Quadripartite meeting held between the leaders of Azerbaijan, Georgia, Romania and Hungary

A meeting was held in Baku of Azerbaijan’s President Ilham Aliyev, the Romanian President Traian Băsescu, Georgian President Mikheil Saakashvili, and Hungarian Prime Minister Viktor Orbán was held in Baku.

Azerbaijan’s President Ilham Aliyev greeted the Presidents of Romania and Georgia and the Prime Minister of Hungary in the building where the meeting was held. 

Beforehand, an official group picture was taken of the participants in the quadripartite meeting.

Azerbaijani President Ilham Aliyev delivered a speech at the meeting, which was devoted to the Azerbaijan-Georgia-Romania Interconnector Project (AGRI).

President Ilham Aliyev’s speech:

Dear Presidents!

Dear Prime Minister!

Dear guests!

I welcome you here to Azerbaijan. I am very glad to see you. I believe that today’s meeting is going to be successful and we will achieve positive results. The relevant organisations and ministries of our country have done a great job in organising this summit. I am positive that today’s meeting, our discussions, and the document we sign will launch a new stage in regional development. I am sure that we will do our best to realise our plans during the forthcoming months.

As you know, Azerbaijan is an oil country of long standing. The world’s first oil was produced in Azerbaijan and therefore we have great traditions in oil and gas. The first offshore oil was also produced in Azerbaijan. A great part of the oil produced by the Soviet Union in the middle of the last century was produced in Azerbaijan. However we faced serious problems when the Soviet Union collapsed. Back then there were problems of decline in the oil and gas industries and with ineffective self-government. Thus, the only way to restore our position was to work hard in order to attract foreign organisations. Our policy in this respect has been successful; in 1994, we signed the first major oil contract, called the Contract of the Century, and this allowed us to directly attract billions in foreign capital. A new spirit of cooperation was created in the Caspian Sea. For the first time, the Caspian Sea was opened up to international capital, and this created the conditions for active and all-round cooperation, based on our interests coinciding with those of our partners.

I would like to remind you of how this all happened and what the results were. In my view, the most important result was the development of strong cooperation in the oil and gas sectors, the creation of energy corridors, thereby enabling the first transportation of Azerbaijan hydrocarbons to the West. An energy infrastructure connected the Caspian Sea with the Black and Mediterranean seas for the first time. This was not only about the production and sale of hydrocarbons. This meant much more, opening the way to broad regional cooperation, which has now developed into extensive international cooperation.

The positive results we currently enjoy from supplies of oil and gas present a completely new vista. We have managed to use this capital to diversify our economy, to channel it into other areas, and to launch new projects. Baku-Tbilisi-Ceyhan was the first step in this direction, whilst the South Caucasian gas pipeline allowed us to transport not only oil, but also gas to neighbouring markets. We are well-aware of what dependence on external hydrocarbon resources means, since we have also been importers of natural gas for a certain period of time.

We have also served as a transit country for the countries located on the Eastern shore of the Caspian Sea. This continues today and we are now both producer and exporter. We have implemented, and are currently implementing, significant regional projects. I believe that a balance of interests and mutual understanding between producers, transit countries and consumers is extremely important. As of today, we have reached that balance of interests, and producers, transit countries and consumers will all benefit. In the future, our countries and peoples will also profit, and this will lead to a new stage in regional cooperation.

Taking into account today’s participation by our guests from Georgia, Romania and Hungary, we can speak seriously of Black Sea – Caspian Sea cooperation. We launched this project several years ago by constructing the pipeline stretching from Baku to Supsa, the Georgian shore of the Black Sea. As I have noted before, we have connected the Caspian and Black Sea basins. I am sure that as a result of this meeting, the extension of this route and new projects will lead to new opportunities and create the conditions for establishing closer ties between our countries.

I assume that one of the main reasons for holding today’s summit is to strengthen the ties that exist between the countries we represent. We have well-established bilateral ties with Georgia, Romania and Hungary. I am sure these ties will expand and develop in diverse fields. I think energy issues are a crucial element in these ties, nevertheless, we do not restrict ourselves to cooperation on energy. Collaboration in this sector will open paths to other economic areas and we will certainly also work on strengthening our political relationships.

Today, Azerbaijan transports oil and gas resources to various international markets. As a result of its successful oil strategy and policy, Azerbaijan has become an exporter of gas. Avenues of export continue to expand whilst export volumes continually increase. This year gas production volumes will total approximately 28 bn cu m, which will enable us to increase export levels along traditional routes. We are currently exporting gas to four neighbouring countries and the levels of export keep rising. We have confirmed a large number of resources. 2 trillion cu m are confirmed at international level, however, in reality our minimal potential resources amount to 5 trillion cu m. This is enough for decades, even a century.

The significant point is that we already have the infrastructure enabling us to transport gas to different markets. The construction of the Baku – Tbilisi - Erzurum gas pipeline was very significant in the development of regional gas cooperation. However, that was a small first step, limited to a certain volume. As we would benefit from new routes, we are now working on defining them. To this end we have numerous plans and strong political will. I am absolutely positive that the issues we intend to discuss today will play an essential role in the future energy map. Actually, we are changing the energy map. We are changing traditional notions of production, transportation, export routes and the potential for creating new routes. We are changing the situation, since it is not going to develop by itself. This is the political will of leadership, and practical projects are serious work. I am sure that the level of understanding between our countries and their governments, the level of our potential joint efforts will create a completely new situation.

As I have noted, we are actively cooperating with neighbouring countries in the energy sector. We are simultaneously in close collaboration with European institutions. Four years ago, Azerbaijan and the EU signed a Memo on Strategic Energy Cooperation and these contacts are now quite active ones. I am very glad that, today, two EU member countries and two South Caucasian countries are participating in this summit. Countries cooperating in the energy sector for many years are now working as one team. I would like us to continue working together in future. This would help us realise our gas potential, open new markets and enable European consumers to work together on projects to create access to the Caspian region and its hydrocarbon resources. I think that if we reach a concurrency of all interests, we will reach a clear perspective and promising future. I am sure that the negotiations I had yesterday with my counterparts, and today with the Prime Minister, will give impetus to this partnership.

Today we will sign a declaration on the project named AGRI. This is a new name and probably not everyone is aware of it. However, being new does not mean being backward. It is my belief that we have a good opportunity to assume leadership over all previously discussed projects with our dynamism, velocity and constancy. We will continue to work on projects related to the Southern basin and the AGRI project has great potential, since we observe such strong loyalty between us in promoting the project. As I have noted, we have made many preparations, the Memo of Understanding has been signed and today we intend to sign an essential document. And so I am sure that with our strong bond we can achieve good results by uniting our efforts. In my opinion, we can and must turn a new page in regional energy cooperation, despite the fact that not so many people are well-informed about the AGRI project. I am positive that after this summit, the AGRI project will take its place among the regional and European energy and gas projects.

Thus, at the end of my speech I would like to express satisfaction with today’s gathering. Dear guests, thank you for accepting my invitation and I am sure today’s event will prove to be historic, as it will have a positive outcome and launch a sturdy collaboration. Thank you for your attention.

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Georgian President Mikheil Saakashvili expressed his gratitude for organising the event. He said that the project has great prospects and it is essential to build new routes at a time when energy security has become a crucial issue.

Pointing out Azerbaijan’s role in this issue he said: 

- There is a great tradition. Azerbaijan is at the forefront of this tradition. President Ilham Aliyev noted that the world’s first oil was produced in Azerbaijan. The first oil was indeed produced here and exported to Georgia through Batumi. The world’s first pipeline was the Baku - Batumi pipeline. The first tankers were also built in order to transport Azerbaijani oil through Georgia’s Batumi port to Europe. I believe that we are the creators of this corridor. If you look at the geography, you will see that numerous changes have taken place. In the era of the late President Heydar Aliyev there were initially only two ports in Georgia – Poti and Batumi. However, as a result of the balanced policy conducted by President Ilham Aliyev, two more ports have been built in Georgia – Supsa and Kulevi. This is a great enhancement.

Mikheil Saakashvili talked about the importance of the Baku – Tbilisi – Kars railway and said that the railway starting in Asia and passing through the territory of Azerbaijan will stretch to Europe. Georgia’s president also mentioned that the experience gained by Azerbaijan and Georgia during their joint participation on the Baku – Tbilisi - Ceyhan project will play an essential role in the implementation of the AGRI project.

Mikheil Saakashvili said his country is participating in EU’s Eastern Partnership programme together with Azerbaijan. This demonstrates that we are countries that stride along together. The Georgian head of state said many countries have been provided with energy routes due to the Southern corridor and Azerbaijan’s contribution here is worthy of note:

- If we pay close attention to the current situation we will see that energy supplies from Azerbaijan to Europe have not changed from the political point of view. Azerbaijan’s energy exports have continued to grow steadily. Azerbaijan has presented itself as a constant, determined and reliable energy supplier. All this work has been carried out transparently.

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Romanian President Traian Băsescu also thanked President Ilham Aliyev for organising the meeting to a high level. He said that the four countries participating in the meeting will, from now on, be the founders of the AGRI project. Stressing that AGRI is the first project on the transport of liquid gas in the Black Sea region, the Romanian president stated:

- We are the countries working to unite the European and Caspian regions in the field of energy. The cooperation we have built manifests our political will. At the same time, the agreement on strategic relations signed by Azerbaijan and Romania a year before the commencement of the AGRI project will bear fruit. According to the EU, AGRI will be extra support for the Nabucco project and the Pan-European Oil Pipeline. I would like to stress once again that Romania supports all the European pipelines.

Traian Băsescu said the project will also strengthen energy security in the region in which Romania is located. The Romanian president stated that his country and the EU attach importance to meetings between the Eastern Partnership member countries. He underlined that the Eastern Partnership will strengthen energy security both in the Caspian and Black Sea regions. Hailing this programme as a present from the EU to the energy sector, Băsescu said:

- We expect the AGRI project to ensure well-being in all the member countries. Besides the opportunities opened up from the political, economic and technological points of view, the AGRI project will attract investment and human resources, thereby strengthening regional development. AGRI will strengthen Azerbaijan’s role as a major producer of hydrocarbons.

The Romanian president noted that, in future, countries located on the Eastern shore of the Caspian Sea could also join the AGRI project. “Ensuring continuous development and the diversification of supply routes are important elements of current Romanian economic policy,” Traian Băsescu said, underlining that the main issues here are energy market liberalisation and the utilization of renewable sources of power.

The Romanian head of state also said that the political will and support currently displayed in the AGRI project ensure successful implementation at later stages of the project. A joint venture will be created, headquartered in Bucharest. Romania will also try to involve the EU in the project.

Traian Băsescu reported on the initial research conducted into Romania’s port at Constanta and stressed the importance of joint training for project management personnel:

- I would like to assure you that Romania will continue to support the project. During my first presidential term, I raised Black Sea regional issues with the EU leadership. Within the last 5 years, certain organisational works have been conducted on this question. Despite all our efforts, the opinions expressed were diverse. However events occurred which allowed us to look for other solutions. The concepts of sovereignty and the inviolability of countries’ borders are extremely important to Romania. As regards the frozen conflicts in the region, we consider it important to follow the norms of international law. Any attempt to support the separatist regime can be harmful to regional stability.

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Hungarian Prime Minister Viktor Orbán expressed satisfaction with his visit to Azerbaijan and thanked President Ilham Aliyev for his initiative.

He said that Hungarians and the Hungarian government would be pleased to join the project and stated the following:
- Mr. President Aliyev, let me say that Hungary considers it important to join this project. First of all, this is connected with the fact that Hungary is a member of the EU. I would like to stress that we do not have any ethnic affinity. We consider ourselves completely secure within the EU region. Therefore, we have always been happy to cooperate with Eastern countries. What I am saying is that this cooperation will not just be easy for Hungarians, but also pleasant.

Speaking about the processes of economic development taking place in his country, Viktor Orbán said that, for the last 20 years, Hungary has travelled a long path and is now interested in consistent cooperation with other countries.
Speaking about the AGRI project Viktor Orbán valued greatly the work done so far on the AGRI project by the countries represented at the meeting. He said:

- We are determined to establish cooperation and put in all the effort required. We will be active in this collaboration. Hungary possesses certain abilities which will be useful to the project.

Viktor Orbán also stressed that he will make every effort to integrate the EU into this region and to continue supporting the EU’s Eastern Partnership programme.

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President Ilham Aliyev thanked the heads of state and government participating in the meeting for accepting his invitation and visiting Baku. He said that the day’s gathering will greatly influence the level of future cooperation and general development in the region.

President Ilham Aliyev also thanked Georgian President Mikheil Saakashvili for the opinion he expressed regarding energy cooperation. Our head of state Ilham Aliyev said that the Baku – Tbilisi - Kars railway connecting Asia and Europe will create conditions for extensive collaboration.

President Ilham Aliyev expressed his gratitude to President Băsescu and Prime Minister Orbán for the constant support for Azerbaijan from the Eastern Partnership and European consumers.

Our head of state also thanked the Romanian President for the support for Azerbaijan and its territorial integrity from international organisations.

Speaking again about the significance of the AGRI project, President Ilham Aliyev continued:

- First of all, I would like to state that AGRI is a new project which has fine potential. Today’s meeting, the spirit of cooperation and yesterday’s negotiations demonstrate how close our countries are. This is one of the major conditions for any project to be a success. If we add to these strong political and personal relations our interdependency, which is an essential term in the energy sector, the fact that we are able to support each other in any form and the fact that our economies will not be in competition with each other, then the AGRI project will be useful for all of us.

Thus, we have already seen the strong potential of this project, from the very first moments of its commencement. All indispensable measures will be carried out today. I am sure that if the tasks linked to the feasibility study, project assessment and engineering are carried out in time, then we will achieve positive results. I would like, once again, to express my gratitude to my guests and friends for their kind words, reviews and participation.

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Azerbaijan’s Minister of Industry and Energy, Natig Aliyev, gave a brief account of the AGRI project. He said that a broad exchange of opinions had been conducted and the main principles determined for the establishment of a joint venture on AGRI by Azerbaijan, Georgia and Romania. Describing the demand for gas, its production, and the export opportunities within European markets, Natig Aliyev delivered forecasts on major gas exporting countries like Russia, Norway, Algeria and others.

Analysing the EU’s policy towards countries’ energy security and known infrastructural projects, Azerbaijan’s Industry and Energy Minister said that European countries fully support access to carriers of Caspian Sea energy supplies. He noted that the Azerbaijani sector of the Caspian Sea is rich, not only in oil, but also in natural gas. Generally speaking, the Caspian Sea is noted in the region for its natural gas resources.

Natig Aliyev spoke about cooperation with EU countries on energy security, the efforts made to strengthening this cooperation, the friendly relations under the direction of Ilham Aliyev and the support rendered by our Republic to all the energy security projects realised in the region. He said that Azerbaijan is continually developing energy transport routes to Western markets.

Recalling the stages in negotiations devoted to the AGRI project which have been held at different levels with partners since 2008, Natig Aliyev said that as a result of these negotiations, agreement was reached on transporting Azerbaijani gas to Romania through Georgia and several documents had been signed. Azerbaijan’s Minister of Industry and Energy stated that the AGRI project is beneficial for all parties and is based on market economy principles. He said that the joint venture to be established for the Azerbaijan – Georgia - Romania AGRI project will develop a feasibility study and seek investors.

Natig Aliyev stressed that the AGRI project is important both to countries of the region and to Europe. The minister gave information on the terminals to be built within the project in Georgia and Romania, the supplementary gas lines to be built in certain areas, gas compression at the Georgian plant, the conversion of compressed gas into natural gas at the Romanian plant and other processes.

At the end of his speech, Natig Aliyev congratulated everyone on a significant event – the signing of the Baku Declaration on the AGRI Project, and he wished success to participants in the meeting.

Later, discussions on the topic were continued.

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Azerbaijan’s President Ilham Aliyev, Romanian President Traian Băsescu, Georgian President Mikheil Saakashvili and Hungarian Prime Minister Viktor Orbán signed the Baku Declaration on the AGRI Project.