Economic and International Legal Dimensions

Abstract

The Caspian Region has abundant hydrocarbon resources (oil and gas), as well as biological resources (fish), particularly the unique sturgeon, which gives black caviar. Seeking to attain a higher pace of economic development the new independent Caspian states are focusing on improvement of the fuel and power complex. Better utilization of the Caspian Sea resources depends, to a great extent, on settlement of the legal status of the sea. While before the breakup of the Soviet Union the legal status of the sea was regulated by the Treaties of 1921 and 1940 between the Soviet Union and Iran, each of the several new independent states on the Caspian claims its own “share” of the Caspians riches. Negotiations over more than a decade resulted in the adoption of the principle “shared seabed-- common water” and signing of agreements between Russia and Azerbaijan, Russia and Kazakhstan, and Azerbaijan and Kazakhstan. However, complete consensus has not yet been reached, preventing the signing of the Convention on the Legal Status of the Caspian Sea.