Getting Out of the Caspian Sea is Still Difficult

 

Although it has been used by people living on its coast to earn a living through fishing, and by many countries, because of its key role in transportation, the Caspian Sea has become much more important in recent centuries.

From the first Iran-Russia war that lasted until 1813, to the Friendship Treaty between Iran and the Soviet Republic of Russia in 1921, and the Sailing and Trade Agreement between Iran and USSR in 1940, and Soviet Union’s dissolution in 1991, exploiting world largest lake has been always a major concern for Iranians.

In past, the lake was chiefly exploited for transportation and fishing to earn a living. In recent years, exploitation of sea-bed resources, conservation of the environment, and use of the lake’s area have also become important.

 

The problem with Caspian Sea is that it is landlocked and has no access to open seas. Of course in past transportation was carried out through the Volga River by use of small fleet. By 1954 by building a canal between the Volga River and Don River, transportation between Caspian Sea and Mediterranean and Black Sea through Sea of Azov became possible.

This, at first, resulted in the richness of the variety of aquatic animals of the Caspian Sea, as the Caspian currently enjoys the most various of aquatic species, with more than 600 species. However, this increases the water and soil pollution in the Caspian and its coasts.

Fleets’ traffic through Volga-Don Canal is a key item in Caspian-related issues. These two rivers are considered by Russia as its inland waterways and entrance or exit of ships into the Caspian is carried out by this country selectively.

In past, a considerable volume of Iran’s export and import of products and commodities was carried out through maritime lines, majorly by Soviet fleets, from Iranian ports on the southern coast of Caspian Sea to USSR’s ports, then towards European ports through the Volga River and Volga-Don Canal, and vice versa.

Compared with other routes for import and export, such as Turkey or even Persian Gulf, this transportation route has been always favored by Iran because of its cost-effectiveness, rapidity, and conservation of commodity’s quality due to the route’s climate.

But after USSR’s dissolution, although Iran’s import and export via this route is still carried out by Russian fleet, in 2003 this country implicitly rejected Iran’s request to convey some of its military navy from Persian Gulf to the Caspian Sea.

However, in another move Russia didn’t stop entrance of Turkey-donated boats to Azerbaijan’s army and patrol boats donated by the United States to Kazakhstan. On his return from Baku in 20^th of August 2002, Turkey’s Minister of Navigation criticized Russia because of restrictions it placed on fleet traffic in Volga-Don Canal. He stated: “blockage of this Canal is a great obstruction against trade between Central Asian and Caspian littoral countries with the world, while Russian ships easily pass through Turkey’s canals. If it gains unrestricted access to Volga-Don, Turkey will import 2 million tons of grains from Kazakhstan each year through this canal”.

Stressing that this canal is the only maritime communication route to open waters for the Caspian littoral states, he remarked that: “the Canal’s obstruction is against international regulations of maritime traffic and Ankara will talk with the Russian government for unrestricted access and in case of futility, Turkey will leave the pass the case to International Maritime Organization”.

In spite of these warning, Russia responded that although it had signed an international convention on re-opening waterway, but at the time it didn’t have any plans to apply quick changes. Currently Kazakhstan and Azerbaijan have asked Russia’s admission to use this canal for free. From 1994 Russia has admitted Azerbaijani shipping to use the Volga-Don Canal by paying entrance fee. But in 2005 it stopped two Azerbaijani vessels that carried equipment for construction of Baku-Ceyhan Pipeline, allegedly because of not renewing their license.

 

One of the important points about Volga-Don Canal is the legal consequences of construction of this canal. Considering that both Volga and Don are territorial waters of Russia, the Volga-Don Canal is under the inland sovereignty of Russia.

But from another point of view, through this canal the Caspian is connected to open waters and therefore it falls under the group of inland seas. For example, Kazakhstan claims that since the Caspian Sea is connected to open seas such as the Black Sea, through Volga-Don Canal, and Baltic Sea, through Volga River, therefore it receives the properties of open waters. As a result, the legal regime of United Nation’s Convention on the Law of the Sea must be applied to it.

That is, after drawing the median line, 12 nautical miles are designated as territorial waters, 24 miles as subsequent zone, and 200 miles as exclusive economical zone and continental shelf (of course to the point where it meets the borders of other countries). Of course free navigation, air flight, and installation of undersea pipelines and cables in the economical zone are granted to third countries.

Therefore, if we consider the Caspian as a sea, based on Law of the Sea the Caspian is considered as an inland sea and automatically the Volga-Don Canal will become an international waterway. In this case, Russia shall prepare the circumstances for secure traffic of shipping of all Caspian littoral states, just as Turkey does in Bosporus Strait. That’s why Russia evades defining the legal status of the Caspian. In 1993, Victor Chernomyrdin, contemporary Russian PM, remarked that the Caspian is neither a sea nor a lake, but it’s a unique landlocked container of water.

Iran’s Ports and Shipping Organization believes that any legal regime drawn up for the Caspian Sea must take three principles into notice: free navigation, secure traffic, and mutual use of ports’ facilities. The legal regime that governs transportation in the Caspian Sea is still based on the Sailing and Trade agreement of 1940 between Iran and the Soviet Union. Russia has suggested contracting a new agreement for commercial navigation in the Caspian Sea.

The Friendship Treaty between Iran (Persia) and the Socialist Soviet Republic of Russia in 1921 and the Sailing and Trade Agreement of 1940 have not differentiated between cargo and passenger ships and military navy. Generally it is has been emphasized that the ships of both parties can freely move in the Caspian Sea and use the other party’s ports.

On the brink of dissolution in 1991, USSR faced disputes between Russian Federated Republic and Republic of Ukraine on dividing Crimea Navy in the Black Sea. About 150 navies were moved to Astrakhan through the Volga-Don Canal.

Although Russian military navy never entered Iranian ports after the 1940 agreement, but some argue that Russia’s insistence on drawing up a dual contract to divide the bed of the sea and share the surface, reveals its intention to take advantage of the military power that is exclusive to this country in the Caspian Sea.

 

Freight in the Caspian Sea is mainly done by Russian shipping. Recently Iranian companies have tried to take a share from the transportation of goods. In 2006, the Islamic Republic of Iran signed a contract with Russian companies for manufacturing of 4 ships with an aggregate tonnage of 6759.

These ships will be launched into the Caspian early in 2007. This will increase the current 25000-tons capacity of Iranians ships to 52000.

Currently Russia possesses 100 ships that if we consider the capacity of each 5000 tons, then the total capacity of the Russian navy in the Caspian Sea will be 500 thousand tons, which is 10 times as much as the capacity of Iran’s navy. The Republic of Azerbaijan owns 16 cargo ships. Just as Iranians, they complain about the restriction of transportation in Volga-Don Canal.

Fuel and crude oil in the Caspian Sea are usually conveyed by pipelines. The major oil pipelines are the Caspian Consortium Pipeline with the capacity of one million barrels per day that carries Kazakhstan oil to the Russian port of Novorossiysk in the Black Sea, The Baku-Tbilisi-Ceyhan Pipeline that carries Azerbaijan’s oil to the Ceyhan port in Turkey in the Mediterranean Sea, and Baku-Supsa and Baku-Novorossiysk pipelines that transfer 250 thousand barrels of oil to the Black Sea every day. There are also pipelines running through Russia and from Kazakhstan to China.

In addition to these pipelines, oil tankers transport Russia and Kazakhstan’s crude oil to Neka port in Iran. This oil is transported the refinery of Tehran via Neka-Rey Pipeline. Recently the National Iranian Tanker Company ordered 10 vessels with a capacity of 60 thousand ton, which can be used for transportation of crude oil to every point of the Caspian Sea.

 

In July 2006 it was announced that a new canal will be constructed between the Black Sea and Caspian Sea for goods and energy transportation by ships. According to Mana News Network, the shipping canal between the Caspian Sea and Sea of Azov, named Eurasia Canal, will traverses from the Caspian Sea and reach the mouth of Don River in the Sea of Azov.

Importantly, a situation is provided for oil-tankers to go out of the Caspian Sea. Kazakhstan and Russia have shown more interest than other littoral states for completion of this project and facilitation in the process of Caspian oil export.

According to Russian officials, the Eurasia Canal will be 800 kilometers long, with a depth of 5.5 to 6 meters and 6 water gates and will be launched for traffic of fleets with a net weight of 10 thousand tons.

The initial estimates show that an approximate budget of 5.6 billion dollars is needed for this project that will be provided by governmental funds and investors from the private sector. Up to now this project has enjoyed the support of Russian state-run organizations such as the Federal Agency for Water Resources.

As stated by officials of this agency, since oil and non-oil products of Kazakhstan and Chinese exports to Caspian littoral states is currently transported via Iran, this project will be highly welcomed with no doubt, such that it will have a heavy goods traffic. One of the problems that the launch of this project faces is the opposition of maritime environmental organizations.

 

In 2003, after several meetings aimed towards cooperation were held by environmental experts of littoral states, The Caspian Sea Environment Convention was signed in Tehran. The goals of this convention are preservation and revival of Caspian Sea’s environment, control of its pollution, coastal management and sustained exploitation of caviar resources:

 

“By the virtue of this convention, the five littoral states of Caspian Sea, noting of the deterioration of the marine environment of the Caspian Sea due to its pollution arising from various sources as a result of human activities, including the discharge, emission and disposal of harmful and hazardous substances, wastes and other pollutants, both in the sea and from land-based sources;

Firmly resolved to preserve living resources of the Caspian Sea for present and future generations;

Acknowledging the need to ensure that land-based activities do not make harm for the marine environment of the Caspian Sea;

Mindful of the danger for the marine environment of the Caspian Sea and to its unique hydrographic and ecological characteristics related to the problem of sea-level fluctuation;

Reaffirming the importance of protection of the marine environment of the Caspian Sea;

Recognising the importance of co-operation among the Contracting Parties and with relevant international organizations with the aim to protect and conserve the marine environment of the Caspian Sea.”

 

Currently, one of the environmental problems of the Caspian Sea is existence and proliferation of a comb creature that threatens the life of caviar and kilka fish. Some experts believe that the origin of this creature is the waters of Black Sea and it has come through the water ballast of ships that commute between the Black Sea and the Caspian Sea through the Volga-Don Canal.

This invading creature that has undermined the balance of the life cycle in the Caspian Sea, substantially reduced the number of kilka fish, and endangered the existence of caviar fish, has entered the Caspian Sea ten years ago according to experts. This gelatinous transparent creature that is has been known as Caspian Monster has reduced the number of kilka fish to a large extent, by consuming planktons which are the main diet of kilka fish. The measure of this creature is more than 5 mms and 6 centimeters at its maximum. But the large number of them, especially in warm season has troubled the life of small creatures of the Caspian Sea. It has consumed so many of planktons that the kilkas have remained hungry and their number has reduced. Based on reports by Iranian Fisheries Research Organization, this creature had disturbed the balance of Black Sea’s ecosystem in 1982, and later in the Sea of Azov it had severely harmed aquatic creatures. Now construction of a deep canal that will be used by huge tankers in shallow waters of the Sea of Azov will have a negative impact on the ecosystem of the region, in addition to ease in move of the Caspian Monster.

 

One of the reasons Russia prevents the Iranian ships, whether oil tankers, commercial, or military navy, to pass through the Volga-Don Canal, is the 1924 agreement between the two countries regarding this issue. But the author has not reached a conclusion on this matter yet.

For this, design of a route for oil tankers, that transfers crude oil of Tengiz and Kashagan fields to Baku through Kuryk and Aqtau bays of Kazakhstan, has been completed and Chevron Texaco, Exxon Mobil, Shell, Lukoil, and Agip signed an agreement on 24^th of January 2007 to transfer 500 barrels of crude oil every day from Kazakhstan to Azerbaijan.

The cost of purchase of tankers and installation of terminals is more than 3 billion dollars. It seems that the swap oil project through Neka-Rey pipeline can be a serious challenge this project if the fees are reduced.