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A Journal of Foreign Policy Issues



Greek Foreign Policy Perspectives in the Caucasus, Black Sea and Central Asia

By Ambassador Alexandros Philon, Secretary General, Ministry of Foreign Affairs.

From the demise of the Soviet Union in 1991 and the disintegration of the bipolar international system, the international community witnessed the subsequent rise of the Newly Independent States in Central Asia and the Caucasus region. The nation-building processes of the new states that emerged, are linked to increased levels of external participation in the socio-economic development of the three countries in the Caucasus (Georgia, Armenia, Azerbaijan). In addition, new opportunities have appeard in developing links and multi-faceted forms of cooperation with the five countries of Central Asia (Turkmenistan, Uzbekistan, Tadjikistan, Kazakhstan, Kirghizia).


Unfortunately, over the past six years, several countries have experienced political and economic turmoil. The fate of what is left of the former Soviet Union is linked to the eruption of ethnic tensions, irredentism, secessionist movements, religious upheavals and increased levels of external intervention, which have threatened the overall stability and progress of this important region.

In short, the matrix of national identities, mentalities, goals and instruments has changed significantly as political and commercial competition for control and exploitation of the vast oil and gas resources - in the Caspian Sea and elsewhere - has led to a new "Great Game" with high stakes (power, influence, security and wealth).

Of particular importance to Greek interests is the fact that the vast quantities of crude oil from Azerbaijan and Kazakhstan will soon be channeled to Russian and Georgian Black Sea ports and from there to the international markets. As these quantities cannot all be shipped through the Bosphorus, Greece is having consultations with Bulgaria and Russia to establish a joint venture with the private sector to construct and operate an oil pipeline from the Bulgarian port of Burgas to the Greek port of Alexandroupolis, which will facilitate the flow of some of this oil to the Mediterranean.

Greek foreign policy, despite the problems faced by these states, stemming from their structural and political evolution and the surrounding regions, aims at further developing, at all levels, institutional links with these countries, based on historical and cultural affinities as well as economic and commercial experience.

In responce to the new challenges posed by the economic and commercial opportunities in this region as well as other emerging markets in the world, the Greek Foreign Ministry has in recent years been actively promoting Greek business abroad both by setting up a department in the Ministry for coordination with other responsible Ministries and Agencies as well as with organisations of the private sector. Instructions have been sent to Greek Embassies and Consulates to give the highest priority to fostering, with the assistance of the Commercial Sections, economic and commercial ties with the business community in the country in which they serve and to assist Greek businessmen and businesswomen. The adaptation to the mentality of "economic diplomacy" is beginning to bear fruit, especially now that diplomats are also rated for promotion according to their performance in this field.

Bilateral Relations

Greece has embarked, in the past few years, on establishing bilateral contacts with most of the former Soviet republics. More specifically, in the Caucasus region, Greece has developed excellent relations with:

a) Armenia: Ties with the Republic of Armenia are based on long historical links and common experiences, as well as on cultural and religious affinities. Greece recognised Armenia's independence on December 31, 1991 and established an Embassy in Yerevan, in 1993.

At the political level, there have been frequent exchanges of visits by Government officials, including Foreign, Trade and Economic Ministers. On June 17-18, 1996, the Armenian President Levon-Ter-Petrossian paid a State-visit to Athens, during which, among other bilateral Treaties, a Friendship and Cooperation Agreement was signed.

A broad cooperation has also been developed in the defense, parliamentary, economic and technological fields while other agreements in the trade, tourism, public health, transport, scientific and cultural relations are in the process of implementation. Greece, also provides humanitarian assistance and relief aid, in order to cover pressing needs of the people of Armenia. As far as the Greek business presence is concerned, the trade volume between the two countries, from 1993 up to date, has seen a 100 fold increase, admittedly from an original low level. This increase has been encouraged by the $ 10 million credit line that the Greek Government has put in place. This credit line, although not yet activated, has nevertheless given a strong signal to Greek entrepreneurs to develop in the future their business activities with Armenia. These entrepreneurs have been particularly interested in telecommunications, energy, banking and public works. The Black Sea Fiber Optic Cable System (BS -FOCS) that will link the Trans - Caucasus States with the international Cable System (Trans Asia - Europe) has received special attention from Greek telecommunications community.

b) Georgia: The Republic of Georgia's independence was officialy recognized by our country on March 23, 1992. The Greek Embassy was opened in Tbilisi on August 1, 1995. Ties between the two nations are based on links going back to semi-mythical heroic times, on cultural affinities and a common religion. At the political level, a number of visits by cabinet ministers of both countries have taken place, and many agreements on the fields of parliamentary, economic and technological cooperation, culture, transportation and communications have been signed.

The trade volume between the two countries has increased 200 times from 1993 to 1996. Creece has initiated a $ 15 million credit line with Georgia in place since mid-1996 that has helped very effectively Greek exports to Georgia. Greek investments in this country have multiplied by 80 times since 1993 and it is envisaged that by the end of 1998 they will reach $ 100 million.

Sectors that particularly attract the attention of the Greek business community are telecommunications, energy, transport (by sea, land and air) banking, tourism as well as business and legal consultancy.

c) Azerbaijan: The Greek Embassy was established in Baku in May, 1993, and an agreement on Economic, Industrial and Trade Cooperation has been signed, while a number of other agreements are being prepared for signature. Visits at ministerial level have taken place in the last three years, while Greece has also contributed to humanitarian aid to this country.

Between 1993 until September 1996, the trade volume with this country has also increased 100 fold. Greek investment in Azerbaijan is focused on oil products and telecommunications but importance is also given to the sectors of food, footwear, construction and public works as well as agricultural products and tourism. Greece is also following with particular attention the evolution of Azeri oil field output and other developments of this oil industry and the pipeline projects.

Finally, it should be mentioned that the visit of the Greek Foreign Minister Mr. Theodoros Pangalos to Yerevan, Thilisi and Baku in early April 1997, has given a new impetus to the cooperation between Greece and the three countries.

As far as the Central Asian Republics are concerned, official political and economic contacts have been established. A Greek Empassy has been recently established in Almaty, the capital city of Kazakhstan, while during a recent visit of the Greek Minister of Foreign Affairs Mr. Theodoros Pangalos, in Uzbekistan (November 1996), it was announced that a Greek Embassy will open in Tashkent, in 1998. The recent state visit of UzbekistanÕs President Mr. Islam Karimov to Athens (March 31 - April 2, 1997) has further enhanced our bilateral relations and several treaties, including a Friendship and Cooperation Agreement, have been signed.

Moreover, Greece participates, at the multilateral level, in various international initiatives concerning these countries within the context of the European Union, the Atlantic Alliance, the Organization of Security and Cooperation in Europe and the Black Sea Economic Cooperation whose activities we fully support and hope that with the functioning in the near future of the Black Sea Trade and Development Bank based in Thessaloniki a further impetus will be given to this ambitious project.

The Greek Diaspora

An important factor in the overall approach of GreeceÕs foreign policy in the Caucasus and Central Asian region is related to the historical presence of almost half-a-million people of Greek origin. Most of them live around the Black Sea area, and the southern part of the Russian Caucasus. More than 120,000 people of Greek origin live in cities and villages of the Stavropol and Krasnodar Administrative Regions, (Oblasts) specifically in Anapa, Gelendzik, Sochi, Essentuki, Piatigorsk, Mineralnye Vody, Vladikavkaz (in Nothern Ossetia), Machachkala (Dagestan) etc., while more than 125,000 people live in eastern and southern Ukraine mainly concentrated in the Mariupol and Donetsk areas in the Azov Sea as well as in the Crimean Penninsula and in the historic city of Odessa.

In addition, a great number of Greek origin Pontic people (about 80,000) live in Georgia (Tbilisi, Rustavi, Kutaisi and the mountainous villages of Tsalka) as well as in neighbouring Armenia (5,000 in Yerevan, Allaverdi etc.).

As far as Central Asia in concerned, important populations of Greek origin live in Kazakhstan (40,000 people in Almaty), in Uzbekistan (approx. 5,000 people in Tashkent) and fewer in Kirghizia (600 people in Biskek).

A high foreign policy priority for Greece, is to ensure the well-being of these people and the further development of economic, linguistic and cultural links with their mother country in order for them to play an effective role as a permanent link of friendship and cooperation between our respective countries.

Prospects

It seems that a more peaceful world order, in a post-bipolar setting, will encourage post-cold war leaderships to move towards increasing levels of democratization, building institutions and adapting the legal framework in the context of pluralistic socio-political direction.

By the same token, successful integration into a free-market economic system, requires the introduction and implementation of economic and related legal reforms, in order to modernize existing economic structures and cope with pressing socio-economic problems, in an era of transition.

In this complex process, the international community should also ensure that a mechanism for peaceful settlement be set-up on the basis of international law and treaties and as provided for by international organisations, in order to avert any further destabilization in the Trans-Caucasian and Central Asian regions and to facilitate an easing of existing tensions.

Greece, a democratic country and a member of the European Union, the Western European Union, the Council of Europe, NATO as well as of the OSCE, has intensified her efforts in order to develop diplomatic links and to promote economic and cultural ties with the Newly Independent States. In doing so, Greece makes use of the existing opportunities in order to act as a factor of stability in the transitional phase of the post-Soviet republics. Moreover, enterpreneurial activities, long historical ties and the existence of an important Greek - origin diaspora in many of these states, can ensure that our country will contribute positively, to the development process, prosperity and well-being of the peoples of the region.

As the 21st century approaches, the geopolitical transformation of the entire region and its increasing importance, offers our country new opportunities to secure a more active role in the establishment of new projects of bilateral and multilateral cooperation. For Greece's foreign policy, cultural links and business activities, the Caucasus and Central Asia are becoming not so much a newfound but a rediscovered land of opportunity.