FEB. 24 2014 (The Conway Bulletin) — At a meeting in Baku between Indian and Azerbaijani officials both sides talked up the importance of a south-north transport corridor.
The idea is to bolster trade through a route that runs from Mumbai to Bandar Abbas in Iran on the Persian Gulf by boat and then on to Azerbaijan by train and into Russia.
Cooperation between India and Azerbaijan has increased over the past couple of years and E.M.S. Natchiappan, the Indian minister for commerce, said this was key to the new trade route.
“The two countries have the requisite momentum to take the relationship to next level,” he said. “Completion of the corridor will lead to mutually beneficial connectivity between the two regions.”
Not only is the plan important for regional commerce but it is also important for regional stability. A busy trade route with India may help smooth over their varying differences between Russia, Azerbaijan and Iran.
Mr Natchiappan said India would test out the suitability of the route later this year.
In 2013, India’s state-owned energy company ONGC Videsh bought a 2.72% stake in Azerbaijan’s Azeri-Chirag-Guneshli (ACG) oil field and a 2.36% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline for $1b from Hess Corp., a US company.
This was an important deal for India because it had been looking to boost its energy reserves after being rebuffed by Kazakhstan. It was also an important deal for Azerbaijan which has wanted to diversify its energy client base and pull in a new trade partner.
ENDS
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(News report from Issue No. 173, published on Feb. 26 2014)