Does the EU no longer want gas from Azerbaijan?

‘The trembling blue of the gas flame. Source: Pixabay, Photo: Magnascan

Berlin, Germany (Welttexpress). The government in Baku accuses the EU of merely exploiting its country to plug gaps in gas supplies, as Brussels refuses to sign long-term contracts.

The honeymoon between the oriental gas princess Azerbaijan and the hypocritical German climate hero was short-lived. The gas princess is already thinking about parting ways, because the climate hero from the north does not want to fulfil her dearest wish, namely to give her a binding commitment to a long-term and reliable partnership.

At the EU Council summit in Brussels in July 2024, Federal Chancellor Olaf Scholz also had a bilateral meeting with the President of Azerbaijan Ilham Aliyev, whom he greeted warmly for the cameramen present. But there must have been a row behind the scenes afterwards. How else can one explain the fact that two weeks later, on 22 July, Azerbaijan’s EU ambassador publicly accused the EU of merely exploiting his country for short-term gas supplies?

Practically since the former Soviet republic of Azerbaijan gained independence in 1991, the country’s relations with the EU institutions and member states had not exactly been characterised by mutual affection. This changed abruptly with the start of the Russian special military operation in Ukraine on 24 February 2022.

Since independence, European politicians had repeatedly made critical and harsh comments against Azerbaijan’s political leadership, which they accused of autocratic rule, particularly in connection with alleged human rights concerns and in view of the country’s tense relationship with its Armenian neighbour, which has since waged various wars over the South Caucasian region of Nagorno-Karabakh claimed by both sides. French MEP Nathalie Loiseau, for example, has spoken out clearly in favour of Armenia and called on the EU and France to support the country against Azerbaijan.

German MP Frank Schwabe even questioned the legitimacy of the Azerbaijani delegation to the Parliamentary Assembly of the Council of Europe due to concerns about democracy and human rights in Azerbaijan. Above all, Schwabe emphasises the importance of these values, which should not be compromised in favour of trade relations. These and similar political interventions from EU countries determined the relationship until 24 February 2022.

EU human rights concerns regarding Azerbaijan had mainly related to issues such as the suppression of freedom of expression, the arrest of journalists, human rights defenders and activists and the repression of peaceful protests.

In view of the suppression of freedom of expression, the arrest of journalists, human rights defenders and activists and the suppression and criminalisation of peaceful protests in EU countries, especially in Germany, this seems like a bad joke. Unfortunately, it is not, but it is proof of the blatant double standards that prevail in this country.

When the EU wanted to quickly become less dependent on Russian gas after the Russian special operation in Ukraine, Azerbaijan, which is rich in oil and gas, became an extremely desirable bride overnight. The old human rights problems and democratic shortcomings were suddenly forgotten in view of the bride’s handsome dowry. The highest-ranking authorities set off on a pilgrimage to Baku, the capital of the gas princess, to woo the bride with florid promises.

Kadri Simson, the EU Energy Commissioner, visited Baku back in February 2022. Her trip was aimed at strengthening the strategic partnership in the energy sector and promoting negotiations on long-term gas supply contracts. Simson emphasised the need for a stable and diversified energy supply for Europe.

In March 2022, the President of the European Council Charles Michel arrived in Baku, where he emphasised the strategic importance of Azerbaijan for European energy supply and underlined the need to intensify cooperation in the field of energy infrastructure.

The inevitable German Foreign Minister Annalena Baerbock also travelled to Azerbaijan in May 2022 to strengthen the bilateral energy partnership between Germany and Azerbaijan.

The President of the European Commission Ursula von der Leyen visited Azerbaijan in July 2022, emphasising the importance of cooperation between the EU and Azerbaijan in the energy sector. During her visit, she signed a declaration of intent to double gas supplies from Azerbaijan by 2027.

In September 2022, Roberta Metsola, President of the European Parliament, travelled to Baku. Her visit emphasised the importance of increased cooperation in the energy sector and the European Parliament’s support for projects that promote the EU’s energy independence.

According to EU data, Azerbaijan exported twelve billion cubic metres of natural gas to the EU via the so-called Southern Corridor in 2023, an increase of 45 percent compared to 2021.

But now, little more than two years later, the once highly coveted bride seems to have lost her appeal for the EU. And the promises and declarations of intent made to the bride have remained declarations of intent. This is because the EU, which is dominated by climate junkies because that is where the really big money is to be made, is only agreeing to short-term gas contracts with Azerbaijan. ‘We can’t just play fire extinguisher and only ever supply gas with three to six-month contracts,’ the Financial Times quoted Azerbaijan’s ambassador to the EU Vagif Sadigov as saying this week. ‘We need long-term contracts so that we can approach the banks to obtain financing for drilling deep in the Caspian Sea.’

This is exactly what EU Commission President von der Leyen agreed with President Aliyev during her aforementioned visit to Baku two years ago. According to the agreement, 20 billion cubic metres of natural gas are to flow to Europe annually by 2027, twice as much as in 2022.

In order to achieve this delivery target of 20 billion cubic metres of natural gas per year, pipelines in the southern corridor between Azerbaijan and Europe would also have to be expanded. It is highly unlikely that the EU will be able to help directly with the necessary investments, as the European Investment Bank has not been allowed to invest in fossil fuel infrastructure projects since 2021 thanks to climate protection profiteers and lobbyists. This is because the EU does not want long-term contracts due to climate neutrality.

Azerbaijan rightly feels betrayed, because without the security of long-term contracts, the necessary funding is not available. Without this, Azerbaijan can neither increase gas production in the Caspian Sea nor export more gas via non-existent pipelines to meet the EU’s expected additional demand. In the meantime, Azerbaijan, like its neighbours Iran and Turkey, has decided to apply for BRICS membership.

However, the EU and the German traffic light government probably have the same plan B to reconcile the lower gas supply with gas demand. Because as deindustrialisation progresses, the problem in Germany and Europe will solve itself.

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