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Deals signed by Caspian Sea countries could benefit Brazil

The area has great potential for becoming a corridor rich in exports
José Romildo -Repórter da Agência Brasil
Published on 19/08/2018 - 17:37
Brasília
The agreements recently signed by the countries bordering the Caspian Sea, in Western Asia, are expected to spark a flurry of development in the region, not just benefiting the nations in the area, but also bringing opportunities to Brazilian enterprises interested in European and Asian markets. The statement was made by Kazakh Ambassador to Brazil Kairat Sarzhanov.
 
The regional cooperation deals on such fields as ecology, energy, transport, and trade were inked during the 5th Caspian Sea Summit meeting, held on August 12, in in the Kazakh city of Aktau. On the occasion, Kazakhstan, Azerbaijan, Turkmenistan, Iran, and Russia decided to leave aside their over 20-year-old disagreements on how to explore the area. 
 
The Caspian Sea is in fact a lake—the world’s largest—and home to some of the planet’s most promising oil and gas fields.
 

Warming up trade

 
What may bring opportunities to Brazilian companies planning on boosting business in the region, the ambassador said, are the infrastructure and transport projects to be implemented under the deals.
 
Brazil will have the chance to bolster its commerce with the countries in the region, particularly with Kazakhstan, Sarzhanov argued, as the terms under the agreements, especially in transport, facilitate the shipping of goods to these countries in shorter terms through expanding transit potential.
 
In the first seven months this year, Kazakhstan imported a mere $3.75 million from Brazil, which shows how much trade between the two countries should be encouraged. In the same period, Brazil imported $40.89 million from the Kazakhs—a deficit of $36.13 million to the country.
 
From January to July, Brazil’s trade with Russia was considerably stronger. The South American country exported $951 million and imported $1.76 billion, generating a $810.5 million deficit with Russia.
 
Brazil also makes significant business with another country bordering the Caspian Sea—Iran. From January to July, Brazil exported $1.35 billion to the country and imported as little as $3.14 million—a positive $1.34 billion balance for Brazil.
 

Interview

 
In an interview granted to Agência Brasil, Ambassador Kairat Sarzhanov explained that the 5th Caspian Sea Summit meeting plays a significant role for Europe and Asia and also other countries interested in increasing its trade with the region. Below is the transcript of the interview.
O embaixador do Cazaquistão, Kairat Sarzhanov, durante a mesa redonda
Ambassado Kairat Sarzhanov . - Marcelo Camargo/Agência Brasil
 
Agência Brasil - Ambassador, we know that the Caspian Summit held in Aktau is bound to become a landmark event. Why?

I am very pleased to inform you that on 12 of August, 2018, Aktau – the Kazakh port city, which has a coastline along the Caspian Sea, hosted the fifth Caspian Summit. It was special occasion as on 12 of August we celebrate International day of the Caspian Sea. It was a historic day for all the five littoral states, i.e. Kazakhstan, Azerbaijan, Iran, Russia and Turkmenistan, and international community as it determined the legal status of the Caspian Sea after more than 20 years of negotiations between the coastal states. The five Caspian Heads of States, President Nursultan Nazarbayev, President Ilham Aliyev, of Azerbaijan, President Hassan Rouhani, of the Islamic Republic of Iran, President Vladimir Putin, of the Russian Federation, and President Gurbanguly Berdimuhamedov, of Turkmenistan, signed the Convention on the Legal Status of the Caspian Sea.

We hope that this long-awaited convention will allow us to pave way for implementing mutually beneficial projects in the near future.

Within the framework of the Summit the governments of the Caspian States also signed agreements on cooperation in the field of trade, economy, transport and security, including Protocol on Cooperation in the field of combating terrorism in the Caspian Sea, Protocol on Cooperation in the field of combating organized crime in the Caspian Sea, Protocol on Cooperation and interaction of border agencies.

Agência Brasil - We know the Summit it will determine the legal status of the Caspian Sea. What does it mean?

Well, according to the Convention achieved between five riparian states, Caspian Sea transforms into a peace zone, where each state respects the sovereignty and territorial integrity of its neighbor. The territorial waters of the Caspian states are adjoined by 10-mile fishing zones, while common waters areas outside fishing zones remain unchanged. The Convention stipulates free transit of vessels to other seas and the oceans. The Caspian littoral states will be able to implement their sovereign rights to use subsoil within the borders of their bottom sector. Pipelines and cables can now be laid along the seabed in the Caspian Sea in observance of the ecological requirements. The Convention guarantees the security, stability and prosperity of the entire Caspian region.

Agência Brasil -  After the Summit, would Brazil benefit from the new legal Status of the Caspian Sea?

The very fact that five littoral Caspian states reached an agreement on the legal status of the Caspian Sea demonstrates the tremendous work that have been done and large-scale efforts that have been taken, as well as our joint commitment to unleash the potential of the Caspian Sea for further development. This means that by acting in line with the principles of the Convention on the Legal status of the Caspian Sea, we can effectively develop our transport infrastructure and enhance our transit potential, which, in my view, will also contribute to the Kazakhstan-Brazilian trade and economic cooperation, especially in terms of boosting shipment of goods by using Caspian and Kazakhstan’s transit potential.