Page "History of Central Asia" Paragraph 55

Despite these reservations and fears, since the late 1980s, Azerbaijan, Kazakhstan, and Turkmenistan have gradually moved to centre stage in the global energy markets and are now regarded as key factors of the international energy security.

Azerbaijan and Kazakhstan in particular have succeeded in attracting massive foreign investment to their oil and gas sectors.

According to Gawdat Bahgat, the investment flow suggests that the geological potential of the Caspian region as a major source of oil and gas is not in doubt.

Russia and Kazakhstan started a closer energy co-operation in 1998, which was further consolidated in May 2002, when Presidents Vladimir Putin and Nursultan Nazarbayev signed a protocol dividing three gas fields-Kurmangazy, Tsentralnoye, and Khvalynskoye-on an equal basis.

Following the ratification of bilateral treaties, Russia, Kazakhstan and Azerbaijan declared that the northern Caspian was open for business and investment as they had reached a consensus on the legal status of the basin.

Iran and Turkmenistan refused however to recognize the validity of these bilateral agreements ; Iran is rejecting any bilateral agreement to divide the Caspian.

On the other hand, US ' choices in the region ( within the framework of the so-called " pipeline diplomacy "), such as the strong support of the Baky pipeline ( the project was eventually approved and was completed in 2005 ), reflect a political desire to avoid both Russia and Iran.