On 5 March Turkmenistan and Azerbaijan made an important step towards the normalization of mutual relations that had been very tense under Turkmenbashi rule.

Representatives meeting for the third time in just two months achieved a breakthrough on a 16-year debt dispute on March 5, providing a glimmer of hope to proponents of a trans-Caspian pipeline that would bring Turkmen natural gas to Europe without crossing Russian or Iranian territory.

Under the deal, Turkmenistan will reportedly receive by the end of the year nearly $45 million of the $56 million it claims it has been owed for gas supplies since 1991-92.

The compromise was reached during the visit of the Turkmen government representatives in Baku. The Turkmen delegation was headed by officials who rank as the most influential politicians in President Berdymukhammedov’s inner circle - Deputy Prime Minister Hydyr Saparliev and minister of foreign affairs Rashid Meredov. The compromise is an important step towards the construction of a Trans-Caspian gas pipeline, as close cooperation between Azerbaijan and Turkmenistan is necessary for the accomplishment of this project.

The Turkmen-Azerbaijani agreement is a success not just for the two mentioned states, but also for the USA and the European Union, who have tirelessly lobbied for the construction of the Trans-Caspian pipeline. For over a year now, the US and the EU have strived for solving the problems that Baku and Ashgabat have disputed over. Now the negotiators are going to face an even greater challenge, i.e. the ownership dispute over an oil and gas field placed right in the middle of the Caspian Sea. The Azeri call it Kiapaz and the Turkmen - Serdar. Both states have set up claims to this field.

This time it’s really big money involved so the negotiations promise to be very tough. It cannot be ruled out, however, that the both parties will try to reach a compromise prior to Berdymukhammedov’s visit in Baku, scheduled for the nearest months.

By the way, should someone be interested in the location of oil and gas fields in the Caspian Sea (including the contentious ones) - here’s an exact map.