Issue link: https://maltatoday.uberflip.com/i/286290
maltatoday, SUNDAY, 30 MARCH 2014 17 News After Crimea: Aliyev to the rescue? Ukrainian president Viktor Yanuko- vich, Latvia's Andris Berzins, Bulgar- ia's Rosen Plevneliev and a number of US congressmen and senators. The power of gas What effectively cemented the Ali- yev dynaty's grip was 1994's 'contract of the century'. 11 corporations, in- cluding BP, Amoco, Lukoil of Russia and SOCAR, formed a consortium to extract oil from the Caspian Sea. The money from that oil not only made these corporations huge prof- its, but also gave the Aliyev fam- ily vast wealth and important allies overseas. The oil revenue means the regime is not dependent on taxes, so there is little incentive to pay atten- tion to citizens' voices or interests. The money from the oil industry is supposed to be controlled by the State Oil Fund for Azerbaijan (SO- FAZ), which was intended to finance the transition of the Azeri economy away from oil and to ensure the wealth was kept for future genera- tions. Instead much of it has been pumped into construction. As Ib- rahim Ibrahimov, mastermind of a number of these mega projects, told the New York Times: "We will cre- ate this big building, and then it will, by itself, by the very mere fact of its existence, bring cash." The Dubai-inspired sea city known as the Khazar islands is currently un- der construction. A series of artificial islands in the shape of a lobster will host hotels, a yacht club, an airport and the world's tallest building. Plans are also underway for a Formula One racetrack and a new Disneyland, per- haps evoking another sinister paral- lel between the Aliyev regime and Malta's obsession with construction and land reclamation projects. Repression and blackmail Azeri journalist Khadija Ismayilova has linked many of the construction projects with the president and his family. These include the building of Crystal Hall, which played host to the Eurovision Song Contest in 2012, and the nearby State Flag Square, which cost $38 million. Two-thirds of the cost of the square in Baku came from the reserve fund of the head of state and the other third from the 2011 state budget, yet it was companies connected with Aliyev that profited. Ismayilova's part in exposing the personal profits made by the Aliyev family has led to her being black- mailed. A tape of her and her boy- friend having sex filmed from a cam- era hidden in her flat was published on the Internet and followed by a smear campaign and harassment by government officials at public events. jdebono@mediatoday.com.mt Europe's dash for gas has seen the UK support the drilling of 26 new gas wells in the BP-operated Shah Deniz field off the coast of Azerbaijan. A proposed pipeline from the BP terminal at Sangachal will see the gas move across Azerbaijan and Georgia into the Trans-Anatolian pipeline, across the entire length of Turkey, to the border with Greece, Albania and finally end in Italy. The winners? With Russian gas cut out, oil dictator Ilham Aliyev would cement his rule while Turkish president Reccep Erdogan can strengthen his authoritarian grip as his country becomes an indispensable transit route for Azeri gas to Europe. Buyers of Azeri gas from the Shah Deniz II project include Shell, Bulgargas, Gas Natural Fenosa, Greek DEPA, Germany's E.ON, French GDF Suez, Italian regional utility Hera Trading, Swiss AXPO and Italian Enel. European buyers have struggled to find alternatives to Russia's Gazprom, whose contracts link prices to oil, making it expensive compared to the spot market. Gazprom covers a quarter of Europe's gas needs with over 150 billion cubic metres (bcm) in exports, annually. In response to Europe's quest for a Caspian supply, Gazprom proposed its $39 billion South Stream project, to pipe gas to northeast Italy by 2015. By 2019, Shah Deniz will feed 16bcm to Europe, of which six bcm will go for Turkey alone. Eight billion cubic metres will go to Italy, and then fed off to European buyers. Azerbaijan is wary of cutting its Russian ties, but voted in favour of a UN resolution condemning the annexation of Crimea. So far, it has resisted from signing an EU association agreement so as not to further antagonize Russia. The dash for gas