Energy Security Aftermath of Russo-Georgian War: Implications for South Caucasus

Abstract

Since the collapse of the Soviet Union, the Caspian Sea and SouthCaucasus has become the focus of considerable international attention,primary because it is one of the oldest and potentially richestoil and gas producing areas in the world. The August 2008Russian invasion of Georgia and the unilateral recognition of theindependence of Abkhazia and South Ossetia fundamentallychanged the situation in the region. The war has created a newstrategic situation.And the question is now how to handle this delicate situationin a strategically and geopolitically important region. So by controllingGeorgia (in case Russia reaches abovementioned aims),Russia actually will be able to cut off Central Asia and Caspian resources.It means Russia would be able to isolate and cut off Azerbaijanand Central Asian countries and it will significantlystrengthen its energy monopoly over Europe with all results outcoming from that fact. So it’s about a major shift in the energy policyand a major shift in geopolitics based on this energy policy andRussian energy monopoly. The August war in Georgia demonstratedsome risks associated with the functioning of the transitenergy corridor in the southern Caucasus. It also demonstrated theneed for broader security guarantees for a region that is vital toEuropean and global energy security. This paper deals with economicdamage inflicted by the Russo-Georgian war in South Caucasusand its implications for regional security.