Press Release of Senator Lugar Lugar continues his energy security mission in Azerbaijan Tuesday, January 15, 2008 U.S. Sen. Dick Lugar met with senior government officials and opposition leaders in Baku, Azerbaijan on January 13 and 14, 2008.   In Baku, Lugar reaffirmed his call for President Bush to appoint a special representative for energy in the greater Caspian region.   “Appointment of a special representative for energy would be a clear statement of high-level U.S. priority for this strategically critical region. Failure to demonstrate U.S. commitment will jeopardize progress on trans-Caspian energy cooperation, with potentially devastating impacts on long-term U.S. security and economic interests in the region,” Lugar said.   In a letter to Secretary of State Condoleezza Rice on October 4, 2007, Lugar joined with Senate Foreign Relations Committee Chairman Joe Biden in calling for such a position, stating: “further opening of the East-West energy corridor from Central Asia through the Caucuses and on to Western markets should have the full backing of U.S. diplomacy…The Baku-Tbilisi-Ceyhan pipeline effort was a bold strategic initiative that today reaps tremendous benefits…We must not lose sight of our long-term interest in preventing Russian domination of energy in the Southern Caucasus and Central Asia.”   In Baku, Lugar met with President Aliyev and the first lady, opposition leaders, the Executive Director of the State Oil Fund, President of the State Oil Company of Azerbaijan, and other officials.   Senator Lugar is traveling to Kazakhstan, Turkmenistan, Azerbaijan, and Ukraine to promote increased cooperation on energy security.   “It is a tribute to Azerbaijan that they are using their energy resources to the benefit of global security. Building pipelines and opening energy production to foreign markets requires difficult foreign policy decision-making,” Lugar said. “This is a tough neighborhood, and countries here are under tremendous pressure to keep their distance from the United States. I thanked President Aliyev for taking concrete steps to affirm his country's strategic partnership with the United States.”   Connecting Azerbaijan's energy infrastructure with Kazakhstan and Turkmenistan was a key issue for discussion between Lugar and Azerbaijani officials. Lugar encouraged continued progress on rapprochement between governments in Baku and Ashgabat. “I heard encouraging statements toward improved relations and cooperation on energy in both Ashgabat and Baku. There is willingness for progress.”   Operated by British Petroleum, the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and parallel South Caucusus Pipeline (SCP) for natural gas cross Azerbaijan, Georgia and Turkey to deliver oil and natural gas to global markets. Integrating some oil and gas production in Kazakhstan and Turkmenistan would diversify export routes for those countries and import sources for European nations. Successful integration of such trans-Caspian transport routes was described by Lugar as a “vital contribution” to international peace and security.   Lugar also encouraged continued progress on transparency for oil and gas revenue management. “In some countries oil and gas revenues are a curse, leading to corruption and conflict. Two years ago President Aliyev pledged to me that Azerbaijan would follow the Norway model in managing its oil and gas revenues. It is now on a path of transparency and is investing for development today and for future generations. I am hopeful that progress in Azerbaijan will continue and other emerging countries learn from Azerbaijan's example.”   Lugar successfully included an authorization for U.S. support for the Extractive Industries Transparency Initiative in the energy bill signed by President Bush in December 2007. Azerbaijan manages extractive industries revenues through the State Oil Fund of the Republic of Azerbaijan and is a member of the Extractive Industries Transparency Initiative.   # # #