossil resources as well.

Keywords

• European Union
• Azerbaijan
• the Southern Gas Corridor
• Russia- Ukraine war
• Energy cooperation.

References

1. Abbasov, Tural (2015). “Azerbaijan and Eastern Partnership Relations: Current Trends”. Ed. Adam Hug. Trouble in the Neighbourhood? The Future of the EU’s Eastern Partnership. London: The Foreign Policy Centre. 57-61.
2. AIR Center (2022). “Azerbaijan and the EU Sign an MoU on Strategic Energy Partnership”. Bulletin Highlight of the Foreign Policy of Republic of Azerbaijan. Retrieved from https://aircenter.az/uploads/e6Z4CfiOcFEB.pdf (Accessed: 25.07.2023).
3. Aras, Ilhan (2017). “Avrupa Birligi’nin Daglik Karabag Sorunundaki Rolu”. Avrasya Etudleri, 51(1): 95-122.
4. Atesoglu Guney, Nursin (2014). “Where Does the EU Stand in Energy Dependence on Russia After the Ukrainian Crisis: Are there Any Alternatives at Hand?”. Perceptions, 19(3): 15-34.
5. Azərbaycan Respublikasi Prezidentinin Katibliyi (2001). Heydər Əliyevin Neft Strategiyasi: Azərbaycanin Mustəqilliyi və Rifahi Naminə, I-II Hissə. Baki: Nurol.
6. Bagirov, Sabit (1996). “Azerbaijani Oil:Glimpses of a Long History”. Perceptions, 1(3): 1-15.
7. Barroso, Jose Manuel (2014). “EU-Azerbaijan Strategic Partnership: Looking to the Future”. Baku Dialogues, 1(1): 7-20.
8. Salayev, Subhi (1956). How Oil Fields Are Found and Discovered. Baku: Azarneftnashr.

9. Cerrah, Ufuk (2015). “Enerji Guvenligi ve Avrupa Birligi”. Ed. Hasret Comak et al. Enerji Diplomasisi. Istanbul: Beta Yayincilik. 163-192.
10. COM (2003) 104 Final. “Wider Europe-Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours”. Communication from the Commission to the Council and the European Parliament.
11. COM (2003) 393 Final. “Paving the Way for a New Neighbourhood Instrument”. Communication from the Commission. 01.07.2003.
12. COM (2004) 373 Final. “European Neighbourhood Policy Strategy Paper”. Communication from the Commission. 12.05.2004.
13. COM (2006) 105 Final. “Green Paper: A European Strategy for Sustainable, Competitive and Secure Energy”. Commission of the European Communities. 08.03.2006.
14. COM (2007) 1 Final. “An Energy Policy for Europe”. Communication from the Commission to the European Council and the European Parliament. 10.01.2007.
15. COM (2007) 160 Final. “Black Sea Synergy-A New Regional Cooperation Initiative”. Communication from the Commission to the Council and the European Parliament. 11.04.2007.
16. COM (2008) 781 Final. “Second Strategic Energy Review: An EU Energy Security and Solidarity Action Plan”. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 13.11. 2008.
17. COM (2008) 823 Final. “Eastern Partnership”. Communication from the Commission to the European Parliament and the Council”. 03.12.2008.
18. COM (2010) 677 Final. “Energy Infrastructure Priorities for 2020 and Beyond - A Blueprint for an Integrated European Energy Network”. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 17.11.2010.
19. COM (2011) 303 Final. “A New Response to a Changing Neighbourhood”. Joint Communication by the High Representative of the Union for Foreign Affairs and Security Policy and the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 25.05.2011.
20. COM (2014) 330 Final. “European Energy Security Strategy”. Communication from the Commission to the European Parliament and the Council. 28.05.2014.
21. COM (2015) 80 Final. “Energy Union Package. A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy”. European Commission. 25.05.2015.
22. COM (2019) 640 Final. “The European Green Deal”. Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. 11.12.2019.
23. COM (2022) 230 Final. “REPowerEU Plan”. Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. 18.05.2022.
24. Commission of the European Communities (1993). XXVIth General Report on the Activities of the European Communities 1992. Luxembourg: Office for Official Publications of the European Communities.
25. Council of the European Union (2003). “Council Joint Action 2003/496/CFSP of 7 July 2003 Concerning the Appointment of an EU Special Representative for the South Caucasus”. Official Journal of the European Union L 169, pp. 74-75.
26. Council of the European Union (2009). “Joint Declaration of the Prague Eastern Partnership Summit”. 8435/09 (Presse 78) of 07.05.2009. Retrieved from https:// www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/er/107589.pdf (Accessed: 16.07.2022).
27. Council of the European Union (2014a). “Council Regulation (EU) No 269/2014 of 17 March 2014 Concerning Restrictive Measures in Respect of Actions Undermining or Threatening the Territorial Integrity, Sovereignty, and Independence of Ukraine”. Official Journal of the European Union L 78 17.03.2014. 6-15.
28. Council of the European Union (2014b). “Council Regulation (EU) No 833/2014 of 31 July 2014 Concerning Restrictive Measures in View of Russia’s Actions Destabilizing the Situation in Ukraine”. Official Journal of the European Union L 229 31.07.2014. 1-11.
29. Council of the European Union (2015). “Council Conclusions on Energy Diplomacy”. Foreign Affairs Council 10995/15 of 20.07.2015. Retrieved from https://data.consilium.europa.eu/doc/document/ST-10995-2015-INIT/en/pdf (Accessed: 16.07.2022).
30. Council of the European Union (2016). “EU to Launch Negotiations on a New Agreement with Azerbaijan”. Press Release 655/16 of 14.11.2016. Retrieved from https://www.consilium.europa.eu/en/press/press-releases/2016/11/14/ azerbaijan/ (Accessed: 17.09.2022).
31. Council of the European Union (2017). “Remarks by President Donald Tusk After His Meeting with President of Azerbaijan Ilhan Aliyev”. Statements and Remarks 47/17 of 6.2.2017. Retrieved from https://www.consilium.europa.eu/ en/press/press-releases/2017/02/06/tusk-remarks-president-azerbaijan-aliyev/ pdf (Accessed: 21.09.2022).
32. Cwiek-Karpowicz, Jaroslaw (2013). “The Importance, Role and Place of Azerbaijan in the EU Energy Security”. Ed. Rovshan Ibrahimov. Energy and Azerbaijan: History, Strategy and Cooperation. Baku: Strateji Arasdirmalar Mərkəzi. 79-92.
33. Dokso, Anela (2023). “Azerbaijan’ Sees Export of Hydrogen and Ammonia on the Horizon”. Energy News. Retrieved from https://energynews.biz/azerbaijan- sees-export-pf-hydrogen-and-ammonia-on-the-horizon/ (Accessed: 23.12.2023).
34. EEAS and European Commission-EUROPEAID (2013). “Programming Document for EU Support to ENI Cross-Border Cooperation (2014-2020). Programming of the European Neighbourhood Instrument (ENI)- 2014-2020”. European Union External Action. Retrieved from https://eeas.europa.eu/enp/pdf/ financing-the-enp/cbc_2014-2020_programming_document_en.pdf (Accessed: 18.11.2023).
35. Erhan, Cagri and Aysun Gurbuz (2013). “Azerbaycan’in Enerji Politikasi”. Ed. Cagri Erhan. Kafkasya’nin Yukselen Yildizi Ilham Aliyev Doneminde Azerbaycan. Ankara: Ataturk Arastirma Merkezi Yayinlari, pp. 297-351.
36. EU-Azerbaijan Cooperation Council (2006). “EU-Azerbaijan Action Plan”. European Union External Action. Retrieved from https://eeas.europa.eu/sites/eeas/files/azerbaijan_enp_ap_final_en.pdf (Accessed: 16.12.2023).
37. European Commission (2006a). “Memorandum of Understanding on a Strategic Partnership Between the European Union and the Republic of Azerbaijan in the Field of Energy”. Retrieved from https://energy.ec.europa.eu/system/ files/2022-12/mou_azerbaijan_en.pdf (Accessed: 25.08.2023).
38. Council of the European Union (2006b). “Azerbaijan Country Strategy Paper 2007-2013. European Neighbourhood and Partnership Instrument”. European Union External Action. Retrieved from https://eeas.europa.eu/sites/eeas/files/aqs2007-13_azerbaijan.pdf (Accessed: 22.11.2023).
39. Council of the European Union (2012). “ENP Package, Country Progress Report-Azerbaijan”. MEMO/12/331 of 15.05.2012. Retrieved from http://europa.eu/rapid/press-release_MEMO-12-331_en.htm (Accessed: 08.11.2023)
40. Council of the European Union (2016). “EU to Boost Its Focus on Energy Cooperation with Partner Countries in the Eastern Neighbourhood and Central Asia”. Directorate-General for Neighbourhood and Enlargement Negotiations. Retrieved from https://neighbourhood-enlargement.ec.europa.eu/news/ eu-boost-its-focus-energy-cooperation-partner-countries-eastern-neighbourhood- and-central-asia-2016-03-17_en (Accessed: 05.11.2023)
41. Council of the European Union (2022a). EU Energy in Figures, Statistical Pocketbook. Luxembourg: Publications Office of the European Union.
42. Council of the European Union (2022b). “EU-US LNG Trade”. Retrieved from https://energy.ec.europa.eu/system/files/2022-02/EU-US_LNG_2022_2.pdf (Accessed: 05.12.2023).
43. Council of the European Union (2022c). “Sanctions Adopted Following Russia’s Military Aggression Against Ukraine (as of 24 October 2022)”. Retrieved from https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/ sanctions-adopted-following-russias-military-aggression-against-ukraine_en (Accessed: 14.11.2023).
44. Council of the European Union (2023). EU Energy in Figures, Statistical Pocketbook. Luxembourg: Publications Office of the European Union.
45. European Commission Spokesman’s Service (1998). “EU-Azerbaijan Relations”. MEMO/98/41 of 29.05.1998. Retrieved from https://ec.europa.eu/commission/ presscorner/detail/en/MEMO_98_41 (Accessed: 13.12.2023).
46. European Council (2014). “A New Strategic Agenda for the Union in Times of Change”. Conclusions 26-27.06.2014. Retrieved from https://www.consilium. europa.eu/media/39245/143477.pdf (Accessed: 09.10.2023).
47. European Council (2019). “Strategic Agenda 2019-2024”. Conclusions 20.06.2019. Retrieved from https://www.consilium.europa.eu/media/ 39922/20-21-euco-final-conclusions-en.pdf (Accessed: 09.10.2023).
48. European Council and Council of the European Union (2022). “EU Restrictive Measures Against Russia over Ukraine (since 2014, as of 25 October 2022)”. Retrieved from https://www.consilium.europa.eu/en/policies/sanctions/restrictive- measures-against-russia-over-ukraine/ (Accessed: 12.10.2023).
49. European External Action Service (2023). “Eastern Europe”. Retrieved from https://www.eeas.europa.eu/eeas/eastern-europe_en (Accessed: 09.12.2023).
50. European Parliament (2010). “P7_TA(2010)0193 European Parliament Resolution of 20 May 2010 on the Need for an EU Strategy for the South Caucasus (2009/2216(INI))”. Retrieved from https://www.europarl.europa.eu/doceo/document/ TA-7-2010-0193_EN.html (Accessed: 21.11.2023).
51. European Parliament (2014). “P8_TA(2014)0022 European Parliament Resolution of 18 September 2014 on the Persecution of Human Rights Defenders in Azerbaijan (2014/2832(RSP))”. Retrieved from http://www.europarl.europa.eu/sides/ getDoc.do?pubRef=-//EP//NONSGML+TA+P8-TA-2014-0022+0+DOC+PDF+ V0//EN (Accessed: 28.11.2023).
52. European Parliament (2015). “P8_TA(2015)0316 European Parliament Resolution of 10 September 2015 on Azerbaijan (2015/2840(RSP))”. Retrieved from http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+ TA+P8-TA-2015-0316+0+DOC+PDF+V0//EN (Accessed: 28.11.2023).
53. Eurostat (2022). “EU Energy Mix and Import Dependency (Data Extracted on 25 March)”. Statistics Explained. Retrieved from https://ec.europa.eu/eurostat/ statistics-explained/index.php?title=Archive:EU_energy_mix_and_import_dependency (Accessed: 06.11.2022).
54. Eurostat (2023a). “EU Imports of Energy Products - Recent Developments (Data extracted in September)”. Statistics Explained. Retrieved from https:// ec.europa.eu/eurostat/statistics-explained/index.php?title=EU_imports_of_energy_ products_-_recent_developments#Overview) (Accessed: 14.12.2023).
55. Eurostat (2023b). “EU Imports of Energy Products - Latest Developments (Data extracted in December)”. Statistics Explained. Retrieved from https://ec.europa. eu/eurostat/statistics-explained/index.php?title=EU_imports_of_energy_products_-_ latest_developments (Accessed: 27.12.2023).
56. Frenz, Alexander (2008). “The European Commission’s Tacis Programme 1991-2006, A Success Story”. First Preparatory Conference of the 17th OSCE Economic and Environmental Forum. Retrieved from http://www.osce.org/eea/ 34459?download=true (Accessed: 16.09.2022).
57. Genin, Yulia (2023). “Azerbaijan’s Green Energy Development Serves the Hydrocarbon Industry.” Environmental Justice- Crude Accountability. Retrieved from https://crudeaccountability.org/azerbaijans-green-energy-development- serves-the-hydrocarbon-industry/ (Accessed: 03.12.2023).
58. Hasanov, Fakhri J., Ceyhun Mahmudlu, Kaushik Deb, Shamkhal Abilov and Orkhan Hasanov (2020). “The Role of Azeri Natural Gas in Meeting European Union Energy Security Needs”. Energy Strategy Reviews, 28: 1-10.
59. Huseynov, Fuad (2003). Avrupa Birligi-Azerbaycan Iliskileri. Ankara: Yeni Avrasya Yayinlari.
60. Ibadoghlu, Gubad (2023). “Energy Dialogue between Azerbaijan and Europe: Realities and Illusions”. SSRN. Retrieved from https://papers.ssrn.com/sol3/papers. cfm?abstract_id=4454213 (Accessed: 05.12.2023).
61. INOGATE (2022). “About INOGATE: In Brief”. Retrieved from http://www. inogate.org/pages/1?lang=en (Accessed: 23.11.2022).
62. International Energy Agency (2019). The Role of Gas in Today’s Energy Transitions. France: IEA Publications.
63. International Gas Union and Snam (2022). Global Gas Report 2022. Retrieved from https://www.igu.org/resources/global-gas-report-2022/ (Accessed: 08.12.2023).
64. International Group of Liquefied Natural Gas Importers (2022). “The LNG Industry GIIGNL Annual Report 2022”. Retrieved from https://giignl.org/wp-content/uploads/2022/05/GIIGNL2022_Annual_Report_May24.pdf (Accessed: 08.12.2023).
65. Jarosiewicz, Aleksandra (2015). The Southern Gas Corridor: The Azerbaijani- Turkish Project Becomes Part of the Game Between Russia and the EU. Warsaw: Ośrodek Studiów Wschodnich.
66. JOIN (2015) 50 Final. “Review of the European Neighbourhood Policy”. Joint Communication by the High Representative of the Union For Foreign Affairs And Security Policy and the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 18.11.2015.
67. JOIN (2015) 6 Final. “Towards a New European Neighbourhood Policy”. Joint Consultation Paper, European Commission, High Representative of the European Union for Foreign Affairs and Security Policy. 4.3.2015.
68. JOIN (2022) 23 Final. “EU External Energy Engagement in a Changing World”. A Joint Communication from European Commission and High Representative of the Union for Foreign Affairs and Security Policy to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 18.5.2022.
69. Kahraman, Sevilay (2008). “Avrupa Birligi’nin Yeni Komsuluk Politikasi”. Ed. Belgin Akcay et al. Avrupa Birligi’nin Guncel Sorunlari ve Gelismeler. Ankara: Seckin Yayincilik. 451-478.
70. Karl, Mathiesen (2017a). “Watchdog Suspends Azerbaijan, EU Gas Pipeline Loans Threatened”. Climate Home News. Retrieved from https://www.climatechangenews. com/2017/03/10/watchdog-suspends-azerbaijan-eu-gas-pipelineloans- threatened/ (Accessed: 9.12.2023).
71. Karl, Mathiesen (2017b). “Azerbaijan President: Gas Pipeline to EU Will not be Stopped.” Climate Home News. Retrieved from https://www.climatechangenews. com/2017/04/11/azerbaijan-president-gas-pipeline-eu-will-not-stopped/ (Accessed: 9.12.2023).
72. Keypour, Javad (2022). “Replacing Russian gas with that of the United States: A Critical Analysis from the European Union Energy Security Perspective”. Russian Journal of Economics 8: 189–206.
73. Koksoy, Fulya (2022). Sah Mat? Avrupa Birligi Rusya İliskilerinde Enerji. Ankara: Nobel.
74. Kolarz, Stefania (2023). “EU Searching for Approach to the Nagorno-Karabakh Conflict”. The Polish Institute of International Affairs Bulletin 148(2267). Retrieved from https://www.pism.pl/publications/eu-searching-for-approach-tothe- nagorno-karabakh-conflict (Accessed: 12.11.2023).
75. Kubiak, Mateusz (2023). “Azerbaijan Set to Become a Green Energy Supplier to the EU”. Eurasia Daily Monitor 20(3). Retrieved from https://jamestown. org/program/azerbaijan-set-to-become-a-green-energy-supplier-to-the-eu/ ( Accessed: 08.12.2023).
76. Liboreiro, Jorge (2022). “Which EU Countries Have Been Totally or Partially Cut off from Russian Gas?”. Euronews. Retrieved from https://www.euronews. com/my-europe/2022/07/07/which-eu-countries-have-been-totally-or-partiallycut- off-from-russian-gas (Accessed: 04.09.2022).
77. Mammadov, Mahammad (2022). “Foreign Green Investments in Karabakh Promise More Than a Zero-Emissions Future”. Topchubashov Center. Retrieved from https://top-center.org/en/analytics/3385/foreign-green-investments-inkarabakh- promise-more-than-a-zero-emissions-future (Accessed: 03.12.2023).
78. Ministry of Energy of the Republic of Azerbaijan (2023). “The European Union (EU)”. Retrieved from https://minenergy.gov.az/en/beynelxalq-teskilatlarla- elaqeler/avropa-ittifaqi-european-union-eu (Accessed: 20.10.2023).
79. Mirbabayev, Miryusif (2008). Concise History of Azerbaijani Oil. Baku: SOCAR Centralized Printing-House.
80. Mirbabayev, Miryusif (2013). Concise History of Azerbaijani Oil II. Baku: SOCAR Centralized Printing-House.
81. Morrow, Sibel (2022). “Baku Energy Week Ends with Special Session in Azerbaijan’s City of Shusha”. AA Energy- Anadolu Agency. Retrieved from https:// www.aa.com.tr/en/energy/energy-diplomacy/baku-energy-week-ends-withspecial- session-in-azerbaijan-s-city-of-shusha/35525 (Accessed: 03.12.2023).
82. PCA (1999). “Partnership and Cooperation Agreement between the European Communities and their Member States, of the One Part, and the Republic of Azerbaijan, of the Other Part”. Official Journal L 246 17.9.1999. 3-38.
83. Proedrou, Filippos (2012). EU Energy Security in the Gas Sector: Evolving Dynamics, Policy Dilemmas and Prospects. London and New York: Routledge. Quitzow, Leslie et al. (2016). “The German Energiewende-What’s Happening? Introducing the Special Issue”. Utilities Policy, 41: 163-171.
84. Republic of Azerbaijan Ministry of Foreign Affairs (2023). “Multilateral Relations- Relations Between Azerbaijan and European Union”. Retrieved from https://www.mfa.gov.az/en/category/regional-organisations/relations-between- azerbaijan-and-european-union (Accessed: 20.10.2023).
85. Sahin, Cigdem (2021). “Avrupa Birligi’nin Orta Asya Siyaseti”. Ed. Cigdem Sahin and Turgay Dugen. 21. Yuzyilda Bolgesel ve Kuresel Aktorlerin Orta Asya Siyaseti. Konya: Egitim Yayinlari. 295-346.
86. SEC (2005) 286. “Country Report: Azerbaijan”. Commission Staff Working Paper (Annex to: European Neighbourhood Policy). 2.3.2005.
87. SEC (2008) 2974/3. “Eastern Partnership”. Commission Staff Working Document Accompanying the Communication from the Commission to the European Parliament and the Council. 3.12.2008.
88. SEC (2011) 650 Final. “A Medium Term Programme for a Renewed European Neighbourhood Policy (2011-2014)”. Joint Staff Working Paper by the High Representative of The Union for Foreign Affairs and Security Policy and the European Commission. 25/5/2011.
89. SWD (2017) 485 Final. “Report on EU- Azerbaijan Relations in the Framework of the Revised ENP.” Joint Staff Working Document by the High Representative of the Union for Foreign Affairs and Security Policy and the European Commission. 19.12.2017.
90. Telli, Azime (2015). “Azerbaycan Enerji Diplomasisi”. Ed. Hasret Comak et al. Enerji Diplomasisi. Istanbul: Beta Yayincilik. 347-372.
91. The White House (2022). “Joint Statement Between the United States and the European Commission on European Energy Security”. Briefing Room-Statements and Releases. Retrieved from https://www.whitehouse.gov/briefing- room/statements-releases/2022/03/25/joint-statement-between-the-united- states-and-the-european-commission-on-european-energy-security/ (Accessed: 20.11.2023).
92. TRACECA (2022). “TRACECA History”. Retrieved from https://www.traceca- org.org/en/about-traceca/history-of-traceca/ (Accessed: 23.11.2022).
93. Türkiye-Azerbaycan Antlasmasi (2013). “Türkiye Cumhuriyeti Hukumeti ile Azerbaycan Cumhuriyeti Hukumeti Arasinda Trans Anadolu Dogal Gaz Boru Hatti Sistemine Iliskin Hukumetlerarasi Anlasma ile Eki Türkiye Cumhuriyeti Hukumeti ve The Trans Anatolian Gas Pipeline Company B.V. Arasinda Trans-Anadolu Dogal Gaz Boru Hatti Sistemi Hakkinda Ev Sahibi Hukumet Anlasmasi”. Resmi Gazete, 28592 19.03.2013. 60-197.
94. Ultan, Mehlika Ozlem and Didem Saygin (2022). “Avrupa Birligi-Rusya Enerji Iliskilerinde Azerbaycan Alternatifi.” Bilig, 101: 87-114.
95. Zasztowt, Konrad (2015). “Azerbaijan and the EU: Prospects for Partnership Beyond Energy”. The Polish Institute of International Affairs Strategic File, 2(65): 1-5.