Energy Cooperation Opportunities in the Caucasus

The paper deals with the design of the framework for the energy co-operation opportunities in the Caucasus, based on the paradigm of 'pipelines harmonization.' Azerbaijan has a clear comparative advantage. Because of the special geographic features of the Caucasus, the use of Azerbaijan’s transport potential largely depends on other country in the region - Georgia. Georgia’s main comparative advantage is its geographic location on the restored Great Silk Road - the central corridor joining Europe and Asia. To intensify economic partnership between Azerbaijan and Georgia the new approach for the energy co-operation has to be developed