Azerbaijan and the South Caucasus

Lord Laird Excerpts

Tuesday 6th November 2012 Grand Committee

Asked By

[Lord Laird]

To ask Her Majesty’s Government what is their assessment of the United Kingdom’s relationship with Azerbaijan and the South Caucasus.

[Lord Laird]

My Lords, I thank all those who have supported and helped me in securing this debate on Azerbaijan and the south Caucasus. Azerbaijan is a country I know well. I have to declare an interest as a member of the European Azerbaijan Society’s advisory board, for which I receive an honorarium. Also, I have visited Azerbaijan at their expense.

The subject of this debate is the UK’s relations with Azerbaijan and the south Caucasus. These relations go back many years. The UK was one of the first western nations to open an embassy in Azerbaijan after it gained independence in 1991. In 1994, energy Minister Tim Eggar signed the “contract of the century” which installed BP as the lead company in developing Azerbaijan's oil resources, a pivotal position which it maintains to this day.

In common with all those who visit Azerbaijan—not just Baku but also the regional cities and the countryside—I see a country which is benefiting from the proceeds of oil and gas wealth. New infrastructure is being built, and not only in Baku. Evidence of wealth trickling down is provided by the United Nations. Their figures show that poverty levels have been reduced from 49% in 2002 to 11% in 2009. The president is genuinely popular, and people are optimistic about the future of the country.

However, there is one large cloud which hangs over the whole country. That cloud is the 20 year-old conflict with Armenia, which is the continuing illegal military occupation of Nagorno-Karabakh and the seven surrounding Azerbaijani regions. There are also the resultant 875,000 refugees and internally displaced persons who are still unable to return to their homes and lands. This is despite more than 20 years of talks under the auspices of the OSCE Minsk Group, and four UN Security Council resolutions instructing Armenia to withdraw its forces.

This ongoing conflict is far from being frozen, as some commentators describe it. I am sad to say that every week there are casualties along the line of contact, with small arms fire and mortar fire being exchanged. However, the casualties go far beyond the immediate proximity of the combat zone, and even beyond the refugee and the internally displaced persons camps.

There has also been a blurring of the lines, with some Armenians unable to separate Nagorno-Karabakh from their campaign for recognition of the genocide. That campaign has included violent action, spreading from Paris to California. The Armenian terrorists responsible were released as a result of Armenian diplomatic pressure, and on their return home were feted as heroes. Recently Azerbaijan pardoned Ramil Safarov, who was convicted of murdering an Armenian officer in Hungary, and when he, in turn, was feted on his homecoming, this led to increased tensions between Azerbaijan and Armenia, and some bellicose statements by the Armenian Government and Armenian pressure groups.

As in any conflict, there are faults on both sides. It is always tempting for both sides simply to rehearse past wrongs. The inability to forgive and forget previous atrocities is, however, only part of the problem. The make-up of the OSCE Minsk Group means that it is seriously compromised. The three permanent chairs are the United States, France and Russia. These just happen to be the three countries with the largest Armenian diaspora anywhere in the world, and this makes it extremely difficult for the Minsk Group to develop a workable compromise. Has this point been recognised by Her Majesty's Government?

This is where the UK can play a constructive role. The UK's involvement in Azerbaijan goes right back to the first oil boom at the turn of the 20th century. In Baku, I have visited the war memorial to British servicemen who died defending the oil fields during the First World War. More recently, as I mentioned, the UK was quick to recognise Azerbaijan's independence, setting up an embassy very quickly, and positioning itself from the outset to help to develop the second oil boom and the new gas boom. Given the length of our involvement with Azerbaijan and our close involvement in developing the country's energy resources, do the Government think that it is appropriate that they take a more active interest in the plight of the refugees? What proposals do they have to take a more active interest in the search for a resolution to the conflict?

On a more practical level, one of the primary objectives of the coalition Government and of the Foreign and Commonwealth Office is to help the UK economy to grow by fostering trade and investment links. In that context, do the Government consider that it is time that a Cabinet Minister should visit Azerbaijan? During the past year, eight heads of state and heads of government have visited the country. Such a high-level visit would be most meaningful to the Azerbaijan Government and people. What plans do the Government have to send a senior government Minister to Azerbaijan in the near future? I note that many recent contracts for construction and infrastructure have been awarded to non-UK companies. Outside the energy sector, we seem to be missing out on contracts because of our failure to send top-level representation to the country.

I conclude by reminding noble Lords of our long association with Azerbaijan and the huge amount of investment that is at stake. The country is barely 20 years old and is not yet a fully developed democracy by western European standards. However, by the standards of the region, it has a good story to tell and it can only benefit both sides if we engage more closely. The UK can benefit even more from trade and industry. Once a peaceful settlement of the conflict has been achieved and the refugees and the internally displaced persons have returned to their homes, progress towards becoming a fully fledged democracy can be completed. I thank the Minister and noble Lords for listening closely to my remarks and I look forward to the response in due course.