We Have Our Own Interests – Kobakhidze on Azerbaijani Oil Transit to Armenia

On Public Broadcasting, Kobakhidze confirmed that he had spoken to the Azerbaijani Prime Minister Ali Asadov about this matter during his visit to Turkmenistan.

“Indeed, I also discussed this topic...We had a very friendly meeting and conversation. In general, Azerbaijan is our outstanding friend; everyone knows this. There are exceptionally friendly relations between our governments. Therefore, we will not encounter any difficulties in finding a common language on any issue.

Of course, the subject of the negotiations is how the transit from Azerbaijan through Georgian territory will ultimately be carried out.

We fully take into account the interests of the Azerbaijani side, as well as those of the Armenian side. We also have our own interests, and I believe that, based on negotiations, we can easily find the best solution that satisfies the interests of all three countries,” Kobakhidze stated.

On December 5, the pro-government Azerbaijani media outlet Minval Politika published an article titled “Georgia is Playing Against Peace: Tbilisi is testing the limits of Baku's patience.”

The article states that “in recent months, a concerning change has been noticed in the relationship between Baku and Tbilisi,” which “is not the result of isolated bureaucratic shortcomings, but rather a series of decisions that reflect a shift in Georgia’s political logic.”  

The Azerbaijani publication reports that on November 28, a week ago, the 12th meeting of the joint commissions on border delimitation between Azerbaijan and Armenia took place in the Azerbaijani city of Qabala. It was led by Vice Prime Ministers Shahin Mustafayev and Mher Grigoryan. The discussions covered technical issues and explored opportunities for economic cooperation. According to sources from Minval Politika, one key topic was the potential export of Azerbaijani oil and oil products to Armenia.

Since there is no direct railway connection between Armenia and Azerbaijan, according to Minval Politika, Azerbaijan demanded that Tbilisi set tariffs for the Gardabani-Sadakhlo section. 

“Based on our data, the Georgian side proposed a tariff of $92 per tonne for the 111-kilometre section, which is $0.82 per tonne per kilometre! At first glance, this might seem like a standard tariff, but a comparison reveals the opposite.

 For comparison, the transportation of similar cargo in Azerbaijan from Yalama station to Boyuk-Kiyasik station, 680 km away, is carried out at a rate of 17 USD, equivalent to 0.02 USD per ton per kilometre. This is 40 times lower than the proposed Georgian tariff. The 40-fold difference is an indicator of intent and the market.

 Moreover, within Georgia, similar cargoes are shipped to the ports of Batumi, Poti, and Kulevi over a distance of 360–396 kilometres for $17, which equates to $0.04–0.05 per kilometre. In other words, when transit is favourable for Tbilisi, the tariff is 20 times lower than that offered for the route to Armenia. Here, economic logic gives way to political signalling, ” the article states.

The pro-government media outlet Minval Politika reports that Georgia is resisting the establishment of a sustainable regional peace architecture and mutually beneficial economic ties.

On December 8, it was announced that, in accordance with Kobakhidze’s decision, Georgian Railways will conduct a one-time, free transportation of fuel from Azerbaijan to Armenia.

On December 10, Minval Politika released another article titled “Baku is considering restoring the railway line to the border with Armenia in response to Tbilisi’s tariff démarche.” The article states that the Georgian side’s “one-time decision does not address the main question: what is Tbilisi’s true stance on long-term tariffs and customs duties?”