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Petroleum industry

Azerbaijan's Oil and Gas Projects: A Shift in the Global Balance

Strategic Insights

— 1 min read

Azerbaijan's bid to have US sanctions lifted on its oil and gas projects has gained momentum due to its strategic ties with Israel and Turkey, among other factors. The country's efforts to become a major player in the global energy market have been hampered by Section 907 of the US Freedom Support Act, which bans government-to-government aid to Azerbaijan, except on humanitarian grounds. However, a coalition of six Jewish American groups has joined forces with Azerbaijan to push for repeal of the sanctions, with the potential to tip the US legislative scales in their favor.

Key Takeaways:

  • Azerbaijan's oil and gas projects have been restricted by Section 907 of the US Freedom Support Act, which bans government-to-government aid to the country, except on humanitarian grounds.
  • A coalition of six Jewish American groups, including the American Jewish Committee and the Conference of Presidents of Major American Jewish Organizations, has joined forces with Azerbaijan to push for repeal of the sanctions.
  • Israel has voiced its support for Azerbaijan's proposed oil pipeline from Baku to the Turkish Mediterranean port of Ceyhan, seeing it as a means of increasing global oil supply security.
  • The coalition's efforts may be hindered by the Armenian lobby, which also has influence in key US states.
  • US oil companies have lost some interest in the repeal measure as they have already secured the right to drill in certain fields.

Statistics:

  • 6 Jewish American groups have joined the coalition with Azerbaijan to push for repeal of the sanctions.
  • 1/3 of Azerbaijan's territory is occupied by Armenia, making Azerbaijan's strategic links with Turkey and Israel crucial.
  • The oil pipeline from Baku to Ceyhan will allow countries in the region to become self-sufficient and provide alternatives to oil from countries with "prickly relations" with Israel, such as Saudi Arabia, Kuwait, Iran, and Iraq (Barry Jacobs, Assistant Director for International Affairs, American Jewish Committee).

Sources:

  • The Washington Post
  • US Freedom Support Act (Section 907)
  • American Jewish Committee (Barry Jacobs)
  • Conference of Presidents of Major American Jewish Organizations
  • Anti-Defamation League
  • National Conference on Soviet Jewry
  • American Jewish Congress
  • B'nai B'rith

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