Caucasus Archive

On Sep. 6, the European Investment Bank, the European Bank for Reconstruction and Development, and the International Financial Corporation (a branch of the World Bank Group) signed a mandate letter with the consortium behind the Nabucco natural gas pipeline, marking the start of an appraisal process that will eventually secure a €4 billion financing package for the project. The three international financial institutions committed €2 billion, €1.2 billion and €800 million, respectively. Along with the more modest €200 million grant provided by the European Commission last March, the contributions will certainly boost confidence in the project among private investors, who […]

Nuclear energy’s recent renaissance has seen the United States firm up nuclear cooperation agreements with a number of emerging nuclear nations. However the most eye-catching so far is the proposed deal with Vietnam, which stands out not only for its departure from the standard template of such deals, as epitomized by the U.S.-UAE nuclear agreement, but also because it comes at a time when Sino-American interests have been at odds in the South China Sea. More broadly, the deal reflects the unfolding American strategy to counter Chinese assertiveness in the Asia-Pacific region. Nonproliferation hawks are up in arms that the […]

Armenia agreed to extend Russia’s lease of a military base in the city of Gyumri until 2044. In an e-mail interview,Kim Iskyan, a director in the Russia and Eurasia practice at Eurasia Group, discusses Russia-Armenia defense relations. WPR: What has historically been Russia and Armenia’s defense relationship? Kim Iskyan: Russia and Armenia have long shared a close relationship, with defense as a critical dimension. Upon the collapse of the Soviet Union in 1991, there were Soviet bases in all three countries of the Caucasus, but Azerbaijan and Georgia subsequently engineered the departure of the Russian military presence. Armenia, though, wanted […]