The Treaty on the Legal Status of the Caspian Sea
The Treaty on the Legal Status of the Caspian Sea will allow attracting new investments in the region. Professor of the University of Economy in Budapest Pal Gyene shared his opinion. The Convention on the Legal Status of the Caspian Sea was signed by the leaders of the Caspian littoral states at a summit in Kazakhstan. The document finalized negotiations on the Caspian Sea’s legal status. According to the Hungarian expert, adoption of the official treaty allows the littoral states to launch new projects, such as the TransCaspian gas pipeline between Turkmenistan and Azerbaijan. The expert believes that the project will have a positive influence on the economic growth of the signatories.
PAL GYENE, PROFESSOR, UNIVERSITY OF ECONOMY, BUDAPEST:
- The disputed status of the Caspian Sea was obviously not very attractive for investors, so the fact that at least a partial agreement was reached is a positive development. According to some estimates, the Caspian region currently has the largest untouched reserves of natural oil and gas. Fuel prices are dependent on very complex international circumstances, but when it comes to the legal framework, this agreement can be considered a step forward.