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TABLE OF CONTENTS

THESIS APPROVAL PAGE

ABSTRACT ………...………... iii

ACKNOWLEDGEMENT………. iv

ABBREVIATION………...………. vii

INTRODUCTION………. 1

1. HISTORICAL BACKGROUND OF CASPIAN BASIN 1.1 Before Russian Empire……… 7

1.1.1 Arab Period……… 8

1.1.2 Caspian Region under the Mongols………... 9

1.2 Russian Empire in the Caspian region………. 11

1.3 Soviet Period……… 15

2. LEGAL REGIME OF THE CASPIAN SEA, POSITION OF THE LITTORAL STATES………. 18

2.1 Azerbaijan, “Sensitive Position” on the Caspian Sea Issue…...………. 21

2.1.1 The crisis between Azerbaijan and Iran………. 25

2.2 Russian Caspian Sea Position: “Divide bottom, Water general”…….……... 27

2.2.1 Russian - Azerbaijan agreement………. 33

2.3 Turkmenistan Position: “Ambiguous”……… 35

2.3.1 Turkmenistan - Azerbaijan Dissidence over Oil Fields……… 38

2.4 Kazakhstan Position: “National Jurisdiction and Exclusive Rights”………….. 41

2.4.1 Agreement between Kazakhstan and Russia……….. 43

2.5 Iran’s Position of the Caspian Sea: “Condominium or Joint use”………...….. 45

3. CASPIAN ENERGY RESOURCES, CASPIAN BASIN GEOPOLITICS AND

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ROLE OF INTERNAL AND EXTERNAL ACTORS……... 51

3.1. Internal Actors 3.1.1 Russia, Historical Leader of the Region………..………. 53

3.1.2 Iran, “Pariah State” or Leader State of the Caspian Basin?.……… 56

3.1.3 Azerbaijan, In the Centre of Geopolitical Game..……….... 57

3.1.4 Kazakhstan Policy: Escape from Russian Dependence ...……… 58

3.1.5 Turkmenistan Caspian Sea Policy: Neutral or Side...….……… 59

3.2 External Actors 3.2.1 United States, New player of the “Great Game”………... 60

3.2.2 European Union Policy in the Caspian Region: Economic Reforms……. 65

3.2.3 Turkey’s Role: “State Bridge” between East and West...……… 68

3.2.4 China's Caspian Sea Policy: Security and Economy...…….……….. 71

3.2.5 Energy Corporations in the Caspian Sea……… 74

3.3 Oil and Gas Routes from Caspian Basin 3.3.1 Main challenges for Transportation Oil and Gas……… 76

3.3.2 Existing and Potential Pipeline Routes…………...…… 79

CONCLUSION……….. 84

REFERENCES………...…… 87

APPENDIX………...………… 95

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